1 Timothy 6:17-19 “Charge them that are rich in this world, that they be not highminded, nor trust in uncertain riches, but in the living God Yahweh, who giveth us richly all things to enjoy”
401K: Why I Don’t Have One
All of the finance industry push the idea that everyone should save for retirement. Don’t get me wrong, this isn’t a bad idea.
I like having a sense of control over my future. Thus, I am not putting my money in a retirement plan.
People often ask? “How much should I be putting into my retirement plan?”
This can be a 401(k), 403(b), IRA, or a multitude of other retirement plans that are available.
Personally, I don’t recommend contributing at all.
You may not realize it, but you are paying fees in order to participate inside of your 401 (k) plan.
Investment fees, plan administration fees, and service fees are among the various fees you’re paying.
Pros and cons
There are pros and cons of retirement plans. Here are some pros!
- Most retirement plans offer a tax incentive toward saving
- Employers offer a match on contributions into a plan
- There is creditor protection offered by retirement plans
- Most retirement plans offer help with set-up and on-boarding.
Below are some cons of retirement plans.
- No access to your money in the plan until the stated retirement ages
- Once the money is inside of the plan, you have limited control and choice over what can be done with the money
- You pay fees in order to participate inside of your 401(k) plan.
Alternative solutions
There is a better way to build wealth than putting all of your money into retirement plans.
Some alternative ways to build solid wealth and get real money is through real estate, owning a business and side hustles.
Saving small amounts today isn’t going to make you rich. Waiting 40 years to retire versus the ability to live on your own terms.
Financial planning decisions are a must if you want to get ahead and stay that way.
I am not putting my money into someone else’s hands or taking a bet that they will do the right thing!
The problem with all of this is that most people don’t want to do the work it takes to obtain financial freedom.
It’s a personal decision to invest your money outside of a retirement plan.
Now, get to work. No one wants to work till they die.
DISCLAIMER: I am not a financial adviser. This site is for educational purposes only. It is imperative that you do your own research. I am sharing my opinion from personal research and experience with no guarantee of gains or losses on investments, finance etc.
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