197: Inventor Of 401(k), Ted Benna Joins Us
Get Rich Education
Keith Weinhold
4.3 • 602 Ratings
🗓️ 16 July 2018
⏱️ 41 minutes
🧾️ Download transcript
Summary
#197: I dislike 401(k)s. They REDUCE your income. Sound investments INCREASE your income.
Most people simply do not realize that there are alternatives to "defined contribution" retirement plans like 401(k)s, 403(b)s, 457s, IRAs, and Canadian RRSPs.
Societal belief systems condition you into "Salary Reduction Plans" - which is, in fact, an early name of the 401(k)!
The man credited as the "Father" and "Inventor" of the 401(k), Ted Benna, joins us today.
He created and gained IRS approval of the first 401(k) savings plan.
Even Ted laments that they should be "blown up". They are not serving participants in the way they were intended.
Ted & I discuss alternatives to 401(k)s.
Personally, I don't invest in 401(k)s. Admittedly, I used to, succumbing to poor financial education and societal conditioning.
They're not designed to begin paying you until between age 59.5 and 70.5. That's a "life deferral plan" - awful.
Want more wealth?
1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book
2) Actionable turnkey real estate investing opportunity: GREturnkey.com
3) Read my best-selling paperback: getbook.at/7moneymyths
Listen to this week's show and learn:
02:09 What exactly is wrong with a 401(k).
06:45 Replace your "Salary Reduction Plan" with a "Salary Increase Plan".
08:02 Similar plans like 403(b), 457, IRA, Canadian RRSP.
09:30 Ted Benna Interview begins. 1980 roots.
12:45 Reducing employee wages.
13:37 Benefits and drawbacks of 401(k)s.
18:51 Fees.
25:43 Why 401(k)s should be "blown up".
32:02 Comparing "Get Rich Education" vs. "401(k)".
34:44 What does Ted Benna do today?
36:01 My summary.
Resources Mentioned:
Ted Benna's website: Benna401k.com
Ted's charity interest: Compassion.com
Mortgage Loans: RidgeLendingGroup.com
Cash Flow Banking: ProducersWealth.com
Apartment Investor Mastery: BradSumrok.com
Turnkey RE: NoradaRealEstate.com
Find Properties: GREturnkey.com
GRE Book: GetRichEducation.com/Book
Education: GetRichEducation.com
Transcript
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| 0:00.0 | Get Rich Education is brought to by Ridge Lending Group, apartment investor mastery, |
| 0:05.3 | Norado real estate, and producers' wealth. |
| 0:09.1 | You're listening to the show that has created more passive income for people than nearly any show in the world. |
| 0:16.4 | This is the powerful get rich education. |
| 0:21.1 | Hey, welcome in to get rich education. |
| 0:35.9 | I'm your host Keith Weinhold, and I'm so glad that you're here for episode 197. |
| 0:41.0 | It is a household name, just like Kleenex, Coke, and WD40. |
| 0:47.4 | I'm talking about the 401k retirement savings plan. |
| 0:51.5 | The inventor of the 401k is here with us today. He'll be joining us shortly. |
| 0:56.3 | I don't like the 401k and similar defined contribution plans. And I'm going to tell you why. |
| 1:02.5 | But first, let me tell you that when I used to work for an employer in those early years of |
| 1:09.2 | working at a job, I did contribute to a 401k. I even had |
| 1:14.5 | one maxed out for a few years. I am telling you now that I do hereby repent. I would like to |
| 1:22.0 | come clean for this unspeakable financial atrocity and totally blasphemous transgression. Even after I started |
| 1:31.7 | investing in real estate, I still participated in a 401k for a little while longer until I began |
| 1:38.3 | to realize that I just can't withstand the opportunity cost any longer. I started to realize the opportunities lost there. |
| 1:46.6 | You know, I probably held on because I was still partly under the gravitational pull of |
| 1:52.7 | social convention while I was still piecing together. The fact that real estate investing |
| 1:58.5 | pays you five ways simultaneously and in a durable way. |
| 2:05.5 | Well, now, especially if you're a new listener, you might wonder, well, what's wrong with |
| 2:10.2 | a 401k? Isn't it smart to plan for my long-term financial future? And plus, I get all those |
| 2:16.5 | tax benefits along the way, right? Well, sure, |
... |
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