The majority of people believe that a 401(k) is a wise decision because there are no “taxes” on them. Indeed, you are not taxed while money sits in that account, but there is another downside most don’t see…
And once you see it, I doubt you’ll still think a retirement account is a smart move.
Currently, there are $38.4 TRILLION in retirement assets within the United States alone. But, do all those individuals fully understand what they’re getting into?
As most know, a 401(k) is a savings account you cannot touch until your golden years. However, I feel that savings accounts can be worth it if you know how to take advantage of them.
NONETHELESS, THE SAME CAN’T BE SAID ABOUT 401(K)S BECAUSE YOU DO PAY TAXES ON THEM.
In fact, you will eventually end up paying more taxes. This is how they have tricked you into thinking otherwise…
The Truth About A 401(k) and Taxes
To see the problem with a retirement account, you just have to do two things:
- Acknowledge some basic principles about money.
- Look at the bigger picture from a different perspective.
First, let’s take a look at a couple of things that are as certain as death and taxes…
INFLATION AND DEPRECIATION.
The capital in a 401(k) will not be worth as much when withdrawing years later and taxes will be higher. And you do have to pay taxes on that money when you use it later.
Therefore, you should use that same money now to invest in something that will pay you more later.
I.E. make investments that cash flow and appreciate instead of the other way around. After all, do you want to be budgeting late in life or have financial freedom?
I think the answer is obvious and on top of that, your future self will thank you.
Be Great,
Grant Cardone
Disclaimer: This content is intended to be used for educational and informational purposes only. Before investing, you should always do your own analysis based on your own financial and personal circumstances before making any investment. Grant Cardone is an industry expert who has been investing for over 30 years and his opinion is based solely on his own personal experience and circumstances. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment. Investment involves great risk and there is no guarantee of performance or results.We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.
