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NOW THIS Is One of the WORST Investments In America

NOW THIS Is One of the WORST Investments In America


NOW THIS Is One of the WORST Investments In America this is the rich dad stock cast with andy tanner the show that kicks 401ks in the asphalt and teaches you to be the master of your own stock investing domain and heres your host greg arthur Music all right welcome im your host greg arthur and today were here to talk about one of the biggest investments in america and in the world im talking about an investment that gets trillion dollars and whats fascinating about this is of americans are in this investment and its something that ive found totally puzzling is twothirds of the people in this particular investment are under the age of so what am i talking about i am talking about 401ks now if you know much about rich dad you know were probably not the biggest fans of 401ks and robert im gonna say hates them but i think i found the guy that hates them more this is a man that wrote a book called k os chaos and his name is andy tanner andy welcome hey greg thanks for having me im uh looking forward to this discussion for sure this will be a good one well im pretty excited uh this one is a little bit lengthy so i think um like we talked just a little bit before we probably do this in two shows the first show is lets really define what a 401k is and maybe some of the pros and some of the cons about it and then the second show is since like like i ed this of americans have a 401k and andy maybe you could teach them how to be successful with the 401k yeah we can do our best hows that hey that sounds good you know this is a topic that im very very comfortable with because ive spent a tremendous amount of time researching the facts and the data and just as you were introduced here i thought you know how to bring up some data so i fooled with my computer a little bit and well take a look at some numbers that uh theyre that are going to be interesting to people and uh kind of look at both sides of the coin a little bit here andy the first time i ever met you you you had gone on stage and this was at a reached that event yeah and uh and there was some guy in the audience who was a financial planner right and his whole job yeah he was from janus yes uh yeah music yeah his whole job was to sell 401k and you brought him up on st wait did you bring him on stage not even on stage i think he just slaughtered on from stage and it was the funniest thing id ever seen at the same time i felt so bad for that guy because he had no idea how many people he was hurting and and you made it so crystal clear on really the how a 401k can damage peoples retirement and and what makes it worse is they think theyre set for life so they dont do anything else and then when they when it comes time to realize their 401k earnings or profits basically theyre doomed and theyll never get to retire and their their dream of retirement is is over its its this is such an important discussion because youll often hear robert kiyosaki say well i never throw all my money in wall street or the stock markets a bad idea or all that stuff and i understand exactly what hes saying theres a huge difference from owning stock and being in the stock market theres a big difference i like the idea of owning stock but i dont like the idea of giving my money wall street so that might be a good place to begin is maybe with a little bit of history on the 401k where people can understand and and i will say this there was there was never a think tank or a brain trust of smart women and smart men that got together and said lets build an ideal program for uh retirement you know not just for americans but around the world generally and and so very briefly lets talk about retirement in general as a relatively new idea for example greg lets go back to uh in the united states in uh there was no social security there was no 401k there was no retirement uh we worked on the plow or in the coal mine until we got too sick or died you know when you got sick you hopefully had a son or a daughter maybe take in the way people retired in uh in is they had assets that gave them passive income above their expenses which is the same way we teach it now they had purchased things acquired things ed businesses had assets the cash flow and in the late 1800s the clergy uh ed this idea of hey you know we have the holy father over here hes getting old lets keep donating even though he cant preach anymore and so with the clergy and the first very important the very first uh pension program that we know of corporately its its pretty widely accepted that it was the american express company oh wow and back then there was no plastic it had not been invented it was in uh oh i id call it probably or so late 1800s and they said look we would like to and we have this idea its hard to keep employees you know they leave you got to retrain them you want quality you know work and workforce so he said what can we do to lower the best and brightest and back then there were no credit cards it was like federal express they were a courier for packages they were parcel service federal express american express ups they had a rail system and so they said look come work for us for years and when youre above which was actually back then the average age of death uh most people didnt make it in 1800s they said well well youll never be rich youll never be rich but youll survive well give you enough that you cannot have to work and maybe enough to pay your bills so it was never a prosperity idea it was a scarcity security idea and what happens is once an employee says yes to that