Recently retired and unsure if my 401(k) and IRA will provide a stable future. i need an approach that will align with my risk tolerance and financial goals, i set aside $1m to achieve this. Do you suggest i get into stocks or buy a rental property?

@StacieBMui

13 күн бұрын

Look up dividend aristocrats. Pick six to ten from that list. Those companies have a track record of 25+ years of paying dividends. Also, its advisable you work with a financial advisor to help set up a well-structured portfolio.

@StocksWolf752

13 күн бұрын

I agree. Based on personal experience working with a financial advisor, I currently have $2 million in a well-diversified portfolio that has experienced exponential growth from when i started. It's not only about having money to invest, but you also need to be knowledgeable, persistent, and have strong hands to back it up.

@cowell621

13 күн бұрын

Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.

@StocksWolf752

13 күн бұрын

I work with Sharon Lee Peoples as my fiduciary advisor. Simply look up the name. You would discover the information you needed to schedule an appointment.

@crystalcassandra5597

5 күн бұрын

I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.

I wish 60 minutes did a 10 years later interview with these people

@kevinwalker8695

4 жыл бұрын

My exact thoughts

@blackworldtraveler3711

4 жыл бұрын

Arie Fraiser They won’t because people will see what the 401k would’ve done if you did not cash out and contributed. Many either cashed out and/or stop contributing and will never get it back. All the people I work with that only had their money in the credit union savings account and money market of the 401k have more than $500k after 30 years. Wasn’t affected at all by stock market. I was 70% in stocks and affected by the stock market and down as low as $260k but my contributions wasn’t touched. I kept maxing out my 401k,dividends/interest continue to reinvest and compounding through it all, broke even by 2012 tripling to 1.5 million since. And you got to be really stupid risking your money like that over 50 years old especially with no pension and savings. I’m retiring next year. After the rollover I now have about $600k in Pretax IRA and $1.7 millions mega Roth IRA. Have 40% in gas/oil ,REITs,and Dividend Achievers making $43k/yr dividends with 60% credit union and money market making $19k/yr. interest.. When I retire next year I have a $2400/mo. pension,$3k/mo. social security at FRA.and other savings to pay over 20 years of my current living expenses. But also have the option of $500-$1500/mo. taxable and $2k-$6k/mo.tax free from my pretax and Roth IRA. Thanks to my 401k. Did you notice that when that guy said there were other options to put your money into not connected to the stock market the guy ignored what he said? They really should have discussed that part. And as far as fees go I just did a Fidelity BrokerageLink rollover with my 401k and the fees weren’t bad at all (0.33%) because I’m proactive and did not buy mutual funds(fees) or use the fee services like most do.

@ariefraiser140

4 жыл бұрын

@@blackworldtraveler3711 Agree with most of what you said. Everyone in the video blamed 401ks like they were supposed to carry zero risk. The market drop in 2008 was around 35%. If you had your money in an index funds you should have lost around that much. However if you had your money in company stocks you very well risked losing everything. And as you touched on if they were that close to retirement they should have had a 70% stock/30% bonds and/or CDs split at the most. If they invested in index funds and that split then the 35% market drop would have resulted in about a 23% portfolio drop. As risked adverse as some of them seemes they should have gone with a 60/40 split. In any case the main point is with the 401k and IRA increasingly being the only retirement option for people it is your responsibility and duty to ensure you understand it as much as possible and know what the risks are and ways to minimize the risk. Too many people don't even take time to review their 401k at least once or twice a year.

@blackworldtraveler3711

4 жыл бұрын

Arie Fraiser The value of investment was less but nobody lost anything unless they cashed out or sold.. And even though my stock value was down I was still averaging $2500-$5k a month in reinvested dividends including interest,stock/company splits,compounding,etc.. Half of the companies were increasing dividends each year regardless. If these people didn’t sell and kept contributing they would be very happy now. Another thing is I would like to know what these people were doing with their money for 30 years. That diva lady showed that statement with only around $8k.and another $80k she says that.dropped to $50k......after 30 years Wall St. executive assistant and no kids? And what bothers me about her is what she said about her age and younger prettier women which should not matter if she’s good at her job. The first guy and the couple would have at least $500k to million now if he didn’t cash out and kept contributing. I know this because for the past 8 years I’ve been going to the two retirement seminars/workshops at the company I work and heard it all. Ive known these people for 30 years hearing a lot of rationalizing and excuses to throw money at things, no saving,and borrowing from 401k,etc And all the living beyond means and keeping up with the Joneses has caught up to them big time. Also found out I’m one of about 75 out of 9k employees that are 401k millionaires out of over 9k in my group but probably more in the system there are over 100k employees. This video and others like it do no good for anyone except cause panic and confusion without all the fact,details,or follow up. Also you don’t have to put money in a 401k.

@951ruben

4 жыл бұрын

I don't understand why they keep saying you lost money. You don't loose anything until you sell. If you hold it your only down

The woman at 3 minute mark seems like an absolute star employee, I hope she found something great.

@user-md6se6in1z

4 ай бұрын

agreed! she's main character!

A ten year update to this video is needed. Where are these people now?

@silviodeassis5728

4 жыл бұрын

Solowolf dead

@blackworldtraveler3711

4 жыл бұрын

Solowolf Either working until they die if they sold and/or cashed out their 401k or retiring comfortably or even early like me if they left it alone and kept contributing.

