You're contributing the maximum to a 401(k) and also maxing out your Roth or traditional IRA. But, as a master spendthrift, you still have additional dollars you could save to ensure your retirement is everything you hope for. What options do you have?

Make Sure You Have a Life Today
Aggressive saving is a habit that all financially responsible people share. But don't get carried away. Even though you'll want a fulfilling retirement in 2050, don't neglect your quality of life today. While you're young, remember to also spend money on current experiences with others: fulfilling hobbies, international travels, and group outdoor adventures should be at the top of your list.

Besides, if you're responsible enough to max out a 401k and a Roth IRA, then you probably also have a pile of cash sitting quietly in a savings account. You've setup an emergency fund already and are now looking for additional ways to put your dollars to work. If this is your situation, then trust us, you can afford to indulge yourself in a hot-air-balloon ride, a week in Spain, or a few days at the spa.

And after all of that, if you've still got some cash left over (lucky you!), then here are some other ways to set aside long-term dollars for retirement.

Are You Really Maxing Out Your 401(k) and IRA?
IRAs and 401(k)s have real advantages when it comes to saving for retirement. So, before you go any further, make sure you're really contributing all you can.

In 2007, most individuals can contribute up to $15,500 to a 401(k) plan, and up to $4,000 to a traditional or Roth IRA. What's more, if you file a joint tax return with your spouse, your spouse may be able to make a full IRA contribution, even if he or she has little or no taxable compensation.

Look at Deferred Annuities
If you are looking beyond 401(k)s and IRAs, one option you may be aware of is a deferred annuity. Deferred annuities are generally funded with after-tax dollars, but earnings are tax deferred, which means you don't pay tax until you take a distribution from the annuity. There's also no annual limit on contributions to an annuity.

The tax deferral offered by a deferred annuity is a nice feature, but it comes with some trade offs that you'll need to weigh carefully:

• There are usually costly fees such as annual expenses, investment management fees, and insurance expenses
• A surrender charge may be imposed if you withdraw funds within a certain period of time
• A 10% federal penalty tax (in addition to any regular income tax) may apply if you withdraw funds from an annuity before age 59½
• Investment gains are taxed at ordinary income tax rates, not at lower capital gains rates

Annuities do have some unique benefits beyond tax deferral. With annuities, you can elect an annual payment amount that is guaranteed for the rest of your life (the guarantee is subject to the payment ability of the issuing institution)--this relative degree of certainty can be psychologically and financially comforting. In addition, annuities may offer some creditor protection under state law.

Taxable Investment Accounts
Your other basic option is to invest through a taxable investment account. The lower federal income tax rates that apply to long-term capital gains and qualifying dividends go a long way toward taking the bite out of holding investments outside of a tax-advantaged retirement account like a 401(k) or IRA. And, a taxable investment account offers one enormous advantage: You gain a tremendous amount of flexibility. You can choose from a virtually unlimited selection of specific investments, and there's no federal penalty for withdrawing funds before age 59½.

Investment options worth mentioning:

• Index mutual funds and exchange-traded funds (ETFs) trade infrequently and therefore tend to have low annual taxable distributions
• Tax-free municipal bonds and municipal bond funds generate income that is free from federal and/or state income tax

Remember the Big Picture
Your investment decisions should be based on your individual goals, time frame, risk tolerance, and investment knowledge. You should evaluate every investment decision with an eye toward how the investment will fit into your overall investment portfolio, and whether it will meet your general asset allocation needs. A financial professional can be invaluable in helping you evaluate your options.