I have a lot of money

@healerofwallets

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Why it worked

The video uses a controversial take from a well-known figure (Grant Cardone) to grab attention and then provides a nuanced explanation of 401(k)s, addressing common misconceptions and offering practical advice. The use of relatable scenarios and clear explanations makes the complex topic of retirement planning more accessible.

Summary

This video discusses the pros and cons of 401(k)s, contrasting them with other retirement strategies. It explains how traditional 401(k)s work, the tax implications of withdrawals, and the historical context of their creation. The video also touches on Roth 401(k)s and IRAs as alternatives, highlighting the limitations of 401(k)s regarding accessibility and the general lack of sufficient savings among Americans nearing retirement.

Structure

1Introduction to 401(k)s and taxes
2The historical context of 401(k)s
3Comparing traditional 401(k)s with Roth options
4Limitations of 401(k)s and retirement savings
5Alternative retirement strategies and advice

Product placement

The video discusses 401(k)s and Roth IRAs, which are financial products/services. It also briefly mentions DoorDash as a consumer spending choice.

Call to action

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On-screen text

I HAVE A LOT OF MONEY IN MY 401(K) OKAY, I'M SORRY FOR WHY DO YOU IT'S A WAY TO PUT MONEY IN PAYING TAXES ON IT TO BE TRAPPED FOR 30 YEARS PULL IT OUT 63 YEARS OLD RIGHT NOW? 13 YEARS FROM NOW WILL TAXES BE HIGHER YOU WILL WISH YOU WOULD HAVE SOLD IT 'CAUSE YOU'D PAY LOWER TAXES, DUDE ANY TAXES MONEY OUT OF YOUR 401(K) UNTIL YOU'RE 63 WHEN YOU START TAXES, BRO YOU WEREN'T WHILE IT SAT THERE WHAT'S WRONG WITH YOU? GRANT CARDONE JUST TOLD MILLIONS OF HATES 401(K)S AND SOMEHOW HE'S BOTH RIGHT THE EXACT SAME ABOUT ONE THING 401K WITHDRAWALS ARE TAKEN OUT THE MOMENT YOU TAKE THE MONEY OUT THAT THIS CONVERSATION GETS FRAMED YOUR 401K IS JUST SOME IRS NOT REALITY FUN FACT THE 401K WASN'T EVEN CREATED TO BE AMERICA'S RETIREMENT BACK IN 1978 CONGRESS ADDED SECTION 401K CODE ALMOST BY COMPANIES LOOKED AT WAIT WE CAN REPLACE EXPENSIVE PENSIONS WITH THIS THING AMERICA WENT FROM COMPANIES GUARANTEEING RETIREMENT TO BASICALLY SAYING HERE'S AN ACCOUNT GOOD LUCK CHAMP YOU'VE BEEN MANAGING YOUR OWN RETIREMENT AND HERE'S WHERE HE TALKS ABOUT PAYING TAXES LATER GIANT GOTCHA BRO. YOU EITHER PAY TAXES TAXES WORK THAT IS HOW TAXES WORK THE QUESTION AIN'T WHETHER YOU PAY THE QUESTION IS SO WE'RE GONNA WHEN YOU MAKE $100,000 YOU PUT 10,000 INTO A TRADITIONAL 401K YOU DON'T PAY TAX ON THE 10,000 TODAY IT GROWS FOR 30 YEARS AND THEN YES WHEN YOU WITHDRAW THAT CUT BUT THERE'S A ABOUT RETIREES ACTUALLY END UP IN LOWER BRACKETS THAN WHEN THEY WERE WORKING MANY DO SO DEFERRING TAXES ISN'T AUTOMATICALLY A WORRIED IF TAXES IN THE FUTURE THAT'S LITERALLY WHY ROTH 401(K)S AND ROTH IRAS EXIST IF Y'ALL WANT IRA VS 401(K) LET ME KNOW IF YOU WANT A VIDEO BREAKING DOWN EACH ONE YOU PAY TAXES THEN QUALIFY WITHDRAWALS LATER YOU PREPAY THE BILL NOW TELL UNCLE SAM TO KICK ROCKS ACTUALLY AGREE WITH IS THAT 401(K)S HAVE LIMITATIONS YOU GENERALLY CAN'T BEFORE RETIREMENT THERE ARE EXCEPTIONS LOANS AND HARDSHIP BUT IN GENERAL RETIREMENT ACCOUNTS AREN'T EXACTLY BUILT FOR FLEXIBILITY THE AVERAGE AMERICAN NEARING RETIREMENT HAS NEAR ENOUGH SAVED MEANWHILE PENSIONS ARE DISAPPEARING FASTER THAN FREE SAMPLES AT COSTCO THE CHOICE IS 401K MOGUL 401(K) VS Nothing 401K NOTHING OR BUYING DOORDASH 4 TIMES THIS WEEK PONDERING BETWEEN CONTRIBUTING TO A 401(K) OR BUYING DOORDASH 4 TIMES THIS WEEK MAKE SURE YOUR MONEY ASIDE DEPENDING ON WHAT THE MATCH IS, TAKE THE MATCH IF THEY ARE NOT RETIREMENT VEHICLES OUT THERE DO YOUR RESEARCH JUST FOLLOW ME FOR MORE VIDEOS ON HOW TO DO BECAUSE IF YOUR ONLY RETIREMENT PLAN IS WAITING FOR YOUR KIDS TO GET RICH I HAVE TERRIBLE NEWS FOR YOU SHARE AND SAVE THIS VIDEO YOU BE HEALED

