Mark Cuban said I am an idiot 401k being no-brainer, I’m sharing you this video about the pros and cons of 401k. Putting money in 401k is a smart idea because if not, you’re not likely saving your money. But let’s talk about the the way number gets misrepresented and flaws in 401k that no one tells you. In this video, let’s talk about projected returns vs. actual returns and differences of 401k and real estate.
Why put your money into something not guaranteed to work? Get back to real estate because the model was never broken, it does work….(read more)
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Mark Cuban is a billionaire entrepreneur and a well-known investor. He has had success in many different industries, including tech, sports, and media. As an active investor, he has shared his insight on various investment opportunities and strategies, including 401k and real estate.
When it comes to 401k vs real estate, Mark Cuban has a clear preference. He believes that real estate is a better investment than a 401k. According to him, “when you’re investing in a 401k, you’re investing in assets that are almost guaranteed to lose money.”
Cuban argues that the fees associated with mutual funds and other investment products in a 401k can eat into your returns and make them lower than what you would get by investing in real estate. He also believes that the tax benefits of owning real estate make it a more favorable investment.
Investing in real estate allows you to take advantage of tax deductions, such as mortgage interest and property taxes. These deductions can help reduce your tax bill and increase your net income. Additionally, the appreciation of real estate over time is another factor that makes it an attractive investment.
Mark Cuban is not alone in his conviction that real estate is a better investment than a 401k. Many other investors and financial experts believe that real estate offers greater long-term returns, lower risk, and more control over your investment.
However, it should be noted that real estate investing is not without its risks. It requires a significant upfront investment, often in the form of a down payment, and it may require ongoing maintenance and repairs. Additionally, real estate markets can be unpredictable and subject to fluctuations, so investors need to be prepared to weather any downturns.
In summary, Mark Cuban’s preference for real estate over a 401k is based on his belief that it offers greater returns and tax benefits. However, as with any investment, it is essential to do your due diligence and assess your risk tolerance before investing in real estate.
I totally get what Kris is saying. But not everyone want's to be a landlord. Sure most of us if not all will want to own real Estate, like a home and maybe a vacation home. Those assets although provide appreciation. They do not offer cashflow, unless you rent them. So to totally discredit investing the your retirement, or investing in the stock market etc, is kind of a ridiculous
Yes as your real estate portfolio grows and your income grows, guess what the size of my 401k is also growing. It started out at a couple thousand dollars now it's like 15 or 20 years of salary. Your 401k also grows just like your real estate
You have no control with the 401K? You don't pick which funds you want or you don't open that brokerage window and choose what stocks you want. That seems like a lot of control to me
Amen. This is why I barely talk to people in the office about 401K plans…. I AM the 401k
So what's the point of even having a 401 K ?
You need to improve your handwriting.
My company matches 100%. No other investment gives you that return with little risk.
Thanks. Best example of how people make stocks look better than they really are.
I diversify my portfolio.
By being 100% in rental properties.
I keep each property more than ten miles apart. (Within an hours drive since I self manage)
Close to at least two economic drivers and sources of tenants.
A base, port, hospital, college, Boeing or Amazon terminal and a population of at least 100k
Then I diversify my tenants.
I keep about 1/3 military, 1/3 section 8 and 1/3 retired.
This way I’m ready for a prolonged government shut down, pandemic or stock market crash. Even 2020 has had zero impact on my rental income. Not one late or missed payment.
I’m not making millions each your like Kris, but in less than ten years I went from 89k in bad debt as a single parent with three kids to bad debt free and financially independent.
Now work is completely optional.
I used house hacking and investing in small multifamily.
Anyone can do it in less than ten years.
Kris, after paying down my modest 85k home, I turned it into a rental. I clear $1,035 Net per month from the one rental. In 7-8 years the home will pay me back the 85k + I can still sell it (if I wanted) for more than I payed. I'm buying a new rental each year. By my figures, in 5 years, I'll be able to retire …17 years early! Or I could just work 17 loooooong years and hope for the best with a 401k? 🙂
lol Comparing Real Estate with 401k, it's like saying sell a cookie every minute or crumbles after a year!
I doubt Mark Cuban has a 401k,
Do both… they are not dependent on one another. I like real estate more than 401k but it is foolish not to take your companies match. Same concept , don’t sell your house or your stock portfolio when the market is down. Real estate comes with headaches and expenses , 401k can be done on autopilot. Both are great vehicles for retirement.
The market has never gone down 50% twice in its history, the Great Depression and 08 to March of 09… both of which were preceded by quadrupling in value… there’s several options today with Roth 401ks that provide much more flexibility from a tax standpoint… it’s a shame you wouldn’t educate yourself as you clearly have several followers here who hang on the words you say…
How is being at all-time highs "still catching up from years earlier"?
if your 401k provides no cashflow something is wrong. And depending on what it is in traditional/roth. You can even have tax free cashflow and tax free growth. And the .04 percent fee on etf is super low with fidelity offering commission free. What broker would work for free to find these great profits? I am not sure you can get that in real estate.I can see how real estate can be appealing but the cons of stocks are just over hyped
Kris man i love your energy but your sounding a little "Grant Cardone'ish"…… thats bad news brotha
What I took from this is someone who “retired at 26” through real estate probably never had a 401k plan to contribute too and therefore never really understood how it works lol. There’s some major 401k advantages you missed on.
Interesting. The different is clear, the mind is the greatest asset indeed. Kris krohn You're the man
What about index funds anyway idk what is is
Property taxes, insurance, and repair can destroy your income.
401k start young and buy consistent. You be ok…