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I don't know how good the advise is to max out 401K and other retirement account. Some of the 401K accounts have very limited choice of investment. For exampl
by ww520 13y ago
I don't know how good the advise is to max out 401K and other retirement account. Some of the 401K accounts have very limited choice of investment. For example, you can't do real estate investment.
If you know what you are doing, you might want to retain the money outside and do the investment yourself on investment that are not available in a typical 401K account.
- deleted 13y ago[deleted]
- eatmyshorts 13y agoLook at the costs associated with each of your 401K investment options. Usually, most plans include at least one that is not actively managed, and their management costs tend to be significantly lower. Additionally, but avoiding actively managed funds, you also avoid the "chasing the tail" syndrome that leads to almost all active managers under-performing index funds over time. Layer in the tax benefits of 401K accounts, and I think the advice to max out 401K and other tax-shielded investments, and to look for "inexpensive, well-diversified funds" is very good advice. If followed correctly (few do, from the sounds of the replies to this article), I think you'll find that the advice is sound.