For many Americans, having a plan to leave money for their loved ones is a priority. According to a recent Empower survey, 40% of Americans say that leaving an inheritance for their children is part of having a happy retirement.

If this is one of your financial goals, you’ll likely need to look beyond your 401(k) to ensure you can save for your retirement and still have money left over.

Here are three strategies you should consider to help you build a financial legacy.

Diversify Your Retirement Savings

Look at accounts beyond your 401(k) to diversify your savings and investments, such as IRAs, brokerage accounts, annuities and real estate.

“Many retirees assume their 401(k) will carry them through retirement, but a single-source strategy probably isn’t going to cut it,” said Rob Edwards, founder of Edwards Asset Management. “Healthcare costs, inflation and unpredictable markets make it critical to diversify.”

IRAs offer unique advantages that you don’t get with 401(k) plans.

“Unlike most employer retirement plans, IRAs give you the whole menu of what you can invest in,” said Rafael Rubio, president of Stable Retirement Planners in Southfield, Michigan. “You have more options to increase your assets. Traditional IRAs grow tax-deferred and can affect your tax bracket. Monies you invest in a traditional IRA are subtracted from your earned income for tax purposes.”

Meanwhile, real estate can serve as an inflation hedge.

“Real estate investments or other comparable sources of passive income can safeguard against inflation,” Edwards said.

Evan Potash, executive wealth management advisor at TIAA, recommends utilizing brokerage accounts for their wealth transfer benefits.

“Taxable brokerage accounts are ideal for additional savings, offering no contribution limits and a step-up in cost basis when inherited, which avoids capital gains taxes,” he said. “For tax efficiency, invest in passive assets like individual stocks, ETFs, index funds or municipal bonds.”

Utilize Tax-Efficient Accounts and Financial Products

Using tax-efficient strategies is key to growing wealth to sustain your retirement. Roth IRAs and tax-deferred annuities can help minimize your tax burden while maximizing savings.

“Going beyond the 401(k), adding Roth IRAs provides more tax-efficient withdrawal strategies,” Edwards said. “If you’re looking for more predictable income, annuities can provide a guaranteed stream, but make sure you pay attention to those fees and terms.”

Roth IRAs are particularly useful for funds you want to leave behind.

“Roth IRAs grow tax-free, as long as you don’t touch your account for over five years,” Rubio said. “This will give you a tax-free bucket of assets to pull from your retirement, and your beneficiaries will inherit this tax-free.”

Get Your Estate Planning in Order

“A critical aspect of being able to retire comfortably is an estate plan that includes a last will and testament or a revocable living trust,” said Chris Cohan, estate and financial advisor at RJP Estate Planning. “These documents help ensure that your assets are distributed according to your wishes.

“For those with young children, naming a guardian is essential,” he continued. “Naming a power of attorney and having medical directives to help dictate who can make financial and medical decisions on your behalf in the event of incapacity is essential as well.”

Life insurance can also be an integral part of an estate plan.

“Life insurance can help protect you and your beneficiaries from taxes and other debts your estate may owe after your death,” Rubio said. “That’s because life insurance pays a death benefit to your beneficiaries tax-free.”

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