I already had a man crush on Garret’s genius, but this episode sent me over the moon! Today work sponsored advisor stood in front of my right/option to take advantage of the CARES act to exit (withdraw) out of my 401k. It was a long 30 minute haggle, just to get to MY money. He did yearn ask what I was going to do with it, or my values, or even my purpose. Let’s just say, I stood my ground because of what I learned in this video.
I yanked my money out of it last year. The federal government waived the early withdrawal fee also because I used it to pay off some taxes. It was a glorified savings account.
What great words on min 15:11 when you work in a 0lace you dont like just because the benefits you are offered, it diminishes who you are.. I'M THERE! 🙋🏻♀️ But I'm also here to learn how to get out of this hole . Thank you Garrett
Honestly, this video kinda brought me to tears of sadness because this hurt to hear all these things that can happen with these 401ks, especially for someone who worked hard and did it right. I feel like I don’t know how to move the needle as someone who is nowhere near this man. I have a ways to go but will get there.
I would consider rolling the 401k into a self directed IRA upon retirement and purchasing real estate. I would maintain an appropriate amount in stocks but they would be low risk stocks I would also keep an appropriate amount in cash for reserves IE maintenance and then live off a percentage of the cash flow should be sufficient for retirement with 1.4 to work with
One thing I’m confused about is why does the match loss value the higher the balance is? Let’s say my 401K match’s 100% up to 3% every pay check I put in $50 and my job puts in $50. I’m in a plane target fund that’s price at 50. So I now have 1 share that I bought and one my company bought. A year later that fund is at $75, now I have $150. how did I loss value on the match?
A ton of unknowns. For example current mortgage interest rate. I would not pay off the house. Needs to do some shifting to tax free bucket over the next 6 years in order to get his SS benefits tax free. Right now his provisional income will be too high. I’d do mix of self directed IRA into a passive real estate investment (land banking) and index annuity with no fees. New contributions into an IUL. We could get him $150k per year tax free and risk free no problem. I agree stay out of the stock market casino and the 4% safe withdraw rate is to low. Match isn’t worth it.
I just read your article in Forbes about paying your property off sooner, what the real sad fact is that we need to learn these type of things off of a news article or on our own kids go to school for 12 years and don't learn anything about finances a lot of the jargon is like Greek to them and it's really sad our school system is failing our children cuz it's all about going to school to make better money we go to work to make money and all these kids coming out of school are in debt don't have basic job skills and it's a sad fact it's all Theory and no hands on. I remember coming out of that Junior High you can have home economics shop class Woodshop you have your driver's license by the time you were in highschool too. The way we treat our children now is like infants like they're all retarded and then they coming out of college retarded.. I remember my mother went to Community College the whole thing cost for like $5,000 to be an RN nurse. Now you got to go into debt to try to get education to try to get a job it makes no sense!!!!!!! A video that woke me up to this was a video called College conspiracy these colleges are just in a conspiracy even high schools now or to make money and idiot adults!!!!
This is a bit misleading. If your employee matches 100% you still get that 100%. So if I put in 5k a year and they give me 5k, I'd have 100k, not including interest. If they didn't match I'd have 50k. Even with earnings id have double.
It isn’t 100% related but what if he were to take the $19k in contribution pay the tax reducing to worst case $13k which is invested in only high quality companies with high dividend yield and a great track record of paying a dividend. If he DRIPs the dividend while contributing he will amass more shares and therefore when cash is needed will have more cash flow. The dividends would, most likely, be qualified and therefore be taxed at a lower rate. It’s not a perfect but could be a reasonable option.
The company i work for changed their 401k plan a couple years ago. The old plan was 3% match with pension. The new plan got rid of the pension and now has a 8% match
this sounds interesting to know but I don't understand exactly what they are saying. If only they speak in easy to understand this concept to us that don't know much about Finances.
For a years, I gathered about $40k on 401k. Just before covid time, I stopped my contributions, when I realized, my $401k money can not earn even for two-way subway ride for 12 months. That was very good decision! Today this money are worth much less than 3 years ago. I'd like to take them back immediately. There are other and much better ways to invest your money. Crypto, real estate, old cars, gold, stock (long term), etc...
People often would do better not gambling and paying off loans and saving money more safely. Speculation destroys wealth far more often than it creates wealth.