@TheOpinionSports

4 жыл бұрын

David Watson and how much of that went towards fees on a 401k?

@collin4930

4 жыл бұрын

Many likely cashed out around this time. This was filmed during the teeth of the recession (March of ‘09 was the bottom by most stats) and these folks are unemployed and seeking work in their late 50’s most had no other option than to liquidate regardless of the potential for the market to bounce back. Some may have kept their accounts though. Here’s hoping they weren’t invested in any securities/funds which never recovered...

This was so heartbreaking to watch. I also agree with the comments here that state that there should be a 10 years later follow-up story to this... maybe even a "where are they now"?

@Ambigouos010Pronoun

2 күн бұрын

Congress approved a bailout for the billionaires but let the average person bite the dust.

We lost a lot from our 401k during the financial crisis. We sat tight, and did not sell anything. We continued to contribute to our 401k at the same level as before the crisis. It was scary as hell. But eventually we got it all back, and made good money on what we added during the meltdown. People who sold their stocks after the crash will never recover. I knew an older couple at church that was deep in retirement, and heavily invested in their 401k. When the crash hit, they were smart enough to sit tight. They only took out what they needed to live on. Their finances recovered.

@timewing4611

4 жыл бұрын

Jj looks like you need to go back and study your economic history. There always has been and always will be crashes. But what happens after EVERY crash.....? It comes back. Not only does it come back, but it continues to go up.

@nickzema4683

2 жыл бұрын

You got the nominal amount of dollars back that hold far less value today.

@kylefredeluces

Жыл бұрын

Why you gotta wait. Theres better strategies out there

@Essays4College

Жыл бұрын

Tell that to the Japanese. Their stock market today is basically the same as what it was 30 years ago!

@donniematonnie9378

Жыл бұрын

@andrewheffel....I read your post. You folks did a lotta good things correct by sitting tight, but. Yep there's that "but" we still don't know if YOU or the rest of us could have tripled our investment. Did you miss it somehow?? All the hidden UN-Disclosed fees (of which no invester knows their amount) created to rob us all. There's more than a dozen. I'll list a few. 1 Legal fees 2.Trustee fees. 3. Transaction fees. 4. Stewardship fees. 5. BookKeeping fees. 6. Finders fees and the list goes on. You may have quad- rupled your investment for all you know (which is nothing) had those wall street goons NOT robbed you blind. No pun intended, but it is what it is: literally robbing you blind and you don't even realize it. If you don't know the cost of those fees or that they even exist, you are blind.

for old people, it was devastating. For young people it was a huge opportunity

@collin4930

4 жыл бұрын

These older investors should have known better. They should have had some cash on the side and tapered off into bonds/lower volatility securities as they neared retirement. Sure ‘09 put these folks in a tough spot but they saw some of the greatest 20 years the American economy ever had prior.

@brettj.m.roebuck17

2 жыл бұрын

I can personally attest to that lol

@Charusel

4 ай бұрын

For a millennial like me, it was a huge wake up call. Made me become far more critical any advice that a financial guru insists that everyone should hurry up and throw money at. Also, taught me job are never a sure fire thing.

"I'm a Microsoft office diva!"

@sevensolaris

4 жыл бұрын

As if that skill holds any weight.

@curiousgeorge6921

4 жыл бұрын

🤣🤣

@nonono3141

3 жыл бұрын

I laughed at that too.

@tshililomugovheli2717

3 жыл бұрын

And there comes top models who can type faster

@sithukyaw9019

2 жыл бұрын

@@sevensolaris remember this was 2008

It's now 2021 and this still holds true to this day, although an update would be nice one can see the issue here.

@mucusofwanderhome6945

2 жыл бұрын

For those that were still far off form retirement and didn’t need to access the funds, if they left it alone they would have made out phenomenally going out nearly each and ever year after this video was made.

It’s 2019 and this still shakes me....

@stage51manager

2 жыл бұрын

It’s the middle of June 2022.

Does everyone here not realize that the people who lost money in their 401ks basically quadrupled their money ( assuming they did not cash it out) by the end of 2017?

@bonilla1240

4 жыл бұрын

That's just what I was thinking. You don't lose your money until you sell or the companies you invested in go under. Assuming their 401k follows the S&P, they should be up right now.

@IsraelZavala

4 жыл бұрын

Jonathon Haug im sure most of them sold... they likely didn’t have enough savings outside of the 401k to keep them afloat which as you said is terrible because they could have 3-4 X’d their money.

@luisvalencia9180

4 жыл бұрын

Really? You want a 60 year old to hang on and pray? Japan had a 30 year recession. A recovery is never guaranteed. This is just sad.

@bonilla1240

4 жыл бұрын

@@luisvalencia9180 The US stock market rising overtime is as close to a guarantee as you can get. That being said, I believe there is a lesson here for those of us who are still young. If you rely solely on your 401k for retirement, you will not have the luxury of choosing when to use it. You must wait for a rise in the market / gain in your portfolio. Expect a recession every 10 years or so.

