I came across a Grant Cardone video where he explains the 401k is a scam…but is it? Lets do the FACTUAL analysis and find out 😉 Enjoy! Add me on Snapchat/Instagram: GPStephan
Original Video:
https://www.youtube.com/watch?v=hE0SvSJ1bkk&t=195s
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
MeetKevin’s Channel:
https://www.youtube.com/user/KevinPaffrath
For those that don’t know, a 401k is basically just a type of retirement account where the money you invest is deducted from your total taxable income, and therefore you end up showing less income and paying less taxes…by doing this, you end up having more money left over so you have a larger amount to invest with. Then when you hit the age of 59.5, you can begin withdrawing that money - but you pay taxes at THAT time, instead of paying taxes upfront. So this gives you a larger amount upfront to work for you and make more money long term.
But Grant Cardone says it’s a scam setup by politicians to steal your money….hmmm….
Here’s the moral of the story here, from my perspective. And as always, I do my best to be as neutral as possible and just stick with the facts and the way I interpret these strategies. A 401k is a fantastic part of a well diversified retirement portfolio by investing with pre-tax money that’s allowed to grow at a quicker rate with more money in invest. It should not be the ONLY thing you invest in, and you shouldn’t rely on this entirely for a retirement. But it’s absolutely not a “Scam” by any way I see it.
The ONLY thing to out watch for is that many employers offer extremely overcomplicated, overly expensive 401k plans that aren’t worth it - namely because of management fees. If you’re paying a 1% annual management fee, with an actively managed fund that underperforms the stock market, adjusted for inflation, you could basically be sitting there earning only a few percent per year and tying up for your money until retirement. That’s terrible. Many employers have also been under fire for secretly PROFITING from your 401k plans, but using these companies to get free services elsewhere, but making up for that cost with high-managed 401k fees. This isn’t the norm, but it does happen…for employers, they don’t care what fund they use because it doesn’t effect their bottom line…but it effects YOURS. So it’s important to do your research and understand what the 401k management fees are and decide from there if it’s worth it. I pay 0.04% annually with Vanguard…although the average is 0.97%, which is over 2400% HIGHER than I pay…and that’s absurd.
So my biggest recommendation is to check what your employer offers, decide if the fee is worth it to you - but you may as well contribute up to their employer match, where they give you $1 for $1 what you put in, since this is absolutely free money.
And yes, it is true that I invest the MAJORITY of my money in real estate…but I utilize everything I can so I have as many options to chose from. I have a Roth IRA, which is money that grows tax free until 59.5…I have a SEP 401k, which is pre-tax money that is reduced from my earned income so I pay less in taxes, and I have real estate which is my focus. They each have their benefits, they each have their drawbacks, but nothing is a “Scam.” Except Bitconnect.
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
Original Video:
https://www.youtube.com/watch?v=hE0SvSJ1bkk&t=195s
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
MeetKevin’s Channel:
https://www.youtube.com/user/KevinPaffrath
For those that don’t know, a 401k is basically just a type of retirement account where the money you invest is deducted from your total taxable income, and therefore you end up showing less income and paying less taxes…by doing this, you end up having more money left over so you have a larger amount to invest with. Then when you hit the age of 59.5, you can begin withdrawing that money - but you pay taxes at THAT time, instead of paying taxes upfront. So this gives you a larger amount upfront to work for you and make more money long term.
But Grant Cardone says it’s a scam setup by politicians to steal your money….hmmm….
Here’s the moral of the story here, from my perspective. And as always, I do my best to be as neutral as possible and just stick with the facts and the way I interpret these strategies. A 401k is a fantastic part of a well diversified retirement portfolio by investing with pre-tax money that’s allowed to grow at a quicker rate with more money in invest. It should not be the ONLY thing you invest in, and you shouldn’t rely on this entirely for a retirement. But it’s absolutely not a “Scam” by any way I see it.
The ONLY thing to out watch for is that many employers offer extremely overcomplicated, overly expensive 401k plans that aren’t worth it - namely because of management fees. If you’re paying a 1% annual management fee, with an actively managed fund that underperforms the stock market, adjusted for inflation, you could basically be sitting there earning only a few percent per year and tying up for your money until retirement. That’s terrible. Many employers have also been under fire for secretly PROFITING from your 401k plans, but using these companies to get free services elsewhere, but making up for that cost with high-managed 401k fees. This isn’t the norm, but it does happen…for employers, they don’t care what fund they use because it doesn’t effect their bottom line…but it effects YOURS. So it’s important to do your research and understand what the 401k management fees are and decide from there if it’s worth it. I pay 0.04% annually with Vanguard…although the average is 0.97%, which is over 2400% HIGHER than I pay…and that’s absurd.
So my biggest recommendation is to check what your employer offers, decide if the fee is worth it to you - but you may as well contribute up to their employer match, where they give you $1 for $1 what you put in, since this is absolutely free money.
And yes, it is true that I invest the MAJORITY of my money in real estate…but I utilize everything I can so I have as many options to chose from. I have a Roth IRA, which is money that grows tax free until 59.5…I have a SEP 401k, which is pre-tax money that is reduced from my earned income so I pay less in taxes, and I have real estate which is my focus. They each have their benefits, they each have their drawbacks, but nothing is a “Scam.” Except Bitconnect.
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
😂Upside!! They are cute!!! 😊Downside!! They’re dumb as a box 📦 of rocks 🪨!!
Here’s the thing with grant cardone. He’s a salesman. He’s telling you this because he wants you to invest your money with him.
