It’s true that 401(k)s can be excellent places to start investing for your retirement. Indeed, if you get a match on your contribution, investing to maximize that match is hands down the first investment you should make. Yet once you get beyond that match, there are often good reasons to pick a different approach than simply throwing more money into your 401(k).
Those reasons include better flexibility, more investment choices, lower overhead costs, and more customizable withdrawal options in retirement. When you look through the lens of your total financial picture, it can start to make sense to look at other accounts first, before going back to your 401(k) for investments above your match amount. With that in mind, these three retirement strategies can run circles around a 401(k), if used correctly.
This post originally appeared at The Motley Fool.