I Used to Think a 401(k) was the Best Retirement Savings Tool. but Here are 4 Issues to Know About.

When I first started working full-time, I didn't have access to a 401(k) through my job, and that annoyed me. Sure, I was able to save for retirement in an IRA instead But I had to actively fund that IRA myself, whereas with 401(k)s, contributions are taken as payro

When I first started working full-time, I didn’t have access to a 401(k) through my job, and that annoyed me.

Sure, I was able to save for retirement in an IRA instead

But I had to actively fund that IRA myself, whereas with 401(k)s, contributions are taken as payroll deductions. Plus, not having access to a 401(k) plan meant no workplace match. So that felt like a huge disadvantage (though to be fair, subsequent jobs I had offered 401(k)s, but there was no match available in any of those plans).

While I used to wish for a 401(k), I’m no longer convinced it’s the best retirement savings tool out there. Here’s why you may want to look elsewhere. 1. High fees can reduce returns Many 401(k) plans include costly administrative fees that can eat away at your returns.

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