Other ways of investing money other than 401 k?

does anyone have money invested in other money market accounts, stocks, etc besides 401k? i want to see my money grow. but id like to have access to it before im 60 years old. without being charged a penalty. or is the 401 k the best option?

Well, I wouldn't deduct from the 401k

I buy real estate mostly, but also stocks. In the 90's that is how I made most of my money (about 400k a year), stocks, but I lost a bunch in 2000 and backed off. Just dipping my feet again.

Stocks, investment funds

Generally you should contribute as much as you can to your 401k, because it will grow tax free. You'll get much more return on your money that way than having to pay taxes every year on a non-retirement account. You won't have access to the money for a long time, but believe me, when the time comes you'll sure be glad you did it. In addition, you can and should contribute the maximum $4000 per year to a ROTH IRA if you can afford it. (You have until April 17th to make a contribution for 2006.) You should also have 3-6 months expenses in a regular cash or money market account.

If you've maxed out your retirement contributions, here's what I recommend:
Money market account with Fidelity or Vanguard, or HSBC Direct online savings for your emergency cash
Fidelity Spartan Total Market Index ($10K minimum)
Fidelity Spartan International Index ($10K minimum)
Vanguard stock index funds if you don't meet the above minimums
Vanguard bond fund (taxable or tax exempt, depending on your tax bracket)
Fidelity Total Bond
Vanguard REIT index

I stay away from individual stocks because they're too risky, and actively managed funds because of their high expense ratio for returns that don't usually beat the index funds.

You should absolutely have savings/investments for other goals besides just retirement.

For short term goals (1-2 years) I have a money market fund that pays 5.23% (Vanguard Prime Money Market-minimum $3000).

For medium term goals (3-7 years) I invest in the the Vanguard Total Market Bond Index. It's cheap, pays more than a money market, but is still pretty safe.

For long term goals (7+ years) I invest in the Vanguard Life Strategy Growth Fund. It's a collection of index funds that's currently 90% stocks--it has 10% bonds, 15% international, 30% that can vary from all stocks to all bonds/cash, and 45% Total US Stock Market Index.

You have to list your goals and prioritize them. Retirement's important to me, but many of my important goals are shorter term--buy a home, pay for a wedding, pregnancy, etc. So I focus on saving for those equally with retirement.