🍇 Alot of discussion about real estate in these comments... This is why i always felt...... Real estate is so sleezy........its a Lazy way to take advantage of ppl.......And Just more trees being cut down...... No way all this evil goes unpaid......rather naturally or spiritually
I would pay off the mortgage. Can't hear the guy in the plaid shirt. I am throwing my money toward my mortgage in lieu of putting money toward my 401k. Maybe be a mistake, but paying the money toward my mortgage does not have any volatility. Then when paid off I can decide what to do. This guy in red is hard to follow. The particpant should not have a mortgage if he has savings. Why pay interest.
During the refi boom, tons of people refinanced to 30 year loans at lower interest rates. Others rolled the equity from one home to another and got 15 or 30 year loans.
![ILLSLICK X YOUNGOHM - We're The same [Official Video]](http://i.ytimg.com/vi/yUJNkobYR0E/mqdefault.jpg)
I already had a man crush on Garret’s genius, but this episode sent me over the moon! Today work sponsored advisor stood in front of my right/option to take advantage of the CARES act to exit (withdraw) out of my 401k. It was a long 30 minute haggle, just to get to MY money. He did yearn ask what I was going to do with it, or my values, or even my purpose. Let’s just say, I stood my ground because of what I learned in this video.
So glad to hear it.
I yanked my money out of it last year. The federal government waived the early withdrawal fee also because I used it to pay off some taxes. It was a glorified savings account.
Exactly
What great words on min 15:11 when you work in a 0lace you dont like just because the benefits you are offered, it diminishes who you are.. I'M THERE! 🙋🏻♀️
But I'm also here to learn how to get out of this hole . Thank you Garrett
You are welcome.
Thank thank you for what you are doing to help others in the financial☺👏👏👏
Thanks for the acknowledgement! Appreciate it.
Honestly, this video kinda brought me to tears of sadness because this hurt to hear all these things that can happen with these 401ks, especially for someone who worked hard and did it right. I feel like I don’t know how to move the needle as someone who is nowhere near this man.
I have a ways to go but will get there.
Yeah. Sorry to break the news. GarrettGunderson.com/freedom for a course that will help. No charge.
I would consider rolling the 401k into a self directed IRA upon retirement and purchasing real estate. I would maintain an appropriate amount in stocks but they would be low risk stocks I would also keep an appropriate amount in cash for reserves IE maintenance and then live off a percentage of the cash flow should be sufficient for retirement with 1.4 to work with
Thanks...you are amazing!
Thank you.
One thing I’m confused about is why does the match loss value the higher the balance is? Let’s say my 401K match’s 100% up to 3% every pay check I put in $50 and my job puts in $50. I’m in a plane target fund that’s price at 50. So I now have 1 share that I bought and one my company bought. A year later that fund is at $75, now I have $150. how did I loss value on the match?
His cooking numbers, 100% match is 100% match.
My 401k has .01% per year plus $24 per year plus expense ratio for annual costs. What about RMDs?
Wao super it's has been great to pleaded in the US🔦🔦🔦🙌
But not for Latin America😕
A ton of unknowns. For example current mortgage interest rate. I would not pay off the house. Needs to do some shifting to tax free bucket over the next 6 years in order to get his SS benefits tax free. Right now his provisional income will be too high. I’d do mix of self directed IRA into a passive real estate investment (land banking) and index annuity with no fees. New contributions into an IUL. We could get him $150k per year tax free and risk free no problem. I agree stay out of the stock market casino and the 4% safe withdraw rate is to low. Match isn’t worth it.
I just read your article in Forbes about paying your property off sooner, what the real sad fact is that we need to learn these type of things off of a news article or on our own kids go to school for 12 years and don't learn anything about finances a lot of the jargon is like Greek to them and it's really sad our school system is failing our children cuz it's all about going to school to make better money we go to work to make money and all these kids coming out of school are in debt don't have basic job skills and it's a sad fact it's all Theory and no hands on. I remember coming out of that Junior High you can have home economics shop class Woodshop you have your driver's license by the time you were in highschool too. The way we treat our children now is like infants like they're all retarded and then they coming out of college retarded..
I remember my mother went to Community College the whole thing cost for like $5,000 to be an RN nurse.