I’m not here saying that a 401k is perfect. You need to learn about investing and the problem is most people trust blind faith.
Grant made most of his money sales consulting. And invested in real estate on the side. Sounds like a guy who came from money and used it to make more.
Cardone is just an annoying piece of. Talk trash 90% of the time
A guy always saying to go to hard lenders and PE to invest in real state 😂😂
The 401k was created by congress to artificially prop up the stock market to hide the declining value of the dollar due to the literal, socialist, central banking, fractional reserve, fiat currency model. It is a mathematical certainty that you will pay higher taxes later so, tax deferred is a total red herring that means nothing. Even if the tax rate stays the same, you will have less spending power. Significantly less. That is unless you get at least a 20% return YoY in your 401k as shadow stats has shown is the real rate of inflation. The 401k tricks people into locking in their money to help create the very propaganda (a healthy economy based entirely on debt (neo-Marixst Keynesian/MMT econ)) the ruling elite use to turn around and justify more dollar devaluation to fund the denigration of our basic freedoms, rights, and liberties via their ever growing imperialist, collectivist exploits.
Please talk about average returns vs real rate returns. This is the biggest smoking gun against 401k and retirement plans in general. We have been lied to believe it returns 10% per year but please look real rate of returns ur mind will be blown.
Some people (government workers only) (24%of people) get a pension for their 20-plus years of hard work and other people who have worked very hard ( 76% of people) do not get a pension. So basically a caste system is thus created in our country. The difference between someone who must go work 40 plus hours a week or they will not have a penny and those who have magic money beamed monthly to their account ( for the rest of their life) no matter where in the world they are residing is a very,very profound difference in quality of life. The pensions would be fine if they existed because a private enterprise had sky high profits over generations and could pay out of current profits to those who helped create past profits. But with the current system, via taxation and denial of pensions to the 76%, those who toil are paying for the Pina Coladas on the beach for this leisure class.
Im old.Does hustler no longer mean con man?
You can use a solo 401k to invest in all kinds of investments if you have 1099 income
Graham knows what he is talking about!
So I have been contemplating to stop contributing into my 401k due to the fact that I invest in stocks myself. As of right now the only thing keeping me in a 401k is the % match up from my employer. Lately I have been watching several videos and came across one good point, once retired money pulled out of your 401k will be in a higher tax % bracket due to the fact that it was non tax when invested. As opposed to you investing on your own portfolio, once retired it will have a lower tax % due to it being taxed income used to invest. What is your opinion on this?
Excellent job using an actual expect to gain bait clicks. Hope you got the number of views you so desperately needed. You obviously know more about money than him I guess.
Trying to share a video with my wife and Make a decision on our 401k, after several minutes of idiocy, moved on to some other video that might prove useful and informative
Grant was right. 401ks are for poor people
yourself and grant both have good points. But its like pulling out when the market is hot v when it isnt.
401k is a scam your subscribers know this….stop pretending you are offering help yore not
I have had to deal on a couple of times dealing with 401k on my part and my parents part and it's most definitely a scam boss.. I have a few horror story's of how they will cheat the money away from you or the family
I love your non-biased opinions.
One 401k scammy point is, my old 401k had >3% fees. These days, I have a Vanguard 401k…that has fees up to 3.45% depending on the fund. Still, I can use the 0.04-0.16% funds and so long as I’m careful where my cash goes, it’s all good. Too bad bond funds crashed and took with it a LOT of my money (I made the mistake of moving stable value cash into bond funds in December 2020…the peak of the bond fund market…oops).
i love people like this , giving advice against people who do / have done more than they have… would love to see you 401k advice while most americans are loosing their asses on it !!!!!!
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.
money tied up til I'm almost 60…no thanks.
Funny how your clowning him but he’s a lot more richer 😭. Let’s be real a 401k is meant for employees … most employees limit themselves to strictly working that job and don’t invest apart from that. Yes a 401k is ok but why put money in it when you can create cash flow threw RE and use that money to start a business and so on.
A 401k is 100% shady. Lol 🤣 Grant is right. Wallstreet did take over 401k… Even the creator of the 401k said this is not how it was supposed to be and he doesn't recommend it.
401k is a scam. Wake up people. Buy real estate.
NEWS FLASH, YOUR EARNINGS ARE NOT SUBJECT TO THE INCOME TAX UNLESS YOU ARE ENGAGED IN FEDERALLY PRIVILEGED ACTIVITIES
It's important to consider a Roth 401k!
The government does not allow less wealthy people to invest in "high-risk" investments but allows them to buy as many cigarettes and lottery tickets as they want. The system is built to keep you poor, BUT you can still make something of yourself. Don't limit yourself because the system hates you.
👎😎 trash video
I see it completely differently. I think the people who believe that 401k's are the best retirement investments are the people wearing tin foil hats. I'm not saying they're terrible I'm just saying there's better options.
I hope I'm wrong on this but, anyone who knows anything about currency, economics, and history can't look at the post gold standard 1971 situation we're in and believe this can go on forever. Everyone thinks it's going to be different this time but history and economic law proves otherwise, we are in the midst of the biggest monetary policy experiment in human history.
How on Earth is 100% profit a scam? Just put in what the employer matches.
He’s the greatest scam lol
Not to mention 401k typically comes with a match from your employer… If you don't take that match, you're passing on money.
Ok if you do not plan to use or beg them to use your own money until you are 59and a half years old then invest because if you can make more money with your own hard working money yes give it away so they can buy the real estate investment you are hoping to get in the future and sell it to you with profit and interest them yes stay behind the curb