Financial Insider Explains Why the Wealthy Don’t Use 401ks

[@josephoppedisano772]

Ken - I have been following you a long time. I have read your books and taken your advise with real estate. I suggest you stick with Real Estate.

[@Peterl4290]

Don't fret, the debt ceiling always goes up. I wonder if 2008 crisis survivors had it easier. I'm concerned about the stock market, I've lost $35,000 this month, and my income is down. Worried I won't save enough for retirement as I can't add to my savings.

[@larrypaul-cw9nk]

Save at least 20% in your 401(k). Use online calculators to determine your ideal contribution based on age and income. This strategy ensures a comfortable retirement and capitalise on compound interest for growth.

[@bobwright-90]

Until their own emotions burn them out, many people minimise the function of advisors. After my protracted divorce a few summers ago, I needed a boost to keep my firm viable. I looked for licensed consultants and found someone with the highest qualifications. She has assisted me in increasing my reserve from $275K to $850K despite inflation.

[@Jamaal67i]

I've been getting suggestions to use one, but where and how to find one has been challenging, Can i reach out to the one you use?

[@bobwright-90]

Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like

[@Jamaal67i]

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.

[@hawktangerine405]

If you don’t understand what a Roth is, you should not be making financial education videos on 401(k) and other pre-tax retirement accounts. Stick with your strong points and don’t meander into areas you know nothing about

[@DevilsTreasure]

Yep lost me as soon as they said you’ll get taxed on the gains with a Roth account. Completely wrong. Really gross content to put out there to discourage people when it’s not even correct.

[@The_vincepryor]

Well Technically. 🤔 You pay taxes on what you pull out of your Roth as income. It just grows tax free. In other words if you grew your Roth to $500k eventually you pull $40k out every year. You will have to pay taxes on the $40k at that tax bracket level. Don't get me wrong I have no Idea what these people are selling. I know the Roth and 401k's are ultimately restrictive. I also know you have more control over your income and taxes in retirement with real estate. Sounds like they are selling some kind of Realestate scheme using your converted 401k to Self directed IRA.

[@hawktangerine405]

@@The_vincepryor Your $500k accumulation and $40k annual distribution describes a pre-tax 401(k) where contributions go in pre-tax, grow tax deferred and are then taxed upon distribution. The growth within both a Roth IRA and Roth 401(k) are distributed tax free after 5 years of the account's first contribution. In your scenario, if a Roth IRA grew to $500k and you distributed $40k annually, the entire distribution would be tax free and wouldn't impact your tax brackets.

[@DevilsTreasure]

@@The_vincepryor That is not true at all.. when you withdraw Roth money after 59.5, you don't pay income tax on the growth. It is tax free growth and withdrawals because you paid the tax upfront. The only real restriction with IRAs is the age limit, otherwise the tax advantages are massive. Your example of "you grow your retirement to $500k and then withdraw $40k/year you will pay taxes at the $40k tax bracket" is only correct for traditional IRA/401Ks where you take a tax deferral upfront. If you contribute Roth dollars, the withdrawals are tax free.

[@DonaldMark-ne7se]

Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.

[@Jamessmith-12]

the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.

[@JacquelinePerrira]

I wholeheartedly concur; I'm 60 years old, just retired, and have about $1.25m in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.

[@kevinmarten]

Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.

[@JacquelinePerrira]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@kevinmarten]

She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.

[@frank.l181]

Real estate rental properties is the best investment because when your mortgage is payed off, you have monthly cash flow but it does come with headaches dealing with maintence and tenants.

[@howardfink8584]

Your not taxed on the capital gains of a Roth IRA

[@Anubis2828]

But you put in less, it's actually even with traditional, only difference is the tax rate when you put in vs out

[@tixe9]

It's still managed by the same criminals!!!!! And wrap your head around This . The government could ; " could " change the tax rate when and if it needs To !!! Nothing is 100 % guaranteed forever. My point is are you will to bet on this and wait 40 years and see this occur Or not occur. It's something to consider

[@hp7639]

​@tixe9 And if they are criminals indeed, they most certainly found a way to disguise their scheme years down the line and came up with a plan to separate 401k from the roth ira when in reality it is the same criminals with a different mask.

[@ericcarson342]

@@tixe9 The money that is already in cannot be taxed by gov. (The tax rules of withdrawal are set). They can change the tax rate and/change the rules of a Roth but then it will no longer be a Roth. The gov would disincentivize people from investing.

[@enigma4268]

You can self-direct a Roth IRA and use it for leveraged trades and other investments with high rates of return.

[@danbragg]

Ok if you don’t know the basic rules of a traditional vs Roth 401/IRA you probably shouldn’t speak about it. So many things here are incorrect

[@BlackSails911]

Agreed = this video contains alot of incorrect information

[@hp7639]

so where is he wrong?