@itrthho

4 жыл бұрын

JB Bonilla: There have been 10 year periods where the USA stock markets go nowhere “Lost Decades”. The 54 and 60 year olds don’t have that time to wait and see

This is an eye opener

@TheTacticalHouse

4 жыл бұрын

Yep. Keep your money out of the markets

@Mawyou

2 жыл бұрын

@@TheTacticalHouse If you keep your money out of the markets, you will certainly not be able to retire. It is simply not possible to save enough during a 40-year career for you to live on during 25-30 years of retirement without putting your money to work for you while you're working. The problem is you MUST shift your money out of riskier, high-growth investments as you approach retirement age. Seems like many 401k plans have now added target date retirement funds as the default investment choice. Those would have prevented people near retirement from suffering these kinds of losses. Those should have existed BEFORE 2008 happened.

Trust someone else with your money? Times have changed. Can't trust anyone with your cash ...

@henryhill3778

9 жыл бұрын

Meta MGTOW you got it.!

@richardbowers3647

4 жыл бұрын

No, no! It is the professionals you have to watch out for! Don't confuse experienced elders with professionals that make a living at risking your money!

This is why you don’t rely solely on a 401k or any kind of investing for your nest egg. I make mine own savings interest rate by being debt free and living below my means.

@Newlinjim

4 жыл бұрын

Beast from the East the issue is ‘what options allow my capital to grow the fastest’. 401k lets your capital compound tax free. The risk you place on that capital is up to you through investment choices/knowledge.

I lost my job in the financial sector a few weeks before this clip was posted. It was real tough trying to find a job as there were thousands of people in the same situation as I, my Roth IRA dropped 50% in value and it wasn't until 2013 that it was back to normal. I also had a 401K which I was forced to sell and roll the funds into an IRA because the company was being sold and the new owner was dropping the plan.

Pay your car(s) off, Pay off all credit cards and destroy them. Buy a house and pay it off. Be 100% debt free. If you can't pay cash - don't buy it. Build your savings (you have no rent or mortgage) - self fund your retirement. Diversify with other tangible items of value. Remember you can also reverse mortgage your home and pull out money every month until death if needed. Let the bank have the house back when your done with it or if theres equity give it to your kids. Have a life insurance policy that will take care of your spouse and kids when you go. Use your home as a financial vehicle while its a home and shelter. Work less. Live more. Less stress.

@abdoldaneshinia2459

7 жыл бұрын

easier said then done for most people.

We need more 60 minutes series like this one

How taxes and fees work in your 401k. Basic assumptions. $1,000 contribution a month for 30 years at an average rate of return 7% (industry average). Fees are charged annually and come before taxes (taxes are deferred in qualified plans) $1,000 x 12m x 30yrs at 7% = $1,227,087 Gross (before taxes and fees are factored) According to morning-star and dalbar the average 401k fees are anywhere between .5% - 1.5%. I teach personal finance and have found most plans total expense ratio to be closer to 1.5%. This includes all fees, mutual fund fees, 401k administrator fees, custodial fees, transfer fees, etc. If you put away $1,000 for 30 years with an average return of 7% with 1.5% in fees your total = $917,799. That is over a $300,000 dollar difference. At a low expense ratio of .5% (best i have seen) total fees are still over $100,000. Most plans seem to have employer matches now days. I have found that the employer match is drained by the employer fee. As an example. I had a client a couple months ago that worked at BOA. His company has an investment division and manages and administers employees 401k plans. He was offered a 100% match from his employer (rare). He maxed out his 401k every year. He put away 18,000 and employer matched 18,000 (above average). His total expenses totaled 2% (above average). If he funded this plan for 30 years, BOA and himself would have both contributed $540,000 over those 30 years. That is essentially a free $540,000 from his employer, right? With 2% in fees and a 7% return, BOA will make north of a $1,000,000 in total on this account. Not a bad investment on one employee right. Front 540 thousand in "free money" to generate a million in revenue $500,000 net. Taxes work very similarly in these plans. Same basic assumption, $1,000 a month x 30yrs at an average return of 7%. Lets also assume .5% in fees. We will call this a low feed strong performing 401k plan. Total contributions over 30 years = $360,000 Total earnings net of fees = $752,169 Total account balance = $ 1,112,169 Tax deduction or incentive (whatever you want to call it) is calculated on your deposits ($360,000). Lets assume you are in a 1/3 tax bracket. Total tax savings equals $120,000. In other words you didn't have to pay taxes on $120,000 over a 30 year time frame. Pre-taxed contribution plans are taxed when you start taking withdrawals. Instead of a capital gains tax, your taxed as ordinary income. If you are in the same 1/3 tax bracket, you will be paying north of $365,000 in taxes. Isnt that how credit cards work? You are borrowing money today, to only pay taxes on all your money tomorrow, contributions (principal) and interest earnings. In other words, you are deferring taxes on your seed so you can be taxed on your harvest. "Do you really want to invest in a system where you put up 100% of the capital and as the mutual fund shareholder you take 100% of the risk, and you get 30% of the return?" ~ John Bogle Hope this helps.

@rico-ns5vr

5 жыл бұрын

So what do you suggest I do??? 37 yr old dad with 2 kids (7 & 4 yr old) only making $15 HR... Please help me with suggestions on how/or best way to save

@dondressel4802

4 жыл бұрын

rico211 wow your in a tough situation I would try to get a trade job Plumber or electrician My girlfriends sons are union plumbers making over a 100 thousand a year working in San Francisco My nephew is an electrician making 32 dollars an hour as a apprentice electrician In three years he’ll be making over 50 dollars an hour The only other thing is try saving 10% of your income every paycheck

@Theactualcurrentsea

4 жыл бұрын

Bryce Roenicke - My employee just changed their fees structure on our 401k and you are auto enrolled with auto contribution increase each eligible year. Something felt off when they were explaining it, but now your going to make me really dig in. I wish I had your skills, thank you, God bless.

