401k has worked, my brother did 20 years Navy, worked 20 years after that as a boiler operator saved 1.3M in 401k whilst his contemporaries went on expensive vacations new car every 3 to 4 years... I have saved 400k in my 401k acquired 2 pensions, worked lots of overtime, probably 80k just for Social Security and pensions. Oh yea, he's a high school graduate, I'm just a high school dropout with a GED.
Clark, agree that value of FA at retirement to assist with efficient tax distribution is desireable. That said, I interviewed a bunch for this specific directive and even reached out to CPA's. I even experimented with some commercial software that was less than definitive. The vetted FA's (I spoke to) just want to collect a fee on your funds and often defer tax/distribution questions to 'your accountant'. I have studied distribution at retirement and it is a complicated topic with few if any clear choices. So, as in the case of many topics, your best course of action (unless you have many multiple millions) is likely to take it upon yourself to educate oneself to make these distribution decisions.
A lot of this paycheck to paycheck problem could be eliminated by educating high schoolers with mandatory financial classes in order to graduate. Its not a fix all solution but it would go a long way...
Education is a help, but self-control is by far more important. So many people want the latest and greatest widget, with credit that can often happen as long as their debt to income ratio is up to the banks standard. However their lack of self-control means they cannot save for retirement and often times get deeper in debt. A 20% credit card interest rate can't be overcome by a 401K average 10% growth rate. The numbers just don't make sense.
Truth. Look at all the people who don't understand basic inflation and are under the illusion that consumer goods prices will go back down to pre-covid levels.
Disagree and the idea that financial education classes in high school would largely eliminate the paycheck to paycheck problem is false. Spending less money than you make is not a complex subject. Even if it was taught in high schools, the kids that needed to hear it wouldn't pay attention or take in the information. I have many friends and even a spouse that grew up in Asia with zero financial education classes, and they are much better savers than virtually all of my American friends. The problem is cultural, not due to a lack of available information or education. That being said, there's no harm in having these classes, but it won't have anywhere near the impact you think it will.
Absolutely correct. But if schools taught personal financial management, they wouldn’t have time to teach diversity, equity, inclusion, sexuality, and how bad America is.
26:55 Absolutely don't pay even a penny. If you pay on a bogus debt, it is like a confirmation that you owe it and they will come after you for the full amount. After 10 years, the debt may be dead. But if you pay ANYTHING on it, you wake it up again and you are really stuck.
Daniel’s wife: 20 years of loyalty? That’s her first mistake. Work somewhere else. Loyalty is worth nothing, but employers will demand it. Tell them if they want loyalty, get a dog.
The couple that received the ticket months later from Italy should take into consideration if they ever expect to go back to Italy. I would not want to go back to a country where I received a ticket and ignored it.
That's why I work for the school district because in 10 days I will be retiring with a pension for the rest of my life. I'm 65 and worked there for 28 yrs. I remember when they started the 401 years ago and I knew it was a disaster but no one said it out loud. They try to convince everyone it's infallible. It's a joke!
You know I have over 300 g in mine the interest is close to 800 a month you can draw that without touching principal free money how is that a disaster bud
The drug manufacturers offers coupons to make it cheaper than generics for the consumer, but they get to charge the insurance company the full price. Heard this on This American Life many years ago, explaining why healthcare is so much more expensive in America.
What do you think PBMs do? They negotiate to reduce Rx costs on behalf of insurance companies. Insurance companies don’t pay full price for anything. Neither do Medicare or Medicaid. In fact Medicare and Medicaid pay pennies on the dollar. Full price at any hospital or clinic is really a price very very few people ever pay.
It’s such a mess, a gamble, a racket. I rolled my 401k into an IRA. It was mandated upon leaving the company after 37 years. I also have a pension coming.. I now collect SS.. • it’s difficult to solve the taxation .. Medicare is based on two years prior income, .. crazy quagmire to resolve.