[@JimCasler]

​@hp7639 "so I think taxes are due on capital gains in a Roth". Wrong. Don't guess.

[@JimCasler]

​@@hp7639with a company match, you get an instant 100% gain. Assuming 1 for 1 match.

[@hp7639]

@JimCasler What is the disadvantages to a Roth ira. And if it was so much better than a 401k, why isn't everyone doing the Roth ira? I myself don't have my money locked up in any of that because real estate seems to be the much better gain when you factor in appreciation. However, I don't know enough about Roth or 401k, but I'm sure there is a reason why all the wealthy people he knows don't invest in that. Probably similar to why no one in the white house has children in the military. Perhaps there is such a small percentage, but he could be right about it being a scam and rates changing many years from now and people giving their money to Wallstreet for them to buy real estate and sell it back to you for a much higher price. It makes sense to me. I don't trust others to handle my money.

[@pedronieves5617]

So, if you’re an employee and have a tax deferred 401K with a 6% paycheck deposit and the company matches a 3% (free money) and invest it within a SPY fund that mimics the S&P500, how is that not a good deal! You guys are wrong!

[@dlong7146]

You should only invest the % they are matching. If they are putting in 3%, then you should only put in 3%. Unless they only match you .5 per your 1%.

[@truefreedom9308]

Correct. They are wrong. Using bad assumptions

[@arsewind]

@@dlong7146 you can put your 401k in to rental properties FYI, so can put your money in to a 401k and still say screw wall street. You have to know some basic rules about 401ks but you manage your own 401K.. I think a better moral of the story is to tell investment bankers to GGF, they tell you to blindly put your money in stocks of companies you have know in-depth knowledge of. In fact, if you invest in to a stock you are too aware of, its an illegal inside trade. learned my lessons too many times

[@Forums4US-r4v]

Your funds in the 401k aren't tax-free, they are tax-deferred. Did you subtract the management fee? If not, you're not getting a 3% match. People praise 401ks because of the run-up since the GFC. If we have a flat market like we did from 2000-2012 and have to retire during that time, you won't be happy. A lot of people who retired from 2000-2012 had to go back to work.

[@Forums4US-r4v]

@@dlong7146You should invest the match minus the management fee.

[@GiveyourselfAraise]

No you are not taxed on the gain in a Roth IRA, you pay tax upfront. All gains are tax free coming out

[@PauleAraiza]

My target retirement fund in my 401(k) had poor returns compared to the S&P 500. I switched everything to the S&P 500, but I regret not doing it earlier. What are the best options for investing $200k for reliable cash flow?

[@Tipping-Point88]

I would avoid index funds, mutual funds, and specific stocks for the time being. Right now, the best option is a fixed income of 5%.

[@AddilynTuffin]

Accurate asset allocation is crucial with expert guidance. I have 850k in equity, 275 cash earning 5.25 interest, 685k in 401k, 120k cash account, 80k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed shortly.

[@PauleAraiza]

@@AddilynTuffin I find your situation fascinating. Would you be willing to suggest a trusted advisor you've worked with?

[@AddilynTuffin]

Sure i can! Jennifer Leigh Hickman is the T.X- based advisor I use and her performance has been consistently impressive. She’s quite known in her field, look her up.

[@PauleAraiza]

Thank you for the lead. I curiously searched Jennifer up and her webpage popped up, and I have sent her an email. I hope she gets back to me soon. Cheers!

[@WayneShaw-r6j]

With copytrading, you could be sipping coffee on a balcony overlooking a bustling city skyline or lounging on a pristine beach, all while your investments work for you. Picture the freedom to pursue your passions, travel the world, and create lasting memories with your loved ones, all because you took the initiative to harness the power of copytrading and build the life you've always dreamed of.

[@SandraElliot21]

Do you invest with a professional broker? 
I'd appreciate it if you show me how to go about it.

[@WayneShaw-r6j]

Can't share much here, I take guidance from ‘Sophia E Haney’ a renowned figure in her industry with over two decades of work experience. I'd suggest you research her further on the web.

[@WayneShaw-r6j]

Use her name to quickly conduct an internet search.

[@WayneShaw-r6j]

SHE’S MOSTLY ON TELEGRAMS APPS WITH HER NAME.

[@WayneShaw-r6j]

Sophiahaney she’s verified

[@jerrycamonjr.9594]

I’m a realtor and loan officer. This information is not entirely accurate. Some employers are now offering 401k Roth which means you get taxed up front and the rest goes into your 401k account and in the future you won’t be taxed again. That’s including capital gains. She were wrong on that part. Another thing about fees, if your company have a plan within the 401k plan that mimics the s&p 500 normally have lower fees than other investments.

