I Used to Think a 401(k) Was the Best Retirement Savings Tool. But Here Are 4 Issues to Know About.

When I first started working full-time, I didn't have access to a 401(k) through my job, and that annoyed me.

Sure, I was able to save for retirement in an IRA instead. But I had to actively fund that IRA myself, whereas with 401(k)s, contributions are taken as payroll deductions.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Plus, not having access to a 401(k) plan meant no workplace match. So that felt like a huge disadvantage (though to be fair, subsequent jobs I had offered 401(k)s, but there was no match available in any of those plans).

While I used to wish for a 401(k), I'm no longer convinced it's the best retirement savings tool out there. Here's why you may want to look elsewhere.

Many 401(k) plans include costly administrative fees that can eat away at your returns. Those aren't fees you can control.

If your 401(k) charges administrative fees above 1%, you may want to consider only contributing enough to your workplace plan to get your match. Beyond that, an IRA could be less expensive.

With a 401(k), you're generally limited to a variety of investment funds. If your 401(k) has a good selection of low-cost index funds, you may be in good shape. If not, you may be looking at hefty investment fees.