This Is The Worst Thing You Can Do With Your 401(k)!
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- Опубликовано: 21 дек 2024
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Biggest financial mistake I ever made was with my 401k. My company had a Roth 401k when my kids were in college, but I didn't actually start contributing until year 3 of the 6 years I had kids in college. Because I was helping them with expenses, I was entitled to the tax credits, so my effective tax rate was extremely low. That is the time you NEED to be in a roth! i still retired with about $350k in my 401k.
People don't really know this, You need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal port-folio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my port-folio this red season. I’ve made over $150k since then
I work with Rebecca Nassar Dunne as my fiduciary advisor. Simply look up the name. You would discover the information you needed to schedule an appointment.
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
Insane from an investor’s standpoint. Genius from the lender’s. Retirement payday loans 😂
Ikr
"Retirement payday loans" is a great term for this. Shocking.
Genius from the investor of the lender 😂
Yeah, this was genius from the company, but diabolical
Jade is a real win. She has the same huge personality as Dave and is a gifted communicator. He's so good at bringing in talent.
Dave has found his PERFECT co-host here with Jade. She's a younger, female version of him. She fits incredibly well and is doing a fantastic job on the shows.
Jade is my least favorite personality with no empathy and thinks she is all that.
Every personality is a carbon copy of Dave. That's the whole point. They aren't permitted to deviate from Dave's baby steps at all.
My fav co-host
She seems friendly enough, but she but all her advice is copy/paste from Dave and the same teachings unchanged for years now. I would have hoped that her being younger, she would offer more updated/tailored advice to what the current financial environment is and appeal to the mindset of the younger generation.
@@Cookieboy70 What??? the advice works and the fundamentals haven't changed. It sounds like you want them to coddle the new, softer, feelings-based generations. F that. Time for the softies to sack up.
It's just so sad when people are surrounded by sharks who are ever ready to rip them off.
It's so important to teach financial lessons to children while they are in middle school.
They do. When I was in elementary and middle school we were taugh basic math.
I’d start earlier than that. Maybe start by the 3rd or 4th Grade.
Good luck in public education - 15% of the kids would care enough to pay attention at best. Most kids can't do times tables, how are they gonna calculate compound interest and internalize what it really means/how it applies to their future?
@@MP-xk8kd I hear you. Parents can be the best teachers - that is if they themselves lead by example.
Good thing schools require fine arts to graduate instead of personal finance.
Jade is the best host they have ever had. She has a razor-sharp wit and is fun to listen to.
and hot!!!!!!!!!!!!!
This show is so much better when Dave lets the co hosts talk.
I find all the people except Dave so irritating that I usually won’t even listen to a podcast that shows he isn’t hosting
@@livingaboard that one guy is a total scrub John is alright Ken is like a life coach for people that don't need one jade is funny with Dave (still need Dave) and that other girl just agrees with everything and never has anything to add
Actually, this lady is the most annoying co-host he has ever had. I'm really not sure why she was hired or brought on but from the beginning just absolutely distracting and annoying. She doesn't appear to have any bona fides as far as the subject matter of the show? Her conversational style is horrible and she obviously has a gigantic ego as she just cannot stop interrupting him or talking or directing the conversation back to herself or some personal story of hers. She is very immature and just plane out of her league. It almost appears that Dave just barely tolerates her? She is obviously very under aged and inexperienced for this position. Dave is from his experience, knowledge, and faith a very wise man but have to really question the decision to bring her on the show. If I notice that she is co-hosting, I just skip the video. Here, the subject matter drew my attention.
A Financial Planner told me Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. How can one take advantage of compound interest and potentially grow your retirement savings/net-worth to about $3M over time?
Just try to diversify your portfolio to other market sectors, that way your investment is balanced and you don’t get to make so much losses.
