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Three better ways to save for retirement than a traditional 401 (k)

Three better ways to save for retirement than a traditional 401 (k)

We’ve all heard that the 401(k) has its advantages as a foundational retirement planning account. However, there are other vehicles available that might prove to be even more desirable when it comes time to retire.

Traditional 401(k)s come with restrictive rules governing when you can withdraw money. In most cases, you’ll need to be at least 55 to avoid penalty (except in the case of unusual hardship, where various amounts may be loaned or withdrawn). Many 401(k) plans also come with high fees and a limited investment menu. And last, many plans require that you work for your employer for a certain number of years before the entire account is actually yours.

Here’s a look at three ways to save for retirement completely independent of your employer-sponsored 401(k).

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Gordon Fox is the editor of investinglate.com and writes about Investments, Savings, and how to make the most of your money