Other Options May Be More Attractive
There’s no doubt that 401(k) plans have many benefits, but at the end of the day, you might do just as well — or even better — with a different type of account. The limited investment options in a 401(k) plan might be the biggest culprit, as most don’t allow investments in some of the more speculative areas of the market.
Most 401(k) plans also don’t let you invest in individual stocks. While financial advisors don’t usually suggest that you put the bulk of your money into a single stock, a diversified portfolio of hand-picked, high-growth stocks might give you the type of return that you just can’t achieve in your 401(k) plan.
