The 401k Is The Biggest Scam Of US Money History! EVERYONE SHOULD WATCH THIS
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- Опубліковано 12 вер 2024
- You've been brainwashed into believing that you should pour your hard earned money into a 401k while not having a clue what happens to it while it's in there. There are fees that eat away at your money. All the selling points you've been told are debunked in this video.
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Inflation is the real theft of America's wealth and locking up money away can't really keep up with the decline of buying power over time.
So then what? We go back to gold coins?
@@amphindian Bitcoin is the new "gold"
@@daw7773 is it? Explain how. It seems unstable
@@amphindian Gold prices fluctuate too. Look at the 5 -10 yr chart. No other asset will give you over a 1000% return in a 10 year period except crypto.
@@daw7773 can you give more data? I don't enough about crypto to trust it
Reason #3 is the most important. Control your own money at all times.
That is why I love a 401K I have control over it.
This is basically what I told all my coworkers in 1995. They thought I was crazy.
Today your coworkers are rich if they put money in the 401k and you aren’t
@@danielr951 I doubt it but I hope they are. I hate money. It wasn't my path. Life is too short. Hearses don't have luggage racks and pull u-hauls.
441,000 Americans have a million dollars or more just Fidelity IRAs and 401k it is not for everyone but most Americans should do it
@@danielr951 You're are going to shit when it all collapses real soon, including Bitcoin.
Yes Bitcoin will most likely collapse but I highly doubt my portfolio is going to “collapse” that’s would mean that most of the world economy collapse
I don’t participate in 401ks or IRAs at all. The money I save, I use to build my own stock market portfolio with private independent brokers.
almost anything that doesn't require you to lock away your money for half your life is a better solution than a 401k
At the very least you should do a Roth because then all your future gaines will be not taxed.
If you're not going to do traditional and traditional does make sense for most people for at least part of their investment do Roth because it's absolutely foolish to lose Roth space. You'll never pay a dime in taxes again on that money
@@MaxamillionEd so how about if you're 55 and invest in a 401k? Then you don't have to wait half your life. Then is it okay?
College itself and university school systems is also a huge scam
Hello do u talked to a banker?
I 100% agreed and that’s why I either contributed very little or nothing at all to my company sponsored 401K
smart! who wants the free dirty money company?
Same here. Only reason I have them is because companies put money in there but I never contributed to any except for the first job I had and after that zippo. I’ve done my own stuff plus have a few pensions and will be okay without this 401 k bs.
Amazing video man. I've been reading up on the 401k system for a few days and you just said everything that's taken me 10+ hours research in 8 minutes. Keep up the good work!
That means alot to me. I appreciate you.
I see the 401k as a way that companies got away from pensions, transferring all the risk to the workers, while making sure the government gets it's cut.
College itself and university school systems is also a huge scam
Yea loan debt big time!!!!
I agree !!
I got a 6 figure job at 22, wasn’t a scam for me. No loans too
No, the scam is having to pay for it to the amount that it is currently. We need to stop having corporate stooges on state board of regents, usually appointed by both Republican and Democratic governors. They want people to be in debt and indentured servants in order to hope to pay it off. However, if public universities were financed correctly, we would have a better educated society that would be better for society. Whether a person wants to go to college or a trade school, it should be free at the point-of-service. Also, we shouldn't have our health insurance system tied to employment since we're a complete international embarrassment on that front. ua-cam.com/video/RkNAm3D70Es/v-deo.html
Wrong major or plan is a scam. Depends on person situation
You didn’t even talk about a Roth . Pre taxed 401k. I feel bad for the people that actually took your advice
Pre taxed but still pay fees. And go look average rate of return vs real rate of return for these index funds.
@@steve-0g466 douuchhheeeeeeee
@@Ehhhhhsureeee tell me ur broke without telling me ur broke
@@steve-0g466 hahaha sure bud. lets compare incomes
@@steve-0g466 tell me you lost all your money on crypto without telling me you lost all your money on crypto
My new company just delayed my commissions' check but happily matched 4% of whatever just auto-enrolled in to my 401k that I forgot to register for. Yep, there's something up.
I have been telling this to my friends for many yars ago I left Pennsylvania 21 years ago I took action went down to Florida and invested in property in real estate here I'm sitting pretty retired at 46 while they're still working hoping for the 401K to grow bigger and bigger so sad people please wake up pull that money out start investing in real estate in 2022 when Joe Biden administration ruins the economy took advantage of it it is sad to say but it's coming and for those who have money available are going to profit 2022 2023
invest in a roth 401k, take the employer match, no company will increase your salary if you don't take the 401k match. when you switch companies roll it into your roth IRA.