I stopped listening and taking financial advise from these RUclipsrs, because at the end of the day, I end up with a bunch of confusing stocks without knowing when to take profit, In reality, all I needed was professional advice.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Google Sonya Lee Mitchell and do your own research. She has portfolio management down to a science
I've come across a lot of recommendations but this one stands out. Kaitlin’s resume is pretty sophisticated, and shows she was active during the last bear market, I also emailed her. Thanks for the info!
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
@@Elliot-Ivan That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
@@claircourtway Mind if I ask you to recommend this particular coach you using their service?
@@ArabellaBeatrice-099 Victoria Carmen Santaella Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
@@claircourtway She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
Love that connection Dave made to the John Wick movies. That's the first thing I thought of when Jade mentioned the company's name and started describing this financial scheme. These sound pretty much like title loans and payday loans, and just as bad.
Jade and Dave are hilarious 😂.
Please Lord, protect people from this company by giving them understanding of how bad this for them🙏
Imagine getting to the end of the race and losing 20% 😂😂😂
The 401k is good, because retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million. So it really does.
@Trevor Ogden I completely agree; I am 60 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
@@CynthiaByrd648 This is exactly how i wish to get my finances coordinated ahead or retirement. Can I get access to your advisor?
Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. "JILL MARIE CARROLL" is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
@@CynthiaByrd648 This is useful information; I copied her full name and pasted it into my browser; her website popped up immediately and her qualifications are excellent; thanks for sharing.
I'm trying to follow you here. Your mom more than doubled your dad's 401k wealth? I'd find it hard to believe that she didn't invest more then. All things equal, 401k should have minimal expenses, extra money from matching, and no capital gains tax. So your mom's wealth manager must have absolutely crushed the s and p 500 over a long term, which is very very rare.
Awesome chemistry between these two… She’s an great co-host.
How is this legal? Predatory lending?
That’s how are whole monetary system is, lend out money that didn’t exist and charge us interest on that make believe money while making us come up with 20% and also charge mortgage insurance just in case we can take said property that we take control of and we aren’t out anythjng.
Actually there are plenty of schemes like this out there in "lending-land." Read all your contracts before signing, and if you don't get answers to your question simply walk away.
It's call capitalism.
It's legal because they're not forcing you to do anything, you're doing it out of your dumb free will
Almost all lending is predatory.
I left college early and worked for the school. I was expecting my final check and I actually got a bill for all the taxes they waived as a student worker for the entire academic year. I was so mad haha it was like $450 but as a kid that's a lot
There is ALWAYS a catch! Anything that sounds too good to be true usually is!
Thanks!
There is upside for the buyer (100 percent return via the match, participating in the plan vs. not participating), but it's still not necessarily a good idea.
I was going to say this. People aren’t getting the match. Even worse if they are in the plan they take out a loan as soon as they see some money building up. Like claiming zero on your income taxes people think the money they get back as over payment is a gift.
Thinking of Dave watching John Wick just makes him more relatable and makes me happy.
🤣😂🤣
I absolutely Love Jade. She’s a great Addition to the show. Great Job on y’all to add her on
Her and Racheal are the only cohosts that match Dave's energy.
Never thought I'd see the day Dave Ramsey makes a John Wick reference
Jade: "Who stays at the same job their whole life"? I'm on course to doing that and a lot of people are. Been working for the same retailer for 29 years. They were my first job from my high school years, I still work there obviously doing something else in the company that pays a lot more. As long as my life doesn't drastically change and the company is still in business, I plan to take this job all the way to retirement.
I dont think its too normal anymore. But hey good to hear! Just dont take one of these loans out 😅
You're in an incredibly small minority.
I’ve been at my job for 20+ years but I’m not going to borrow money to fund my 401K.
Most younger ppl don’t stay at the same job….it’s rare.
The younger folks who have been in the work field for less than ten years definitely are not. 😅
Employers should not allow this. 401ks I have been in you funded them with a payroll deduction. Even if you got a loan it’s paid back with a payroll deduction. I thought the only way you can fund a 401k and get the employer’s match is by payroll deduction. Am I missing something?