#BonusTip - If there's one time in your life when you probably shouldn't drive, it's in Europe. The train system on a "so-so" day is better than driving on a great day. If you're a "car nut", rent a sports car for a day or two and get it out of your system. #ClarkiesRock
There is a large number of people who have a retirement 401k who do not participate in it. Or they leave an employer and do not rollover that 401k into the new employer plan or individual IRA.
Clark, we have an annuity and it’s working great for us. I’ve said this before to you, you should not bad mouth annuities. We activated ours after 10 years and the lifetime value has doubled. We also had iRA’s and 401 K’s. I had a pension in my early working life but the company stopped it. I think you should put pensions worst than annuities. John
my son and his family got sued for a 15K credit card debt and they garnished his wages for 2 years. They had medical debt when there little guy was in the NICU. So not fair. He is still trying to dig out.
My pension was frozen in 2016 and I will receive $614 per month. I do have lump sum option of 83K. I ran the numbers and the 614 payment is 8.6% return on investment. They say anything over 6% to take the 614 payment. I do have option for 180 month guaranteed payment plus life. The default is 100% my life and 50% of my wife if she out live me. I leaning toward taking the lump sum and putting the money in SPYI (options ETF) where I could be $824 per month options income but it wouldn't be guaranteed money but I could pass money on to my children
I was faced with the same issue 2 yrs. ago with a 7% return. I took the lump sump and have made more in the market recently. I saw it as creating my “own” annuity knowing the company monthly payout would not keep up with inflation and my heirs would get the lump when I die.
@@vincentworlds8940 Thank you sharing. My return is 8.6% which is pretty good. I have talked with a lot of my co-workers who have retired and they all have taken the lump sum. I spook with my company HR/Pension person and she told me 95% of the people take the lump sum.
Personal financial management, Use of credit and future financial planning is not taught anywhere K all the way through college. Young people are being taught to having it or wanting it all now and worrying about how to pay for it later.
6:08 for gig workers I think it is more education than that they don’t have anything to save as solo 401k is an option, but I don’t think many know about this. I knew about this for years but when talking to other contractors or self-employed individuals and he didn’t know that this option was available and was free through either Fidelity or Vanguard well at the time Vanguard, I don’t guess Vanguard doesn’t do that anymore….
Clark the government should fix the 401k/403b problems, even the inventor of the 401k now says oops, my bad. Majority won't save or save enough b/c it's not required as you mention and god forbid the nanny state make you do something that's good for you. Besides, business now needs all those seniors to keep working, they will fight helping American workers.
Annuities - low commission or not - sound terrible. If you die early, the kids nothing. If you need a chunk of money, you can’t get it out of the annuity.
There could be ways out of both. My pensionless dad got one for my mom. On his death, she got a monthly payment. On her death, both children got half each for, I think a few years. A similar kind of annuity could be devised. I think number of years of payments might have been age dependent on spouse age and/or children. After all, if the spouse lived max years, say incredible 108, past that actuarial number, it would not be possible as a business. So the inherited annuity to kids has to end after X years. Determined by draconian insurance actuarial devils.
@@beeman1885 Dad got it because mom knew nothing about investing (WWII gen) so this along with her/his SS provided the two legs if one leg got used up (or worse). So it was income and back up, after he died, for her.
@@kevinwidener5725 At a bare minimum, we've had the TSP for decades. That needs to be the default for ALL employees of EVERY employer. That's a ridiculously simple START.
hanks for sharing! Just a quick off-topic question: how can i withdraw my 668 TRC20 USDT from wallet to binance please help me 12 wallet recovery phrase: 《pride pole obtain together second when future mask review nature potato bulb》
@ClarkHoward: The manufacturer coupon restriction in CA stinks of a PBM. Many reasons they refuse these coupons including anti-kickback statutes, or more likely, the “discount pharmacy” is blackballed from using these coupons due to being outside of the preferred pharmacy benefit network. Our anti-trust laws at good work here 😉
I think saying annuities are bad is like a simplistic statement like saying stocks are bad. There are good stocks and bad stocks. There are good annuities and bad annuities. I think most Americans would benefit from a good annuity in lieu of 401ks because the vast majority of Americans just don’t have the financial acumen to manage a 401k. I spend hundreds of hours a year planning for retirement and monitoring our investments but I happily pay a financial planner to manage our accounts not because I don’t understand investing but because I don’t have the bandwidth to actively track and monitor the market. So yes, I pay a qualified professional to do it. I think we are now seeing the mass effects of the DIY 401k retirement investing approach with millions of people underfunding their own retirement.