greg now american express has got them because lets say youve been working there years takes years to get vested youve been working there years and your boss says something that makes you angry and youd like to quit but hes kind of got you by the neck because the problem with a pension was in retirement that way is if you quit youre walking away from a pension before youre vested right right and and so thats it changed education you know before the 1900s you know going to college or the military or into business were all acceptable pursuits but once you wanted a pension you said well now i need to go to school get a good degree get a job get a safe pension theyll pay me and i work for the same company for years get a gold watch and a pension and that was uh it really changed how education was looked at get a college degree and go out and do this well in the 1950s you might have you ever heard of the studebaker youre kind of a car car the studebaker company they had the audio workers union and they were going bankrupt and this is a big problem for those that read rich dad poor dad would understand is you have assets and liabilities and one of the liabilities they had was workers that no longer worked retirees and you have this idea of policy and demographics gives you the future heres our policy we pay you well now you look at all the people in your workforce that are turning you look at your revenues and your savings youre like uh we cant do this and so they began a battle with the united auto workers union saying we cant afford the pensions which is the same battles that go on today we cant afford the pensions we cant afford the pensions and the workers are saying but you promised right right and so uh they went to president kennedy and they said president kennedy um you know this is a problem and president kennedy said ask not what your country can do for you thats what you could do for your country and they didnt like that idea he said well lets see what we can do for you so he ed uh paying attention this problem of in companies that we could go insolvent and if the studebaker company goes out of business not only do you have an unemployment problem but you have all these people that rely on pensions and theyre not there right right so so what can the government do to ensure this well he was assassinated tragically and johnson didnt do much with it nixon said im not a crook but he kind of was uh and it defaulted to president ford and in about a hundred years it was like late 1800s about years after american express out the first pension maybe something um we signed something called erisa the employee retirement income security act and inside erisa was born a government agency people dont know about its called the pbgc the public the public the public pbgc the public benefits guarantee corporation or pension benefits guarantee corporation its underfunded obviously and it created more enmity between workers and uh management in ownership and they said look if youre going to have a pension you also have to pay the government extra money to ensure that in case youve got a business they can come to us its basically a governmentsponsored insurance company okay where if you offer a pension youre required to pay into this fund thats underfunded uh its going to be insolvent with by is where they say itll be totally insolvent and so its a problem so you have these two ideas of uh you know just work and save and take care of yourself or have this company take care of you with a pension well in something unrelated happened uh you had a guy named barbara carnival or carnival barber whichever it was a legislator a congressman in new york city who had ties to kraft excuse me kodak and xerox the arks and kodak and all of these banks were getting tax breaks for their elite saying hey we can get a bonus for a hundred thousand bucks and stow it away and not get cafe taxes on it and these guys got in carnival barbers ear in jimmy carter was failing as a president with iran and energy and so they had this tax bill they wanted to put together a carter tax bill and everyone was trying to throw their stuff in it so there was a young staffer out of temple law school in his 20s named richard stinger and he was in his 20s and they hired richard stinger says hey write get your team together and write this legislation ive interviewed richard stinger hes a nice man they wrote this legislation under a thousand words that said look you could take a bonus you know like a big amount of money and you could stow it away and defer the taxes and the treasury said well lets run some numbers on this to see how it will affect this greg this when richard stinger told me this about fell out of my chair i was interviewing him and and you see if youre gonna dink around with the tax code you got to know how much tax revenue youre going to lose does that make sense yeah completely and so they ran the numbers on this 401k predicting how much tax revenue the government would lose by people packing away these chunks of money and the consensus was it would be under a million dollars under a million dollars in other words they thought this is so small and its kind of slid in here for these business execs at xerox and craft no one will ever see it and it sat on the books for two years he mentioned that under a thousand words and predicted to impact the tax revenue less than a million thats how small they thought this would be right well there was a man named ted benna who is a benefits had a benefits company and he was working with a bank that had a problem with with paying out too much and he saw this little uh paragraph and he said well how do you get a bank teller