Yup....I do both I invest 10 percent into 401k then 6 percent into the Roth 401k....then I do 20 percent of my paycheck goes into the company stock....it buy one get one free...so why not...for every 1.00 of stock I buy the company gives me .75...of stock
...then I put 3650 into the HSA account then I max out my IRA account 6000 every year and things left after I pay my bills just put it in my brokerage account and savings account......
Getting to your first 100K as fast as you can is key.
That’s if you worked there long enough to keep your company match.
I think better advice would be to tell people to invest the minimum into their 401k that they can to meet their company match. Why ignore that free money if it's offered? The rest should go either into either a personal or professionally managed brokerage account, or a Roth IRA, (up to $6000/yr). The tax deferral of a 401k account is generally going to be offset by a match from a good company plan in the long run, and it gives people who would otherwise be bad at saving money the chance to put away meaningful funds. If a company doesn't offer a match on the 401k then I totally agree, there are tons of better options.
Roth IRAs are a ripoff. Why take after tax dollars that are completely liquid and tie them up in a Roth IRA you can't access easily? Makes no sense at all.
@@BigRW Because people who are in lower income brackets can put away significant sums at low rates. If the goal is to have salary increase as we go through our careers, (certainly has been for me) then Roth IRAs are a great way to avoid paying tens of thousands in taxes.
@@josiahb.2117 Why not just put it in a 401k and defer the taxes to a time when you're likely to be in a lower bracket?
@@josiahb.2117 That way you lower your taxes in the current year and in a future year.
@@BigRW My concern with that approach is that we're assuming rates will stay proportional to what they are now. For all we know, we could be looking at double or triple the tax rate for a standard 401k withdrawal in retirement 30 years from now vs. what it is today. I'd rather pay tax on a number I can see in the moment than hope uncle Sam doesn't want to take more of my hard earned $ in future.
Companies are also writing off that money they gave you in the match passing the tax liability over to you.
Guess what they do the same thing with your paycheck and your health insurance. That's the Way businesses work what they pay their employees is a right off on their taxes. That's tax 101
@@johngill2853 ok….
I am not worried income taxes are extremely low and I will not be paying payroll taxes on that money.
Yikes, no alternatives?
These are all concerns, but its not all that black in white. The trick is for people to 1. Save 2. Invest. Its very simple and 401K continues to be a good way.
I think 401Ks are better than a taxed about because, you guessed it, taxes.
If you don't want to be taxed in retirement you could go with a Roth 401K.
I like 401k better than IRAs because higher contribution limits per year and no income limit.
You are 100% right we would better find a better way of investment and make 401K dissappear 🤔
I have at least 5 good horror story's of 401k just dealing with mine and my parents and friends. 100% SCAM
What he doesn't know you can tranfer the 401k into a annuities. Which you don't have to pay tax from there. In the annuities you can do interest only for life. You do have to pay tax when withdrawing
Thank you! I have nearly $2,000,000 locked up in my 401k. Im going to try to take it out asap. I had no idea how horrable a 401k was until I watched your video. Keep up the good work!!!!!!!
did you get it out yet?'
did you get it out of there?
I hope that is sarcasm.
Don't be a fool. This guy has no idea what he's talking about. Do not take advice from some random UA-camr. Your gonna be sorry
I think is a very bad Idea to gamble with your retirement money. You might say your money comes back after a market crash, not to much time left to recover after one’s retire.
You don't take all your money out at once. Over the years it will bounce back.
@@jdubo1998 sure thing. Now if that happens near retirement or meanwhile is going to be a problem. There are safer ways to secure your retirement money where you don’t have to worry about Wall Street market crashes. Good Example ?? Silver was $3.00 an once in 1990 now is close to $25.00. Maybe by when I turn 65 it can be worth much more. At least you don’t gamble your retirement money.
@@user-zl3bq2of2u But what I am saying is that even if you retire when the markets are down, it is not the end of the world. Because during retirement you will only be selling what you need to live off of, most of your money will still not be sold and will eventually bounce back. This is of course assuming you saved for retirement and you have a good pool in your accounts.
If you invested into the S&P 500 in 1990, you would have a lot more money today than you would have investing in silver. Preciuous metals are great during recessions, however the stock market has a better rate of return over decades of growth. Through out multiple cycles of bull and bear markets.
Even with all that though, I agree, best thing is diversification. Don't just invest in one thing, invest in multiple assets. Not all your money should be in the sock market and not all your money should be in precious metals. You should do a combination based on what your level of tolerance is.
@@user-zl3bq2of2u good job not responding again. There's is no need to go back and forth with these silly people. They're gonna have to find out the hard way, about this 401k stuff
@jdubo1998 Did you watch the video? He says, " Take all the money out because of the taxes , and / or penalties, each year could cost you more
you leftout one key thing... a 401K is just the stockmarket so its a IV to the stockmarket which everyone is dumping money into creating a bubble of shit around the inflated stockmarket. you can take your 401 and buy gold bar as an investment just "stocks" of crap.
in a way its totally american and brilliant but the end is a huge fail on biblical scale.
