You’ve probably heard it a million times: max out your 401(k). That advice ranks right up there with "eat healthy" and "get regular exercise." No doubt, this retirement savings strategy, which relies on funding your 401(k) up to the contribution limit, can boost the size of your nest egg. But putting every spare penny of savings into a traditional 401(k) is akin to putting on a financial straitjacket.
Just like the downsides of being house rich and cash poor, it’s possible to have a sizable nest egg and still run into liquidity issues or other money-related obstacles that can put stress on your finances.
