The 401k hoax
The 401k hoax is a pretty strong statement, but that’s potentially one of these plans.
A quick breakdown of a 401k; it is money that is normally invested in stocks and mutual funds. The market goes up, and so does your money. But that’s not a guarantee because the market can go down and when it does, your money puts you at risk. It also immobilizes your money until you retire, unless you want to pay penalties and taxes for early withdrawals.
Many people assume that a 401k plan or mutual funds is the best way to save for retirement, especially with all these experts and pop culture gurus advising us to invest in them, but let’s take a look at a warning from a financial analyst: “The American The public has been lulled by political and corporate coercion to rely on the 401k as the primary long-term investment vehicle. Wall Street and the stock market have become the focal point for providing a comfortable retirement to the American. The 401k is an emphatic promise to the middle class that they will be able to live on the income they receive from owning shares, as the rich do. It is an impossible promise to keep, it is the great deception of the 401k. “
There are three main threats to guard against in order to retire with confidence. First is the loss of your money within the market due to recessions and once you lose your money it can become extremely difficult and frustrating just to break even. Second, there are the taxes, and third, the interest you pay with your money.
Something else I wanted to point out is that most people don’t even know who their 401k manager is, not to mention their financial background. They also do not know in which funds or even in which companies their money is invested? In my opinion, it’s a very risky gamble when you consider that your retirement money is something you want to be able to depend on.
I want you to think about this, you constantly hear your employers talk about a 401k plan and how they match the funds you deposit, which some interpret as free money. The 401k plan is estimated to have around $ 10 trillion worth of qualified plans which in turn make it a trillion dollar business. The 401k is a business people, don’t get it wrong or twist. Do you agree that that is too much to trust in the hands of Wall Street advisers and their computer systems who cannot guarantee that you will get the money invested?
John D. Rockefeller is quoted as saying, “If I had to give advice, I would keep it off Wall Street.”
Ask yourself, is there a chance and I’m just saying a “chance” that investment bankers, brokers, and their brokerages are a little more concerned about their own assets? Could they be bypassing these Wall Street strategies knowing that without their investments they can no longer prosper?
As some of you may know, that conventional wisdom preached by financial experts, gurus, and television personalities is not always true and is definitely not designed to make you rich like “the average American.” Their main goal is to force you to feed yourself with these enriching techniques to keep enough content in the magazines or their radio stations to keep you tuned in at all times. Not everyone is like this, but I want you to be aware of the fact that there are some personalities who do this. For the most part, Wall Street was never created to enrich the nation’s citizens, but it was more geared toward financially improving those within those gold-plated walls.
We all remember the government bailout after the market crash; Let’s take a look at some of the compensation packages distributed to some of the banks. Now, according to the American Federation of Labor and the Congress of Industrial Organizations in 2009, Lloyd Blankfein of Goldman Sachs and JP Morgan Chase received approximately $ 10 million in compensation, John Stumpf of Wells Fargo received about $ 20 million while Thomas Montag of Bank of America received approximately $ 30 million in compensation. This is all over the course of a people year. Now I don’t call anyone who wants to work hard and receive this amount of money, but who do you think is paying these ridiculous CEO paychecks? That’s right; you guessed it; Me, you and anyone else who can fog up a mirror.
The market can be prosperous if you have money to gamble, but gambling on your retirement money is not a very smart move from a financial point of view. Now I am not a financial guru but I am someone who focuses on safe money investments. I want to help people understand that there are ways to build a strong security foundation and never lose money in the turmoil of the market. 401k and mutual funds are very risky investments and could drain your entire investment depending on how you set up your contributions.
Some of the best plans to consider are 101 plans, annuities, and other cash value life insurance plans. I won’t go into those plans in detail here, but find an advisor in your area who specializes in those products and find out.