I wonder what would happen if everyone backed out in protest XDDDD
Crypto is the "new" gold....
@@daw7773 No. Crypto is a new dollar, but not Gold. It is a currency. Too volatile for it to be a store of value unless it becomes a CBDC in the future. Keep in mind that it cryptos still need to be seen to perform well during a financial crash.
@@redjoker8640 I see your points. People are calling Bitcoin the new "gold" and not other cryptos because more people are buying Bitcoin instead of gold and holding it long term to "hedge" against a possible crash in the stock market.
I always knew 401k is a scam. My employees just said the company hasent matched anything in 11 months. Everything is a friggin scam
@6:52
So...you do realize that you can get an S&P 500 mutual fund? And that you can get such a mutual fund inside of a 401k?
I don't know why you're treating all mutual funds as equal. There's a major difference between Index Mutual Funds (like the ones that invest based on the S&P 500) and Active Mutual Funds. There's also mutual funds that include inflation protected investments, such as mutual funds that invest into TIPS and REITs.
It just didn't make sense when I heard about it. All this money I am sending to 401k could be thinking of ways to make even more money. Aside from that, there is a 10% penalty when I need it. Who the fuck is willing to do that? Matches only occurs after 3 years? If it started immediately we'd at least have a discussion.
It's a bad bet. There are better ways and places to park your money.
Great video and great information I had a 401k at my 2 previous jobs but recently started new employment so I wanted my money I invested but after quitting I had to request a termination withdraw for my payout which I was taxed about 11.5% 🤦🏽♂️ I refuse to loose and will no longer be a victim of Uncle Sam’s Scam
You could have rolled it into a IRA and not paid any taxes
@@johna9994 that is true fortunately I chose to opt out of the 401 savings strategy I’d rather have more control over my my own money and invest in assets with higher ROI instead of the traditional 401 or Roth accounts there are plenty of other ways to invest my money and reap the benefits sooner rather than later
@@repssrepps so you refuse to be a victim of Uncle Sam but are willing to have a taxable investment account? Sorry but this doesn’t make sense to me.
@@johna9994 I never said invest in a taxable investment account i said their are other ways with higher returns on Investments if you choose to seek the information you will find better options do exist other than the traditional ways they have fed you but to each is own what you eat doesn’t make me sh**!
@@repssrepps Relax. I’m not trying to change your mind or force something on you. I just honestly don’t understand the thought process you have. No you didn’t say “taxable investment account” but that is what you basically described without mentioning the name of the “better option”. For real, good luck with whatever “better option” you found.
20-30% tax if withdrawn before age 59, that’s scary and being taxed in a millionaire bracket, enough said, I will never put money in 401K, it’s a total scam
You are only taxed in a millionaire tax bracket 37% if you take out $539,901. If you take out 55K a year you will be in the 22% bracket.
A 401k is 55 and ira is 59.
Then if you're not going to keep the money in there to 55 why are you invested in it anyway. It's a retirement account not a savings account
That ain't how taxes work my man. Watch some UA-cam videos over it to get good explanations.
It is a scam but you have a group of dummies who think 401k's are perfect. Wait until you get 65 and still paying taxes. It won't last forever that's why most of you will be on social security 😂
Being taxed from ur own money is ridiculous
At age 28, I pulled out $80k from my 401k. Paid 10% fees and was taxed heavily.
But I was able to buy 3 houses within 3 years. Luckily, I did that when the house market was still cheap...
If your company offers a match then you should contribute enough to the to get the full match. Then you should contribute the max to an IRA. After that you should max out your 401(k) contributions. Its not a scam.
Why does this only have 344 views? Too many facts to pierce the info bubbles I guess. Thanks for posting this.
It rubs alot of people the wrong way I guess but I have no reason to lie. Some people literally have no clue how it works.
Maxamillion Ed And you still didn’t elaborate on a 2008-type situation! Check out Internet Shaquille, his recipes are good to know in case one’s 401k shits the bed.
The dead masses hate being awakened by the truth.
@@MaxamillionEd your estimate of return for mutual funds is way low. Just like any investment there are funds with low returns and funds with high returns. 401k have made more millionaires than anything else. Is it perfect, no but for most people it is a great decision to save for the future. At best your points are weak many are deceiving as most 401’s don’t charge that much and perform well. Feel free to negotiate with your employer about a raise versus 401 match. Would you say the pension was also just taking money out of your salary?
