Unveiling the 401k Deception

If you're a dentist, you're probably aware of the conventional retirement investing method. However, the current model of exclusively saving through 401ks and IRAs under a "set it and forget it" mentality is fundamentally flawed and falls short of providing a secure retirement.

The average 401k balance at retirement for Americans is only around $70,000 to $90,000, which is not enough to sustain you for the rest of your life.

In this article, we'll discuss a much better way to invest for retirement that most people, including doctors and dentists, are not being told about. We'll explore the benefits of self-directed accounts, which allow you to invest directly into various assets like real estate and gold, providing you with control and potential tax advantages.

It's time to take control of your investments and build significant wealth for a secure and comfortable retirement.

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The Flaws of Conventional Retirement Savings

The conventional way of investing for retirement through 401ks and IRAs is outdated and fundamentally flawed. The current model encourages saving exclusively through a "set it and forget it" mentality, which falls short on providing a secure retirement.

The average 401k balance for Americans at retirement is only between $70,000 to $90,000, which is not enough to live off for the rest of your life. This is why more people are waking up to the fact that there has to be a better way to invest for retirement.

The traditional way of saving for retirement is not the way to building real wealth. Billionaires do not credit their success to their 401ks. In fact, Wall Street and the government have partnered to create 401k plans, which benefit both parties. Each time you send money to your 401k custodian, you are actually partnering with the government to make money.

When you meet with a financial advisor, they may try to convince you that you will someday retire and live off a big pile of cash from stocks, mutual funds, and bonds. However, the reality is that this is not a reliable way to retire comfortably.

Self-directed accounts, such as self-directed IRAs and 401ks, provide a much better way to invest for retirement. Wealthy people have been using these accounts for years, but the average person, including most doctors and dentists, are not being told about them. This is because big banks want to keep these accounts a secret, so they can keep control of your investments.

The big banks limit your investment choices mainly to what mutual funds and exchange-traded funds from which they profit. They do not want you to invest in properties like single-family homes, RV parks, mobile home parks, self-storage buildings, or anything like that. They want to control everything, and they do not want you to take control of your own investments.

Self-directed accounts let you invest directly into all sorts of things, such as real estate and gold, giving you control and possible tax advantages. The key here is control, which big companies do not want you to have. They limit your investment choices mainly to what mutual funds and exchange-traded funds they profit on.

The stock market is not a reliable way to live off of during retirement. In 2008, many people had their money tied up in traditional retirement accounts that took a huge hit, leaving them unable to retire comfortably. Real estate investing is the number one way to build and preserve wealth, according to wealthy people.

When you work for a company, they typically select the funds for you to invest in, limiting your options. Self-directed accounts provide the entire stock market as an option, giving you more control over your investments. 

Self-directed accounts let you invest directly into all sorts of things like real estate, giving you control and possible tax advantages. With self-directed accounts, you have the freedom to invest in what you want, and you are not limited to what the big banks want you to invest in.

Investing in real estate is the number one way to build and preserve wealth. If you had a self-directed retirement account in 2008, it would have been a totally different scenario. You would have had real estate and other cash-flowing assets growing tax-free up until retirement, instead of stocks and mutual funds.

When you work for a company, they typically select the funds for you to invest in. They only offer you a limited number of options to pick from, and you do not have the entire stock market as an option. With self-directed accounts, you have more options to choose from, and you have the freedom to invest in what you want. 

If you're looking for a better way to invest for retirement, a self-directed account might be the answer. Self-directed accounts, which were introduced in 1974, let you invest directly into a variety of assets, such as real estate and gold, giving you control and possible tax advantages.

The main key is that it's self-directed, meaning you get to choose what you invest in.

Unlike traditional retirement accounts, which limit your investment choices mainly to mutual funds and exchange-traded funds, self-directed accounts let you invest directly into all sorts of things. This is why wealthy people have been using them for years, but the average person, including most doctors and dentists, may not know about them.

The big banks may want to keep these accounts a secret from you because they're not interested in you taking control of your own investments. They profit from the mutual funds and exchange-traded funds they offer, so they'll try to talk you out of moving your money to a self-directed account.

One of the benefits of a self-directed account is that you can invest in real estate directly, rather than investing in real estate investment trusts (REITs).

REITs are like ETFs investing in real estate, but they're not investing directly in a property. When you invest in a self-directed account, you get to choose what property you invest in, such as a single-family home, an RV park, a mobile home park, or a self-storage building.

Another benefit of a self-directed account is that you have more control over your investments.

Strategies for Maximizing Company Match Programs

If your company offers a matching program for your 401k, take advantage of it. This is essentially free money that you can use to build your retirement savings.

Here are some strategies for maximizing your company match program:

    
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  Contribute enough to get the full match: Make sure you are contributing enough to your 401k to get the full match from your employer. This is usually a percentage of your salary.

      
    
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  Be sure to check with your HR department to find out what the matching percentage is.

      
    
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  Increase your contributions: If you can afford it, consider increasing your contributions to your 401k. This will not only help you build your retirement savings, but it will also increase the amount of money you receive from your employer's matching program.

      
    
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  Take advantage of catch-up contributions: If you are over the age of 50, you may be eligible for catch-up contributions to your 401k. This allows you to contribute more money to your retirement savings account.

      
    
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  These contributions can help you catch up if you haven't saved enough in the past.

      
    
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  Rebalance your portfolio: Make sure you are regularly rebalancing your portfolio. This ensures that you are investing in a mix of stocks, bonds, and other assets that are appropriate for your age and risk tolerance.

      
    
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  Consider a self-directed account: If you want more control over your retirement savings, consider opening a self-directed account. This will allow you to invest in a wider range of assets, including real estate.

      
    
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  Real estate can provide tax advantages and potentially higher returns.