Why I wouldn't max out my
#401k ? Mostly for 2 reasons. 1. It ties up your
#money until 59 1/2. What if there's a financial emergency or investment opportunity to capitalize on? Tough to do that because you'll pay tax penalties on distributions before 59 1/2. 2. Because your 401k is invested in stocks and bonds, the
#retirement #cashflow isn't nearly as much as you'd think! Look up the safe withdrawal rate or 4% rule. You can only safely withdrawal 4% of your money each year without the risk of running out. That means $1 million will only give you about $40,000 / yr of
#retirementincome Now, I'd at least get the match because that's free money. After that, I'd save my money in other assets. One of my favorite retirement assets is a properly designed
#cashvaluelifeinsurance plan. A max funded
#lifeinsurance policy can be used to distribute
#taxfree income during retirement at a higher rate than the typical 4% rule. You also have access to your funds before 59 1/2 without tax penalties. If you want to dramatically increase your income without taking on more market risk, a specially designed life insurance plan could be a good fit! Comment "money" below if your interested in learning more!
#financialliteracy #compoundinterest #safemoney #generationalwealth #wealthymindset