to participate how do you get a bank i mean an executives a hundred thousand dollar bonus back then yes sixty percent tax rates right youre losing sixty grand you take that bonus but if you can pack it away defer the tax well if youre a bank teller and your bonus is bucks and your tax brackets you know percent you know put it away to save no give me the money so what he did is he had this idea with the employees and they said lets match it essentially it was bait and ive interviewed ted wonderful godfearing christian man great guy had no idea what was going to happen with this he knew itd be big they didnt know hed be this big so with that little bait of that employee match he said look youll save money on your taxes and well match it on the employee side hes got a book called 401k years later he just wrote and on the corporate side he said hey look guys you dont have to be responsible for their pensions anymore you know just throw them this little match get them in and then when they leave or when they retire you know you have no liability on that side anymore and that was the beginning of the 401k so the point is this this was never a think tanker brain trust that got together and said lets figure out a great way for americans or the world to retire it was a couple of guys you know little legislation here a little financial planning here and the next thing you know wall street says wait a minute our business is assets under management we take peoples money and make money with it with fees if we can put people on autopilot to where every two weeks we get a portion of their paycheck and the legislation you can see clamps down that now its like instead of opting in you have to opt out they have you know raises that come automatically the more and if you look at it from that other side of the coin greg the amount of money that wall street receives from these and makes money off it is astounding and heres the thing thats amazing about it is they put you in funds that mimic the market in other words how much intelligence does it take to do what the markets going to do anyway so i remember seeing you on stage like i said and i think i think the analogy you use is you could take a monkey with a dart board and throw them throw these darts at stocks and he will be as successful as a stock picker whos in charge of 401ks often thats the case um in fact thats not a euphemism thats actually a true experiment they tried is they trained some monkey to throw he used to have a website and everything they teach them to throw darts and then they fit the stocks he picked against some of the major money managers and its pretty much a wash thats incredible um it is incredible so heres heres the thing to understand as you now that we have a little history and a little con for the discussion you know robert often says theres three sides to coin heads tails and the edge and in this its almost less like a coin its more like a dice where you have you know eight or nine or what is it how does that have nine edges or six six sides and theres many sizes for example you have the government side because theyre going to have tax revenue deferred so they have to have part of the law that says when do we get this right and at age and a half now theyre upping that you know donald trump is in favor of letting wall street hang out money a little longer uh where you have to take distributions and pay taxes so the governments part of this you also have business as a part of this if you run a business you you you know paychecks and pension checks are a liability theyre an expense and so you have the business main street side of it you have the wall street side of this which is the biggest side um those guys are showing their fangs theyre showing their thirsty greedy drooling mouths at any type of money as a matter of fact the new legislation that trump is for is saying hey we can let hedge funds uh take take stewardship of this money so you could absolutely have blue carla workers whitecollar workers with no financial education investing in hedge funds now as part of their 401k plan some of the riskiest stuff you can possibly do why why do the why does wall street want this legislation is any way they can get their hands on that money its huge and pensions and 400ks have the same type of greed uh you know its its like a its like a fishing hole man filled with fish and they come and theyre showing their fangs wanting to get their share of this money you look at the pensions in kentucky you know these they they couldnt afford to pay the teachers and they werent getting the returns they wanted so they went to wall street wall street put them in hedge funds like the daniel boone fund they literally had a fund called the daniel boone fund in kentucky and the fees they took were exorbitant and they basically talked about that real quick please please so you mentioned the three sides in all honesty usually i think the government is the villain and it doesnt really sound like theyre the villain here and and i dont think the business is the villain because the pension the plan they were using wasnt working and they needed another solution they needed to try something but i think the villain here over and over and over is wall street well theres a lot of villains i think i think wall streets a villain i think the school systems a villain um because they dont teach people how to understand this and its kind of like this is is vegas a villain is las vegas villainous i dont think so because you go there knowing it you go their way so is wall street villainous i think so because ill tell you what just being at risk dad what ive learned about the way wall street takes