[@HowardTiedt]

So Ken, How do you assist and incentivize your employees with retirement if you don't use a 401K

[@areyoufit9047]

Can you do a video on cash out refinance?

[@leeroach3381]

Very helpful Thank you for sharing this

[@rfrench7638]

I max out my 401K every year because I get a 50% match from my employer which equates to $15K. At the end of the year, I pull out my contributions, pay the taxes and purchases rental real estate. After Jan 30, I pull out my company match, pay the taxes and add that to my real estate fund. If I was only getting a 10% or less employer match, I would do it totally different.

[@CharlesVaughn-bm9gq]

You get to choose what you invest in. Usually no advisor involved. Vanguard or Fidelity very low fees. Employer usually matches a percentage of your contribution. Free money! They are great. Stick to real estate Ken. You charge fees for your syndications.

[@JoshuaHasha]

I agree take the free money, but as I look into the funds that the 401(k) offers, they are very limited and the groups of companies within the fund are the same companies in the other funds just different percentages so we don’t have the freedom to invest in whatever we want to. It’s a small group of funds that we get to pick from it’s very limited.

[@christinac2860]

"free money" = trap to keep you in that job forever.

[@abhiseksarker9698]

Hi, Ken, thanks for sharing this valuable video and knowledge. Appreciate it very much.

[@heffeacademy]

Agree. Just put 401k into sp500 etf and DCA. It is so easy to get the return.

[@theanthonyrrmillsshow3876]

Some of Ken's videos are not that bad, but 1:40 into this video (as I read the comments) and I am done. So-called financial experts who steer people away from retirement accounts utilizing well-diversified equity mutual funds with long-term horizons are almost always charlatans (Kiyosaki, Cardone, etc.) I know lots of people who contributed to 401k's during their working lives, and guess what? They are okay. They have done well financially from their 401k accounts. Do some people make money in real estate? Sure. Is it easy to make disastrous mistakes with real estate? Absolutely! Do I know many people who have lost tons of money with RE investments? Sadly, yes. Investing for the long term in the stock market (for Americans) is the easiest way to long-term price appreciation if they are well-diversified and have a long term time horizon. When listening to people like Ken, ask yourself: what does he have to gain by steering you away from proven ways of long-term investing, especially when plenty of people who contribute money on a reoccurring, long-term basis will statistically do well?

[@huestifer]

7:29 wrong your only paying the earned income tax when you put it in not capital gains tax when you take it out. You can also pull out the principal at anytime without causing any kind of penalty with the Roth.

[@raymond-i2v]

Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.

[@Fred-w7t]

These funds offer diversification, low fees, and long-term growth potential. Given the significant amount you plan to invest, consulting with a financial advisor can provide personalized guidance tailored to your specific situation and retirement goals.

[@RayaMarcus]

Partnering with a financial advisor has transformed my approach to investing. Their expertise and personalized guidance have not only helped me navigate complex financial markets but also optimized my portfolio to achieve my long-term goals efficiently.

[@Jordan8568-l4u]

pls how can I reach this expert, I need some investment guidance

[@RayaMarcus]

Stacy Lynn Staples is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

[@Johnwestly-l6n]

Thanks a lot for the recommendation. I'll send her an email and I hope I'm able to connect with her.

[@michaelwiebeck3]

As a soon retiree, keeping my 401k on course after a rocky 2022 is top priority. I have been reading of lnvestors making up to 250k ROI in this current crashing market, any recommendations to scale up my ROI before retirement will be highly appreciated.

[@Rachadrian]

The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner.

[@Derekhoffman312]

Having an lnvestment advser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I netted over $220K so far, that made it clear there's more to the market that we avg joes don't know

[@Pconradsmith]

@@Derekhoffman312 I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?

[@Derekhoffman312]

Annette Christine Conte is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

[@Pconradsmith]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@victorvictor8453]

What about self-directed IRAs, especially ROTHs where you actually choose the equities of your choice??

[@03c5z]

I hear your point, but if you are an employee with a 401k, there are very few cases in which it makes sense to not take the match at minimum. My plan has limited choices, the best being a low cost s&p 500 index. You are also forgetting that nost plans offer a Roth option that means pay tax now and then you mever pay taxes on the gains (even real estate doesnt do that.)

[@motogolf1]

Y’all’s space is real estate .. you’re wrong here. There’s plenty of 401k multi millionaires who would disagree with you.

[@truefreedom9308]

You’re purposely discouraging people from being in the market and want them to be in real estate. That’s what they’re doing. The example they gave of someone’s portfolio jumping up and down 50% year of the year has never happened in the history of market. Particularly if you are invested in index lines. The S&P has never moved like that ever

[@BlackSails911]

Agreed = this video contains inaccurate information and is misleading

[@Build2RentTexas]

They did highlight the comment illustration of the 10% swings over 10 years only returning 5% total for the 10 years without any fees deducted.