I had a pension available through a hospital system that I worked for for 26 years, but had to cash it out instead because I was on disability and needed the money. I wish I would have looked more at my budget at the time, but I was frightened wouldn't have enough with the pension amount I was offered. Also a 401 K is a government product and I know Clark doesn't promote High cash value life insurance but I really wish I would have invested in that instead of my 403b. I would have had total control and would not have had to pay taxes on borrowing money from my cash value! I think it's negligent for people in the financial world not to educate people about them
Unfortunately, most 403(b) plans stink. Instead of a cash value life insurance, we would have recommended saving in a 403(b) only up to the company match, if there was one, and saving the rest of your money in a Roth IRA. You would have saved more money. But don't look back - only forward. Hopefully, your disability is stable, and you've been able to maximize what you did save. 💚
Actually my friend you're wrong government pension plans do exist and they pay quite well. My girlfriend's on a government pension plan she makes more than 90% of her original salary every year with the cost of living rates. My private land pension on the other hand pays only 30% of what I used to make and I worked at the company for 25 damn years.
@Clark Howard You just did a Clark Stinks on this Video. Telling the person that got a ticket saying its up to them if they want to pay it. First I received two speeding tickets in the mail years ago from the Netherlands. One was 20km over the speed limit and the other was 2km over the speed limit. I paid for both of them. As that person said they were a seasoned traveler and if so and they let's say don't pay for the ticket. The next time they go to Europe in the EU and try to rent a car or maybe even when going through customs. They will have that they have unpaid tickets and by then those fines will have skyrocketed and could be stopped from renting or maybe entering Europe until they pay those fines on the spot.
Yes the lazy B 401k is broken they have funds that our supposed to mimic the standard and poor 500 but truthfully it’s never done anything near that ever so everything is in a safe fund the worthless union never helped us one bit after giving them close to 80 a month for decades oh well it is what it is I would not recommend any one working for them
Clark you were talking about the high number of ppl. Who are waiting in line for free foods. Maybe you should talk about the 3 TRILLIONS $$$ the u.s WASTED killing iraqies. Afghanies and palestinians.
401k has worked, my brother did 20 years Navy, worked 20 years after that as a boiler operator saved 1.3M in 401k whilst his contemporaries went on expensive vacations new car every 3 to 4 years...
I have saved 400k in my 401k acquired 2 pensions, worked lots of overtime, probably 80k just for Social Security and pensions. Oh yea, he's a high school graduate, I'm just a high school dropout with a GED.
Clark, agree that value of FA at retirement to assist with efficient tax distribution is desireable. That said, I interviewed a bunch for this specific directive and even reached out to CPA's. I even experimented with some commercial software that was less than definitive. The vetted FA's (I spoke to) just want to collect a fee on your funds and often defer tax/distribution questions to 'your accountant'. I have studied distribution at retirement and it is a complicated topic with few if any clear choices. So, as in the case of many topics, your best course of action (unless you have many multiple millions) is likely to take it upon yourself to educate oneself to make these distribution decisions.
That is exactly why you do not ever want any "advisor."
A lot of this paycheck to paycheck problem could be eliminated by educating high schoolers with mandatory financial classes in order to graduate. Its not a fix all solution but it would go a long way...
That may help 10-20% more people unfortunately I know people with the information and still work paycheck to paycheck
Education is a help, but self-control is by far more important. So many people want the latest and greatest widget, with credit that can often happen as long as their debt to income ratio is up to the banks standard. However their lack of self-control means they cannot save for retirement and often times get deeper in debt. A 20% credit card interest rate can't be overcome by a 401K average 10% growth rate. The numbers just don't make sense.