@@joehobbs490or just put into social security
401ks are good...Roth 401 allows you to get taxed now vs later...compound interest (8th wonder of the world)
This is why trading/investing in the markets yourself is the best 😂
I never agreed with having to ask and get penalized for using my own money. Now companies auto enroll you in 401k by default. No one would put this much effort into something unless it's more of a benefit for them. I think this is a way of catching people who don't pay attention, off guard. You'd be surprised how many people dont review pay stubs anymore
Thanks for this video. I was trying to withdraw money from my 401K account and they only let you if you have medical expenses, mortgage issues or family passing away. You have absolutely no control over your own money.
How do you have no control? I control where I want it invested for retirement. It is very powerful once you get to your first $100K
@@josefj1776 Yup, you can choose the funds you want to invest in and the percentage of your salary as a contribution, but that's about it. There are many reasons to use investments that you supposedly own, but in a 401k account you're limited to only a few ways you can withdraw your money.
#1 is debatable if your employer matches your 401k. In the end, the employer contributions would hopefully cover most of the taxes
Many people or at least those under the median retirement savings will pay almost taxes.
$180,000 at a 5% withdrawal rate is $9,000. That's less than the standard deduction
It's not debatable, but just wrong. He's conflating tax-deferred savings (e.g. Traditional 401k) with tax-free savings (e.g. Roth 401k). Having such a misunderstanding doesn't make the 401k a scam.
Even though a traditional 401k is not tax-free, and even though tax-deferred is not as good compared to tax-free, it's still better than a Taxable Investment Account or Brokerage Account. With a 401k, you wouldn't have to deal with taxes every single year in response to, for example, your portfolio being frequently rebalanced. It's something that some Vanguard TDF investors learned the hard way. They had to deal with taxes that they would not have had to deal with in a 401k (regardless if Roth or traditional).
He always assumes you would make a 100% withdrawal at retirement, even though you could just make partial withdrawals.
After reading the comment section, this guy is gonna be responsible for a lot of broke retired people
Everyone is a guru nowadays. CPA's agree with me and people that believe in the 401k adamantly oppose what i say. To each their own but the dollar is trash now. I would be kicking myself if I had any money locked up like that.
I agree. It's comical how misinformed he is. Like the one guy said, listening to him is like listening to a blind guy telling you how to drive.
@@MaxamillionEd Not all CPAs agree with the things you said. Brian Preston is a CPA who treats the 401k employer match as a top priority.
You should do the math and compare, for example, an 8% payraise plus 0% employer match to a 4% payraise plus 4% employer match. You would see that the latter comes out ahead
@@np5246 what would you do when the dollar stops being the world reserve currency and the money is stuck there unitl 59.5 years old?
@@MaxamillionEd
I could rely on gold as an emergency fund. But I can do that without giving up the 401(k) and employer match.
Btw, money can be withdrawn early from a 401(k). Early withdrawals simply get charged taxes and a 10% penalty (unless the withdrawals are Roth contributions).
Your claim about #2 the vesting of matched funds is false. You called it “vetting” which is not correct. It is vesting. A company can vest multiple ways. They can vest immediately. That means the money is yours the day it is matched. Every employer I’ve ever had vests immediately.
They can vest over time. If they chose to do this, then they have two methods to choose from.
One is the cliff vesting method. That is when all of the money is vested at once. This cliff can not be more than three years from when it was earned. So your claim that they wait five years and don’t give you anything is false.
The other method is stepped. This can not exceed five years. So a five year vesting schedule gives you 20% a year.
If your employer is is not vesting within the required time frames then call the DOL.
i found out the hard way. the way they promote it. i finally stopped my contribution at. $6,000. idk what to do but i guess ill leave it beacuse its too much a hassle. im stick with my stock plan.
In your 401k, what were you invested into and what was the employer match?
The reality is people don't save anything when its left up to them. Asking for the employer to give you the 3% match into your salary usually means you're going on a slightly nicer vacation, or slightly bigger new TV. Most US citizens become millionaires through real estate or 401K. It's meant to be a long term investment with lots of restrictions to limit people from taking out money to fund that new SUV. The number of 401K millionaires in the USA will reach 500,000 in the next few months...
Nobody became a millionaire off of their 401k, real estate on the other hand is great
@@tcmspirit literally 400,000 Americans are 401K millionaires....
What good is a million dollars 10-30 years from now when you can finally pull that out and the purchasing power isn't there anymore?
@@MaxamillionEd all the more reason to try to maximize that fund. If a million dollars isn't going to be worth much in 30 years, how much is $0 in your retirement fund going to purchase for you.
@@vadimrazenberg I agree with you on maximizing your funds. However, the average person has no clue what their money is doing in there and have little to no control.
My favorite part was when you didn't actually explain the tax benefit. Marginal rates vs effective rates, my guy.