[@DCC72]

Thanks for keeping everyone honest. I'm hurt though....I liked Ken.

[@truefreedom9308]

@@DCC72 well, i dont know jen. But if people have a company that MATCHES thei 401K contribution, they are getting free money (100%)... they should do that. And if they put it i an idex fund with low costs, it will not be very volatile and should compound at 10% a year and the amout deposited you dont pay taxes on until you withdraw. It is absolutely fine.

[@singuyen5927]

They’re not employees so they don’t understand the benefits of a 401k. Company matches, Roth 401k. They’re bashing the 401k to influence us to invest in real estate instead. That’s a shame, knocking other views to sell their own.

[@BlueWaterSTAX]

I switched my 401k to a self directed brokerage. I'm up 52% YTD. We appreciate you two. Thanks

[@BusinessandFinance-ym5bk]

most 401ks offer the self-directed versions

[@judybmwx5]

Hi how about 403b i have AXA equitable managing diverse portfoilio? Would i grt more if i change from self directed broker?

[@andrewpatterson4043]

Each 401k is structured differently. Many plans allow you to invest in low cost (low fees) index funds (domestic or international) which mitigate inflation risk, cost risk but exposure to taxes later still exist. Great discussion.

[@ADobbin1]

managment fees alone make the 401k, rrsp and mutual fund thing not work as expected. Those fees are based on the value of the portfolio not the return of the porfolio. so if your portfolio makes a -15% return this year the manager still charges 1% of the value. so 100k value at the start loses 15% over the year putting the value at 85k. the fee is 850. next year the value goes up 8% leaving the value at 92k. the fee is now 900. value goes down 6% next year leaving value at 87k the fee is 850. Repeat this every year for the next 40 years. unless you are putting a lot of money in you will do nothing but spin your portfolio tires while the fund manager makes out like a bandit.

[@huestifer]

What about the Roth Option.

[@Thaksinnaenaudon103]

Thank you very much

[@Eric-wt8wr]

This is nuts. I've invested in S&P fund since 2001. With match and profit sharing I am a multimillionaire and thats not counting income tax impact. Don't take advice from you tubers

[@BlackSails911]

Agreed- they should stick to real estate advice I have done super well with IRA/Roths

[@hp7639]

sure you are lol

[@chrisservais4230]

Wait until the govt assist in crashing the market and see what your 401ks do. Go ask the boomers that are still working

[@jonathanmarte4251]

Yeah this makes no sense at all, not everyone is “wealthy”

[@MeJonTheDon]

Average rate of return would not be based on annual amounts averaged, it would be based on a weighted return, compounded over time, aberaged out to an annual figure

[@mocheekum]

There are no income taxes on capital gains in a Roth. There are taxes if you take the money out before age 59.5 or less than 5 years after opening the account.

[@brycehuff]

What’s a “pension”?

[@areyoufit9047]

My only problem with 401k is they usually only offer mutual funds. Personally I’d like to pick from stocks. The 6-7% match is free money btw

[@poonekar]

You are correct but two things … I always roll over my 401k funds to a self directed IRA when I switch jobs. Also, some 401k plans allow self directed options like Fidelity’s BrokerageLink account.

[@areyoufit9047]

@ I’ll be inquiring about this once I start investing in my next 401k. My last 401k I utilized the ROBS to start a C-Corp.

[@Tony-ib2vm]

Hit the match to get your total compensation. Don't go above the match. Use a different vehicle for other savings.

[@antoniostephano]

Perhaps I should wait until you are finished but you have not mentioned that the tax is on the interest or dividends, not your principal (contribution) unless the principal came out of your pre-taxed wages.

[@clearviewproducts]

Also why bother with a Roth when the pretax basis of a deductible ira would add 10% to 50% more funds to take advantage of compound interest?

[@Wibb14]

Everything depends on the details. I have a self directed 401 and I own the business with two employees (me and my wife). We also do profit sharing which goes into the self directed 401K. So our business is matching the max allowable thereby reducing the biz taxes. Our 401K is up 60%.

[@candicephillips6536]

Agree. It's not all bad...

[@maverduc]

Guys, I think you should stick with the great information you provide on the real estate topic. 401k plans are taxed deferred but don’t forget that many plans have employer contributing to it. Roth IRA are taxed free and interest earned is also tax free.

