Common financial wisdom says to invest heavily in your retirement plan (e.g 401k in the USA, Superannuation in Australia, and Pension Plan in the UK), yet our Pay Yourself Twice plan is aimed at increasing your savings outside of your retirement plan!
But, there are two supposed advantages of investing in your retirement plan that you lose when you invest outside of that plan:
1. Tax advantages, and
2. Employer contributions (e.g. in the USA, this is called the ’employer match’)
In this KLE we’ll investigate the four reasons why your retirement plan is inadequate – even with the advantages of the tax breaks and ‘free money’ (by way of the employer match) thrown in!
In the next KLE, we’ll put the microscope on that tempting employer match.
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