STOP Throwing Money at Your 401K (It's Not What it Used to Be)

by | Oct 15, 2022 | 401k | 10 comments

STOP Throwing Money at Your 401K (It's Not What it Used to Be)




Let me explain the truth about 401k’s. What are the rare instances in which you should consider contributing to one? It used to make sense to put as much money as possible into your 401k and experience big tax benefits. But that’s all changed.

In recent years, our nation’s exploding debt load has made it clear that our tax rate will be dramatically higher 10 years from now than it is today. 401k’s are out of sight and out of mind for most people so they don’t even think twice about paying it. It’s a force of habit. But it’s time to reconsider. Putting money into a 401k is like going into a business partnership with the IRS but only they get to determine how much of your money they keep.

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10 Comments

  1. Feed Zeke

    Nearly every employer offers a Roth option this whole video is whack

  2. Elry Mcknight

    Lol not the same last name

  3. Gone Flying

    I do the Roth 401k. I get the matching and take advantage of the Roth.

  4. D Moon

    PoZ QoD: Roth 401(k)

  5. SKITTLeLA

    Always, always, always take an employer match.
    Similar accounts such as 457b enjoy some additional advantages.

    Employer 401k match
    ESPP
    Max HSA
    Max Roth/Traditional IRA
    Max Roth/Traditional Solo 401k or SEP IRA
    Max Roth/Traditional 401k/403b/457b
    Contribute aftertax 401k if applicable
    529 college plan (or Coverdell)
    Taxable brokerage
    Potentially Series E and/or Series I Treasury bonds

    Then you can look into permanent/whole/universe life insurance if you're the 1% of folks it makes sense for.

  6. Texas Rose

    IULs and buying gold and silver are great ways to hedge against inflation

  7. Lane Paul

    LIRP specifically an IUL !

  8. Nir Melamoud

    real estate investing via IB loan

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