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A 401k is one of the ways you can use to retire. However in many ways they work better as a backup plan. After all the plan has everything someone would want for a backup plab.

I’ll explain my reasoning, but for those of you who aren’t sure what the plan is let us look at the question what is a 401k? This is a retirement savings plan which helps emplyees save. Both the money that is invested in the plan as well as the interest which that money makes is tax defered. This means that you do not have to pay taxes on it until you actually take the money out.

Normally a 401k can work well for a slow and steady growth over time. So why do I say that it is a great plan B and not a plan A?

There are many other methods of retireing without having to wait 40 years or so to do it.

A 401k is simply trying to get you to retire once you are old and grey, in fact the 401k withdrawal rules Don’t look to favorable to people who are try to take money out of their account before they reach 59 ½ . Not sure about you, but 60 years seems to be a pretty old age to start your retirement at, unless of course you are in a job that you really want to stay in.

There are faster ways to retire. Instead of giving the best years of your life to a job that you really don’t even like you can always try to create wealth outside it, by starting a business or starting to learn stock market trading.

I believe that the only thing that really limits a person is there imagination, so why not shoot for the moon? Sometimes things do not turn out the way we planned.

That is where a 401k comes in. By shooting for the moon yet having some sort of security to fall back on you can aim high while still having security.