@AngelGarcia-bq4wr

4 жыл бұрын

@@rico-ns5vr an IUL is the best retirement vehicle. A Roth IRA is the closest thing that comes to it, but even then an IUL outperforms it in every way. I recommend you look into an IUL if you're serious about your retirement. If you need resources to help you out , then I'll be more than glad pass them forward.

@AngelGarcia-bq4wr

4 жыл бұрын

@@Theactualcurrentsea an IUL is the best retirement vehicle. A Roth IRA is the closest thing that comes to it, but even then an IUL outperforms it in every way. I recommend you look into an IUL if you're serious about your retirement. If you need resources to help you out , then I'll be more than glad pass them forward.

Remember pensions? THATS the gold standard.

@abc-jq4hi

4 жыл бұрын

Yeah let's bankrupt all the great American corporations so they all go overseas! Great idea!

I graduated high school in 2003. Knew nothing about life! Started working and in 2006 it started to go down. I was laid off as a drafter for a surveying company. I was lucky to spend only 2 months on un-employment. Worked hard, got a decent drafting job and started a family in 2011. Got laid off shortly after. Was lucky to land temp jobs drafting to keep food on the table and roof over our head. Since I started paying attention to politics in 2012, Trump by far is the best thing to ever happen to our economy. My 401k has been at 11.07% return since Trump entered the white house. My dad lost almost everything under Obama. I will never again vote democrat... Ever.

It kind of sounds like the people interviewed didn't have a big amount in the market anyway. A 200k pre-crash value is quite low if you plan to live off of returns.

@kenny3269

4 жыл бұрын

Thomas Reedy yeah, it’s low in the grand scheme of what’s needed to retire, but it’s high relative to what the average person has in their 401k/403b, etc.

@DewTime

4 жыл бұрын

Exactly. If all you had is $200K-$300K for your retirement you weren’t anywhere close to retiring in the first place.

@ricardoibarra6455

4 жыл бұрын

Keep in mind this is from 2009. Would be interesting to see an updated video on this topic

@Excalibur2

4 жыл бұрын

It's pretty pathetic when you hear people talking in tears about how much they lost, only to find out they had $10 grand in the first place. I knew a couple people at work who said their retirement was ruined after divorce took around that much from their 401k.

@gmoritz71last52

4 жыл бұрын

This post and replies - - thumbs up. If you didn't sacrifice by not buying/leasing new cars, not taking vacations every year, etc. ) then you don't have the several hundred thousand saved and can't retire. Oh yeah - - AND screw Wall Street and their frickin' "fees."

4:43 "Its tough, but Im proud of him" How bout that.

Thank you for posting. Great video.

And when you decide to Cash out, Federal takes 30% & State takes 10%.. Also you give this crooks your money so they can invest on shit you wouldn’t!

@Mawyou

2 жыл бұрын

Choose the Roth 401k. Pay the taxes up-front. Unless your income puts you in a high tax bracket, then you might be better off paying the taxes later in retirement. As far as fees, choose the low-cost index funds if you have any the choose from.

401k is a risky game of chance , if you happen to retire at the time of the market, you're fine............but if you happen to retire during an economic downturn or crisis...........you're screwed

@mr.c8501

4 ай бұрын

Not true, as you get older you should be shifting your investments from equities to something safer to weather the storm. These mouth breathers losing 30-40% in the crash on 2009 only happen cause of greed. Nothing else.

@BrianSmith-yq7ys

2 ай бұрын

Wrong and I’ll tell you why and I’ve ran this model. If you retired with $1,000,000 (or any amount of money) in the year 2000 and withdrew 4 percent a year every year for 20 years in 2020 you would have $1,100,000. This was with the actual market fluctuations for every year. It works if you know how to use it.

These people would've been fine if they just held onto their holdings during the recession. Market goes through cycles and the last 10 years have been nothing but growth

@stuffylamb3420

4 жыл бұрын

I don't think you paid attention to the video and I don't think you have a clue how difficult 2008 was for the average American (guessing you're a young kid). All lost their jobs and couldn't find work for some time, some had their mortgage go underwater, and all were already close to retirement age. The 401Ks they had that lost half their value was all the money they had left to live on. They had to pull their 401Ks to survive.

@zs5002

4 жыл бұрын

Michael Carter True. But at the end of the day a recession is a natural part of our economic cycle. That is what happens when people live ABOVE their means. Buying houses they shouldn't be buying. The horrible thing is I think the average American is worse off now than they were in 2008. The difference is mountains of student debt, and no savings to lose in the market

@stuffylamb3420

4 жыл бұрын

@@zs5002 You would be right if this were any other recession, but this wasn't a typical recession. This was the worst since the great depression 80 years earlier. This was an economic crash not seen in America for generations. And yes, you're right. The average American is worse off. 2008 crippled the middle class and pretty soon there won't be one at all if things don't change.

