Man, you caught me on one of those days where I'm going to be talking about one of
my most passionate financial topics which is the do's and don'ts and
problems with 401k's and IRA's. Kris Krohn here with Limitless Wealth TV bring it
all to you right now.
Problems with 401k's and IRA's, this is a dangerous topic for me to be talking
about because you know that if I ever talk about this whatsoever, I get so
fired up with the fact that people are behaving and showing up like sheeple
instead of taking control over their financial future. He's already started,
I'm calming down which is why I brought Steven Michael Miller today as our
resident expert on the matter, he's just going to sit here and help calm you down
and provide commentary on how he feels about 401k's and IRA's, isn't that right,
Steven? Excellent. So let's just get started with this concept of where did
401k's come from in the first place. If we go back pre-revolution, if we go back
before the Industrial Revolution, we had Americans in this country working on
farms. We were pretty much in charge of our livelihood, we would have children,
our children would then take over the farm, they would help take care of us and
we all had a really great built-in retirement plan and we were 100%
self-sufficient, that's what life was like back then wasn't it, Steven? Exactly.
But then comes the Industrial Revolution and all of a sudden, all these factories
emerge and people realize, oh my gosh, I need to find a good way to entice people
off of their farms and they decided to come up with this concept called the
pension and the pension was where the company was going to take care of you
for life when you were done working. Give us 30 or 40 years working of you
life and we're going to take care of you and your widow and your family after you
die and that was a really strong enough allurement that people that were done
with the whole farming gig, they said, I'm going to go into the cities, I'm going to start
working in these factories and that's existed for a very long
period of time until the 70's. In the 1970's, it got to the point where
companies started shrugging and saying, it's way too expensive, it has caught up
with us, it is not sustainable for me to pay someone for 40 years of working and
then pay them another 30 or 40 years after they die and so what they ended up
doing was doing away with pensions and the government felt the need. Right,
Steven? To absolutely step in and what they did is, they instituted this thing
called the 401k. Now the 401k was this idea that will actually put a much lower
burden on the company's backs and will let them do this match
like on the first 3% or 5% and pension was a really big deal but by the
time it came to 401k, the world basically said, go fund your
own financial future. Friends, our real estate took care of us for the
rest of our lives and now we've evolved over the last 200 years into jobs where
if you're contributing aggressively to a 401k for 40 years, guess what,
it's not enough money to pay for retirement and the free money, the match
that the company is giving you, the enticement to stay there with them, guess
what, it's also not going to be enough. So take your free money, and the bottom line
is if you do the math, and you get to the very end of the road and it's not enough
money, you just call that a broken system. Isn't that right, Steven? Alright,
Steven, you got to say something on this video to contribute. Social Security has
followed very much the same kind of pattern. Has it did? - It has. - So the deal
security.. - Yeah, I'm going to do this right now and I've got stuff on my teeth,
I'm sure but you just come to deal with that because this is one thing where I
get super passionate about. Social Security is one of those things that we
have been relying on for years and years and years and if you don't know it now
then start reading a little bit about this. Understand that your Social
Security payments, things that you're paying right now into your Social
Security check, we're supposed to be funding your retirement. - Oh whoa whoa
whoa this sounds like a conspiracy theory for someone that's on the
borderline millennial, Steven. Aren't you just part of the conspiracy theorists
claiming right now that Social Security is going away? - Yes. I mean no, no.
Look, and I want to say this carefully. Most things that go around there, there
is oftentimes a small bit of truth, even some of those conspiracy theories, those
crazy wild out there things, sometimes there's a little bit of truth in there,
something small, right? I just want you to pay attention. Look, follow the money, look
at where Social Security is. Right now we are funding people that are in their 60's,
70s and 80s. My check where I'm putting money into it and I'm earning on and I'm
paying Social Security right now, is not funding my retirement, it's funding
theirs. This is why people say that the system
is broken because it is. My money was supposed to
support my retirement but it's not going to be there for me. - It's actually breaking
pyramid law. So pyramiding law says that you're not
allowed to take money and and use it to pay for another individual, robbing Peter
to pay Paul and it's this idea that Social Security was to fund my
retirement, it was the money that the government was setting aside to make
sure that they could help take care of me in my old age and then the reality
is, is that all of my money is where? It's actually funding somebody else and the
question is how long will that last? Is it really self sustainable? And
today's conversation on 401k's and IRA's and the problems with them is that we've
got to get back to our basics, we came from real estate, our Constitution was
written around property ownership and real estate and real estate used to
completely and entirely take care of us. Real estate entirely takes care of those
who build their fortune and their wealth around it which guess what, part of
Limitless Wealth TV is teaching you how to go back to your roots, it's teaching
you how to go back to what worked and the reality is, there's been a great
retirement plan that was instituted from the beginning and it was called property.
Why? Because property has the ability to take care of you whether you're using it
for growing livestock and plants and farming or whether you're using it
as a real estate investor today, it's the same exact thing. Look at how Donald
Trump made his first billion dollars, borrowed a million dollars from dad, went out,
bought a skyscraper downtown New York City, flipped it and sold it for mega
profits and he's only ever played in the massive real estate arena so even though
he lost all his billions and had to start over, how did he make it right back?
Real estate. Friends, real estate is the conversation not 401k and not IRA.
