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The federal government places limits on how much you can invest annually in a 401(k) retirement plan. In 2024, annual employee contributions are limited to $23,000. If you are over 50, you can invest an additional $7,500 as a catch-up contribution.

If you’ve maxed out your 401(k) and still have additional cash left to invest, there are plenty of opportunities for long-term and short-term savings that will deliver high yields.

Traditional IRA

An individual retirement account provides another investment vehicle after you’ve maxed out your 401(k). You won’t gain the advantage of employer contributions, but a traditional IRA provides tax advantages since you fund it with pre-tax dollars.

Roth IRA

Like a traditional IRA, a Roth IRA is another retirement savings vehicle. A Roth IRA provides tax advantages in retirement, since it’s funded with after-tax dollars. You don’t pay taxes on withdrawals in retirement. It can be an effective part of your retirement planning to reduce your tax liability in your later years.

There is a maximum annual contribution of $7,000 for people under the age of 50 and $8,000 per year for those ages 50 and up across all IRAs. There may be additional limits to your Roth IRA contributions based on your income, according to GOBankingRates.

High-Yield Savings

Saving for retirement is an honorable goal, but how is your emergency fund looking? Consider boosting your cash reserves in a high-yield savings account. If you can manage it, putting away six to 12 months of living expenses will provide security and peace of mind in an uncertain economy.

Invest in Stocks Through a Brokerage Account

In the long term, the S&P 500 has delivered yields of more than 10% when you reinvest dividends over 20 years, according to TradeThatSwing. While stocks can be risky, a well-balanced stock portfolio can be a positive addition to your retirement savings plan, especially if you have decades before you retire.

Deferred Annuities

If you’re closer to retirement age, it’s worth considering a deferred annuity account. A deferred annuity account allows you to make a lump sum payment or a series of payments to an insurance company. The insurance company invests the money, and you can withdraw the funds monthly when you retire, almost like a personal pension, according to GOBankingRates.

An annuity can be complicated to understand, and there are different types of annuities based on your risk tolerance, so it’s best to consult with a financial advisor before investing.

Precious Metals

Gold and silver provide a tangible means of preserving wealth, which makes these precious metals attractive to many investors. Plus, the value of gold has risen by 55% to 60% in the past five years, Jonathan Rose — CEO of Genesis Gold Group — previously told GOBankingRates.

You can roll funds from an IRA, Roth IRA or 401(k) into gold bars, Rose said. Gold and silver are not tied to the overall financial markets in the same way stocks or mutual funds are. “Crypto, stocks, and equities are all paper-based assets and items that really correlate to events in the marketplace that can have a negative impact on their value,” he explained.

“On the other side of that scale, you have precious metals,” he said. “People like the fact that having something tangible gives them peace of mind.”

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