They lend you the amount of money that you contributed through payroll. I had to check the website myself because this didn't make sense to me at first either.
I guess you can’t fix stupid. 😂
They really need to make these type of things illegal.
For real
No, people need to be smarter. Don't fall for stupid stuff!!
@@jimroscovius That'd be nice wouldn't it. Unfortunately in the real world, people who fall for stupid stuff have loved ones who don't fall for stupid stuff but get caught in the crossfire of their actions.
@@scarpfish
Yes.
@@jimroscovius
Yes, people should try to be smarter, but things like this should be illegal.
It takes advantage of people that may not be financially literate, or even people with mental illnesses, or people that maybe older, or any number of things.
I enjoyed hearing Jade and Dave laugh about this. I think Jade will be a Ramsey Personality for a while
401 k suck too, companies ways out of pensions and annuities
That's how a lot of these jobs get people with the tuition assistance program. They make you stay at your job for as certain amount of time after graduating or you owe them all that money back. I don't like the idea of promising to stay at a job because you never know what the future holds.
Use the money you pay them per month to put in the 401k
You can’t give money to your employer to contribute to your 401k. That’s not how it works. Contributions HAVE to come directly from your paycheck.
Jade and Dave are having too much fun! 😂
That is WAY too much risk and plays on the emotion of “I want it NOW!”
Did u comment on the wrong video? This was about a loan for a 401k match. Completely the opposite of "I want it now" money.
Love all of the Co hosts
You put in $6000 from the lender. The company matches with $6000. The lender takes 20%, plus monthly fees? My understanding is $12000 is put in. $6000+2400 = goes to the lender plus the monthly fees. The person nets $12000 - 8400 = $3600? Is this about right?
Exactly! I don't know why they are pretending the person doesn't make money, just because the lender is making money also.
I was thinking the same thing, still a win, but how to repay that $8400 if you don’t have it! 401k punishes 10% for pulling out early and adds to your income so the profit is less, but still more than $0, right?
Wow the middle one. Amazing sequence of words.
Correct me if I’m wrong, but if you leave your job and you use the 401(k) to pay off the loan, you owe IRS penalties and tax, right?
This should be called BendingTable, because this is bending you over the table.
I believe you can only take out a new 401k loan if you are still employed with them, and it's up to the employer whether you can continue making payments or if the loan is called upon leaving them. Once terminated then it would need to be a withdrawal with 10% penalty and applicable taxes.
Love this hosting duo! Dave wasn't quoting John Wick movies before Jade lol
Sounds great! I am broke and borrow more money seems logical.
Jade is awesome and quickly becoming a personal favorite of mine on this show
I HATE products like this too. Screwing people over to this level should be illegal in the US t
People shouldn't be stupid.
@@jimroscovius sadly many are
Oh my goodnesss, terrible idea! Terrible! Great job Ramsey show!
I just heard that this an "insurance" policy to pay your co pays and deductibles in a Medicare Advantage policy. You can even buy a Cancer Rider, which I thought was sold in the back of Parade magazine.
You can’t contribute out of pocket to your 401(k). It has to come out of your paycheck directly.
I know a guy that cashed out 200k of his 401k near the bottom in 2022. He said he was tired of his account losing money and wanted to get more into real estate for better returns.
This… will not end well.
401K is the best program ever. These are scams trying to mess with you. Do your 401K the regular way.
"20 percent Tango that's my profit if I give you that I got nothing, not even
Bumpy took 20%."
- Frank Lucas (Denzel Washington)
American Gangster
Spot on 😂😂😂
In the end it was asked who stays at their job for their whole life. I can think of a lot of people that have worked at our hospital system their entire career. I have been here over 25 years and plan on staying another 20 years. LOL
Things like this are the reason they should teach finance in k-12.
