3 Drawbacks of Using Only a 401(k) for Retirement
Some 60 million people are actively saving money to a 401(k). The workplace retirement account has advantages, such as employer-funded contributions and tax-deferred investment earnings. Still, 401(k)s are not perfect. Depending on your situation, a 401(k) on its own might not fully support your retirement savings goals.
To help you decide if you should save and invest outside of your 401(k), here is a closer look at three drawbacks of using only a 401(k) for retirement.
Your 401(k) is not free. You pay investment fees and, probably, administration fees. Your plan may also charge you for extra services, things like processing 401(k) loans or hardship withdrawals.
Source Fool.com