My second favorite part was when you referenced the average mutual fund return and acted like that has any fucking meaningful implication, while the S&P return that you can reliably achieve with index funds (over time) was in the same screenshot.
If anyone is reading this, please don't trust this guy. He doesn't know what he's talking about.
He also thinks the word "vested" is "vetted." This video should be taught in classes learning about logical fallacies. Almost every single thing this clown says is a logical fallacy. I have a personal belief that anyone who disparages 401k is a scam artist and it's served me well.
@@robloxvids2233why do you people call people names like clown when people disagree with you?
Who takes all their $ out of a 401k at one time? To claim people have to pay taxes as a millionaire because they start taking 401k $ wrong, and silly. Further, his claim that mutual funds return about 4% on average is inaccurate as well. Look it up.
I max out my 401K each year. Company matches 3%. The majority of that money is placed in a Roth 401K with a smaller amount placed in a traditional 401K. I didn't watch this video because I believe a 401K is one of the safest ways to prepare for a healthy financial retirement. Any money that I have above and beyond the 401K max I put into FundRise. I really like FundRise and would encourage anyone to look into it when you get a chance.
Is that why 95% of people can’t retire
@@steve-0g466 is what why?
You should have watched the video fool you here bragging about how you max out your 401k each year. You ppl are so crazy 🤣 you just wasting money just live and enjoy your money instead of putting in a 401k
I just started a job that will automatically enroll me for their 401k plan 60 days into employment. Should I reject the enrollment? If I reject what happens next. Thank you in advance.
Carlos, just to be clear I'm not giving you financial advice. BUT what I would do in your situation is to take the 401k up to the match. Typically it's 5-6% max match dollar for dollar because at that point it's free money. I wouldn't contribute any more than they're willing to match. Also, you decide how that money gets allocated. Don't just let them decide for you. You can pick stocks or funds in any split.
For those that already have a 401k with significant funds I would do a rollover to a precious metal IRA and park all that cash into gold and silver and just sit on it until you retire.
Happen to me at me old job.. they auto enrolled and started took 7 bucks outa my check.. called corporate and had them stop it and then sent me a check for $6.39 LOL
I took my 401k money out in 2009.best decision I ever made
I find 1 and 2 debatable. But 5 is honestly my biggest gripe. 1 yes you're taxed later, but you shouldn't be working so your tax rate is lower thanks to being taxes lower. Two, it doesn't matter if they pay you less for matching, because they're not going to pay you that amount anyway.
Five is however the biggest gripe, I watched my 401k lose 1/5th it's value over two statements when I was on the safest plan. I'd have so much rather had the money myself so I could invest in safe things I felt comfortable with rather than just picking plans.
𝗛𝗲𝗹𝗹𝗼
𝗗𝗼𝗻'𝘁 𝗯𝗲 𝘀𝗲𝗮𝘁𝗲𝗱 𝗮𝗻𝗱 𝘄𝗮𝘁𝗰𝗵 𝘁𝗵𝗲 𝗙𝗲𝗱𝘀 𝘄𝗶𝗽𝗲 𝘆𝗼𝘂𝗿 401𝗸'𝘀. 𝗖𝗼𝗻𝘃𝗲𝗿𝘁 𝗮𝗹𝗹 𝗙𝘂𝗻𝗱𝘀 𝗶𝗻 𝘆𝗼𝘂𝗿 𝗽𝗼𝘀𝘀𝗲𝘀𝘀𝗶𝗼𝗻 𝘁𝗼 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝗚𝗼𝗹𝗱 𝗮𝗻𝗱 𝘀𝗶𝗹𝘃𝗲𝗿 𝗯𝗮𝗰𝗸𝗲𝗱 𝘂𝗽 𝗰𝗼𝗶𝗻𝘀 (𝗫𝗟𝗠/𝗫𝗥𝗣 𝗖𝗢𝗜𝗡𝗦) 𝗮𝗻𝗱 𝗺𝗼𝘃𝗲 𝘁𝗵𝗲𝗺 𝗶𝗻𝘁𝗼 𝗤𝗙𝗦 𝗹𝗲𝗱𝗴𝗲𝗿 𝗳𝗼𝗿 𝘀𝗮𝗳𝗲𝘁𝘆. 𝗧𝗵𝗲𝘆 𝗮𝗿𝗲 𝗰𝗿𝗮𝘀𝗵𝗶𝗻𝗴 𝘁𝗵𝗲 𝗯𝗮𝗻𝗸𝘀 𝗼𝗻 𝗽𝘂𝗿𝗽𝗼𝘀𝗲 𝗮𝗻𝗱 𝘀𝘁𝗲𝗮𝗹𝗶𝗻𝗴 𝗽𝗲𝗼𝗽𝗹𝗲’𝘀 𝗺𝗼𝗻𝗲𝘆 𝘁𝗼 𝘀𝘂𝗽𝗽𝗼𝗿𝘁 𝘄𝗮𝗿!!