[@BlackSails911]

Agreed = this video contains alot of incorrect information

[@zonk1477]

@@BlackSails911 and assumptions

[@saulmarquez8989]

Mine is set up as a Roth 401k so my contributions are taxed today and tax free including the gains on that Roth money is tax free…..however company match can not be Roth since the company or you haven’t paid taxes on that money so its just a traditional 401k where you will pay the income tax bracket in retirement depending how much you take out in the current year

[@romangarcia8114]

You pick the investment option and can look them up on any platform. Exp ratios are listed with ROIs on the product.

[@mikethomas6715]

I love this show

[@mike2959]

If you have a MATCHING 401K from your employer. Yep match it as well. 100% on your cash, BUT BUT BUT… If you own a business (and don’t have any employees) a SOLO (Roth) 401K is the holy grail… You contribute to it as the employee 24K next year is the max. But because you are ALSO the employer you can dump ANOTHER 25% of your gross to a a max of $70K total! And here’s what’s even better if you self direct it…you can invest in real estate, and other assets!

[@rossferguson5786]

Great show ! One thing that wasn’t said. Financial money managers always tell you when to invest. But they NEVER tell you when to get out !!! Because they only make communions and money when you are invested. Which makes for a terrible business model for the consumer. They are biased and tainted by money and the structure.

[@pkradgreek]

at minimum all employees should take advantage of any dollar matching by the employer which easily makes up for any fees. You can put additional funds into Individual IRA or ROTH IRA that are self managed. Self employed individuals can set up a self directed retirement account. Talk to a tax professional.

[@jp7852]

Wow. Horribly covered here minus the borrowed clip on avg return.

[@6figurespharma]

People often emphasize the power of compound interest, but rarely do they mention compound inflation-a hidden tax that quietly erodes your wealth. And when it comes to taxes, most people pay them at the earned income rate, which is the highest level. Even with a ROTH account, you’re still paying taxes upfront, despite the misconception that it’s entirely tax-free. Believing the government won’t find a way to tax you is unrealistic. While these strategies are better than doing nothing, they fall short of being truly financially transformative. Even Ted Benna, known as the father of the 401k said he created a monster because of the fees.

[@LP-gs3xj]

Slightly disagree. I invested up to the matching level. Problem now is I am 70 and facing minimum distribution- here is the govt overreach. I don’t need the money, I have rental income. I wish they would just let me pass it on to my kids- it’s a IRA rollover

[@Stormy354]

Most 401k let you have a brokerage link where you can transfer to and BUY W.E STOCK or Index you want..... VERY BIASED Video. not educational, also completely off on the fees. You can have a low index fund like VOO and not pay all these fees he mentioned. Also missed the point that companies match a portion that is free money.

[@BlackSails911]

This video contains inaccurate information and is misleading

[@impala6464]

I watched this video at 2X speed just to get through it. My employer's Roth TSP allowed me to become a millionaire investing in growth investments. Then, I expanded my horizon with my Roth IRA and self-directed Roth IRA with individual stocks, real estate, cryptocurrency, and Forex trading. This is not complicated. People just need to be properly informed with real options and not use fear.

[@andrewrossnagel9433]

Not all 401ks are created equal. The one with my union sucks but we also get $14/hr put into it for every hour we work (plus whatever we contribute) The one with my other job is slightly better because I can take a loan from myself at 0% interest. So money goes in tax free and then I can borrow from it interest free. Great deal. Also can choose where it gets invested. I'm 100% in big cap. Returns have been great. Fees still suck though but the tax benefit of maxing out my 401 and 457 makes my taxable income very low

[@bunsguns8222]

Are you sure your union doesn't have a pension and not a 401k?

[@andrewrossnagel9433]

​​​​​@@bunsguns8222it has both but the pension is terrible. Something like $150/year/credit and you max out at 30 years so gross would be something like $4500/month. With the 401k you contribute $14/hr x 2000 hrs plus the 23k you can contribute on your own. Roughly $51,000/year. Which if you do that for 30 years would be a lot more. My other pension is roughly the same it's 50% of your 3 best years In a consecutive 5. Base pay is around $110k there. I'm 35 so it will likely be around $200-250k by the time I retire so say 100k to be safe say $9000/month which is better but still bullshit lol.

[@barbarasummers280]

You gotta be really careful though, even with prop. mgmt., you can get burned, literally, someone had a home burnt out, due to a druggie that hid that from the prop. mgmt., and when they gave eviction notice, he burnt the house, it isn't totally destroyed, but insurance wont cover due to it being arson, and they guy went to jail on a drug charge, so good luck getting anything back that way!

[@Jenny-t8y]

That energy is unreal, absolutely amazing.

[@truefreedom9308]

What are you referring to?

[@Mind_Breach]

Unless you have a Roth 401k with a company match because that’s an immediate 100% roi. Also there is no tax on the gain with the roth. Also a lot of people hate on gold. Real estate is a metric used in inflation it is not inflation. In 1970 the average home was 17k (485oz of gold), in 2024 the average home is $420k but 485 oz of gold gets you $1.3 million.

