MAXING OUT YOUR 401K NOT FOR EVERYONE (AS REPORTED BY ALLISON SCHRAGER ON WWW.QZ.COM)

One common piece of personal finance advice, readily available from sources as reputable as a recent article featured on the NY Times, is to max out your retirement savings account. For those people lucky enough to be offered a 401k plan by their employer, this can seem like the obvious choice.

The problem is, for people who need money today to pay the bills, contributing to a retirement account locks up critical income that can only be touched later in life, or else heavy financially penalties will be imposed. And while some employer-sponsored plans offer employees a match, which essentially increases the employee’s pay, one must give up liquidity to get it. So while it might be good advice for most, it’s not for everybody.

For more, read the full article here.

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