Any 401k contribution has to come from your employer out of your paycheck. Dont see how another party can get involved.
I don't know how this would work. My employer requires that the contributions come directly from my paycheck. I can't just write a check to add a contribution to my 401k. I think most companies work that way as well. Not that I would ever use this service.
They either lend you the money to contribute if it is post tax dollars, like to a ROTH 401K, or in your case they calculate how much you need to contribute to get your full employer match, and then they give you the money to replace your deducted monthly contributions so that your final paycheck amount isn't impacted by what you contributed. Of course, as Dave pointed out, then they getcha later by exorbitant fees and interest.
They lend you the amount of money that you contributed through payroll. I'm not sure why Dave is saying you aren't gaining profit from this. Despite the fees, if you do the math, you're still making money.
Lended is an incorrect conjugation of the verb lent
People blaming the crooks. Why not blame the parents that do NOT educate their kids.
Yeah thats crazy. But really people you will easily adjust to putting in 3%. Do at least that as early as possible
It’s called “the high table” Dave…no one is above the high table.
I wonder if this whole thing is illegal since it deals with securities and the IRS backed personal pension...
I don't see the problem with that offer. Even if you're on the hook for all they loaned you, you still have the match the company put in. You will still end up above water.
I would assume a good majority are basically forced to be economic "nomads." I wonder if someone has done a study on the amount of people staying at a job for 30+ years, 20+, 10+ etc. It has to be falling for sure in the 30+ years, probably 20+ is falling as well I would guess.
When it sounds too good to be true.🙅♀️
That business is so smart!!!!
I am a financial idiot and there is no way in hades I would do anything like this with my 401k.
This seems like it should be considered predatory lending but I’m sure it is legal. That is the problem with the “system”.
I don’t know the details but it sounds like these people would never have a 401k anyway because they don’t have the money to contribute. Company steps in with predatory loan to give to person. Said person then gets matched 50 percent to 100 percent on the deposits in the 401k that they normally would be punting to the company they work for. Even when they leave the company and pay off the lender they still will have more money in their pocket for doing this program? What am I missing here? Seems like the only one truly losing out is the employer who is having to match on someone that they normally would not have been matching on.
Your right. Doing this is better than doing nothing.
But it's not better than finding a way to save the match yourself, and Dave always assumes you can find a way on your own if you just try. Which is a mostly fair assumption, but he's not being very clear in this instance.
100% it was only a matter of time this got picked up by the Ramsey team. This is the worst thing - most predatory loan ever. It’s basically an unlimited interest rate. The fee is 20% of profits on your 401k. That could be $20k if you have a $200k balance and it grows by 10%
Please go back to middle school and learn to do math. 10% profit on 200k is 20k. Twenty percent of 20k is 4k.
20% on loan fee on top 20% tax plus a 10% fee when you have to withdraw since you aren’t going to stay with your company until you retire. Sure you can rollover but they take 20% when you move to a new account I bet
Okay so even with all these numbers added, u still end up with more than 30% more than you would have originally
How is this legal???
This is another loan. You have to pay it back plus interest. Too many ways it can go sideways.
I can kind of understand people clicking phishing attempts on websites. But this one I don’t understand how can anyone fall for it. “Oh yes! Free money for me because they like me”
This is disgusting and predatory. How is this type of thing not regulated???
You give up a finger, but at the end they take your ✋️ 😂
Sounds like one of the things my ex mother in law would say is a great idea just like a reverse mortgage as she doesn't know anyone that's ever retired with more than $100k in a 401k. Ironically I don't know anyone that's ever retired with $100k in a 401k but for completely different reasons!
My dad has like 700k he had 1.2 before pandemic i don’t think people invest in it like they should
Either you don't know many people...or you don't know many who religiously contribute to their 401K. I did so every paycheck from age 35 on, never took any withdrawals, and ended up with over $400K. I converted $350K of it into an Annuity in 2011. With inevitable market ups & downs, it provides ~$2,000/month for the entire life of my spouse & I. It's a nice financial add-on to our other nest egg finances as well as our combined SS checks.
