Many  studies have shown that most Americans feel they do not have enough money saved for retirement. It is a true saying that we should be saving money ,out of each paycheck, to set aside for our retirement. However, depending on your specific financial situation, putting the maximum allowable amount in 2020 for savers under 50, into an employer sponsored retirement account may not make sense. It is always prudent to look at one’s whole financial picture first to ascertain where the focus should be. If you have taken care of the 7 items listed below, then you may be in a position to max out contributions to that employer-sponsored retirement plan.

1. Do you have any high-interest credit card debt?
2. Have you built up an emergency savings fund with 3 to 6 month of living expenses.
3. Do you have adequate health insurance?
4. If you are married or have children, do you have adequate life insurance?
5. Do you have adequate disability insurance , in case you’re out of work because of injury or ailment.
6. Do you have a basic will or trust established?
7. If you are close to retirement age, do you have long-term care insurance?

Once you have these goals in place then you should be in a great position to finally max out that employer-sponsored 401(k) retirement plan.