Original caption

Grant Cardone Says 401(k)s Are A Scam... Here's What's Actually True #401k #RetirementPlanning #PersonalFinance #MoneyTips #Investing #WealthBuilding #Retirement #GrantCardone #FinancialLiteracy #HealerOfWallets

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Transcript

I have a lot of money in my 401(k). Okay, I'm sorry for... why do you... it's a way to put... money in... paying taxes on it. To be trapped... for 30 years. You could pull it out when you're 63 years old? 13 years from now? Will taxes be... higher? You will wish you would have sold it 'cause you'd pay lower taxes, dude. You don't pay any taxes when you pull money out of your 401(k) until you're 63. When you start... taxes, bro. You weren't... while it sat there. What's wrong with you? Grant Cardone just told millions of... hates 401(k)s and somehow... he's both right... the exact same... about one thing. Now he's correct about one thing. Traditional 401(k) withdrawals are... take the money out. But the way this conversation gets framed, it sounds like your 401(k) is just some IRS scam, and that's not reality. Fun fact. The 401(k) wasn't even created to be America's retirement... back in 1978. Congress added section 401(k) code almost by... companies looked at... wait, we can... replace expensive pensions... with this thing. And boom. America went from companies guaranteeing retirement... to basically saying... here's an account. Good luck, champ. You've been managing your own retirement... and here's where... he talks about... paying taxes later... giant gotcha. Bro. You either pay taxes now... taxes work. That is how taxes work. The question ain't... whether you pay... the question is... so we're gonna... when. You make $100,000. You put 10,000 into a traditional 401(k). You don't pay tax on the 10,000 today. It grows for 30 years. And then yes, when you withdraw... that cut. That's the deal. But there's a... about... retirees... actually end up in lower... brackets than when... they were working. Many do. So deferring taxes isn't automatically a... worried if taxes in the future. That's literally why Roth 401(k)s and Roth IRAs exist. If y'all want... Let me know if you want a video breaking down each one. You pay taxes now... then qualify withdrawals later. You prepay the bill now, tell Uncle Sam to kick rocks. Now where I actually agree with Grant is that 401(k)s have limitations. You generally can't... before retirement. There are exceptions... loans and hardship. But in general... retirement accounts aren't exactly built for flexibility. And to be... the average American nearing retirement has nowhere near enough saved. Meanwhile pensions are disappearing faster than free samples at Costco. So the choice is... 401(k) or real estate mogul. 401(k) vs Nothing. The choice is 401(k) or nothing. Or buying DoorDash 4 times this week. So if you're pondering between contributing to a 401(k) or buying DoorDash 4 times this week... make sure your... money aside. And if your employer is offering a match, depending on what the match is, take the match. If they are not... retirement vehicles out there. So do your research. You could just follow me for more videos on how to do. Because if your only retirement plan is waiting for your kids to get rich... I have terrible news for you. Share and save this video. You be healed.