The 401K is a scam that won't benefit you

Here's why the 401K will benefit almost everyone else except YOU

#401k #scamming #realestate #retirement #investing

[msuchka]

You know it's a scam when you do everything to close your account and take the tax hit but they won't let you. The only way to close mine is to quit or make them fire me.

[dretrades]

So the person worked 24 yrs at 80k a year. If that person didn't spend a dime and wasn't taxed anything, it would take them 24 years to save 2 million. But your saying for them to retire they need 2m. I doubt if they even spent 2 million dollars their entire lifetime, minus a house. But depending on the price of the house, you can include that too. Your math is wrong from the start

[Iconicwedgeshape]

Allocate to your 401k better than that. Pick your investments wisely and restructure your plan when it makes sense.

[yamchayaku]

can confirm. Had 200k in the 401k, and the growth was laughable in the last 20 years. You can dump all you have after expenses and you still won't have enough to retire on by the time you reach your sixties. Only a handful in the working class will be able to save up 2 million from their paychecks, considering how expensive everything is, and wages aren't even keeping up.

[joeppg]

Who makes $80k or more a year?….%20 of the work force? The other 80% who averages 55k or lower…can they afford $12k a year put into 401k?

[ikepodell]

Not gonna lie. I was seriously thinking of using rent to retirement to start getting into turnkey real estate. But now I’m seriously questioning if I would ever want to financially get involved with anyone who would post a nonsensical take like this about 401ks

[timisaac]

22 likes- the 401K CAN be used to great affect-- but you have to know what you are doing. Dont look it up bc it changes every year, but between salary deferral and matching, what is the maximum amount anyone can contribute? Oppps. So a little bit more than you mention. Again, don't look it up, but are you required to invest in stocks? What about money market accounts within the funds? How much are they paying today? Hope you are doing good. RE has its own set of problems but why constrast it vs 401k? Both could be used effectively.

[lags]

Please please please dont listen to him guys. He's just plain wrong. You would have way more in retirement than 300k if you had an 80k income for most of your life. Youre supposed to save at least 15 percent, or 12 k a year. It would only take 25 years to hit 300k, NOT EVEN ASSUMING COMPOUND INTEREST. Most people contribute for more than 25 years. A lot more. 300k would easily turn into around 2 million. Even if it didn't, say it hit 800k (promise you if you're smart and learn about finances it will be more) you take that 800k as a lump sum and make that money work for you. Invest in an index fund that returns minmum 10 percent a year. 10 percent of 800k means you get 80k a year to spend (you'd lose 15 percent likely to capital gains tax) and you would never even touch that 800k. You would live off that yearly returns and the 800 would never go down. If you read to this point, this is the way folks, just do your research. You can do it like this even with less of a salary.

[rathkhan]

Awesome video at least someone using brain.