Few dispute the wisdom of starting to save at an early age. But where you save is another matter. It may be best not to lean so heavily on a tax-advantaged retirement account, new research from Allianz Life Insurance Co. suggests.
With Social Security benefits eroding and traditional pensions disappearing, tax-advantaged employer-based plans have become many peoples’ primary source of retirement security. That’s not likely to change. But these plans have the obvious drawback of triggering penalties for early withdrawal. You can borrow from them. But that is not a great option.