Steven, the problems with 401k's and IRA's are.. - Okay, the 401k was never meant
to retire you. I just want you to get clear on this for just a moment. It is a
glorified savings bucket and the glory is very small. - You can't touch, you can't
access. Oh my gosh. - If you're watching this video
right now, then what I want you to do is something a little different cause usually,
I want you to keep your eyes open while you're watching this video but for just
a moment, I want you to close your eyes, just keep the sound rolling here for a
second. I want to ask you some questions and I want you to determine right now if
this investment is a good investment or a bad investment so just listen to me
for just a second, close your eyes and just listen.
I want you to give me your money and I'm not going to give you access to it for 30
to 40 years, number one. Number two, I want you to give me your money and I'm going
to charge you for me to have your money, I'm going to charge you fees for me to have
and be, quote unquote, managing your money, is this a good investment or a bad
investment? Number three, you're going to give me your money and if you want to
take some of it back at any time, I'm going to penalize you, I'm going to smack
you on the hand, give you this big penalty, okay. In order for you to get
your own money, is this a good investment? Number four, you're going to give
me your money and I'm not going to pay you anything. - Every month? Every month
- I'm going to pay you - I'm going to you jell-o pudding. I'm going to give you nothing.
- I'm going to pay you nothing on a monthly basis, no residual income. - That's not called an
investment. - Is this a good investment or a bad investment? Just think about this for a
second. - Number five. - Is there number five? - Yeah dude, it goes into the stock market
and it's like, yeah, it's money, yeah we lost money, doesn't matter, I don't get to
touch it, I don't get to.. - There's no control. Okay,
eyes now, okay. Most of you don't understand that
you are going to pay, if you have a significant other and both of you
are contributing to your 401k's over a lifetime, you will probably spend
somewhere in the realm of one hundred two hundred and fifty thousand dollars
in fees. Yeah, that's right. A hundred two hundred and fifty thousand dollars in
fees over the life of both of your retirement accounts, both of your
401k's. - Is that true? - Oh yeah. - I've never heard that. - Well I've heard it. What does that mean?
What that means is, you're putting your money with somebody who doesn't really
care about you, they care about their bottom line and their dollar, you're
putting your money with somebody who wants to control and keep and maintain
and and take that money and do something with it they're not even telling
you to do. By the way, when you put your money into a 401k or an IRA, do they
take all that money, they wrap it all up, you know, all this money. All this
money, right, they wrap it all up and then they put it in there 401k right? No,
they don't put your money in another 401k, they're doing something
with your money that they're not telling you to do with it. Why? Because they're
making a whole lot more money putting it into real estate and proper insurance
vehicles and other investments that are earning them a whole lot more
money while you get a pittance. They convince you, No, I know you
want to go. Look, they convince you that they're going to
earn you a whole lot of money. Why? They tell you, well I'll give you the match.
The match is the biggest like crapload, right? I'm going to match your money, you put
a dollar and I'll put a dollar in or I'll match up to 10% or whatever when
you put in. The reality for most people is they will never see their match. Why
does this happen? Think about it for just a moment. When the market crashes, what
happens to your money? If it's tied to the market, what happens your money? -You lose
it. - You lose it. Your money crashes along with it so if it if your money goes down
50% and then it comes back up 50%, are you even? - No, you're down 25%. - You're
down 25%. If you have a dollar it goes down 50%, you're at 50 cents. If it goes
back up 50%, you're up to 75 cents. Yet the people that are managing your money
will tell you, "Oh yeah, the market fluctuates and that's just part of it
right. You'll go down a little bit but then you'll gain it back, oh good a 50%,
then you'll gain 50%, go back to normal." - Well this is the thing that people don't
understand around about the math, is that if you actually go and check out
misfortune 101, it's a fantastic book and it will reveal the math and it's just
what Steven said, the reality is is that your bank account, when it goes up, it
feels good, when it goes down and you lose money, it feels bad but when it all
averages itself felt, like right now I got some people in the last four months
like, "Dude, I'm trucking in the mark and I'm making money." I'm like, "You still
haven't recuperated the original money that you lost seven years ago." And so the
reality is, who cares if it goes up and down because it all comes down to one
thing, what's it doing for you today? - Well, cash is king. - If it is not paying you,
it is not doing anything for you. We call that a speculative investment. In real
estate, speculation means I'm going to put money in something and someday I
hope to get something back. An investment is something you put money in and it
gives you money when? Right now. So friends, we're inviting you as you're
considering the concept of 401k's and IRA's to invest your money where you know
that you're going to get paid back. Invest your money where you know you're
going to get a return and be in charge of that, take ownership, get back to the
family farm, get back to proving concepts at work. Click the link up here in this
corner and Steven and I will share with you exactly
how we will take you to the best markets, help you invest in real estate
and we're going to let you own 100% of it, we're not going to take it over,
we're not going to take a piece of the pie, it's a hundred percent yours because we
are here to empower you and get Americans back to what has worked from
the very beginning, get yourself back in real estate. If you're looking for more
information on your alternatives with 401k's, click the link up here and let me
give you a free copy and audio copy of my book the straight path to real estate
wealth. I'm going to talk about 401k's and IRA's and how those can actually be
hidden assets to actually launch you in the world of real estate making way more
money and having way more financial control over your life. Click the link
and get more.