Podcast

The Big Squeeze of a 401(k)

April 19, 2021

The Big Squeeze of a 401(k)

Brad and Ryan assess the 401(k), its benefits, and investment options. Find out why The Big Squeeze will make more money for the IRA than it will for you.   

You go to school. Get a job. Put money into a 401(k). Save enough money by 60. Retire. For a vast majority of people, that’s the way the game works.

Your parents say that this is what you should do. Your employer definitely thinks so too. Even the government says that this is a good idea.

But is putting all of your chips on a 401(k)a safe bet?

Then why would the guy who invented it – the late John C. Bogle – think that it was the worst thing he’s ever issued? Simply because it doesn’t work.

Find out why sacrificing 40 years of your life only for Wall Street and the government to squeeze a huge chunk out of your retirement fund isn’t worth it. Learn that and much more in our Big Squeeze episode.

Key Takeaways 

  • Introduction (00:00)
  • Why 401(k) isn’t such a great idea (02:07)
  • Andy Tanner’s book and the 401(k) Big Squeeze (06:37)
  • Tracking a single 401(k) contribution of $1,000 over 65 years (11:11)
  • How Wall Street is making a return on your investment (17:44)
  • Why do we call this the Big Squeeze (18:50)
  • Don’t try to fix a broken game but play a different game (23:43)
  • The solution for the Big Squeeze (28:23)

Additional Resources: