You should invest in your company-sponsored 401k. Right? Wrong! The greatest risk to your retirement might just be the tool you are using to save. And if you’re thinking an IRA is better, nope. These traditional retirement vehicles are essentially the same, and in this episode, you will see why.
The government tells you to invest in 401k. They offer tax breaks after all! On the other side, your financial advisor will tell you to open up an IRA account. Is that really better? We don’t think so!
The fact is, neither the government nor your financial advisor has your best interests in mind. They might not be malicious, but they’re not giving you ALL the information.
We believe that financial freedom comes from financial knowledge. So, we want to ask you: Do you know the tax ramifications of these accounts? Do you know the special rules attached to them? And are you aware of all of the fees?
Get ready, because in this episode we will bust some well-established retirement myths and set you on a path to financial freedom!
- Introduction (00:00)
- Diving into the topic of the day (02:06)
- The tax ramifications of a 401(k) (05:52)
- Tax breaks of a traditional retirement account (10:06)
- Why there are so many people investing in IRA accounts (14:25)
- There’s no different retiree tax bracket (17:16)
- How inflation can affect your retirement plans (25:49)
- Why do employers, financial advisors, and Wall Street support IRA (30:12)
- Closing thoughts (37:22)