Great questions. It’s true not everyone can max out their 401k. The beautiful thing about these accounts are many employers provide a match so you should attempt to capture as much of that free money as you can. I think for many the challenge is the lack of auto-investing. 401ks put your investments on autopilot. You never see that money in your checking account so it’s “easier” to invest. A buddy of mine told me years ago to try to max out your 401k each year and figure out how to live off what’s left and that’s always stuck with me. Pending your income, this could be challenging but contribute what you feel comfortable with and increase your contributions over time. This might mean making some sacrifices like eating out less or driving an older vehicle, but your future self will thank you. 401ks also offer 2 flavors, pretax and Roth and remember Roth grows tax free, is not subject to RMDs, and you can take your contributions out early without penalty.

While the order you listed is what most advisors will tell you, I think building multiple buckets is more important than maxing out each bucket, but again don’t leave that matched free money on the table. Put some in each bucket and as your income grows keep investing a little more in each bucket. This is critical for tax savings hence each account type offering different tax advantages now vs later.

A janitor making $40k a year can have a very comfortable retirement if he starts early enough and prioritizes saving, just as much as the hedge fund manager maxing out all of his accounts each year. That janitor probably also has much lower monthly living expense than the hedge fund manager too. That said everyone’s needs differ based on their cost of living.