Max Out 401k For Retirement?
Chris has gotten a piece of investing information that's both good and bad at the same time.
ANSWER: You should look elsewhere, but not in something more accessible. You should go to a Roth IRA because it will grow tax free. Tax free is much better than tax deferred. The best way to invest for retirement is the match – that’s what you want to do first; then tax-free investments; and, finally, tax-deferred.
At Baby Step 4, you need to be investing 15% of your income for retirement. First, match your 401k. Then, fully fund two Roth IRAs (one per person), which is $4,000 each for the year. If the total of those two savings is still less than 15% of your income, then go back to the 401k and put the remaining percentage in it.