As 401(k) balances swell, financial advisors warn of retirement planning pitfalls

Diversifying savings across Roth, taxable and pretax retirement accounts can improve flexibility. Gregory Hutchison, 72, is living most people's retirement dream. After a nearly 44-year career as an expert in information technology at IBM, Hutchison retired in 2021 with close to $1 million in his 401(k). He and his wife sold their home and downsized to a smaller house by the water in Snow Hill, Maryland, where he likes to go boating. "I don't live a lavish life, but I have enough to go out to dinner every night, if I want to, with my wife," he said. Even so, Hutchison said he wishes he had consulted with a financial advisor sooner. "There is so much you don't know -- the taxes, expenses are coming from places you didn't know existed," he said. "I got lucky," he said of his savings. "The stock market was growing."