[@SeanBass-jn6jm]

Mines invested in the S&P500 with 0.01% fees. Absolutely nothing wrong with that

[@WhirledPeez]

They let you do some borrowing against yourself or with yourself. It does lock away funds but you’re at least partially your own bank. Be sure you pay yourself back!!

[@zhenshan456]

during pandemic there is aspecial act to borrow from 401K with longer period of time than 60 days. I used that couple of times to purchase property then cash out refinance to return it. There are some occasion I can't return so I pay tax. Now only have 40k in 401K basically only 2% of my total asset. I agreed that not a good investment but for that small amount it's not worth to set aself direct ira.

[@sw-iz1ux]

I have always had an icky feeling about the stock market since I lost $500 on Pan Am in the 80's at the age of 17. Thanks for affirming my suspicions. BTW the IRS came after me when I was in 6th grade. They said that I made over the limit for paying taxes and owed them . I wrote a letter back saying they were wrong. 3 months later I received a letter that said I did not owe anything. Let that sink in for a while.....WTF!!

[@danbragg]

What’s the fee structure of your fund? 2/20? If so you are collecting fees along the way regardless of the performance of the underlying investment.

[@_itineraryguy]

How about Roth/Backdoor Roth 401k/Roth IRA/HSA? We can manage the investments it goes into. We can select the stocks/etfs we want to invest in. So the blanket advice is not applicable to everyone. If you can do Backdoor Roth/Roth IRA you can get tax free capital gains up-to 40k/year. Get your self educated 🙂

[@oliviaroth763]

Love you guys. You are not taxed on the gains in your ROTH IRA.

[@angieharris8015]

Don't be insulting, WE know how to figure out a fund or funds it is NOT "complex." Also, 401K's etc are great because a judgement cannot be collected against it (O.J. Simpson come to mind?) I do like real estate and I am an investor but I also have pre-retirement accounts (and pensions). Having these accounts are better than any protection that an "LLC" or "S-Corp" will give you.

[@utube7917]

Roth -zero tax on gain when taking it out, but you pay income tax o the income you put in. Traditional IRA - you can deduct from your taxes what you out in, but then you get taxed at the end when taking it out. So these 2 IRAs are opposite. The theory on traditional is you put pretax dollars in for higher growth and compounding faster. The roth theory is that you pay lower taxes now and the compounding yeild is tax free, which would otherwise be higher tax rates.

[@Joshmarmolejo_]

So what do I do with an old 401k that I have ?

[@BusinessandFinance-ym5bk]

Switch to a self-directed option within your 401k, and put the money into a high-growth fund like FSPTX, or something similar. Don't listen to these clowns.

[@cruzrv4399]

Hi from Australia, love the show guys. Something that I just keep thinking about over and over after listening to Robert and Kim and you guys for years now. What happens when everybody gets the real estate investment model and we have more real estate investor/speculators, and not enough actual RENTERS? Or is it that you guys think there will only ever be a small percentage of people that would be able to put the required amount of hard work and study to becoming a proficient real estate investor? I have long thought about this. It keeps me awake at night.

[@Scott.C]

Not your best episode. It's clear you've not been in the details of 401(k)s, Roths, etc. so, even if your conclusion is valid, your lack of familiarity with specific (and even basic) attributes reduces the credibility of your conclusion. The key statement is at 15:59: "If you want to make the most money that you can to retire..." then 401(k) ain't it. Agreed. Stipulated. However, the inverse is not true. Simply put, an employer match, and sensible investing choices with a 401(k) is a simple way to not be poor at retirement. Most money possible? Almost certainly not. Not poor? For sure.

[@micahhuffman6317]

I don’t entirely agree with this one. You should atleast Invest to get the match on your money. To turn down a 4-5% match on your salary over a 20 year period is insane. Not to mention the raises you should be getting over that time. Most decent size companies don’t have long vesting periods more than 2 years. And the fees for a s&p 500 fund are typically less than 1%. Maybe not if you’re at a small company but most fortune 5000 or larger will have a short vesting period, a 3-6% match, & many times a Roth option. Invest to get the match.. when you leave roll it into a self managed ROTH IRA so you can buy whatever stocks you want. But to say the average employee shouldn’t put any money into a 401k that dollar for dollar matches you a portion of your salary is wild; leaving hundreds of thousands potentially millions on the table over the course of your working life depending how much you make. As far as a return goes you should be able to get 12% on average the past decade it’s more like 20-30%

[@branchbe]

Agree with everything but a Roth is not taxed later. It’s taxed upfront with “after tax” money.

