I’m going to make a very bold statement that’s sure to get me some nasty blowback. But as a financial investigator who’s exposed the truth about the conventional financial wisdom, I’m used to that, so here goes…
401(k)s are a scam. Want proof?
Here Are Six Reasons Why 401(k)s Are a Scam…
Reason #1: The Tax-Deferral Scam
In our immediate-gratification society, deferring your taxes by funding your 401(k) sounds so good.
But when the tax man eventually comes calling, he won’t ask you to pay what your tax liability would have been if you’d been paying taxes all along. He’ll tell you what your tax liability is at the time your taxes are due.
So let me ask you a question: Can you tell me what your tax rate will be 30 years from now? Didn’t think so.
And 89% of the people we’ve surveyed believe tax rates can only go up over the long term, due to our country’s unsustainable debt and aging demographics. Unfortunately, if tax rates do go up and you’re successful in growing your nest-egg, you’ll only be paying higher taxes on a bigger number.
Oops! That destroys the whole “tax-deferral” argument.