An employer 401(k) match is effectively an immediate return on your contribution. Tax-advantaged accounts (401(k), IRA, HSA) also compound without annual tax drag.
Ask yourself
- Am I capturing my full employer match?
- Am I on track for my retirement savings target?
- Would this private investment replace contributions I would otherwise make?
Some investors hold private funds inside self-directed IRAs; this adds custodian costs and tax complexity (for example, unrelated business taxable income from leveraged real estate). Discuss with a CPA before doing so.
Your journey
More on this stage: Deep Dive: How 506(c) Accreditation Verification Works · Deep Dive: Calculating Net Worth Without Your Home · Deep Dive: Talking It Through as a Household
Start the next stage: Phase 2: Now you think you are an investor