If reducing your 401k contributions means you losing your employer match - that answer would be definite NO, it would be very unwise to give up free money. However, if your employer does not offer matching contributions or if you contribute more than the match - then you should lower your contributions to get the full advantage of employer match limit and rest can direct either in an IRA (which can be invested in alternative assets such as real estate) or grow your personal savings that you can then invest as you wish.