Wealth, Freedom & Options With Joshua Belanger

It fails many Americans! So says the father of the modern day 401(k). Do you mind if I share some of my insider viewpoints why this is? Great! The 401(k) passed into law under the Revenue Act of 1978. The... Revenue Act? Hmm... What's more unusual is that IRS was in charge of the 401(k), which is the same government body in charge of getting as much money from you. That's a little conflicting, right? Before the 401(k), companies offered pension plans to employees. Companies started to realize the amount of risk that these pensions had put on the company. The way the could transfer the risk and responsibility from company to employee was through a 401(k). One of the common rebuttals is that it's tax-deferred. True... But here's the fine print. Federal Income Tax is deferred, but Social Security and Medicare are taxed 7.6% a year. The 401(k) tax benefit was to help executives on their yearly bonuses, not the middle-class worker. That is why I make the case that most people are not in a position t