#334: STOP Maxing Your 401K...IF You Want to Retire with Krisstina Wise
Are you blindly trusting your 401k to secure your financial future? You might be making a costly mistake.
In this eye-opening episode of Wealthy Wellthy podcast, we dive deep into her wealth of experience in personal finance and investing, and offers a fresh perspective on building long-term wealth beyond traditional corporate retirement accounts.
The main focus of this episode is debunking the myth that maxing out your 401k is the best path to a comfortable retirement. Krisstina explains why "matching, not maxing" your 401k contributions and diversifying your investments can lead to greater financial freedom. Krisstina emphasizes the importance of having control over your money and being an active, knowledgeable investor to maximize returns.
Throughout the conversation, we dive into topics such as the limitations of government-controlled retirement accounts, the benefits of real estate investing, and the crucial difference between financial security and financial freedom. They also touch on the value of financial literacy and the need to calculate your specific retirement needs.
Ready to take control of your financial future and explore investment strategies beyond your 401k? Listen to this episode of Wealthy Wellthy for actionable insights that could transform your approach to retirement planning and wealth building.
Key Takeaways
5:05 History of pensions and retirement plans
10:52 Limitations and drawbacks of 401k plans
16:46 Risks of relying solely on 401ks
22:17 Match don't max: 401k investment strategy
28:42 Options for investing outside 401ks
34:24 Comparing different investment vehicles
40:48 Strategies for building wealth long-term
Memorable Quotes
"Retirement plans are based on a history that's not applicable today. We want to live to 100, maybe more. But these plans are not set up to live to 100, which means if we just rely on traditional retirement plans, it's very likely that we'll run out of money."
"Match, don't max because you just want to take advantage of what the company is matching. But we don't want to max out everything that we can put into these types of programs."
"To really build wealth and to build it powerfully, you might say, 'Hey, there's my neighbor. The estate wants to dump this property really fast. I can get a great deal on this house.' But wait, I can't touch that retirement income to take advantage of this opportunity."
Resources Mentioned
Vanguard (for index funds) - https://investor.vanguard.com/
Connect with Krisstina
Website - https://wealthywellthy.life/
Instagram - https://www.instagram.com/krisstinawise
YouTube - https://www.youtube.com/@krisstinawise
Krisstina's Book, Falling For Money - https://www.amazon.com/dp/0692560904/
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