Epic Real Estate Investing - 401k RETIREMENT COLLAPSE: 51% See It Coming, 49% Will Be Shocked When It Hits | 1443

Episode Date: March 14, 2025

This episode highlights the severe retirement crisis in America where 51% foresee problems while 49% are unaware of the impending issues. CEOs from JPMorgan and BlackRock are meeting with lawmakers to discuss the urgency of prioritizing retirement policy changes. Shocking statistics reveal many Americans have insufficient savings and are unprepared for retirement. The script emphasizes the shortcomings of traditional 401ks affected by inflation and taxes. It suggests alternate strategies like creating multiple income streams and adopting tax-advantaged investments to secure financial freedom, illustrated by real-life success stories. The episode concludes with a call to action, urging viewers to rethink retirement planning and offering a downloadable document detailing protection strategies. Brian's retirement playbook: https://drive.google.com/file/d/1Ikc3CX_3tcHBwV0QiBaFMbgW-TPlbrHF/view?usp=drive_link Learn more about your ad choices. Visit megaphone.fm/adchoices

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Let's go. Right now, there is a dangerous split in America. 51% of people see a retirement crisis coming, while 49% have no ideas that they're about to be blindsided. Today, in Washington, the CEOs of J.P. Morgan and BlackRock are meeting with lawmakers about this exact problem. Even President Trump has expressed shock at what they've discovered about the state of retirement in America. This invitation-only event will bring 250 industry leaders, policymakers, and execs together in D.C. to prioritize policy supporting personal savings. And here's why, even most of the people who see the retirement crisis coming still don't know how to protect themselves.

BlackRock, managing $11.6 trillion in assets, has released a fresh survey that reveals 33% of Americans have zero retirement savings. 43% of current retirees say they don't have enough for a comfortable retirement. 35% of Americans aged, 35 to 44, have nothing saved for retirement. Over half of Americans fear running out of money more than death itself. 80% believe Congress needs to prioritize retirement legislation immediately. 401k purchasing power has declined 21% since 2020 due to inflation alone. The average 401k will lose 38% of its value to taxes upon withdrawal.

A 401k that seems to have $500,000 today will only provide about $19,000 of annual income after inflation and taxes are calculated. If inflation continues at even 4%, your retirement savings will lose half of its purchase power in just 18 years. So here's the deal. While BlackRock and financial giants manage trillions in retirement accounts, they're now admitting what many have suspected, traditional 401ks are becoming worthless due to inflation and taxes. What worked for previous generations is failing today's retirees. And this raises a question almost nobody is asking. What if the 401k system was never actually designed to provide retirement security for

average Americans in the first place? Because it wasn't. Believe that or not, here's what's terrifying. the people who think they're protected probably aren't. Only 28% of Americans believe they have the tools they need to secure a stable retirement. Think about that. In the wealthiest country in the world, 72% of people don't trust the system they're supposed to rely on. Without action, Social Security faces 21% cuts by 2003. A typical dual-income couple would lose $16,500 in benefits annually. Over half of Americans, 65 and over, live on less than $30,000 a year. Nearly 23% percent, of seniors survive on just $10,000 to $20,000 per year. Now, get this, 12,000 Americans are turning 65 every single day. That's a lot of birthdays. But here's something you won't hear anywhere else today.

What financial institutions aren't telling most Americans is that the traditional 401K has become a trap. Here's why. First, inflation is destroying purchasing power faster than most 401ks can grow. While your statement might show growth, your actual buying power is shrinking every single year. Second, the tax trap. Most people don't realize that their 401ks will be taxed as ordinary income, potentially pushing them into higher tax brackets exactly when they need the money most. Third, the control illusion. Your 401k provider has far more control over your money than you do, with limited investment options and penalties for accessing your own funds. This is the blind spot that 49% of Americans don't see coming.

