About Your 401k: What You Need to Know...
Steps across the California-Nevada border the grid is near single-handedly depleted by casino lights. During our twenties, Steve and I spent time adventuring in both the outdoors and indoors of Lake Tahoe’s south shore. The draw into the casino was mostly the cheap food but we’d always take some “entertainment money”.
Neither of Us Are Gamblers
Steve’s roommate literally lost everything and after the burden $2,000 in debt on my first credit card was paid off I vowed to always make smart financial decisions. Both solid lessons learned on our own before the age of twenty-two that continue to anchor our family.
With that said…
Andrew Jackson and I became curious about the craps table at Harrah’s. Dice, chips and loud people? Seemed interesting to me! Naive, I handed Jackson to the dealer and put chips on the table. My chips grew…and grew…unfortunately, due to naivety, I didn’t understand the value those chips held and why people were so excited for me.
Then it happened…the chips started disappearing. No matter what I did, the dice weren’t rolling in my favor. Then, I made a reasonable decision: I pulled my chips off the table and got Jackson (and some of his friends) back into my hands.
I learned a lot in the short time at that craps table and we recently applied that learning to our 401k.
What the Money?!?!
Most people gamble the outcome of their golden years by placing funds into the hands of others. Blindly, they trust, often without question, how their retirement funds are invested. Most have ingested gallons of Kool-Aid (cherry flavored) that diversification is simply having a variety of share in stocks that have different risk thresholds.
This isn’t any different than the craps table at the casino! There are “safer” and “riskier” plays on the table but ultimately, there’s no control over the outcome until the bills are back in your hands.
The Keys About the Future
When people would ask my dad about where the real estate market was headed my dad always responded with, “If only we had a crystal ball”.
We could say, “up”, because real estate traditionally increases in value but in all fairness, nobody knows. Worst case, there’s a physical asset to back investments.
There are some things you probably don’t know about your 401k, like how much will it be worth when you retire and through your golden years? Exactly, specifically, if and when the market crashed the year you’re intending to retire, what will you have?
We find it interesting that those managing 401k accounts typically paint an in-control concept about your financial future backed by Wall Street. When Wall Street tanks it’s like losing your money on the craps table at the local casino.
No More Gambling
Since we’re not the gambling type, Three Keys Investments believes in TRUE diversification to hedge against a variety of economies. We’re not Wall Street’s biggest fans (the more you learn about WS the more unsettling it becomes) which is why we don’t heavily invest there, but most people don’t know their options.
Do You Know?
People typically think their employer’s offerings is what they’re stuck with. Do you know you can rollover all or part of your 401k into an eQRP account without penalty? Do you know you don’t have to use Edward Jones, Morgan Stanley, or Merrill Lynch-like companies? Do you know YOU can be 100% in control of managing those resources?
Follow the links and it’s alarming how these companies gamble YOUR money for their gain over yours. A favorite “aha”? These companies’ profitability stems from the fees and commissions YOU pay when their trade YOUR shares. While the financial planners and managers we’ve worked and are friends with are solidly ethical, their control over the overall company’s heartbeat is completely limited.
If you’d like to truly diversify your portfolio with money you already have, if you’d like to have something tangible backing your golden years, please schedule a call!
In the meantime, follow this link and we’ll send you a tangible copy of a book explaining more about your choices!