[@backcountyrpilot]

Everyone should at least start a ROTH when young. You don’t get a tax-deduction for the contributions you make, but as long as you follow the rules, your gains will be tax-free for life. This benefit can even pass to your heirs for up to 10 years after your death. To withdraw penalty-free requires that you be 59-1/2 or older AND that you started your first ROTH 5 or more calendar years ago. In other words, if you open your first ROTH on 12-31-2000, you get credited for all of calendar year 2021. So, after 2022, 2023, 2024, 2025, have passed, on Jan 1, 2026, you can withdraw as much of your principal and/or earnings over whatever timeframe you want. Note that this timeframe actually took just 4 years, plus a few days, but it meets the 5 calendar year requirement. There are mandatory RMD’s and the withdrawals have no effect on your Social Security benefit or your tax bracket. This plan seems like a no-brainer unless you assume that your tax rate will be lower in the future while the government digs itself ever deeper into a hole.

[@richardmerced1833]

I love your show I have a 401K The only reason why there's a 6% match so basically I put in $60 a week they match it $60 a week That's the only reason why I go into 401k thanks

[@4everwonderful]

You aren't taxed on the gains of roth investment

[@AJohnson0325]

traditional 401k seem like a scam. My employers contributions are traditional 401k but the rest is a roth 401k which has already been taxed and will never be taxed. Now it’s in low cost vanguard index funds. Once it’s vested I can transfer to a roth IRA and invest it in whatever I want. I’ve also had a traditional 401k at one job that’s like a money jail like he said. Transamerica was the only option for who manages my money and all their funds have high fees. It’s also underperformed many available options. Not all 401Ks are bad but some can be. You just have to know where your money is going and make sure you’re not getting screwed over. If you’re a high earner then the amount of money to max out a 401K is insignificant anyway. If you have a roth 401K, get it out of there and into a roth IRA. I agree that real estate is better though if the deal makes sense.

[@JimCasler]

The employer match must be traditional, otherwise the govt would never collect its taxes. They get enuff but that's why the ER side is taxable. Cheers!

[@LucasStaus]

"I think there is a thing called a Roth", this says all i need to know about what you know about retirement accounts. Peter Thiel made billions on a Roth. Rich people would use 401K or other special tax treatment accounts if it's available to them. But if they are rich they do more than just 401K, IRA etc.

[@horses2572]

If the wealthy don't use 401k, it's because they're already wealthy, so there would be no reason to lock up their salary when they're already wealthy, obviously. Additionally the example returns in this video are not based in reality. For most people the 401k is one of the best investment vehicles, overwhelmingly so if there is an employer match. I'm glad you are advocating for people to educate themself on how the 401k is invested, the fees etc, but that is about the only good advice contained in this video.

[@nellyb6151]

Wow. It’s retirement oriented which is fine. Often matched by employer. It is usually invested in the stock market. The company that manages the 401 is usually charging .3 percent. Not a deal breaker. Everyday people become millionaires from investing in 401ks. My yearly return has averaged 16.5% over the past 7 years. You 2 are brilliant on real estate but wow, your stock market knowledge is minimal along with your knowledge of 401k. I am in shock. This was a disservice to so many people. I love you guys and can’t believe you presented such a biased illogical presentation. ( I have twice as much real estate as stock). There are fees in real estate also. You are mixed up on the fees in most 401k. They are not so big. Real estate is great So are stocks.

[@TRAVELANDHEALTH157]

Roth IRA is tax excempt from capital gains as well.

[@ElJefe360]

This is not TRUE. Wealthy people also invest in ROTH IRA which is the same as the 401K in a way… They diversify because they know the advantage of compound interest. You should have a ROTH IRA or 401K if you are W2. This should be only one of your investments besides other ones (Real Estate etc..) specially if your employer match your contributions that is free money. If you do your homework you can get at least 13% ROI with minimal fee’s. I’m not saying you should only have a 401K and rely on that for your retirement but should be one. You guys need to get your facts straight before making a video just go gain more followers 🤦🏻‍♂️👎

[@BlackSails911]

Yeah this is mostly nonsense

[@hp7639]

How many wealthy people do you think he knows?

[@JimCasler]

​@@hp7639he knows a lot of wealthy ppl. Wealthy ppl cannot invest in 401k if they do not have earned income. They mostly have passive income. They are capped out if they make too much money and most wealthy ppl are not w2 employees. That's why he doesn't know ppl with 401k. He knows owners, not employees. I would bet his employees have some type of deferred compensation plan...ie. simple ira, 401k, with a company match.

[@ElJefe360]

@@hp7639 that's not the point. You need to be honest with your audience and not lie to gain followers on your you tube channel like many other people. The fact is that you can make lots of money by investing in ROTH IRA and 401K regardless of others investments you may have. Just listen to Warren Buffett and you will understand.