@teebone2157

4 жыл бұрын

easy to say when it takes years for it to recover and you plan on retiring in 3 years

@JohnDoe-gc1kt

4 жыл бұрын

@@zs5002 how old are you? Just pray you never feel the pain of that recession a day in your life. There was no money flowing through the economy. Even if you didn't overspend. Gas prices were ridiculous. Everything was out of whack.

Its important that They've not have unrealistic expectations. Cold blooded

People need to rise up and get rid of these horrible 401k plans that are garbage and get back to defined benefit package.

If there are "dogs" in your 401k, blame your employer. All plans should have index funds for low costs, and you are guaranteed whatever the market returns that given year, minus the fees. Employers can always change or modify their plans to make them better. Talk to your employers to make changes. If the fees are too high or are lousy performers when the market goes up, and there is no matching money on the employers part, don't participate and go with a Roth IRA. Anyone close to retirement should have 50% or less in stocks, with more money in bonds and cash. Educate yourself with books and maybe take a investment class at your local community college. I have been doing this for over 20 years and have a nice six figure nest egg, and I'm considered lower middle class. If I can do it, anybody can, really.

@babylongonz1733

5 жыл бұрын

Gdobie1 West You're making too much sense. Stop it!

@sct4040

4 жыл бұрын

👍 me too, i did all that and i am fine.

Turns out that mar 9 2009 was the bottom. Great example of by the time the news media does a story on something it's over.

I couldn't watch the first five minutes with those people desperate to find a job at the job fair while showing how much they lost in their 401ks.

@BrianSmith-yq7ys

2 ай бұрын

It’s such a catch 22. Their 401k collapsed. Lost there job and now their locking in their losses by desperately withdrawing from it.

I don't often comment on youtube but it just seems like there's so much misinformation here and I hope I can offer a different perspective than what many of the commenters are providing. Reading some of the comments here makes me feel worried about the state of folks' financial understanding about how the market and these investment vehicles are intended to work. I believe the American equity market and economic engine is one of, if not the best, opportunities to generate and build wealth. Especially considering when one invests and takes part in that economic engine over longer periods of time. First and foremost, the crash in 2008 - 2009 was not a problem to do with 401k's. Everyone lost money. If you owned a home, your equity position halved. If you owned equity's, your position halved. It affected everyone. I suppose one could argue semantics about what caused the recession, but that might be for a different conversation. To say that having a 401k was correlated or the reason folks lost money, or as some commenters have said, "scammed", is patently false. My point in saying this is that an economic engine is an appropriate metaphor for this situation. If you think of your investments as a car, as most folks know, vehicles need maintenance. The difference with the 401k is you have the choice and ultimate control over what happens to your investments, much like you do in determining how often you change the oil in your car or rotate your tires. Sadly, I believe most people put money into something without understanding anything about it, so, when the metaphorical tire goes flat, or if you never change, much less look at the oil, catastrophe can happen. This is to say, that as time goes on you need to take some time to check on your investments and determine if your allocations are safe while promoting growth. A lot of the folks in this video, should have started rebalancing their portfolios into more diversified conservative bonds or target date retirement funds as they got closer to retirement. When you're younger, your time horizon is much longer and your investments have time to recover from the proverbial flat tires. When you're older, you need to rebalance and start thinking about preserving your principle and focus less on growth. Otherwise you end up like these poor folks and what might have just been a flat fire, ended up being a engine fire and near total loss. Lastly, I strongly disagree with the sentiments expressed advocating that we should only primarily rely on pensions and/or social security. I think those are patently bad, and unsustainable ideas and here's why. The average American individual will contribute $312,000 to social security over their lifetime. Just a few years back, ours will be the first generation to get less out of SS than we will put into it. Consider that the retirement age is at 67, that's a hard pill to swallow. Now, as a math exercise please consider the following. When a child is born, assume for the first 20 years of that child's life, the parents of said child contribute $100/month to a broad market index fund brokerage account for that child. Once the child turns 20, they can take over the $100 monthly contribution for the next 40 years. For those that are still following, this is $1200 a year. Assuming the market average return is 7%, that individual will have just over $1,000,000 by the time they turn 60. The total amount in principal that was invested for that individual, was $72,000. Compare that to Social Security for example, and it's stunning to see the difference compound interest and properly harnessing the power of the American Economic engine. For 3x less principle, you will end up with 3x more in retirement funds. And this is assuming only $100 and not including if folks go on to start careers with companies with 401k's that match contributions. Pensions are dependent on a large company continuing to stay in business, and social security is dependent on fewer and fewer workers supporting more and more retirees. It's mathematically unsustainable. For folks that think $1200 is too much, please consider that the average tax refund for the average American is around $2700. I feel like I have a lot more to say, but this is already rambling on far longer than I had intended. Likely this comment will go unread, but if you made it this far, I'd love to hear your thoughts.

@brad8644

4 жыл бұрын

Many good points. Sad to see this story is scaring so many people away from investing properly.

If you left it in there and didnt touch it. I bet you you its worth triple now. Show the people who invested more because they didn't live beyond there means. That woman worked 30 years. Stop buying cars,mini mansion's, charging trips, boats, and trying to keep up with other people that are broke. When you have savings you don't worry about retirement money. Think about if you worked 30 years and have nothing. How long would it take you to burn thru your 401k. That means you didn't plan for the later years of life. Working 30 years you should have had 2-5 years of liquid cash. The markets rebounded with all time highs. I live on 40% of my bring home. People always want to blame someone look in the mirror. You should have savings,IRAs,Cds,cash. I bet if you looked at there spending the past 30 years you would see where there money went.FOH

@TheNORegretShow

4 жыл бұрын

@Pazuzu Le PazNext time don't live beyond your means. I guess this one hits home for you.