the fees especially from 401ks is completely villainous its not they dont take it based on the profits they make for their customers to me my understanding is its a pure commission so when they want more money the boss calls up the sales guy says okay sell something i dont care what you sell or i dont care who buys it just sell something so we can get some commissions so i think theyre all villains okay really um look wall street funds dc right so theyre going to create laws so if look if the if the legislators create a law that said oh theyre not saving enough money so lets create laws that funnel more into the wall street coffers with like by default like instead of things stupid stuff like oh you gotta opt out instead of optin and were gonna have increases and you know mandatory cross so there theres a lot of greed and a lot of selfishness a lot of hankypanky that goes on thats why i took a whole book to talk about it right when i wrote the book and so theres a lot of villains in here um if youre running a business if you read ted bennetts book you know years later you can on one side see the pitch that they made to the employee and the other side like the employee was going to save to you know all this money matching these huge numbers they turn around says hey a lot of people wont participate a lot of people wont pay attention this isnt going to be a big cost to you right so it really is a story of greed and selfishness um on the part of everyone really and and even all and you know who they will blame like can i just bring up my screen and show something here for those that are just listening audibly um heres something that that to me is uh is worth seeing if i if im allowed to share my stream for a minute here right can you see this right here all right it looks like were looking at this is this is uh age and helmet and balances that they have now this is on page lets remember that and lets look at what were were really asking here this is how america saves from vanguard and vanguard is is like the biggest 401k mutual fund yeah those guys in fidelity are probably number one number two okay and and this is whats really interesting right here um when you look at you know some of the numbers theres about debating on who you talk to theres trillions of dollars in these and watch this vanguard is a longstanding steadfast partner to plan sponsors as evidenced by trillion in defined contribution assets under management so lets say you got you know five trillion dollars in american you know mutu or uh defined contribution plans these guys got of it which is down from but last year so this is a large sampling is what im saying yeah you know this is not a small sampling yeah and when you look at how its done notice that this is in release so what data are they using well theyre using data where the stock market is where in i think it was sky high highest its ever been in its history right in fact in if you just said invest in the stock market it would have been the smartest thing nothing returned better than the stock market right i mean you could have bought real estate you could have bought whatever but buying into the stock market would have been just insane returns right watch this you think you think lets go back into this report and lets see how people are actually doing and i think youll find this interesting the average is different than a median the median works this way in that you have the person right in the middle right i mean lets say that that you know you and i and our producer rob all pile our money and robs a trillionaire and you and i are both homeless well the average is going to look pretty good for all of us right id rather look at the guy in the middle and if you look at people retirement age to theyve got sixty nine thousand dollars ready for retirement and the people have already retired have sixty four thousand dollars to their name for thats what they have to live on for the rest of their life yeah and and you think about this if you call the calculator and do a little math on this it really is astounding because lets say youre going to live to and a lot of people live longer than that but thats years so if i take and i divide that by the years you got to live on thats a year correct lets make sure i did that right thousand dollars divided by that years of retirement a year thats thats about uh dollars a month that doesnt even pay your property tax so even if your car is paid off your house is paid off you still youre its astounding even if you take the average and you understand theres some theres several multimillionaires the rich executives that drive this up obviously if the median is half of what the average is that means youre top heavy in the one percent does that make sense yeah theres just some astronomical numbers at the top of this so the guy in the middle is a better metric that means that half of the people that are vanguard half of those people have less than grand half of them have less now when i went to school below percent was an f if youre failing half the people thats a failed program in my view if you even take the dollars right two hundred thousand dollar average here you divide that by twenty years you got ten thousand dollars a year divide that by twelve months you know youre at eight hundred bucks a month well thats for the rich people with their fancy houses and fancy cars so theyre gonna have to be selling some stuff its its absolutely these numbers are heartbreaking and heaven forbid youre a woman because you know those people look at that the medium is across all ages right because as opposed to a man whos ten thousand dollars better thats wrong right the demographics