Is a 401k a Good Investment? What About an IRA? - YouTube

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.