Truth. Look at all the people who don't understand basic inflation and are under the illusion that consumer goods prices will go back down to pre-covid levels.
Disagree and the idea that financial education classes in high school would largely eliminate the paycheck to paycheck problem is false. Spending less money than you make is not a complex subject. Even if it was taught in high schools, the kids that needed to hear it wouldn't pay attention or take in the information. I have many friends and even a spouse that grew up in Asia with zero financial education classes, and they are much better savers than virtually all of my American friends. The problem is cultural, not due to a lack of available information or education. That being said, there's no harm in having these classes, but it won't have anywhere near the impact you think it will.
Absolutely correct. But if schools taught personal financial management, they wouldn’t have time to teach diversity, equity, inclusion, sexuality, and how bad America is.
26:55 Absolutely don't pay even a penny. If you pay on a bogus debt, it is like a confirmation that you owe it and they will come after you for the full amount. After 10 years, the debt may be dead. But if you pay ANYTHING on it, you wake it up again and you are really stuck.
Daniel’s wife: 20 years of loyalty? That’s her first mistake. Work somewhere else. Loyalty is worth nothing, but employers will demand it. Tell them if they want loyalty, get a dog.
Maybe it's her dream job! She loves it and don't want to leave. 🤷♂
The couple that received the ticket months later from Italy should take into consideration if they ever expect to go back to Italy. I would not want to go back to a country where I received a ticket and ignored it.
I agree I paid for both my Tickets from the Netherlands and had the same thinking. I paid them as I travel to Europe at least every two years.
Thanks Clark & Team! NNTR
That's why I work for the school district because in 10 days I will be retiring with a pension for the rest of my life. I'm 65 and worked there for 28 yrs. I remember when they started the 401 years ago and I knew it was a disaster but no one said it out loud. They try to convince everyone it's infallible. It's a joke!
You know I have over 300 g in mine the interest is close to 800 a month you can draw that without touching principal free money how is that a disaster bud
The drug manufacturers offers coupons to make it cheaper than generics for the consumer, but they get to charge the insurance company the full price. Heard this on This American Life many years ago, explaining why healthcare is so much more expensive in America.
Actually, it is redundant paperwork that makes it expensive. If we had single payer, we could drop costs by 25%!
What do you think PBMs do? They negotiate to reduce Rx costs on behalf of insurance companies. Insurance companies don’t pay full price for anything. Neither do Medicare or Medicaid. In fact Medicare and Medicaid pay pennies on the dollar. Full price at any hospital or clinic is really a price very very few people ever pay.
I don’t have a problem with my 401(k). Retiring next year and have a nice savings/dividend coming in monthly.
It’s such a mess, a gamble, a racket. I rolled my 401k into an IRA. It was mandated upon leaving the company after 37 years. I also have a pension coming.. I now collect SS.. • it’s difficult to solve the taxation .. Medicare is based on two years prior income, .. crazy quagmire to resolve.
#BonusTip - If there's one time in your life when you probably shouldn't drive, it's in Europe. The train system on a "so-so" day is better than driving on a great day. If you're a "car nut", rent a sports car for a day or two and get it out of your system. #ClarkiesRock
There is a large number of people who have a retirement 401k who do not participate in it. Or they leave an employer and do not rollover that 401k into the new employer plan or individual IRA.
Yes. The issue is personal responsibility.
Good video!
I don't know what Clark will say next but he just now described what a lot of people think Social Security is, or what it could be. 4:14
Clark, we have an annuity and it’s working great for us. I’ve said this before to you, you should not bad mouth annuities. We activated ours after 10 years and the lifetime value has doubled. We also had iRA’s and 401 K’s. I had a pension in my early working life but the company stopped it. I think you should put pensions worst than annuities. John
Glad it's working great for you! Our advice is catered to the majority, and annuities don't work well for the majority of people. 💚
It's almost certainly "working" worse than you think it is.
my son and his family got sued for a 15K credit card debt and they garnished his wages for 2 years. They had medical debt when there little guy was in the NICU. So not fair. He is still trying to dig out.
