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Why does Kiyosaki hate the 401k
Posted on 2/25/23 at 10:56 pm
Posted on 2/25/23 at 10:56 pm
And why does everyone offer it? What am I missing?
11
Posted on 2/26/23 at 12:21 am to Yeti_Chaser
Because it doesn't help him sell books which is what got him rich...
Posted on 2/26/23 at 6:38 am to Yeti_Chaser
The only good things about them are a possible company match and it encourages the average person to save for their retirement.
Posted on 2/26/23 at 6:49 am to JimMorrison
quote:
The only good things about them are a possible company match and it encourages the average person to save for their retirement.
Those are pretty good things.
Posted on 2/26/23 at 7:42 am to jacquespene8
Sure, but if you're financially responsible, you can do much better and have more control over your future without a 401k.
The investment options are limited in 401k and insufficient for any experienced investor. Plus, you have no idea what the tax code will be when you're at the age to withdraw.
The investment options are limited in 401k and insufficient for any experienced investor. Plus, you have no idea what the tax code will be when you're at the age to withdraw.
Posted on 2/26/23 at 8:16 am to Yeti_Chaser
quote:
Why does Kiyosaki hate the 401k
The old adage is that you get ahead in life by owning things. Not renting them. Investing in 401k is owning things.
Kiyosaki doesn't see a 401k as tangible. Own an actual company that makes something that you can take home. Own enough of it that you are personally accountable/responsible for its success.
Take the profits and own your next business. That is his version of diversification.
Posted on 2/26/23 at 8:18 am to JimMorrison
quote:
The investment options are limited in 401k and insufficient for any experienced investor.
Not necessarily
Posted on 2/26/23 at 9:28 am to JimMorrison
All plans are different. I have the entire market at my disposal in my 401K plan.
Posted on 2/26/23 at 9:39 am to JimMorrison
quote:
The only good things about them are a possible company match and it encourages the average person to save for their retirement.
And the tax benefits
quote:
Sure, but if you're financially responsible, you can do much better and have more control over your future without a 401k.
much better? How?
Posted on 2/26/23 at 9:55 am to Yeti_Chaser
Because he's a grifter. Come on man, don't listen to these holiday inn salesmen, do better.
Posted on 2/26/23 at 10:28 am to JimMorrison
quote:
The investment options are limited in 401k and insufficient for any experienced investor.
Disagree
Posted on 2/26/23 at 10:32 am to JimMorrison
quote:
The investment options are limited in 401k
that is how it was with many companies for ages. lucky if you got any match and not the best funds to choose from. Can only invest in stock market. nothing else. The gripe for most of those was you do not have much control. and for RE guys like myself that is an issue.
now, the solo401k is a different animal. sure, same rules still apply as to when you can withdraw without penalties, and no it will not help you retire any sooner because you cannot use the cash flow until age rules are met, however, you are the trustee and plan administrator and can invest in basically whatever you want. Which makes it great for RE. Way more control than some plan sponsored by some company.
which is why many of us prefer cash flow we can access now. sure i still have multiple retirement accounts, solo401k, traditional IRA, ROTH ira, brokerage accounts, etc. but i prefer using the method below.
LINK
This post was edited on 2/26/23 at 10:46 am
Posted on 2/26/23 at 10:39 am to LSUSLU106
quote:
I have the entire market at my disposal in my 401K plan.
what market? real estate market rentals and flips? New construction? commodities/futures market? lending market? tax lien market? SO basically just stock/bond market right? This proves my points. thanks. You are very limited in what you can invest in in your company 401k.
This post was edited on 2/26/23 at 10:42 am
Posted on 2/26/23 at 11:09 am to Fat Bastard
I think he pushes for people to obviously put in the amount needed to get corporate matching. Beyond that, there are PLENTY of better options that aren't as limited if you are disciplined. Any invested monies fall into 2 different taxed categories, PORTFOLIO: buying stocks and ETF's or PASSIVE: putting it into real estate and letting it work for you.
If you company investing portfolio allows it, it put your contributions into a Roth 401k. Yes, you won't get the tax advantage today, but in what scenario do you ever see your taxes going DOWN? And the mere fact that you are investing TODAY, should mean that you intend to be and will be in a higher tax bracket later in life, so get the taxes out of the way today.
If you company investing portfolio allows it, it put your contributions into a Roth 401k. Yes, you won't get the tax advantage today, but in what scenario do you ever see your taxes going DOWN? And the mere fact that you are investing TODAY, should mean that you intend to be and will be in a higher tax bracket later in life, so get the taxes out of the way today.
Posted on 2/26/23 at 11:43 am to Yeti_Chaser
401ks are a shitty replacement for pensions but it's where we are now. Nobody knows how much they should save because they don't know how long they'll live. As much as possible seems to be the only answer.
This post was edited on 2/26/23 at 11:44 am
Posted on 2/26/23 at 12:30 pm to oneg8rh8r
quote:
but in what scenario do you ever see your taxes going DOWN?
Posted on 2/26/23 at 12:38 pm to Yeti_Chaser
Is he the rich dad, poor dad, dude? If so, the most obvious answer is he is a grifter who is spewing nonsense and providing terrible advice all the time. His popularity is probably another product of the zero interest rate environment, that someone allowed people like him to emerge out of bankruptcy and abject failures as somehow experts:
Posted on 2/26/23 at 12:40 pm to UltimaParadox
quote:
but in what scenario do you ever see your taxes going DOWN?
In the scenario when I’m retired and the only income to be taxed is the RMD and returns on other investments. But not the annual income from my work (which is substantial) which will be a lower taxable income stream.
Posted on 2/26/23 at 12:43 pm to fallguy_1978
quote:
Nobody knows how much they should save because they don't know how long they'll live.
Or what external conditions - war, politics, natural disasters - that may occur at untimely moments in your life cycle.
So, yes, as much as possible which is what few of us do.
Posted on 2/26/23 at 1:05 pm to ynlvr
quote:
In the scenario when I’m retired and the only income to be taxed is the RMD and returns on other investments. But not the annual income from my work (which is substantial) which will be a lower taxable income stream.
this makes the most sense as of right now, but who knows long term. with deductions none of us are paying that top earned income rate anyway so that chart is useless somebody posted above. now could they raise taxes and/or change rules on investment and passive income(marginal) tax rates? very possible. who knows what the future will bring.
This post was edited on 2/26/23 at 1:18 pm
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