Retirement is a Flawed Concept!
We sell the best, most productive years of our life, by the hour and to the highest bidder, just in the hope that we will save enough money to allow us to spend the last years of our life doing what we really want to do? Wow, that was a long sentence. Run on maybe?
Retirement started when older workers could no longer work because of health and age reasons. Somehow, probably thanks to socialists, over the years it has envolved into our "prime time." Now we spend the majority of our lives looking forward to the time that we will likely be in the worst physical and mental state of our entire lives. How does that make sense?
Don't get me wrong. I'm not saying, "Eat, drink, and be merry for tomorrow we die." Nothing of the sort. I'm just saying life is precious, and we live it in the present. It is a shame to spend it thinking and hoping for the future or the past.
Do what you love, and love what you do!
Have you ever notice how millionaires work until they die? If you follow your passion you will be happy. What else matters? Money? The weird part is that you are more likely to become rich doing something you love than doing something you hate. If money is your motivation you will fail. If you do it because you love it you will likely succeed.
A 401k/IRA has never, and will never make anyone rich!
Think about it. Have you ever heard of any multi-millionaire that can thank their 401k or IRA for all their riches? However, we still throw our money at "tax advantaged" accounts, hoping that they will make it possible for us to retire someday. We put up with a lot of problems and restrictions for a measly tax advantage that we could likely get in many other ways.
Problems
- Limited Contributions
- Restricted Investing Options
- Early Withdrawal Penalties
- Required Minimum Withdrawals
- Future Tax Obligations
The only time I EVER agree with contributing to a retirement account is to get an employer match. However, you MUST be sure that you will vest these contributions. Vesting is a legal ownership of the employer contributions. It is usually based on length of employment. If your employment is less than 5 years, you may not get to keep the employer contributions when you leave.
Become an Expert!
Can you make a better hamburger than McDonalds? Or a better burrito than Taco Bell? I sure can. So why should I trust them with my food? Only when I'm lazy and don't want to cook. It's the same with investing. If you can choose an investment better than the institution, why trust them with your future?
The risk of investing is directly related to the ignorance of the investor. A random person buying a random stock or real estate property, might as well go to Vegas. When it comes to the future of my family, I don't mess around. Invest in yourself by educating yourself. Become an expert on a type of investment you like. Then you can invest like a millionaire and manage your risk.
I Don't Have a Retirement Account
I don't have a retirement account because I can choose an investment just as good as the professional. I was going to be a professional until I decided to do it for myself. Though a hobby of mine is equities trading, my favorite form of investment is real estate. Lookout Trump! Here I come! Real estate offers more tax advantages than any retirement account, and if I want to, I can avoid capital gains with a 1031 exchange. PLUS, live in the property for two years and sell it tax free.
If you're average, busy, or just plain lazy, then get a retirement account. If you'll be at your job for more than 5 years, take advantage of your employer's matching. But if you believe in yourself, then invest in yourself. Follow your passion and you'll never work a day in your life. Become an expert and manage your risk. Let other people trade their best years for their twilight.
Be Smart and Thrive
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