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Benjamin Fulford under score Capital D and M together.
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I disagree with you 401k is not for everyone and most of the money I save it not in 401k but for 99.9999% of Americans 401k is the way to be a millionaire and many Americans are becoming millionaire thanks to it
401k is a horrible way to become a millionaire. It solely depends on retiring when the economy is prospering. The dollar is being debased now and if 99.9999% of Americans have their money tied into it, then they're going to be hurting so bad when they get to pull it out (or pull it out now and pay penalties on your own money + tax). That $1M won't have nearly as much buying power as it does today. A 401k was a good idea when the dollar had some type of purchasing power, but since its inception the dollar has lost over 97% of its purchasing power and continues to lose.
@@MaxamillionEd of course it will not as much buying power but it will have more buying power than no money and every equity investment depends on the economy prospering and the whole point of the 401k is not to take it out people should have others investment to pull out if things get roughs
@@MaxamillionEd Thats true but so is holding cash (whichi is worse) is just as bad due to inflation. This also depends on the financial situation for every individual, if money is tight then you shouldnt be contributing, if you get match, just put the minimum. 401k is good for people who want to follow dollar cost average but don't have the discipline to and dont want to bother with individual equity picks. When you retire and plan to distribute out your 401k, you dont do lump sum and get heavily taxed, you do small increments from it.
Not millionaires until they cash out
People don’t invest in 401ks because others do it,they invest because it’s a good option. If you believe your employer would give you that matching money as wages go ask for it. Good luck convincing them to do so. By deferring your income to a later date you’ll definitely save money every year on income taxes. If your employer has a match you should contribute to it to the plan’s maximum. Calling people sheep ,that’s just juvenile.
Yes I know exactly what I'm paying. I'm paying .001 more than Vanguard institutional shares plus $4.74 a quarter
And the fees will take the rest of
nice post
GOOD
This was totally spot on.
Seems like the word is getting out about this
Ugh, no you're not being taxes as a millionaire when you withdraw from your 401(k) at retirement. You're taxed on how much you cash out to yourself in a given year. Most people would withdraw 50-70k and they would be taxed as if they earned that money. If you are dumb enough to cash out a million dollars at once, then you deserve the millionaires tax you are going to get.
My 401k fund is managed and i get statements and never really asked the questions. i sort just assumed it was like a savings account with high interest. turns out , they got my money locked up. now if i want to borrow from the account i have to pay it back at 9.5% interest. if i take it out completely i have to pay a 10% fee plus the takes. pisses me off.
2:28 that sounds more like 2020.
You wouldn't take 1 million out all at once. That would be incredibly stupid. You take out an amount that puts you in a lower tax bracket. By the time you retire, unless you're a moron, you should be completely out of debt and have a nice savings on top of your 401k so you shouldn't need to take out alot in a given year. Honestly, after listening to this guy, I can't believe anyone would take financial advice from him. He doesn't even know what a VESTING schedule is....not VETTING. Many, if not most, 401k plans you are 100% vested from day one.
It’s because he exaggerates all the potential negatives and uses language such as “trapping” your money yada yada
My small company used to have a bad 401k plan, with high fees. But they recently switched to offering fidelity low cost index funds, with annual plan administrative fees of about 0.2%. Combined with expense ratios from the fidelity funds it’s about 0.21% annual fee. Now I invest it in because it’s a great plan.
There are bad 401k plans, yeah, but this guy seems intentionally obtuse to the benefits of a good plan. Compounding interest on your tax deferred money is a great benefit.
401k's are not all that bad. If you know what you are doing you will be fine. It all about information/education/planning
I agree only 50% of what you said. 401k reduces your taxes during higher income situations while working, lower taxes during distribution due to no other income. 2) If employer contributes $ to $ let’s say 6%, and employee contributes exactly 6% it’s a 💯 free from the employer people should take advantage.
So the best option is using that money as an investment in your own software business?
it's a risk but the downside is limited to how much you put in. upside is unlimited.
I never really cared for it I knew this for a year
1. Have 6 months to a year in cash so you don’t have to withdraw during a downturn. You don’t have to withdraw all of it in retirement at once. Only withdraw the money you need for the month. When you retire, depending on needs and lifestyle the tax bracket you are In could be the same or lower then what you are paying now.
2. Of course they count the match as part of the salary. They do this with all benefits. You may have 20/20 vision but if the company provides vision insurance they figure that into what they are willing to pay you. Good luck making this deal with any company because the company gets tax breaks for the match. Yes if you know you are only going to be at the company for a couple of years do something else.
