To retire early, you should diversify your investments across multiple accounts (401k, brokerage, HSA) rather than concentrating all funds in a single 401k, as taxes and penalties make early retirement difficult when all money is in one account.
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Deep Dive
Should you max out your 401(k) to retire early?Added:
Should I max my 401k if I want to retire early? Yes, if you're also putting a lot of money into other places. If all of your money is in your 401k, you're going to have a very difficult time retiring early. Taxes, penalties, it's going to prevent you from doing so. If you can max your 401k while still putting a good chunk of money in your brokerage account, while still putting money in HSAs, while still putting money elsewhere, you're in a good spot.
[music] It's the moment all of your money is in your 401k, that retiring early is going to be quite tough.
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