CPA Explains the Disadvantages of Investing in a 401k

#401k #IBC #Investing In this video, I give 3 reasons why you SHOULDN'T contribute to a 401k, and propose an alternative savings strategy you may never have heard of. Chapters 0:00 Introduction 0:50 Taxes 1:00 Delaying the Tax 1:30 Lower Tax Myth 2:04 Lower Income Myth 2:44 The LIE 3:18 Government Program 3:47 Access & Control 4:26 Others Benefit 5:15 Saving vs. Investing 5:52 Government Confiscation 7:14 What To Do Instead? 8:52 Disclaimer 9:30 Summary and Conclusion For more information on the Infinite Banking Concept ® Financial System (IBC), visit: Nelson Nash Institute: To find an Authorized IBC Practitioner in your area, visit: Disclaimer: The Infinite Banking Concept® is a registered trademark of Infinite Banking Concepts, LLC. Maxwell McGuire, CPA is independent of and is not affiliated with, sponsored by, or endorsed by Infinite Banking Concepts, LLC....(read more)

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CPA EXPLAINS: Why NOT to Invest in 401k When it comes to retirement planning, one of the most common investment options that people consider is a 401k. However, contrary to popular belief, a Certified Public Accountant (CPA) may advise against investing in this particular avenue for retirement savings. Why? Let's find out. 1. Limited Investment Options: A 401k plan typically offers a limited range of investment options, usually restricted to a selection of mutual funds. This lack of diversification can limit potential growth and expose you to market volatility. As a result, your investment returns may not be as impressive as they could be if you had more investment choices. 2. High Fees and Expenses: Many 401k plans charge high fees and expenses, eating into your overall returns. These fees can include administrative charges, expense ratios, and management fees, which may significantly impact your retirement savings over the long term. When compared to other investment options, such as an Individual retirement account (IRA), these costs can be quite substantial. 3. Employer Control: One significant drawback of a 401k is that your employer controls the plan. They determine which investment options are available to you, and you have limited control over the investment selection and management of your retirement savings. This lack of control can be problematic if you wish to tailor your investment strategy to your specific needs and risk tolerance. 4. Penalties and Restrictions: A 401k comes with a set of restrictions and penalties. If you need to withdraw funds before the age of 59 ½, you will typically face an early withdrawal penalty of 10%. While there are exceptions under certain circumstances, this penalty can be a significant financial setback if unexpected expenses arise or you need access to your funds for other purposes. 5. Tax Considerations: Although 401k contributions are made on a pre-tax basis, meaning they reduce your taxable income for the year, you'll have to pay taxes on your withdrawals during retirement. Depending on your tax bracket at that time, you may end up paying more taxes on your 401k distributions than you would have if you had chosen other retirement investment options with different taxation structures, such as a Roth IRA. So, while a 401k can be a convenient way to save for retirement, it is not without its downsides. The limited investment options, high fees, lack of control, penalties, and potential tax implications make many CPAs caution against investing solely in a 401k plan. Instead, they may suggest exploring alternative retirement investment options, such as IRAs, Roth IRAs, or other low-cost index funds that offer more flexibility and control over your retirement savings. Ultimately, it's essential to carefully consider your specific financial goals, risk tolerance, and retirement objectives before deciding on any investment avenue. Consulting with a knowledgeable CPA or financial advisor can help you make an informed choice that aligns with your unique financial circumstances and aspirations for a secure retirement. https://inflationprotection.org/cpa-explains-the-disadvantages-of-investing-in-a-401k/?feed_id=144215&_unique_id=65244fc5d0d5b #Inflation #Retirement #GoldIRA #Wealth #Investing #401k #401kexplained #401kplan #austrianeconomics #bankonyourself #daveramsey #financialfreedom #FinancialIndependence #howtopaylesstaxes #howtosaveforretirement #IBC #infinitebankingconcept #isIBCascam #personalfinance #personalfinancetips #retirementplanning #savingforretirement #SavingvsInvesting #Taxadvice #taxes2022 #truthabout401k #wealthbuilding #wholelifeinsurance #whyiwouldneverinvestina401k #whynottocontributeto401k #401k #401k #401kexplained #401kplan #austrianeconomics #bankonyourself #daveramsey #financialfreedom #FinancialIndependence #howtopaylesstaxes #howtosaveforretirement #IBC #infinitebankingconcept #isIBCascam #personalfinance #personalfinancetips #retirementplanning #savingforretirement #SavingvsInvesting #Taxadvice #taxes2022 #truthabout401k #wealthbuilding #wholelifeinsurance #whyiwouldneverinvestina401k #whynottocontributeto401k