3. A 401K is a retirement account, not a raining day fund. Have at least a month worth of cash.
4. So if the company matches 4% this more than covers the fees.
5. Next time you quote something you may think about providing the source. Like this.
“High-performing large-company stock mutual funds have produced returns of up to 12.86% in the last 20 years. Comparatively, the S&P 500 has produced returns of 8.13% since 2002.” Source www.nasdaq.com/articles/what-is-the-average-mutual-fund-return
What do you suggest to invest in instead of 401k?
I will advise you look for a professional trader to earn money for you
Please, how can I make profitable investment!! the market is getting highly volatile currently, this is the best time to invest and trade on cryptos.?
@@user-py4yg5dw3gI would advice anyone embarking on crypto investment to get a professional who will manage your account with less loses.I invest with a strategic crypto trader assigned by a crpto company that trades for me and returns my profit on weekly basis.
Mr Vinny help me make more than 120k from an investment of 20k within a couple of weeks, his really a great dude
How do I reach out to him please?
So true , every word is gold
you set me straight man, i was just researching starting one and dropping some cash in an account for old age.
put just up to the max that your company will match but that's it. the rest of your money should be placed in another vehicle that can beat inflation
Nonsense. I have had my 401k since 2000 That was my best decision ever .
With the match and market returns and three significant market downturns, the return ls beat everything I have invested in before. Most of my friends have 60 to 70% of their assets in their 401ks at this point
Until you check your balance and see it disappeared you stupid
Most of your friends won't be your friend when you get old dummy go reserve your bed at a local nursing home 🤣
@@nolanrizzo3812it's ok, man. He just confused and got brainwashed by the main stream medias.
Roth 401K.
that'll solve your tax now over tax later but it still locks your money away and early withdrawal penalties still apply. There are far better investments you can make.
2008, 2000, 1987....2022.....scam. every 10 years the markets crash. Seems more frequent now days.
my mom is retiring this year and she lost 37% of her portfolio
@@MaxamillionEd that's insane!
@@MaxamillionEd Sounds like your mom is really stupid. Apple don't fall far from the tree, breh.
@@MrAngrybaldguy Yep, the market goes through cycles, this ain't new information anymore. People who ride the wave and don't panic sell are still coming out on top though.
@@jdubo1998 the cycle will end eventually
This video was both hilarious and informative 😂 thank you
Glad you enjoyed it!
Perfect timing for this time ! But you with me high and dry.
What else could we do with our cash? What if I have a 457b?
Thanks
employee sponsored is the only way I'd put any money in it because the match will hopefully offset your taxes when you withdraw. I'm banking on assets that cash flow and bring in checks every week or month. The best example would be things or places you can rent. Cash flowing assets protect you against inflation because the rental prices are dynamic. Gold and silver is good as an insurance policy as a safe haven when everything goes to sh*t
I like you and enjoy your presentation. in the past four years, have you learned anything about this subject? It is my understand the average 401K in USA took a 20% haircut in 2022 (last figures available) this includes all the big name brands, inc Fidelity, which has like 20M accounts, they lost 20% on average. Yet, with -one call- you "could have" put your entire fund OUT of stocks and into money market within the fund. About that time, Money Markets started paying interest at just over 5%.
Explain why 80% of all millionaires became millionaires because of their company's 401k....
Inflation. It's unrealized pretax gains. By the time they withdraw that money it has very little buying power.
@85Steeler explain how many years it took 80% to become millionaires lol 😂you people are insane and take this 401k stuff too serious. Life is so short 💯 just live for now, you can't take all that money when you die
@nolanrizzo3812 just remember this statement when you get close to retirement and get that $1500 a month from social security.....lol...then you will wish you would have saved a little for later
@@85Steeler listen stupid I'm usually nice to everyone until you make me mad 😡 the difference between me and you, I watch these videos when I'm bored and you obviously watch them to learn how to be rich 😂 I'm the owner of a music school and I love what I do 100% I'm in my mid 30s I'm not worried about no 1,500$ a month I'll probably teach music for the rest of my life until I take my last breath now laugh at that.. with your ignorant comment dude remember this statement f**k you b***h 🖕🖕🖕🖕🖕😂😂😂😂😂
@@85Steeler So basically you telling Nolan he has to work his whole life to save in 401k? And is that all you worried about is becoming a millionaire? Several people get social security. My mom gets social security because of her having ms she gets over 1,800 $ a month she worked in a hospital for long time. She’s doing pretty good. How you know Nolan gonna get 1500$ a month?
401ks try to also gather personal information through withdrawls
I didn't understand how the match is the employee's own salary?
Can you elaborate on your question? What timestamp in the video?