@chrrylocks

4 жыл бұрын

Larry R then came corona!!!

As always, Thank you for an extremely informative story.

11:00 - 11:45 This little 40 second exchange basically explains the problem of uneducated investors and their interactions with their 401k plans. The lobbiest clearly supports the position of not adding disclaimers or educating investors of the 401k accounts because it will hurt his pockets, rather helping ours. I do think the exchange between the reporter and lobbiest was edited though, and the actual conversation might have happened differently Very cool perspective seeing this 10 years later. Hope the next financial crisis won't be so bad. . .

@tiararoxeanne1318

Жыл бұрын

Oh, sweet summer child. Haven't heard about COVID back then, have you?😁 On the serious not, I admire the interviewer who could maintain his polite tone to the 401K lobbyist. I could see the fury in his eyes and rightfully so. If I were him, I might slap the lobbyist on the spot😠

They should rename the 401K retirement plan the 201K retirement plan !

@henryhill3778

9 жыл бұрын

Joseph Reid Great thought !!!

@blackworldtraveler3711

7 жыл бұрын

Joseph Reid I have a feeling the people in this video who held on to their 401k and didn't touch it are very happy right now.

@gdobie1west988

5 жыл бұрын

BlackWorldTraveler, if people did not sell when the downturn hit in 2008-09, the market has more than TRIPLED since then. Some of these people who lost a lot of money and were pushing 60, should not have had more than 50% in stocks to begin with. As you near retirement, cut back on stocks and more in cash and short term bonds. It's all about educating yourself with books and maybe a investment class. That's what I did, now have a nice six figure nest egg with about 6 years to go. And I'm considered lower middle class.

@babylongonz1733

5 жыл бұрын

Henry Hill Actually that is not a great thought. It's actually stupid since most people with 401k doubled or tripled since this video was made. I'm assuming the people that thumbed up this panicked and sold out.

@dondressel4802

4 жыл бұрын

How about the 101K plan lol

I'm 67 my 401k is doing good I've never lost half of it's worth the last five years mine was in low-risk my Roth IRA has done well

@Chris-cx7zk

Жыл бұрын

Might want to cash out soon, still close to the peak of the market, and increasing interest rates will slow down the economy, they will keep going up until inflation stops and it might crash 401k's unless you're in stable assets.

Never does it talk about what these people invested in. They made choices along the way to be in equities or in cash. They chose equities and they lost, and now they are blaming others. The problem isn't the 401k - it is the financial illiteracy that is so prevalent in our society. Take investing 101, folks and don't repeat this scenario again. -Fern Alix LaRocca CFP 401kmaximum

@Newlinjim

4 жыл бұрын

Fern LaRocca exactly.

Curious as to what kind of Lifestyle these people maintained after they lost their job

It came back!

You're right. Interest rates do destroy the middle class. I am talking about the interest rate on a GIUL, which is 2.5%, which is not high. Two of the biggest killers for the middle class is procrastination and lack of discipline. Which then ties into financing things they don't need to buy at high interest rates. But when someone does need to buy something, wouldn't it be better to take out a 2.5% loan from yourself and then pay yourself back rather than take out a loan from a bank?

And now their 401k's have doubled from that point. If you were like 60-62 yeah it sucked and probably delayed retirement but people in their 50s made it back and then some.

Why do 401K holders invest in funds and pay fees , the muppets running your fund still make money when you are losing , why do they not simply buy stocks that they can evaluate and understand ? They could then avoid tech stocks when they are overpriced , or move into Treasuries if they become fearful. To have lost 40% during the past year , they must have chosen to invest in tech heavy funds. Like everything else in life , the more you pay attention , the better you are likely to become at managing your pension pot.

This is so fucked up, that's why i don't put my money in 401k anymore, it's all a joke

@leepialong

11 ай бұрын

agreed! now i put all of my money in NFTs, cryto, and kickstarters.

Having a 401K plan or not, you would like to see this report.

This is hilariuos watching this 14 years later and thinking now that people STILL have no idea how their 401k really works, and they're STILL dependent on it for retirement.

@frankharris6136

4 ай бұрын

A guy with teeth like that, I would never Trust!!!!!! He has some nerve.

50% crashes are not an issue if they're followed by 300% booms. Volatility is not risk.

I was 40 when the 2008 market crash occurred at which I increased my 401k contribution from 10% to 15% knowing this is just a blip in the overall ascent of the stock market. For those who panicked and pulled their money out of the market - my condolences. For those who embraced the horror and held on tight here is your reward - as of 10/25/19 the S&P 500 has surged for more than a decade. Since the recession low of March 9, 2009, the S&P has rocketed from 666.79 to 3,022.55 today. That’s a gain of 353% in 10 years. Talk about building wealth $$$

If regular people can't save, how will they know how to invest?😂🤓🤔

This is very sad. Where was the bailout for these people? Its obvious at their age its harder to get a job!

401k's are a joke!!! I don't know anyone that has retired comfortably putting money in there.

Do you know how index stocks work ?

2009 was a brutal. Hopefully we don’t see a repeat version any time soon.

