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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LEARN MORE ABOUT: 401k Plans
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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.
I have at least 5 good horror story's of 401k just dealing with mine and my parents and friends. 100% SCAM
Explain why 80% of all millionaires became millionaires because of their company's 401k….
everything that comes from the govt is a scam
I can prove a 401K can make you 100% ROI. Make the full contribution that the employer will match, usually 6-7%, put the money into a cash account within the 401k plan at 0.01%, and you have 100% protection from the market, 100% deduction from taxes, and 100% profit from the match. GUARANTEED!!! All the $ you put in was doubled.
Sorry, man. You are completely full of shit. I don’t have time to get into it. It’s bad advice like this that explains Americans low savings rates. People who follow your bad advice will grow old only to have to rely on Social Security when they retire.
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!!!!!!!
Always saw it this way. Just the rich trying to get you to gamble your savings in a casino they control.
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 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.
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 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.
HART-/C-MarfKieTY //nd.D
College itself and university school systems is also a huge scam
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.
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
Please show your source for 401K expenses according to Morningstar the average expenses .49. what source do you have better than Morningstar please share
Yes I know exactly what I'm paying. I'm paying .001 more than Vanguard institutional shares plus $4.74 a quarter
Why do you have to invest only the 401K why can't you do both? Why can't you invest in both the 401K and outside the 401K? I'm really curious to this answer
Ask your employer to give you that matches salary, really? How many times is that worked in your life
How about the standard deduction? Why would you want to not put enough in the 401k to at least take advantage of the Standard deduction?
What idiot would take out all the money in the 401K in one year. If you're saving for retirement you don't take out all your money in one year. If your goal is for one year do not use a 401k
I get what you’re saying but my company matches .75 on every dollar up to 9%!! I’ve never heard of that. I do buy my own stocks too.
I’m a CPA- you are spot on. Also, IRAs are scams, and any other mass stock investment that are marketed to you. Buy assets like real estate or businesses.
This video is horrible. 1/ My 401k expense ratio is .06%. The admin fee is 1.50$ per month. 2/ The tax deferred money COMPOUNDS over 30+ years. 3/ The S&P500 has returned ~10%. 4/ Who has a 401K and withdraws 100% of it at once. 4% rule.
Any 401k millionaires on the chat?
After reading the comment section, this guy is gonna be responsible for a lot of broke retired people
You haven’t “made anything” until you cash out. The 401K is the Literal definition of a ponzi.
this is pretty bold flat out lies. So your saying our salary is lower due to the employer allowing a match %? so if I do not take that its worse right? total bs line. The 401k grows with out tax on earnings!!! And if your a millionaire on retirement thats due to the 401k??? your stupid. Take it out in small chunks and it will be a million you take out slowly. Ed go to school dumb A$$. This entire vid is BS.
I never really cared for it I knew this for a year
I don't understand #2 reason
"Vetted???" It's "vested!!!" This guy is so off base that it's comical!!!! It's like listening to a blind man talking to me about driving.
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.
You logic does not make any sense.
I 100% agreed and that’s why I either contributed very little or nothing at all to my company sponsored 401K
Great video! If possible, wondering what your opinion is, if someone finds themselves unemployed and has exhausted all other monies (unemployment, savings, etc), would it be a good idea for them to withdraw most of their 401K to hold them over until they find a new job? I've heard about cashing it out little by little instead of one big chunk, but the math didn't add up in my situation (seemed like the taxes would be higher that way, unless I calculated wrong). There's also the concern that the 401K value could go down as market changes (and the longer it stays in the 401K the longer it can decrease in value). Thank you.
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
So the best option is using that money as an investment in your own software business?
#1 is debatable if your employer matches your 401k. In the end, the employer contributions would hopefully cover most of the taxes
401K Millionaires are laughing all the way to the bank. Stock market average is STILL 12% then add tax deferred profits $$$
Great video hilarious and yet informative… “ba haaa. Lol
Dumbest crap I have heard, I got well over million dollars at 35. This is the worse information I have heard.
Ok I can see this video making the case that a 401k is a scam. I just dont see the 401k as the biggest scam of US Money history (as the title reads).
Wouldnt the ponzi scheme be a bigger scam?
I would even say state pensions in the public sector as a bigger scam.
I like the video I just don't feel that the title is appropriate.