Take a look at CBS 60 minutes 401k fallout video. Great info😢
I want to know how much retired people are actually making from their 401k. We have enough people who are retired with a 401k to actually know whether it's worth it or not
my mom is retiring this year and she's down 37%. It's sad
Well that would depend on what they invested in but if they invest in the S&P 500 they're 10 year return is about 12% per year (it's even after a bad year like this year).
It's definitely worth it if you invest long-term
Most people who are good with money know that a 401k is a good tool when use properly. Most people who are broke are people who used 401ks wrong and got bit in the ass from it.
Key takeaway. Do your own research and don't just watch videos talking about the bad of 401ks, watch videos talking about the good. And most importantly know the rules of how a 401k works.
Always saw it this way. Just the rich trying to get you to gamble your savings in a casino they control.
401 scam is crazy.
Think when you are young you have kids bigger dection now you are 59 -1/2 taxes are higher scam
Many people save their biggest amounts after their kids are grown.
I get what you’re saying but my company matches .75 on every dollar up to 9%!! I’ve never heard of that. I do buy my own stocks too.
Just do it up to the match 401k and Roth 401k so 9 percent in one and 8 percent in the other....the max out the Roth account with 6000 and If u can max the HSA account 3650 if your single and 7350 if u have a family.....so do the company match both Roth and regular 401k first the HSA then Roth IRA then any money left over put into a brokerage account
We seem to be sold on it being completely tax free. I didn't even know they tax you at the end lol. It's that the same with IRA or do they screw you on that too?
you will pay tax one way or another. the ROTH is tax upfront and then whatever you do with that money in there is tax free when you pull it out regardless of gains, the regular IRA is tax at the end when you're ready to retire and not working anymore, you get taxed as you pull out.
Great vid. I need money but my parents keep telling me not to draw from my 401k. It's only like 200 bucks but I dont plan on working my whole dam life lol
Subbed bro
you can draw from it now with no prepayment penalty, just regular tax rate.
How about the standard deduction? Why would you want to not put enough in the 401k to at least take advantage of the Standard deduction?
Again please show source on mutual fund returns. Are you including Bond and money market funds in this? Because the S&P 500 is average about 10%+ over the last 10 years
This guys is probably trying to sell something. Lol. Between my Roth 401k amd Roth I.R.A i have $700k. Tax Free all because of a roth 401k and i.r.a. Don’t be fooled by someone like this guy.
What will you do when the dollar is worthless and all you can do is watch your “tax free” money wither away because you can’t touch it until you’re 60
@MaxamillionEd it's for my retirement. I don't want to touch it till I'm in my 60s. Lol. The dollar has always been going down. I rather have 1 million tax free dollars that's worth $500k than nothing. 😆 🤣
@@rolandosouffrain7957 lol by the time you are 60 you won’t have much time left to live or enjoy life much. You slaved away for work for basically nothing if you do that. You might as well give all that money to kids or grandchildren. 401k is a joke
At 3:15 he says irony. No not really because the rich are taxed at a capital gains rate. Much lower the a earn rate
Exactly!
Why do you have to invest only the 401K why can't you do both? Why can't you invest in both the 401K and outside the 401K? I'm really curious to this answer
ROTH IRA 🙂
Everything you say is correct beside the last step word withdrawing can't be tax free. You're wrong about it being a earn income
Roth IRA and Roth 401k are withdrawn tax free. Traditional 401ks are taxed.
What do you recommend I should do then if 401k are acscam.
gold and silver, crypto, real estate that cash flows. any of those are better than 401k's
I save in bitcoin. The government cant get it.
Trade you bitcoin with a professional trader and earn more
Please, how can I make profitable investment!! the market is getting highly volatile currently, this is the best time to invest and trade on cryptos.?
I would advice anyone embarking on crypto investment to get a professional who will manage your account with less loses.I invest with a strategic crypto trader assigned by a crpto company that trades for me and returns my profit on weekly basis.
Mr Vinny help me make more than 120k from an investment of 20k within a couple of weeks, his really a great dude
@@philipsam9532How do I reach out to him please?
So how does one move the money from the 401k to a IRA?
Or what's the best thing I could do ?
@@confidential8371 Rollover. You will be taxed on that money, but after that it will grow tax free.
This dude is whack- why would you pull out your whole million in one year… my employer matches 9% to my 6% and they certainly don’t underpay me for my position I make an additional 10k to 20k higher than industry standard. I guess this guys argument is a 401k is a scam if you don’t understand anything about investing and have no desire to learn. If that is your mindset, every where you put your money is a scam.
Yassss youve taught me !!😁😁😁
You deserve more views. Subscribed 😎.
Thanks brother. I appreciate that!
I don't understand #2 reason
Agree!
Thanks i we’ll never put money in it
Excellent!!!
Ask your employer to give you that matches salary, really? How many times is that worked in your life
another way not to give out raises 🙄