Just when we thought it was safe in our retirement, there is another set of vultures siphoning cash off our hard-won retirement dollars…“financial advisors”. That title is in quotes because it’s a job. They have no special insight as to how to grow our money.
Anyone can become a “financial advisor” simple by applying for the position. Didn’t know that did you?! Most of the unsuspecting populace believe an FA knows the market inside and out, and is able to guide us through monetary pitfalls that lie in the market so that our reserve for retirement is safe…SIKE! (If you don’t know what that means, ask a black person)
Exactly the opposite, these leeches are present to guide us into the most profitable “products” their affiliates have. Don’t misunderstand, I don’t mean profitable for us. I mean profitable for the broker (financial advisor). From now on we’ll refer to these liars as “brokers” because that’s what they really are and that’s how me and you will end up…BROKER!
The Real or A Steal
Who we believe we are entrusting our after-work lively hood to are fiduciaries. These are trained financial experts who have a duty, by law, to ensure that they put your financial well-being ahead of their own. This means, the law requires them to take better care of our money than their personal savings. Here’s the ass-kicker…only 15% of the all financial advisors are fiduciaries! That means the companies we work for are guiding us to the 85% of blood sucking ticks in the market solely to make a profit from out retirement. FML!
Don’t turn away just yet, I haven’t finished telling you everything about the drowning baby. The company you work for is KNOWINGLY directing you into these “managed mutual funds”, whereas our workplace executives receive a “kickback” from the fund managers in order to railroad you into these high-fee, frequent-fee “investments”. Some of the choices brokers make for you, are so erroneous, some people elect to move their 401K all together. Get this…on most mutual funds they “invested in” on your behalf, one of the fees attached to you moving your money is called a surrender fee. If you take the money out or move it, they can legally take 10% of your cash!
Let’s get behind the curtain. Many 401K contributors know what’s going on but are helpless to do anything due to the fact this is legal. In 2010, a consumer advocate section in Congress tried to pass the Fiduciary Rule, which said that all people who gave financial advise to mutual fund contributors (us) had to be a fiduciary advisor.
The fund managers and companies who have financial advisors make 10 trillion dollars per year from fees applied to our retirement accounts. Now you can see how medicare, medicaid, pensions, and now your retirement will evaporate before you see a thin dime of it! Lobbyists of these monolithic giants shot down the Fiduciary Rule, while they continue to raid your retirement.
There are alternative funds that are unmanaged called Index Funds. These funds are not run by a fund manager, thus, there is no cost associated with investing in them. The funny thing is Index Funds out perform managed funds year-over-year and have since their inception. You can see why. The manager of managed funds want you to invest in the pools with the highest fees, thus, more money for the manager. The Index Funds are not managed, so it is focused solely on return on investment (ROI). Unfortunately, these are dying quickly under the barrage of lobbies going on in Congress.
I’ll suggest another route. 90% of people who know this is going on proclaimed, “There is nothing we can do?” “What can I do?” “I feel helpless.” “I’ll have to work for the rest of my life” “What will I have to live on?” Now THAT is the question you should be asking. How will you live on your retirement when inflation is rampant, our healthcare costs are rising, and parasites are bleeding off our cash in fabricated fees? Answer: You won’t. These robots don’t care if you live or die, sink or swim, drown or burn as long as the money keeps rolling in for THEIR families.
You must build and regenerate an income that will come to you whether you work or lie in bed. I don’t contribute to my 401K anymore. I’ve worked 21 years, and all I have to show for it is $6,100. I know it’s supposed to gain momentum over time and when I’m ready to retire (according to my “advisor’s” chart), I’ll have $1,125,900 to retire on. Sounds great, but if retirement come at 65 and I plan on living 30 more years, that equates to $37,530 per year. That’s only $721.73 per week. Not in poverty just yet, but if you have bills, need to eat, pay for medications, schedule doctor visits, have co-pays, and still have a mortgage…you have NO money left over.
If you don’t want to work for the rest of your life, here is what you have to do. Start a business with the money you have. The highest paid people in the world are entrepreneurs and business owners. Become one. I don’t care if you’ve done it before or don’t know how to do it. If you’re afraid, think of the alternative (above). Now, this is not your father’s Cadillac anymore, meaning you used to need a business plan, cash on hand, and collateral to start your business…no longer.
An internet business can be started for $25. You can join a direct selling company for $100-$1500 entry, and start making money by simply taking to your friends and/or groups to get them to come in with you. I know what you’re thinking, “You want me to get into one of those MLM pyramid things?” I don’t direct or suggest anything to anyone that is illegal, period. Every business structure in this world is a pyramid, so get over that. Build your own business around you. It matters not what the endeavor is, only that you give a damn about it enough so you’ll work on every waking day.
You do what you think works best for YOU, but leaving your money in a 401K is a sure way to have none when you want to start living your best life without a job. There are plenty of articles scattered about the internet about your 401K and the Fiduciary Rule.
Don’t count on working 40 hours a week for 40 years living on 40 percent of your income paying $40 co-pays while picking up prescriptions that cost $40 a pill. Life is better than that. Join something that pays residually, so money will continue to flow to you instead contributing to your stress level as you watch it shrink into oblivion.