The Unfortunate Truth About Maxing Out Your 401(k)
Your 401(k) can be an incredibly powerful tool when it comes to building a comfortable nest egg for retirement. It's so powerful, in fact, that if your goal is to retire with a modest lifestyle at a standard retirement age, it might very well be the only tool you need to use to get there.
Yet as awesome as your 401(k) plan can be, the unfortunate truth about it is that maxing out your 401(k) might not be the best use of your money overall. After all, you will have to balance multiple financial priorities throughout your working life. The restrictions and downsides when it comes to 401(k) plans mean that over-saving for your retirement in those plans could make it harder for you to reach your other financial goals.
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Source Fool.com