I didn’t see that comment about the middle finger comment coming Jade lol 😂😂
Hey guys their is people that does stay at the same job my husband has been with his company for 47 years in June. Maybe not the smartest thing to do. And my son has been with the same company for 28 years.
Most 401ks just make 10-15% but they want to charge 20% plus a fee so how are you making anything on this
That sounds like quite a frustrating experience with these guys! Have you come across any other alternative savings strategies or platforms that seem more promising and reliable? I'm curious to hear your thoughts and any recommendations you might have for fellow viewers who are seeking safer ways to save and invest.
Jade: "if you leave your job..."
Dave correction: "When you leave your job..."
Lol good segment
How can people sleep at night knowing they are screwing over people
This is insane! Buy less stuff! Sell stuff. Put money in the 401k.
I didn't know this was even a thing. Folks would be better off NOT saving rather than dealing with Lendtable. I googled them while listening.
Hold on. This company is saying they will provide you funds to invest into your 401k. When you leave your job, they require the premium back plus 20% of the PROFITS, not the premium itself.
So for the sake of argument, if you took the money and used it to find your 401k, and use the money that you would have otherwise been putting in the 401k and instead put it in an index fund or some other type of investment, haven't you come out ahead? Sure you have the pay the premium back and 20% of the profits, but that's extra money you didn't originally have. So you get to keep 80% profit on money that was invested on your behalf that you didn't originally have access to.
Am I missing something? Could this not be used to your benefit if executed correctly?
Minus ten percent early withdrawal, but yea I agree. This sounds like a good deal to make money, just not if you plan to retire on the 401k funds. The lender even comes out and says to use your strategy on their sales marketing.
@@MrEscape314 Well you don't have to take early withdrawal if you have the cash to pay them back, or just cash out some index funds.
@@samuraikatana1 You're right. I just assumed someone who'd take this strategy did not have the funds available. Either way it seems like free money.
A version of PAYDAY loans? 💰
Jade is a keeper!
How do I invest in this company???
Very clever really. They know many people leave money on the table and this is how to get it.
To be clear it’s all silly and nobody should use it but I can see why some would.
Is it a good idea or a stupid idea to pull out your 401 and roll it into an IRA
Good idea cause IRA will have more selective options and you can find lower fees for ETFs and mutual funds
I have to be honest on this though if you don’t put any money in the 401k AND don’t use this service you then have no fund at all. If you have better than $0 with this plan then it’s mathematically better no? I assume if you contribute on top of this money they can’t touch that, otherwise yes I agree thjs has zero upside
What happened to Kristina Ellis? Is she out?
Can we all agree that Jade is the best cohost since Dave did the show solo?
When dave is not there, I am like, ok just let Jade do it solo. Or at min tell delany, Ken or George to be a quiet sidekick to her.
I dont apologize that she is just fun and great to listen to
The idea itself is a HUGE red flag. Without hearing any details of how they make money off you, it sounds predatory, simply because it sounds too good to be true.
Hard to believe anyone would sign up for this, would make more sense to invest in the lender itself.
Products that depend on people's bondage? Aka house, car, etc. lol.
Basically it's just a loan.
With a high interest rate.
I tired going to their website and its down. Scammers lol.
I thought Jade at first said "lint table".
This does not make sense. 401K contributions come from your paycheck. You cannot just give money to your employer to invest in your 401K.
I’m speechless!
I don’t even understand what the benefit of this would be.
Is there a way to invest in this company? This sounds like a great investment opportunity!
I've been at my job for 37 years. Got five more.
Yall hiring?
@@tjls123 Yes, in five years.
@@randymillhouse791 🤣👍 for sure
THATS HIGHWAY ROBBERY !!