EP 45: Why I’m Not A Fan Of 401(k)s

Common Sense Financial Podcast

Episode 45 Why I’m Not A Fan Of 401(k)s

You probably have a 401(k).

Most people do.

It’s the easy choice when it comes to investing for your retirement, right?

You get automatic contributions, they’re tax-deductible, come with lower tax liabilities, and sometimes your employer even matches what you put in.

What’s not to love?


If you’ve been listening to me for a while you’ve probably heard me say that there are no unicorn investments.

There is no one best investment account and the 401(k) is no exception.

Everything in the investment world comes with tradeoffs, and most people have no idea what they are missing out on when they go all-in on their 401(k).

In today’s episode of the podcast, I break down the good, the bad, and the ugly on your 401(k) plan.

Find out:

  • Why you are locking your investment funds away in money jail with a 401(k) and where you could be putting that money instead,
  • Why the common belief that you’ll pay fewer taxes in retirement is probably WAY OFF,
  • How Required Minimum Distributions can cause you all sorts of trouble in retirement if you don’t plan out your income sources properly,
  • And more…

The bottom line is 401(k)s aren’t all they are cracked up to be, and if most of your retirement money is tied up in one then you need to listen to this episode ASAP and see what your other options are.

The podcasts here are historical in nature. They aired before July 1, 2022 and were previously approved by Kalos Capital. The views and statistics discussed in these shows are relevant to that time period and may not be relevant to current events. This is intended for informational and entertainment purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. Our firm is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the US Government or any governmental agency. The information and opinions contained herein provided by the third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm.

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