My pension was frozen in 2016 and I will receive $614 per month. I do have lump sum option of 83K. I ran the numbers and the 614 payment is 8.6% return on investment. They say anything over 6% to take the 614 payment. I do have option for 180 month guaranteed payment plus life. The default is 100% my life and 50% of my wife if she out live me. I leaning toward taking the lump sum and putting the money in SPYI (options ETF) where I could be $824 per month options income but it wouldn't be guaranteed money but I could pass money on to my children
I was faced with the same issue 2 yrs. ago with a 7% return. I took the lump sump and have made more in the market recently. I saw it as creating my “own” annuity knowing the company monthly payout would not keep up with inflation and my heirs would get the lump when I die.
@@vincentworlds8940 Thank you sharing. My return is 8.6% which is pretty good. I have talked with a lot of my co-workers who have retired and they all have taken the lump sum. I spook with my company HR/Pension person and she told me 95% of the people take the lump sum.
Insurance lobbyists are gearing up to fight it to protect their huge commissions.
Personal financial management, Use of credit and future financial planning is not taught anywhere K all the way through college. Young people are being taught to having it or wanting it all now and worrying about how to pay for it later.
6:08 for gig workers I think it is more education than that they don’t have anything to save as solo 401k is an option, but I don’t think many know about this. I knew about this for years but when talking to other contractors or self-employed individuals and he didn’t know that this option was available and was free through either Fidelity or Vanguard well at the time Vanguard, I don’t guess Vanguard doesn’t do that anymore….
We have them through Invesco.
Good point! 💚
So now with social security a 17% employer tax.😮😮😮
401ks work great when people actually put money into them. The problem is people either don’t contribute enough or not at all.
That is the definition of failure. The only fix is to scrap the entire concept.
@@retired8484 I’d argue that education for workers can also be a fix. Just because I can’t drive a car well doesn’t mean they should be scrapped.
@@jerede7731 Wow, totally missing the entire concept.
@@retired8484 because people are too ignorant to save for retirement doesn’t mean the 401k system should be scrapped.
@@jerede7731 That is EXACTLY what it means. The whole system was an accident in the first place, and has obviously been a complete failure.
Great info 😊
Thank you Team Clark.
No such things as unnecessary taxes really, your going to pay them one way or another.
"statute of limitations on a credit card"
if by e mail or phone call probably a scammer
otherwise would have probably been by U.S. Mail
Clark the government should fix the 401k/403b problems, even the inventor of the 401k now says oops, my bad. Majority won't save or save enough b/c it's not required as you mention and god forbid the nanny state make you do something that's good for you. Besides, business now needs all those seniors to keep working, they will fight helping American workers.
I spent 30 years at a tire company and retired 9 years ago at the age of 56. I was the last employee entitled to a pension. I was
But your ID is 1978?
@ I graduated HS in 1978. I started with my company at 26.
Great show Clarkers! (If we are clarkies, does that make your guys Clarkers)?
😂 Thanks! 🤔🤔🤔 We'll stick with Team Clark. 💚
Annuities - low commission or not - sound terrible. If you die early, the kids nothing. If you need a chunk of money, you can’t get it out of the annuity.
There could be ways out of both. My pensionless dad got one for my mom. On his death, she got a monthly payment. On her death, both children got half each for, I think a few years. A similar kind of annuity could be devised. I think number of years of payments might have been age dependent on spouse age and/or children. After all, if the spouse lived max years, say incredible 108, past that actuarial number, it would not be possible as a business. So the inherited annuity to kids has to end after X years. Determined by draconian insurance actuarial devils.
@ good that it worked out. Just seems like you’re giving up a lot of control.
@@beeman1885 Dad got it because mom knew nothing about investing (WWII gen) so this along with her/his SS provided the two legs if one leg got used up (or worse). So it was income and back up, after he died, for her.
They pay a % when the banks pay nothing and it’s safe lol
We already have a solution to the 401k debacle. We're just not allowed to use it.
what?