[@TheSolver-PR]

Disappointed on Ken's take on this. What happened?...Did the Kiyosaqui meeting affect his mind? Talking crazy like grifters in the internet. I'm a Real Estate advocate... but when capital expenditures arrive and eat portion of your reserves, and that one tenant, and that administration fee... leaves you with a 8% return... and that accessing 75% of your equity will cost you 8% up front and prime + 2% year over year and balloons in year 5.... that will get you thinking about that brokerage-retirement account at Vanguard.

[@paulglenn6470]

Great points of boomers having median 70k in 401k Early on they had savings accounts that yielded 10 %. They could retire nicely on that combined with employer pension . when the floor fell out on high yield savings accounts and pensions being desolved They simply ran out of time to build up the balances.

[@Smoresthecat-t4r]

I’m 44 retired ..600k with a 401k with fidelity it actually showed individual holdings Tesla meta Amazon in percentages..retired use edward jones getting 25% in bull market .. having a 401k enabled me to pay off multiple homes early ..retire early .. bottom line every one has a opinion I’m sure if I flexed my Rolex watches cars in my garage and my homes idiots would follow me to .. do what’s right for your family and don’t listen to idiots !

[@Libretad-cw4cb]

3:00 you might be right in a math problem but real world you don’t canculate roi average that way. You have to take (final.value/initial.value)^1/years -1 o (84.375/100)^(1/5)-1 which is equal to a -3.34% rate of return. When you see the average rate of return they are calculates 1year to date 3years to date… and not like first year + second year. This is why you shouldn’t listen to dumb people in the internet. So bad this ignorants are giving advice to the public

[@barbarasummers280]

$70K isn't enough, and yet I have lived on under $20K/annual for most of my working life.

[@RoqueExclusives]

A lot of misinformation in the video. I have a 401k that I can rollover into a regular IRA and then choose my own investments. A lot of bad info on how taxes work on ROTH IRA and IRA. You can in fact take your initial investment from either Roth IRA and IRA. I took mine to pay for my first Duplex. My company matched a big part of it. So it was worth using the 401k.

[@mikethomas6715]

I don't think a 401k is all that bad. I see it as steady part of your retirement plan. If you can work to make it only 10-15% of your retirement plan you should be ok.

[@mda0214]

I completely disagree. I'm no longer working for anyone. But over the years I've always managed my 401k. It's true most people have no idea. But it's easy to manage your own 401k.. and then you can also convert some of the money into a roth ira

[@LA_Home_Deals_Texas]

I use Fidelity and has 401k but, I picked my own investment with an average return of 25-35%….I don’t know what the lost they are talking about…maybe for the lazy one that won’t rebalance and hand pick their own. Fidelity make it so simple, you can see the fees, growth rate and more. With people that has W2, we have to do 401k due to company match up 2-4%. I even built my son UTMA from 15k to 56k in 6 years with no finance background…but, yeah 99% stocks no low government bonds…

[@codacoda565]

On a roth 401K, you don't pay taxes on The earnings you make

[@jwigley3835]

I know what the top investments are in my Roth 401K. I've been beating the average rate of return for years. My last 12 months was up 34%. I have a pension too. My mutual funds and ETFs haven't kept up with my high cap Roth 401k.

[@perpetualsremodeling6032]

The point is that you should manage your own money investing in Real Estate instead of giving it to someone else.

[@robbybaggio4007]

Seems like they woke up this morning, wanted to record a video, had no ideas for what to discuss, and decided to wonder into a topic they don’t seem to know much about. I’ve had my 401k for 20 years and Roth for 4 years and both are doing great. I max out both each year. Don’t listen to these ppl and save and invest your money

[@gabriellehollis9081]

Does SS count rental income from mobile homes?

[@willbuchholtz4531]

Your podcast on syndications was so good. Could you do another one where you go line by line through one of your pro formas?

[@judybmwx5]

This is agreat topic to discuss . My top pod cast to learn from. ❤

[@JimCasler]

Stick to real estate. With a CO match... I can lose 50% of my money and still be ok. It's a no brainer..... if I put it into something earning zero, I still double my money. The issue is future tax rstes

[@codacoda565]

I changed my company 401k To self directed 401 k and a lot of my friends doing lump sum roth ira changeovers

[@shashydhar]

A lot of people do not realize that their 401k pays the very wall street that goes out and buys all the houses around them and prices them out of the market!

[@hp7639]

interesting

[@hp7639]

They are basically using their money and making a much higher profit off them. Like hey give me a cookie and I'll give you 2 (not really) years down the line but I'll sell you a home i used your money on for 10 cookies😅