are wrong it is uh you know it is look thats just the numbers so when i say its a failed program what im saying is is this was never designed to shoulder the burden of retirement and when you look at the amount fees take out of this greg they take the lions share of the uh they just take the lie and of the money lets talk fees because earlier i brought up the villains but lets explain how why theyre villains its youre not a villain because youre trying to help people retire why are they villains im a bit of a villain i think because of who i blame who do you blame for this problem um theres you know im not a fan of victim blaming what vanguard would do if you show them these numbers and say vanguard this is a failed program its not going to produce appropriate monies for retirement its failed program lets say well thats not our fault because people didnt give us enough money our fees are low blah blah blah they give us enough money its its low participation so then they go to the government said we need laws so they give us more money we need more wallet we need more money to go on the wall street in the name of savings but this is not savings this is investment this is not money sitting on a shelf you dont make a deposit you make a purchase you dont make withdrawal you make a sale those are different taxable events savings to call a 401k in a savings plan rather an investment plan is incorrect because its not like saving money um its its brutal so yeah lets talk about fees what do you want to talk about well i could go on forever on this so people are putting their hardearned money in here and then theyre not seeing the returns theyre expecting my understanding is because the money is going to fees how are the fees collected how how is vanguard justifying taking the fee well they take it off the top now vanguard to be fair is among the lowest okay they are among the lowest to be fair but john bogle their founder who quit his job at vanguard ironically before he died the late john bogle was very much a champion for lower fees uh he he felt they were exorbitant he made a really interesting interview once where he talked about a lot of compounding costs and uh you know theres theres just interesting data that if you take he said you know you take a thousand dollars at eight percent and you invest it um you know over time by the time the person you know is turns and dies of about in there so you know you with a thousand bucks maybe the market earns eight percent so you get bucks and it just begins the power of compounding returns where the end of of a persons life uh at theyve got thats what the actual aerial tables say guy dies hes got bucks right what people dont understand is that when you take a fee lets say that on that thousand dollars you and bucks the first year but wall street takes dollars they now can invest that money behind the curtain without fees and so what happens is they slowly take these fees over the same time whats fascinating is is in what should have been you know on paper for you you actually wind up with they went up with to make up the total so i want to highlight that i want to highlight that thats if youre in a 401k program that you know theyre taking basis points which is just two and a half percent fees and you gotta figure everything right all the different kinds of fees that go on the hidden fees and obscured fees and all that if there are basis points uh theyre taking i mean if you were to divide that up into a pie chart you know i dont even know what that would look like theyre taking percent of the money looks like thats what it would be of the cash um is going to them off those two numbers lets bring that down so we can show it um very cleanly right now even if youre only at basis points that take theyre taking a hundred thousand if youre at basis points theyre still at at one percent fees basis points is finding when they tip the scales defining when they tip the scales but in reality youre still only getting or percent of money you get a little over half and then if you have like in a vanguard situation at basis points youre still giving them about a third of the money so my question greg is is this um is it worth giving them a third of that money to have them follow the s p because its going to do what it does anyway wheres the expertise take a third of the money uh and thats if its not reinvested i have other charts i go through where shows what it means you know when you when you invest and contribute each month and its even worse but why do they get such a lie and share the money for simply putting you in the s p which takes zero intelligence to do yeah now if you were to tell me that theyre theyre using this money and warren buffett is running the the mutual fund for the 401k plan for you then maybe i could say all right hes hes going to come out so far ahead that hes worth his fees well there you dont have to pay fees for that um you can have that its called berkshire hathaway and you can buy it and hell let you have shares in everything he decides to buy and theres no fees in fact they pay whats called a dividend and theyll actually pay you to do that what warren buffett has very little to do with wall street hes a company owner uh a brokerage simply lets me buy a stock once i buy the stock like lets say i have some cocacola stock im a business owner and the fees come from or the the dividends come from coke not wall street and so i i basically circumvent wall street when i buy stocks thats different than the stock market because when i invest for dividends im investing for cash flow just like i would be as a rental house right but if im a house flipper well thats more im