Read This Before You Max Out Your 401(k)
You'll need savings of your own to get by in retirement -- there's no question about that. Sure, you may have other income sources, like a small pension or Social Security benefits. But chances are, the bulk of your buying power during your senior years will come from the savings you amass.
Now you'll often hear that maxing out a 401(k) plan is a smart thing to do, since it clearly means socking away a lot of money for retirement. But before you go that route, you may want to consider some alternatives.
Let's get one thing out of the way. If your employer offers a 401(k) match, then it's a wise idea to contribute enough to that plan to snag that free money in full. But that doesn't mean you have to max out your 401(k), and you may not want to for a number of reasons.
Source Fool.com
