Financial Insider Explains Why the Wealthy Don’t Use 401ks
Ken McElroy Show
Ken McElroy
4.8 • 692 Ratings
🗓️ 19 November 2024
⏱️ 48 minutes
🧾️ Download transcript
Summary
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Ken and Danille McElroy discuss the truth about 401ks and why they may not be the best retirement investment for most people. Learn how fees, taxes, inflation, and market returns impact your 401k, and discover why the wealthy prefer alternatives like self-directed IRAs to grow their retirement wealth.
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Transcript
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| 0:00.0 | The 401k is the worst investment you will ever make, and it's what they recommend to working middle class families, and it's a total scam. |
| 0:09.8 | Yeah. |
| 0:10.2 | Just like everything, Wall Street wants in your pocket. |
| 0:15.0 | Wall Street what's in your pocket. |
| 0:17.3 | Guys, pensions, insurance, retirement plans like this one, financial planners, wealth managers, you know, you just got to know, credit card debt, all that stuff. |
| 0:27.4 | The point is, of course, they want in your pocket. |
| 0:31.0 | Well, and to be fair, the 401K was never meant to be a sole retirement fund. |
| 0:36.7 | It wasn't. |
| 0:37.0 | It was meant to supplement pensions and other things that you had invested in. The problem is, is the middle class is squeezed so tight that they barely have money to even put in their 401k. So some people listening maybe put money in a 401k. Others don't. But it's most people's only |
| 0:56.3 | retirement vehicle and it's just not going to be enough. And it's also not the best thing you |
| 1:01.8 | could be doing with your money in most cases. Yeah. Think about it, guys. They're allowing you |
| 1:08.0 | to put money into a retirement plan. they're managing it. And I would challenge |
| 1:13.8 | any of you that's fighting us on this. What exactly is it invested in? Like, think about that. |
| 1:22.2 | Like, if you have a 50 grand in your 401k, what is it invested in? You don't know. You might say XYZ mutual fund, |
| 1:31.2 | but those mutual funds are super complex. They have lots of different stuff. Well, they like to make |
| 1:35.7 | them complex. So that way it's like you're just too basic to understand. So let me, the financial |
| 1:43.4 | advisor, understand it for you and you'll be fine. |
| 1:47.4 | Plus fees, you know. Yeah, we're going to get into that. Okay. Don't jump ahead. Don't jump ahead. |
| 1:53.0 | But first, let's kind of look at that average rate of return. Here's, before he's going to this, there's one thing for sure, |
| 2:01.9 | the wealthy people aren't using 401ks. Yeah. So if you want to do what wealthy people are doing, |
| 2:06.9 | they're not doing that. So that's to start. But Jerry, can you show 301? |
| 2:13.3 | How did I lose money with an average return of 10% like WTF? |
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