Now you got to go into debt to try to get education to try to get a job it makes no sense!!!!!!!
A video that woke me up to this was a video called College conspiracy these colleges are just in a conspiracy even high schools now or to make money and idiot adults!!!!
There are a lot of promises that aren’t working out. Education doesn’t stop at college or require college either. Invest in yourself always.
This is a bit misleading. If your employee matches 100% you still get that 100%. So if I put in 5k a year and they give me 5k, I'd have 100k, not including interest. If they didn't match I'd have 50k. Even with earnings id have double.
It isn’t 100% related but what if he were to take the $19k in contribution pay the tax reducing to worst case $13k which is invested in only high quality companies with high dividend yield and a great track record of paying a dividend. If he DRIPs the dividend while contributing he will amass more shares and therefore when cash is needed will have more cash flow. The dividends would, most likely, be qualified and therefore be taxed at a lower rate. It’s not a perfect but could be a reasonable option.
The company i work for changed their 401k plan a couple years ago. The old plan was 3% match with pension. The new plan got rid of the pension and now has a 8% match
Shifted more responsibility on to you, not necessarily a bad thing, but the risk changes for sure.
Great stuff!!! What software program are you using in this episode’s 401k case study?
Truth Concepts.
Very good podcast.
Thank you
What if I get 2:1 up to 6% ? 100k salary. Should I stay in at 45?
2 dollars for every dollar you deposit?
Garrett Gunderson yessir 6% every paycheck and 6% lump sum beginning of the year.
What if you already have your house paid and no debt at all?
Then look at cashflowbanking.gg as next step.
this sounds interesting to know but I don't understand exactly what they are saying. If only they speak in easy to understand this concept to us that don't know much about Finances.
Grab this GarrettGunderson.com/KSC and go at your own pace. Should help.
Hi Garrett great content! I am a current loan officer and have my life health and annuities license. Are you or your firm hiring?
How can one get the program Tim is using to put the numbers in?
Truth concepts. It is for advisors. Todd Langford is the creator.
Please share the program that was used! I would love to do the same for myself.
Wealthfactory.com/private.
For a years, I gathered about $40k on 401k. Just before covid time, I stopped my contributions, when I realized, my $401k money can not earn even for two-way subway ride for 12 months. That was very good decision! Today this money are worth much less than 3 years ago. I'd like to take them back immediately. There are other and much better ways to invest your money. Crypto, real estate, old cars, gold, stock (long term), etc...
Some of those things you can do in a self directed IRA but I wouldn't. So glad you found better options and made the switch.
This is why people sell drugs!😩 (joking/not joking)
A good video to scare people away from invessting money and just putting some $ under the mattress and hoping for the best. 😢
People often would do better not gambling and paying off loans and saving money more safely. Speculation destroys wealth far more often than it creates wealth.
what is the name of the program that tim is using?
Truth concepts
🍇 Alot of discussion about real estate in these comments... This is why i always felt......
Real estate is so sleezy........its a Lazy way to take advantage of ppl.......And Just more trees being cut down......
No way all this evil goes unpaid......rather naturally or spiritually
I don't know why real estate is evil? Where do you recommend people live?
@@GarrettGundersonTV woods🍇
The guy on the right, nvm
I would pay off the mortgage. Can't hear the guy in the plaid shirt. I am throwing my money toward my mortgage in lieu of putting money toward my 401k. Maybe be a mistake, but paying the money toward my mortgage does not have any volatility. Then when paid off I can decide what to do. This guy in red is hard to follow. The particpant should not have a mortgage if he has savings. Why pay interest.
If it were me, I'd more likely put it towards my mortgage over finding my 401k, but check out cashflowbanking.gg and look at a third option.
As long as the eviction moratorium exists i will stay away from real estate, i do not like squatters
Sounds like a “playing to not lose” mentality.
Why does he have 27 yrs. Left on a mortgage at 56 y/o.
Cooking unrealistic numbers
He bought his first house at 53?
During the refi boom, tons of people refinanced to 30 year loans at lower interest rates. Others rolled the equity from one home to another and got 15 or 30 year loans.
Yep. I’ve always known they are scams.
Yea, limit cash flow, too many fees, and penalties etc. you get it.