Most of us have heard of the benefits of a 401k. It’s great from a tax perspective, it’s what successful people do, so we are often recommended to max out our 401k.
However, before we dive into the 401k discussion deeper we have to establish a couple of things.
We often hear of 401k as part of an investment strategy but we have to realize that for every financial decision we make, it has to fit in with the big picture of what we’re trying to accomplish.
It’s not that 401k is good or bad, but it is situational. We have to understand both the advantages and the disadvantages to avoid any misunderstanding.
Learn more about the advantages and disadvantages of the 401k in this podcast.
Related: Exploring the Myth That You Will Be in a Lower Tax Bracket in Retirement