@silviodeassis5728

4 жыл бұрын

Tim Watterson No,it's not going to repeat, it's going to be a lot worse. The Amurikan empire is falling apart! Wake up!!!!!

I don't see pain in these people's face. I see greed.

@tiararoxeanne1318

Жыл бұрын

You need an eye doctor then.

Invest in bonds as you get closer to retirement!

@wronggg

4 жыл бұрын

Equities to make money, bonds to keep money.

Well on the bright side, for the people young enough to hang on. Their 401ks look good these days

6:26 exactly. good growth mutual funds are a safer option. growth - aggressive growth- growth and income- and international growth. diversification is key.

@CBS - Another vote for a 10 year follow up from the same people in this story

54 yr old, career woman that said she worked her entire life, no kids, and has only $80k..... Umm lady.... you do deserve what you are getting... Hope you enjoyed driving that fancy car...

@tiararoxeanne1318

Жыл бұрын

She might have to pay student loan, mortgage, medical bills (herself or her parents'), or other life necessity. You and I don't know her, but based on my experience (on myself and people that I know of), women who choose single life usually come from broken families and have really rough childhoods. Women who wanted an easy life usually got married early, when they were still young and pretty, to the richest men they could get. They know as they were older, the chance to get wealthy husbands would be diminished.

It’s even more disappointing is the US government does nothing

Thank GOD I live in the UK where our government takes care of us! Hope you all get a job soon over there.

@219garry

3 жыл бұрын

@David Watson UK= Communist country

I see adults who are in a state fear. I am a 22 year old who just immigranted to America, New York to be exact, and I'm looking for an entry-level job. I've been on the search for a job for a month now. I just want a simple job in retail. I see these old videos during the Financial Crisis of the late 00's, and I think to myself in disbelief that adults who are in the height of their careers have fallen face flat on the ground. Because for me, as someone who's still young, I thought of grown ups as people who know everything and can solve everything, while children like I was, were just vulnerable without parents. I just hope in the inevitable next financial crisis that the government doesn't bailout the banks and let the free-market heal by itself at the same time, that would teach the banks a lesson. The U.S. Treasury did bailout AIG and made a profit out of it, because found out that if AIG would completely fall, since the company was everywhere, it would be much worst. I actually wish that the profits from the bailout of AIG was used as assistant funds for those who got laid off from their jobs like what Iceland did.

Best retirement vehicle LOL

If your 50 or almost 60years old and you lost more than half of your 401k. Thats fucked up

Retro Nostradamus speaks: And now, from the future, 9 years later, the stock market has tripled. Economy is in overdrive. Unemployment is at historic lows. Thanks to that I retired last year at age 61. When things go bad everyone thinks it will never get better. But it always has. Of course, when things are going good everyone thinks it'll last forever. Which it hasn't.

@dividendincome9685

5 жыл бұрын

EXACTLY!!! My dad was ready to cash out in 2009 and I told him to not touch his 401k account and to increase his contributions if he can afford it. Since 2009, his account has increased over half a million and he’s VERY happy. The younger generations don’t trust Wall St. to make them money but trust in a scam like Bitcoin, it’s hilarious

The people behind this shit are still at it today, nothing will change

ready for the next one? Its almost here....

@lorenzogarcia1020

4 жыл бұрын

People dont see it

@megalodontheestallion5241

4 жыл бұрын

IT HAPPENED DIDNT IT? I'd guess you were right!

The 401k lobbyists likely don't have 401ks of their own.

@SuperDeezy15

5 жыл бұрын

They don’t. They use what the banks, congress, wealthy use.

@ariefraiser140

4 жыл бұрын

@@SuperDeezy15 False. 401ks are a tax shelter. Can almost gaurantee they have a ton of money in them.

@ariefraiser140

4 жыл бұрын

@Ryan BI don't think you understand what a tax shelter is. A tax shelter is a financial arrangement used to minimize or avoid taxes. Since you don't pay taxes on 401k or retirement accounts for years and the money invested in them are allowed to grow tax free 401ks fit that definition. It reduces your tax obligation for that year and many more years to come hence it's a shelter.

@darthvader5300

4 жыл бұрын

Never trust any 401k promoters. They are the 20th century and 21st century promoters of purchasing SPECULATIVE INVESTMENT STOCKS ON MARGINS KNOWN AS BORROWED MONEY which caused a lot of poverty duing the Great Depression. And now they are doing it again, this time using the good ecoomic years and decades to hide the negative evil side of all 401k retirement investment programs.

@ariefraiser140

4 жыл бұрын

@Ryan B So because you can only put 18k...actually it's 19k makes it less of a shelter? Jesus the "logic" some of you guys use is astounding. You do know that you cobble up multiple different tax shelters to minimize your tax liability don't you? Also the overall yearly contribution limit is $56,000....that total would be your contribution plus your company's contributions. If you're a business owner you can funnel 19k as an employee of your business and 37k as a company contribution. There also tons of other strategies used to shelter even more money yearly in a 401k when you combine it wit a SEP IRA like Mitt Romney did and was able to build a $102 million balance. Oh and one more thing. The 401k was originally a tax shelter loophole an accountant discovered when trying to minimize the tax liability of his high salaried clients. Look up the history of the 401k. It's not a problem to be ignorant about a subject. Lord knows there are plenty of things I'm ignorant about. It's when you're arrogantly ignorant that the problems come because you stunt your knowledge growth.

this still echoes today as much as it did back then

Amanda, would you be interested in providing full disclosure? Do you act as a fiduciary to your clients? How are you compensated? What percentage of your clients do you NOT recommend a whole/universal life policy or annuity?