They're diligently contributing to accounts that will be worth a fraction of what they're expecting when retirement actually arrives. And here's where most financial advisors would tell you to just save more money. But that's exactly why so many people are heading for disaster. Take Brian, for example. He's a 45-year-old engineer who did everything right, according to conventional wisdom. Diligent 401k savings, diversified portfolio followed every piece of traditional advice. Then, a political crisis triggered massive government deficits. Inflation soared.

Brian watched $200,000 of his retirement savings evaporate seemingly overnight. Brian told me he couldn't see. leak for weeks, constantly checking his accounts, hoping for a rebound that never came. Now, instead of retiring at 65, he's facing working well into his 70s. When Brian checked his 401k statement today, it showed $645,000, seemingly on track for retirement. But when he calculated the true value after inflation and taxes, he realized the devastating truth. His purchasing power in retirement would barely exceed $26,000 per year, nowhere near enough for the lifestyle he had planned. His 401k looked good on paper but was essentially trash in terms of providing actual retirement security.

Think about this for a second. After 25 years of diligent saving and doing everything right, Brian discovered he'd have less monthly income than if he had just worked a minimum wage job. Is that really what retirement in America has become? 95% of Americans fail to achieve financial freedom in 40 years. Millennials have half the net wealth boomers had at the same age. Young workers' wages have declined 20% compared to previous generation. 56% worry about their financial situation daily. I know exactly how Brian feels. In 2001, I lost everything to bankruptcy when the digital download destroyed the music store.

I was in the music industry, and Napster had just turned everything upside down. And at the age of 34, I had to start life over completely. But that crisis taught me something crucial that changed everything. Focus on creating streams of income, not building a mountain of savings, establish, protected, guaranteed lifetime income solutions, maintain tax-advantaged investment strategies while expanding access and create multiple streams of passive income to exceed monthly expenses, and then build wealth through recession-resistant real estate investments. Instead of just building a mountain of tax-deferred 401k savings that will be ravaged

by inflation and taxes, forward-thinking investors are creating tax-advantaged income streams that grow with inflation rather than being destroyed by it. These approaches provide actual spendable income that maintains purchasing power regardless of what happens to the dollar or taxes. In just four years, I went from bankruptcy to generating $7,000 in monthly passive income, enough to cover all my expenses and then some, not by getting rich quick, but by getting rich smarter and quicker. Now, I was hardly rich, but I was free. And while of 95% of Americans are failing to achieve financial freedom in 40 years, I had managed to do it in just four. And I'm not the only one. Take Tony, a former banker, private client of mine, who,

followed this exact framework. Within eight months, he built enough passive income to replace his salary, quit his job, and surpassed the pension that he had earned. Or Mia, who started with just $85,000 from her old 401k and turned it into three income-producing properties generating $3,200 per month. And these aren't outliers. They're just people who simply refused to accept the 401k trap. Regardless of what comes out of today's meeting between BlackRock, J.P. Morgan and lawmakers, here's what you need to know. And remember, traditional retirement planning is leaving most Americans vulnerable. Major financial institutions are warning about what's coming in 2025. Social Security faces 21% cuts by 2003. The retirement crisis is accelerating with 12,000 people turning 65 every single

day. The time to act is before these changes take effect. And you know, I put together a document recently that breaks down these protection strategies in more detail, including that assessment tool that I used with Brian to identify the hidden risks in his retirement plan. I wasn't planning on sharing it publicly, but given what's happening in Washington today, I've linked it for you just below. No email required, just a straight download. Either way, let me know in the comments. Do you think the 401k system was intentionally designed to benefit Wall Street more or Main Street more?

I'm genuinely curious about your perspective on this. So stay tuned. After today's summit, BlackRock and the Bipartisan Policy Center plan to release a report summarizing key themes and proposals. If there's something worthy in there, I'll be. sure to do a follow-up because we'll all have to deal with this at some point. Burying your head in the sand is not a good investment strategy when it comes to this subject. You don't want to be among the 49% that are certain to be blindsided. I'll see you next time. Take care. And that wraps up the epic show.

If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow.

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