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FA Center: Why this adviser says maxing out a 401(k) might not always be the right move

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Everyone agrees that individuals should max out their 401(k). Well, almost everyone.

Steven Fox, an adviser in San Diego, Calif., likes to broaden his clients’ thinking when it comes to saving for retirement. Rather than urge them to stash as much as they can in tax-deferred investment vehicles, he sometimes suggests other strategies.

“I’ve had clients who were surprised to hear me recommend that they shouldn’t contribute to their employer’s 401(k) plan,” said Fox, who founded Next Gen Financial Planning in 2016. “It’s never a bad idea to save more. There just might be better options.”

Courtesy Steven Fox
Steven Fox.

Fox, 30, understands the pressures that his clients, mostly millennials, face as they ponder retirement.

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