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Investing in Real Estate with Clayton Morris | Investing for Beginners

922: They're Lying to You About the 401k - Episode 922

Investing in Real Estate with Clayton Morris | Investing for Beginners

Clayton Morris

Business News, News, How To, Business, Education, Investing

4.11.1K Ratings

🗓️ 16 February 2023

⏱️ 13 minutes

🧾️ Download transcript

Summary

The old way of investing is broken. Gone are the days of setting up a 401k & pension plan for a comfortable retirement. And relying on social security? Forget about it.

More and more people just like you are realizing the traditional way of investing is broken and it just isn’t adding up to the goals they want to achieve. On today's show, I'm sharing why using a 401k won't help you build wealth, and what to do instead.

Transcript

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0:16.1

Let's be honest, the old way of investing isn't serving anyone anymore. The old adage of, you know, just save up for retirement, put your money into a 401k plan, put it into an IRA, and sort of set it and forget it, has not worked.

0:19.2

It was a total scam when it was first introduced and it has actually never worked.

0:24.0

The average 401k at retirement is anywhere between 70 and 90,000 dollars,

0:29.2

which means when you retire, you're going to live off of $90,000 for the rest of your life and maybe a little bit of

0:36.2

social security money?

0:37.8

No, that is not a way to build wealth.

0:40.2

And of course, this is a scam because Wall Street and of course government has wanted you to put your money into a 401k plan because it's a partnership between Wall Street and the government, right?

0:50.7

You're partnering with the government in order for them to make money and to create this

0:55.0

facilitation of a 401k plan. So again, the scam is real. The idea that you're going to live off a pile of cash when you retire is never going to work.

1:04.8

In fact, more and more people like you are starting to realize that there has to be a better way.

1:09.9

And there is, and that's through a self-directed IRA.

1:12.8

Now in 1974 when the self-directed IRA first came on to the scene,

1:16.8

wealthy people took advantage of it.

1:19.4

But almost everybody in America didn't know about it.

1:21.9

No one was being told this because the big banks didn't want you to know about it.

1:26.1

And so what this enabled you to do is to take checkbook control, self-control of your own investments

1:31.2

using a retirement vehicle that could grow tax free.

1:34.0

So the difference, of course, is that you would be able to invest in things like real estate or gold or silver,

1:39.0

precious metals, things like that inside of your self-directed retirement account.

1:44.0

And it's held up by a custodian, just a few custodians in the country,

1:48.0

actually allow you to set one of these things up.

1:50.0

They, you know, it varies in price from a few hundred bucks a year just to manage the account, but that's about it.

...

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