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But there are folks out there who are able to max out their401(k) plans.
For people in this prosperous position, whats next?
How should they invest their money now that theyve used the full capacity of their 401(k)?
You have other options that will help you build retirement savings.
Embrace an IRA or a Roth IRA in addition to your 401(k) plan.
And its the first place you should give a shot to invest beyond your workplace retirement plan.
Also remember that you dont need to choose between a 401(k) plan and an IRA.
you’ve got the option to have both.
These are offered by investment management companies or brokerage firms.
Though brokerage accounts dont come with tax breaks, they boast a variety of strong perks in other ways.
The Ramsey team pointed out that with brokerage accounts, there areno required minimum distributions(RMDs).
The downside of a taxable investment account is you guessed it the taxes, the Ramsey team wrote.
These help diversify your portfolio.
But this isnt an investment to go into without a lot of deep consideration and budgeting.
HSAs dont have annual withdrawal requirements, so you might let your pre-tax dollars stack up.
The Ramsey team recommended maxing out your HSA.
Once you turn 65, your HSA is essentially a traditional IRA.
That means you might take out money for anything youd like, the Ramsey team wrote.
But youll pay taxes on it when you do just like a traditional IRA.
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