11/23/2024
I recently spoke with over 100 administrative and clinical healthcare professionals, and even the most educated high-income earners were are not prepared to escape the matrix of financial servitude. The current financial system is not meant to help you become financially free. It's meant to drain as much debt from you as possible, distract you, and keep you working and feeding the system for as long as possible.
For decades, we've been taught a money paradigm that no longer works. The advice? Save as much as you can in savings accounts or 401(k)s. But here's the hard truth: these systems benefit the institutions more than they benefit YOU.
Consider This:
When you save money in a bank account, you're earning a meager 1-2% interest, while that same bank lends your money at 10-30% interest, making them exponentially richer off your hard-earned cash. I'll say it again, the same bank that is "paying" you 1-2% interest on the money you save with them is also CHARGING YOU 10-30% interest for your credit card, car loan, mortgage, student loan, and/or personal loan. They're charging you to borrow your own money!!!
Not only that, but Inflation and taxes quietly erode the value of your savings, leaving you with less purchasing power than you think. So, if you value retirement and actually saving money, then this strategy doesn't align with those values.
How about your 401(k)?
First, the money in your 401(k) is locked in until your 59 years old. So, if you want to use the money to buy a car or a house, start a business, or invest in real estate, you're going to have to borrow money from the banks, and pay interest. You're also delaying your tax-burden to a future date when taxes may be higher; and you'll have less tax deductions which may put you in higher tax-bracket anyway.
What happens if you don't need to use your 401(k) money because your kids are taking care of you, so you rather just save it and give it to them or your grandkids. You can't. You're required to start distributing your money at 72 1/2 years old. So the tax man is coming, whether you like it or not.
Also, when you put your money into a 401(k) you're taking on all of the market risk. Yes, if there is market gain, you gain, but if there is market loss, then you lose too. You're also paying administrative and management fees among others for the total amount under management; and, if your employer matches your contribution, while your employer gets a tax write-off, you're paying fees on their portion as well.
This strategy doesn't work for those whose values are retiring and becoming financially free.
Letting your money sit and wait in a low-interest bearing account while you're paying high-interest debt is not going to make you financially free. Giving up control of your money in a 401(k) while you take risks, pay fees, and wait to be taxed during your retirement is not going to make you financially free.
So, what’s the alternative?
You have to re-educate yourself and change your money paradigm. The old way of doing things is dead. You have to take control of your own finances and give life to your future. You have to become the master of your money and put it to work according to your values and principles.
It's time to break free from a broken system and start building financial independence on your terms. Start today by scheduling a free clarity call so I can show you how to take back control of your finances.
https://calendly.com/ernestmoneyservant-claritycall
