What Are Better Investments than a 401(k)?
Before we discuss the alternatives, let us take a closer look at 401(k) plans and what they are for. A 401k is a retirement savings plan that is offered by many employers in the United States. It is named after the section of the U.S. Internal Revenue Code that governs it.
With a 401(k), you contribute pretax money from your paycheck. Your contributions are automatically deducted from your pay and invested in the investments you selected from the plan’s options. Employers often match a percentage of your contributions.