What They're Not Telling You About Your 401K

http://CashFlowSavvy.com The 401k experiment has failed miserably, and if you are still counting on it for financial freedom, you need to reconsider. Today Matt will explain exactly why you should get your money out of your 401k TODAY and where to invest it instead.

Comments

1. Very misleading video. 401 K is way easier than real estate.
2. I agree that it all comes down to doing the math. The part that you failed to mention is that rental payments are taxed as regular income, while investments are taxed as capital gains. For anyone that is in a higher tax bracket, this is a huge difference.
3. I agree with this guy. I want cash flow now, not in 30 years. What the hell would I do with a bunch of money when I'm almost dead. Plus, why be a slave to your job. I've done it for years and it sucks.
4. They're not complicated, but real estate does provide more advantages and potential for greater growth. That said, using a self directed roth 401k you can invest in real estate through the 401k, the return all dumps back into the 401k tax free and with no limits.
5. Good stuff Matt! I appreciate all the valuable information you share. I'm just not sure about getting rid of my 401k. I contribute just enough to get the maximum match from my company and I also put some money into a separate index funds just to diversify my portfolio a bit. I do however put the majority of my money into real estate. I currently own 3 rental properties 2 of them are duplexes. I am working on getting my 4th, how many mortgages do you think i can take out before the banks start denying? Also, would you recommend I sell my properties to try to get a bigger apartment building or just keep accumulating my wealth with small multifamily rental? I would love to hear what you think or anyone's 2 cents here. Thanks again Matt.
6. THE NUMBER ONE ISSUE WITH THE 401K IS THAT PEOPLE DONT INVEST ENOUGH MONEY INTO....
7. IRAs or 401K is fine if you don't buy stocks or bonds that go up anddown.. Instead you can really just leave it in cash even it is not earning great interest rates these years..  You get tax  deferral for doing that against your annual income until you are old enough to make cash withdrawl .   Who is saying that you are required to buy stock or bond in your 401K or IRA? NObody.. It is an assumption that everyone wants to own stock for retirement but it isnot required.. It can be like a saving account that you leave alone and forgotten.  You can actually buy 30 year Treasury bills that earns around 2.5 percent .  or CDs .   Everyone seems to think that 401K or IRAs are protected by FDIC which is not true..   The only problem with 401K or IRAs is that you will be charged fees for management which will erase most of the interest income you get from safe cash vehicles.. This is the real bane!
8. Please don't take this advice
9. I'm a single mom...bought my first property..got a line of credit ..bought another..now 7 properties subdivided into 11 rental units..I've retired but want my work pension pulled out..those assholes want 30%penalties. you're advice is fantastic but already figured it out. I'm 44 years old. don't want them to hold on to monies that I can yet buy more properties with about 32 thousand dollars in pension. want to give them as little as possible. advice on this would be great.ty it's not about the money(theives) just don't want them to have so much of it.
10. why not just do a roll over business startup (robs) that way no penalty no tax.
11. Wait until your renters trashed your house and you have to spend thousands and thousands of dollars repairing it. Or the house goes unrented several months and you have to make a payments.
12. This is BS and how is the 401K that hard to understand???
13. yea sound good but when go get a bad tenant plus property tax and insurance plus repair headache
14. How are 401Ks complicated? Throw money into the Vanguard VTSAX and be done with it. Being a landlord means hundreds of hours finding houses, fixing issues in the home, finding tenants, evicting tenants...all for similar returns to a total stock market fund.
15. If I buy house to rent, wouldn't I have to pay mortgage on that house too? so what will I save from rent? may be couple hundred bucks? I am thinking about this project to implement but I don't see any good return. please advise.
16. I like Matt, and I agree with him on a lot of things, but a 401K is not complicated and you don't "monitor it" night and day. This is not day trading, it's buy and hold. I am a real estate investor, but I also invest in mutual funds using retirement vehicles because of the tax advantages and diversity. You shouldn't put all your eggs into real estate, or any other basket.
17. So my company matches 6% dollar for dollar. I put in $6,000 a year into my 401k and they put in $6,000. That's 100% return guaranteed. You're telling me to give that up?? Yes 401k got hit in 2008 but so did the housing market. If you hate 401k, Why not use it just for the match, and cash out every so often? If with the 10% penalty you'll still be ahead. But it's dumb to suggest that 401k doesn't work. It's worked very well for me for years!
18. thanks for the info. very helpful!!
19. Great info thank you. 👍