Should you max out your 401(k)? If you’re making good money, already saving consistently, and have extra cash flow, it can feel like the obvious next step.

But maxing out your 401(k) is not automatically the best financial decision — especially if most of your money is tied up in retirement accounts and you want more flexibility before age 65.

In this episode of She’s Talkin’ Money, I’m breaking down how I actually think through this question with clients. We’ll talk about when employer matching matters, where Roth accounts fit in, why liquidity deserves more attention, and why a taxable brokerage account may sometimes make more sense than immediately increasing your 401(k) contribution.

I’m also challenging one of the most common pieces of retirement advice: that if you’re not maxing out your 401(k), you’re somehow falling behind.

Because the goal isn’t to hit an arbitrary contribution limit. The goal is to build a financial life that gives you options.

We’ll cover:

• what I want to know before telling someone to increase their 401(k)
• the order I typically think about saving and investing
• why Roth money can be such a powerful part of your plan
• the difference between an emergency fund and what I call a “freedom fund”
• why net worth and financial flexibility are not the same thing
• when the tax deduction from a traditional 401(k) is actually worth prioritizing
• and when maxing out your 401(k) may make perfect sense

If you’re in your 40s, earning well, and starting to wonder whether you really want to work the same way until traditional retirement age, this episode is for you.

Don’t make yourself retirement rich and life poor.

Be sure to share this episode with a friend!

Shari Rash is a financial planner and Investment Adviser Representative of GWA Wealth, a Registered Investment Adviser. This podcast is for educational purposes only and is not personalized investment, tax, or legal advice. Nothing discussed should be considered a recommendation, and listening does not create an advisory relationship. Investing involves risk, including possible loss of principal. Please consult your own financial, tax, or legal professional before making decisions based on your individual circumstances.

Learn more about your ad choices. Visit megaphone.fm/adchoices