Why I'm Adopting a New Savings Strategy After Years of Maxing Out My 401(k)

The Motley Fool

by newsfeedback@fool.com (Maurie Backman)

February 23, 2026

AI-Generated Deep Dive Summary

Maxing out a 401(k) has long been seen as a cornerstone of retirement planning, offering significant tax benefits and allowing individuals to save substantial amounts each year. However, after years of consistently maxing out their 401(k), the author realized the need for a broader savings strategy. While 401(k)s are excellent tools for retirement saving, they may not be sufficient on their own, especially in today’s financial landscape where additional income streams and diversified investments can play a crucial role in long-term security. The author shares their journey of contributing to a 401(k) while employed as a salaried worker and later transitioning to a solo 401(k) when they became freelance. This shift allowed them to continue leveraging tax-advantaged retirement savings, but it also highlighted the importance of exploring alternative strategies to complement their existing plan. By diversifying their approach, they aim to create a more robust financial foundation that aligns with their evolving career and personal goals. For readers interested in finance and investing, this story underscores the value of staying proactive and adaptable when it comes to retirement planning. While maxing out a 401(k) is undeniably beneficial, it’s equally important to explore other avenues for savings and investment growth. Whether through side hustles, additional investment accounts like HSAs or IRAs, or alternative income streams, diversifying one's financial portfolio can help ensure greater security and flexibility in the years ahead. This approach not only strengthens retirement readiness but also demonstrates the importance of tailoring financial strategies to individual circumstances. By staying informed and open to new opportunities, readers can take charge of their financial future and build a more resilient savings strategy—one that goes beyond traditional retirement accounts to create a comprehensive plan for long-term success.

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Originally published on The Motley Fool on 2/23/2026