in the room i mean im investing in the rental market now in the or in the real estate market rather than the rental market so it is an interesting thing to think about and and all i say is have your eyes wide open to what these fees mean whos whos like we have that twosided coin well maybe weve got a a foursided die or a pyramid or whatever look analyze what the government gains to win and lose because they are a player in this analyze what your company has at stake win and lose analyze what they have at stake what are their risks whether benefits analyze wall streets role what are their risks where their benefits and then analyze your role what are your risks what are your benefits and just really have an understanding of what all those players have to gain and lose and what youll find in that scenario of wall street fees is they have everything to gain and nothing to lose they take no risk so is that evil well if you sign a paper that says yeah im willing to opt in and pay these fees and take the risk well whos the villain i mean i think the villain is ignorance hey that goes back to you saying the government is also one of the villains because the government is in charge of the school system and this is clearly not taught in school but are they really and i dont like to blame the victim because thats what wall street would do well youre not saving enough well i kind of blame the victim a little bit and saying well why are you investing in things you dont understand yeah and thats thats the first result you do the reason you do a 401k is because you know you dont understand it and youre trusting these smarter people who do understand it and youre telling me no guess what theyre not smarter theyre average at best well theyre smarter whos smarter the casino owner or the slot machine player who is smarter so yeah theyre smarter but theyre not i dont know that their fiduciary responsibility really shows through when the numbers come out i i think vanguard has benefited as a company much much more than most of the individuals well i i can prove that when i say most of the individuals we just go back and look at that medium right what about the people in the lower half of vanguard right you got uh people to have and thats at the height of the market thats before colvin thats before thats like at the height height height of the market into is when this data is put out right so the market so heres my fear people listening to this are watching this on youtube they have their 401k statement and theyre seeing how much money is in the 401k yeah is that money really there or is that money before the fees go out and theyre just totally its just a lot of money just lied to you and tricked not very little of that moneys there its actually also in some cases none of us there let me explain one let me share a failure i had a a good friend who had a friend this is how failures always and he he calls me and says hey theres a pretty good business here in salt lake city i think we are investing and my spidey sense says well if its good business why do they make money why are they trying to raise capital he says well you know they you know influx capital to help them blah blah blah blah and theyre willing to get ownership and it was uh a place that rented it was a great concept time share on recreational equipment because you think about some people want a boat in utah well we have winter like half the year so you know youre storing it you know youre doing nothing with your boat uh half the year much different than in say san diego so they say look lets do time shares and not only that you dont have a boat you have snowmobiles in the winter you have sea doos in the summer you have your boats your recreational equipment we thought this could be cool because really it works out better if you look at it you know you buy a boat for grand well you take it out ten times a year thats three thousand dollars for you know if you only have it one year right yeah so its it actually works out pretty well to have a fiveyear time share um but i thought why do they need money why do they need money so we decided to invest we invested heavily both of us and we lost everything we put in and i knew the point where we were done is we were having a quarterly meeting to see how the business is doing and i saw that our inventory for parts for because there was also a retail side to sell boats and parts is we had an inventory that was you know way north of millions of dollars it was huge inventory right and and i looked at that financial statement where the inventory was and i go theres no money in there in other words they said our inventory they had a number on the inventory and lets say its a million dollars i knew that wasnt a million dollars i knew it was a bunch of parts in other words that wasnt money there was no money there there were parts you see the difference yeah theres no liquid and the only way the only way i can turn that into cash is what sell the parts right which is hard to do because they get all the new parts you know and and i said why do we have such a large inventory he says well everyone else in the valley you know orders there in you know one at a time from the manufacturer uh and people have to wait two weeks and i go yeah theres a reason were the only one in the valley that has the parts because everyone else is smart because they understand inventory is stupid to have youd rather have your customer wait two weeks uh to break you know to fix that clutch lever or whatever then have it in stock and i knew our business was doomed because we didnt have good management the managers werent competent uh it was a big mistake it was a big