@@kevinwidener5725 At a bare minimum, we've had the TSP for decades. That needs to be the default for ALL employees of EVERY employer.
That's a ridiculously simple START.
I'm sorry, anyone making over $150,000 in complaining a living paycheck to paycheck, has bought too too many wants, and not enough needs.
hanks for sharing! Just a quick off-topic question: how can i withdraw my 668 TRC20 USDT from wallet to binance please help me 12 wallet recovery phrase: 《pride pole obtain together second when future mask review nature potato bulb》
Fred, get your money away from that "advisor" immediately.
@ClarkHoward: The manufacturer coupon restriction in CA stinks of a PBM. Many reasons they refuse these coupons including anti-kickback statutes, or more likely, the “discount pharmacy” is blackballed from using these coupons due to being outside of the preferred pharmacy benefit network. Our anti-trust laws at good work here 😉
I think saying annuities are bad is like a simplistic statement like saying stocks are bad. There are good stocks and bad stocks. There are good annuities and bad annuities. I think most Americans would benefit from a good annuity in lieu of 401ks because the vast majority of Americans just don’t have the financial acumen to manage a 401k. I spend hundreds of hours a year planning for retirement and monitoring our investments but I happily pay a financial planner to manage our accounts not because I don’t understand investing but because I don’t have the bandwidth to actively track and monitor the market. So yes, I pay a qualified professional to do it. I think we are now seeing the mass effects of the DIY 401k retirement investing approach with millions of people underfunding their own retirement.
"annuities are bad" = fact.
Amazon has a prescription meds pharmacy. Haven’t used it yet so I don’t know if it is good
Lessoned learned, never go to Italy.
What if you can just identify as retired and rich ... 🤔
Clark is going full on - Pie in the Sky - with respect to the retirement system. A government pension plan??? Hahahahahaha....
I had a pension available through a hospital system that I worked for for 26 years, but had to cash it out instead because I was on disability and needed the money. I wish I would have looked more at my budget at the time, but I was frightened wouldn't have enough with the pension amount I was offered. Also a 401 K is a government product and I know Clark doesn't promote High cash value life insurance but I really wish I would have invested in that instead of my 403b. I would have had total control and would not have had to pay taxes on borrowing money from my cash value! I think it's negligent for people in the financial world not to educate people about them
Unfortunately, most 403(b) plans stink. Instead of a cash value life insurance, we would have recommended saving in a 403(b) only up to the company match, if there was one, and saving the rest of your money in a Roth IRA. You would have saved more money.
But don't look back - only forward. Hopefully, your disability is stable, and you've been able to maximize what you did save. 💚
Actually my friend you're wrong government pension plans do exist and they pay quite well. My girlfriend's on a government pension plan she makes more than 90% of her original salary every year with the cost of living rates. My private land pension on the other hand pays only 30% of what I used to make and I worked at the company for 25 damn years.
Congratulations on sucking off the taxpayers real winners
@Clark Howard You just did a Clark Stinks on this Video. Telling the person that got a ticket saying its up to them if they want to pay it. First I received two speeding tickets in the mail years ago from the Netherlands. One was 20km over the speed limit and the other was 2km over the speed limit. I paid for both of them. As that person said they were a seasoned traveler and if so and they let's say don't pay for the ticket. The next time they go to Europe in the EU and try to rent a car or maybe even when going through customs. They will have that they have unpaid tickets and by then those fines will have skyrocketed and could be stopped from renting or maybe entering Europe until they pay those fines on the spot.
Yes the lazy B 401k is broken they have funds that our supposed to mimic the standard and poor 500 but truthfully it’s never done anything near that ever so everything is in a safe fund the worthless union never helped us one bit after giving them close to 80 a month for decades oh well it is what it is I would not recommend any one working for them
Clark you were talking about the high number of ppl. Who are waiting in line for free foods. Maybe you should talk about the 3 TRILLIONS $$$ the u.s WASTED killing iraqies. Afghanies and palestinians.
lol 🤡