https://www.youtube.com/watch?v=FzIkG9x3u1g

If you listen to the “financial experts” on tv or the radio, you will hear the typical blanket advice that you should put money into a 401(k).  But the question is, does that advice apply to everybody?  To get as much of an insider’s perspective as we could find, we interviewed Ted Benna, "inventor" of the 401(k). During this insightful conversation, we discussed the purpose of the 401(k), its history, shortcomings, and the need for reform.  This interview was forthright about why there’s a coming retirement crisis and what you can do about it if you want to take control of your financial destiny.

In this episode, we’ll help you answer:

What does the 401(k) help me accomplish?

Is the 401(k) right for me?

If you remember in How to Find Your Best Investments, we discussed that your investing strategy will be unique to you.  You maximize your gains when you take an active role in investing in what you know and control.

So, where does the 401(k) fit for you?

Table of contentsIndividual Goals Create Individual StrategiesDifferent PerspectivesWhere Does the 401(k) Retirement Plan Fit in the Cash Flow System?Meet Ted Benna, the Father of the 401(k)How Ted Benna and the 401(k) Savings Plan Made HistoryIncreasing Retirement Security for the Middle ClassThe Responsibility for Your Financial Future Is YoursWhat Ted Benna Wants to ChangeWhat Ted Benna Is Doing About 401(k) ReformTed Benna’s PerspectiveAverage Rates of ReturnTypical Advice and Taking RiskDoes a 401(k) Make Sense for Entrepreneurs?Thoughts on ProtectionGiving BackAdditional Topics DiscussedAnother PurposeConnect with Ted BennaIncrease Your Cash Flow, Liquidity and Control Today

Individual Goals Create Individual Strategies

Here at The Money Advantage, our objectives are to help you keep and control more of your money.  As an entrepreneur, you want control, access to your money, liquidity, cash flow, and tax advantages as possible.  A 401(k) doesn’t support those goals.

However, to promote your education, it’s valuable to round out your perspective by considering the full discussion.  When you increase your knowledge, you gain the ability to make decisions and build confidence that you’re doing what’s best.

Whether or not a 401(k) is a fit for you, it’s in your best interest to understand them.  401(k)s may be a part of providing solutions.

The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function. – F. Scott Fitzgerald

In this previous conversation about abundance, we discussed why being open-minded and considering contrasting information is critical to learning:

Unless you’re willing to expand your map, nothing new exists for you.  When we come into a conversation with people who see differently, it’s important to recognize that if we both had the same map, we’d think the same way. When we each defend our own interpretation of the facts, it leads to conflict.  The only way you can learn something new is to be willing to step off of your map and onto someone else’s.  It’s not about who’s right, but about learning what else is possible.

Today, we’re jumping onto the map of someone with a different perspective so that we can expand our own map.  We invite you to do the same.

Different Perspectives

While you’ll notice a great deal of common ground in our philosophy and perspective, we don’t agree on everything.  We do agree that there are problems, but we do not completely agree about how to solve them.

One specific distinction is that we do not view putting money in a 401(k) to be savings.

We agree that it’s crucial to have a systematic way of setting money aside for the future before spending.  The 401(k) has provided a method for hundreds of thousands of people to invest over $10 Trillion.

However, a 401(k) fails to meet the criteria of being a retirement savings tool.