lesson for me a big loss well a 401k is inventory its not cash its a collection of debt and a collection of equities mutual funds either bond mutual funds or equity mutual funds in some crazy mix and so theres really no money there for example i might have a note that says someone owes me uh ten thousand dollars thats not real money i have to collect it its not real money there thats why this shouldnt be called a savings program because theres no savings there its debt and equity theres very little savings in one uh you have to collect on peoples debts or you have to sell the equities to companies so this is not savings when they open that up and they say oh ive got sixty thousand dollars in my 401k no you dont youve got assets that are supposedly liquid that you could sell in exchange for that amount of money its an estimate of their worth well like real estate go out and sell them and if you have everyone selling at the same time for example lets say theres a covered issue well the amount of money that that they could have sold those for dropped dramatically didnt it well if it was real cash should still be there but what it was invested in lost value so understanding that its not cash is something that can move up and down in its price to sell is a very important part of understanding 401ks and and pensions and you know iras and seps and vivas and keos and uh all the other different type of retirement plans that are out there so i think weve managed to make everyone severely depressed because according to the stats of our listeners have one of these 401ks and theyre now probably a little bit terrified so dont worry next week listen to the show and were going to have andy teach us possible solutions and possible ways that you can minimize the damage what what do you want to say there i i think there the the you know for me as an education advocate its going to be pretty predictable what id say about this is the first thing the good news is is you can get smarter about this and im not saying 401ks are going to be good or bad ive made my decision i think theyre terrible i think theyre a horrible idea but its really about your education what a person wants to learn and i think what would be great for next week is to talk a little bit about two things one the most important uh question i get when people read my book foreign chaos is they say how do i get my money out of here yeah exactly i remember i was on a panel uh in florida with all these people it was a strange session greg there were probably a thousand people there and any of them could approach a mic they just lined up and they could ask like people i didnt know what i was doing on the piano im not i looked around like im not smart enough to feel this band so i sat there quietly thinking i wouldnt get any questions and i had a lady come up to the mic and she says andy youve been critical of 401ks how do i get my money out of my 401k and i asked her a question i said well if i told you how to do that what would you invest in and she said well investments and i said like what she goes well i dont know i go that sounds like someone going from the frying pan into the fire it isnt the problem is not with the 401k the problem the only thing the 401k does is for people that dont know how to invest the problem is not 401ks the problem is not knowing how to invest so they think they solve their problem by getting the money out of the 401k they still have the same ignorance problem that put them in there in the first place and its that advice culture that you know i hate so bad and have such a disdain for it will tell me what to do with the money the 401k is the ultimate problem exemplified with the advice culture give us your money well do it well do well just well well give you the right advice in spoken instead of educating so i think next week you know what can a person do about this that would be a great you know if weve articulated some of the things to think about problem wise and this is a very small list in the short time weve had together very small list but at least might open someones eyes to say hmm theres more than one player lets learn it and then next week maybe what we can do is talk about what a person can learn and what that learning might lead to in terms of protection first in terms of of defense first risk management first and then maybe even being able to grow and benefit um from the stock uh as it is as the stock market grows we can talk a little bit about that all right lets do that next week then awesome i mean terrifying but its powerful numbers right its hard to argue with the data right i just dont see how anyones going to survive off the number that the they want no they wont you know robert often says are they screwed and theyll go yeah in in in a certain way they really are whole world is screwed because that now you dont retire when youre old so now the young people cant get a job like the domino effect isnt just its not just the united states this is global i mean you know what the 401k is called in japan 401k they took the name but in in australia its called the superannuation in canada its called an rrsp its just different names for the same thing dumping money into wall street assets under management thats the name of the game all right andy well thank you people dont hurt yourselves tune in next week andy will make that you feel better we dont make many guarantees but uh i think you i think we can say youll feel better uh when you learn about what you can do about this when we uh talk next week all right andy thank you so much appreciate it thanks thanks for having me greg Music '
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