This is incredibly hard to watch. I entered the workforce around 2010 so I didn’t live through this.

@UELPOLO

4 жыл бұрын

David Watson right, and that’s fantastic but I’m sure a lot of people weren’t as lucky.

All the people that stayed the course doubled their money twice now. Anyone that just stayed in until 2010 got all their money back.

Watching this video today 10 yrs later and it makes me laugh.

That guy who was trying to sell 401k’s seems to be very ignorant.

people want reward without the risk

@ryanm2051

4 жыл бұрын

Antonio Renteria exactly lol

@chrrylocks

4 жыл бұрын

For 30 years of employment. They want a pension, not a gamble...

So where did all the money go?

Whose here because of Interactive Traders Course 🙌🏻😃

That's why all ways have a budget

Just like the guy said, it’s an economic cycle. Had they waited it would go back to where it was

@dtrade4787

2 жыл бұрын

Easy to say this in hindsight

Remember, losing jobs is one thing. That's a loss of income. But when you retire, you don't have to liquidate your 401k holdings immediately. If these people could have held on for a few years, they could have gotten back to where they were at previously.

But now, with fidelity or Vanguard, even in a 401K plan, you can do index funds, Total Market or S&P 500 index funds. One can avoid all those monstrous fees in index funds. I dont think all firms have index funds with law fees though, unfortunately

@livemannsf

2 жыл бұрын

I have index funds in my 401k with fees of 0.02% (still robbery if you ask me!)

This feels prescient. 2024, let's see how many souls are crushed in the next 6 yrs...

But Congress was okay

Wait it actually did come back not only that it would have grown 400% more

@alexm566

3 жыл бұрын

yup bit what to do for those 5 years until the recovery?

This film is so important, we included a link from our website, My Self Sufficient Plan, to help this video get more exposure.

that women is main character energy

@user-md6se6in1z

4 ай бұрын

agreed 🤣 "I'm a Microsoft office diva!"

I always thought a "Where are they now" episodes of years past would be awesome. Hopefully everyone in the video were able to turn their lives around and theyre doing great now.

How are these people so highly invested in equities at their age 60+...

Why would you blame the people if YOU GUYS are the ones in control of the account?!

@Luis-xr6ec

3 жыл бұрын

Cause you’re investing. Nobody can tell where the market will be. You choosing your investments is on you. The problem is the expense ratios eating away at your returns. People just need more education on the subject.

Most of these people took high-risk funds at the time of the big crash in 2008 and we're in their 50s by the time you reach 55 you should have considered moving the funds in your portfolio to take less risk because you're too close to retirement and cannot gain it back... being greedy it's a quick way to lose your money slow and steady wins the race.

Would you rather take 7%-9% in an SP500 index fund with drawdown/recession risk? Or would you rather have 3%-5% return risk free in a money market fund? People are invested in things they don't understand, never taking into account their current situation. What person over 55 has their entire portfolio in an SP500 or mutual fund? These small fortunes were lost because they had their eyes set on a dream, and thought their 100% stock portfolio would get them there. Look at the one couple. Wanted to live a quiet cabin life in the mountains in retirement. So they went all 100% stocks at 60 years old. That's the main issue.

I rolled my 401k in to an annuity; "Man makes plans and Murphy laughs" -- God help me to make some sort of right decision in this life time...

Annuities tend to be a waste of money with lower returns than you could get on your own. Traditional IRA's are pointless to anyone making over $69K a year because you can't deduct your contributions. There are many options out there but those 2 are not too useful for a saver/investor making above average income.

You don't lose money if you don't sell

It's terrible. You can't find a job over 50.

Anyone who didn't sell is in great shape now.

This makes me laugh. How can people be so dumb. No one has to be a financial genius but just have some common sense. Why would anyone over 60 be entirely in equities? Unless of course that person has other assets/income/wealth outside the 401k. If your 401 is your main source of long term saving then people have to start using their head. A 401k is not the problem, the problem is naive people investing in them entirely in stocks thinking that the market always goes up

@gdobie1west988

5 жыл бұрын

Putseller100, wow there is someone here that knows what they are talking about!! Good job.

@Excalibur2

4 жыл бұрын

Look at all the people who are 100% invested in single companies like Tesla. I remember reading Facebook posts of people complaining about being a parent struggling with bills and how hard it is every time Tesla takes a hit. Imagine, the people who should be the most risk adverse are the ones putting all the eggs in one basket.

And if they stuck it out, ten years, they are millionaires

I sympathize with them. But if you are 60 and lose 50% of your 401k in a market crash, there is something seriously wrong with your asset allocation.

@thomasreedy4751

4 жыл бұрын

And yet many today people are advocating 90%+ equities because bonds are so low performing.

Why borrow from yourself? It keeps the account tax advantaged. Do you pay taxes on loans? No. Why do they charge interest? Depending on the product, the collateral held by the financial institution in a collateral account is gaining the same amount of interest being charged and then put back in your account gaining more interest. So, if it doesn't level itself out, you're still gaining more interest than paying interest. Don't say the interest rates are high, because they are not.