People Are DRAINING Their Savings EVERYWHERE — Here’s Why

[00:00:00]I am absolutely buzzing because I just deposited my 401k.

[00:00:05]Yeah, yeah, yeah. I deposited my 401k cuz I took it all out so that I could pay off my credit cards because your girl was drowning.

[00:00:14]I was drowning in credit card debt because I had lost my job when I was traveling Europe. So, I had to put everything on my credit cards and I just like couldn't do it anymore. Literally crying to my friend. I was like, "What do I do? Like do I like file bankruptcy?

[00:00:28]Like do I take out like a personal loan?

[00:00:30]I just like don't want to pay anybody back. Like I just That was like the whole goal is to just like be done with this. Like I just don't know what to do." She's like, "Wait, you still have a 401k from Warner when we worked there."

[00:00:39]Cuz we worked at Warner together. And I was like, "Yeah, why?" And she's like, "Pull it out." She's like, "Take that [ __ ] out and pay it." She's like, "You know that you're going to get a job soon again and like you're just just aggressively put into your 401k then."

[00:00:51]And I was like, "You're brilliant." Cuz I'm like, "When I pay my credit cards off, I can just put it back into a 401k." Cuz I was paying like $1,300 a month in credit card debt.

[00:01:01]That's a minimum, mind you. So, I literally was not even making a god damn dent with the 1,300. I was like, "I can't do this anymore. Like literally can't do it. It's not worth it." Pulled out my 401k and I just deposited the check and I am I like literally feel like I can breathe. I just feel so happy because now I feel like I can like live my life and really not make money just to pay off debt that isn't even getting paid off because of the [ __ ] interest rate. This is just what I've done that feels good to me was to take out my 401k. It's an option. I feel like rich people do this all the time. So, like why are we not talking about it more? And I hate that people don't talk about debt enough. Um because everyone has it nowadays. Everyone.

[00:01:46]I just feel so excited.

[00:01:50]Shout out to my friend who like told me about this because I didn't even think about it. Didn't even think about it.

[00:01:54]So, yeah.

[00:01:57]>> Listen, I I can see of the comments of people saying that this was a bad idea, that this shouldn't have been done, that, you know, other things could have been done. Well, listen, at the end of the day, it's tough right now. It's tough out there. People are trying their best to make gains meet.

[00:02:11]And then some people are saying, "Well, you shouldn't have took the trip."

[00:02:13]Sometimes people got to take business trips. There are certain things that need to be done. And I know they're going to say, "Well, the business should have paid for it." But there are sometimes where you just want to live your life. Like you only get one life.

[00:02:23]Live it.

[00:02:25]You know, like What What amazes me is, you know, how some individuals are quick to judge when, you know, right now times are tough, no matter where you look at it.

[00:02:36]You go put fuel in your vehicles, it's expensive. You know, you got to pay your mortgage, your rent, it's expensive. You got to groceries, it's expensive. You got to have clothes and, you know, things on your back, it's expensive. And I know that some are going to say, "Well, you can do this, you can do that." Live your life. That's what I'm going to say. Live your life.

[00:02:55]At the end of the day, you don't want to be strapped down to something like that. What? Let's live live my life every day upset? No. You're going to go out there and live your life.

[00:03:07]Like this is what people are dealing with nowadays. But I have another clip for you guys. Take a listen to this.

[00:03:13]>> Babe, why don't you cash out your 401k?

[00:03:15]>> So, in 2019, I cashed out over $100,000 out of my 401k to invest in real estate.

[00:03:22]And that's because 401ks are the single greatest scam that anybody can invest in. Now, for 99% of people, if you have no discipline financially and you don't want to invest your own money, for sure, get your employer match, that's fine.

[00:03:37]But what 401ks were designed for is the US government literally said, "Most people don't have enough discipline to actively invest money on their own, so we're going to create a program that forces people to get into equities, aka the stock market." And so the 401k is designed for you to not pay tax right now and then draw on it later at 65, where you're supposed to be paying less tax. But, the issue is I'm going to be really, really rich at 65 years old and I'm going to be in a higher tax bracket.

[00:04:05]So, you are literally having no benefit to having a 401k because you have zero control with that capital that's inside the vehicle of the 401k. So, look, I'm not your financial advisor. I'm not giving financial advice. If you want to ride that 401k, do it. I'm just saying that if you want to understand how to actively invest your money in real estate, in businesses, and stuff like that, it's much better to pay the 10% pre-penalty to go ahead and get that money out of the 401k to where you can control it and actually grow it and do something with it. Most people are just sitting like you're wasting money in a 401k.

[00:04:40]>> Babe, why did you cash out?

[00:04:44]>> All righty, I just want to say that this is no financial advice. This is his opinion and this is my opinion on this as well. You can do whatever you want to do. Every situation is going to be different. Everybody lives their life differently. Everybody thinks differently. But, there are some that think about something, then all of a sudden things change for them. You can do whatever you want to do. But, this is happening. People are pulling out.

[00:05:10]They're making investments. They're putting money their money in different places to generate more revenue for themselves. They're investing in themselves and I can completely understand where they are coming from.

[00:05:20]Because right now, times are tough. It's hard to make ends meet. There are things that pop up and sometimes you just need that extra amount of money to get things done. See exactly where they're coming from. I get it. But, I also have another clip for you guys. Take a listen to this.

[00:05:33]>> So, [clears throat] I am um at one of my old jobs, I have a 401k and they're about to um They're about to start messing with y'all retirement.

[00:05:45]So, talk to your accountant or whatever the case to figure out how to get your money pulled out, right? Of these 401ks and all that kind of stuff.

[00:05:53]So, I contact folks. Let me go ahead and pull this out.

[00:05:58]Do you know just on the withdrawal I lost $5,000?

[00:06:05]I lost $5,000.

[00:06:11]>> Just saying $5,000 is not a lot of about how much time and how much work was put in just to get that $5,000 in there. And just imagine how quick it's gone just like that.

[00:06:26]This is why I tell you guys you're entitled to make your own opinion.

[00:06:30]You're entitled to make your own decisions. But again, just be smart about the decisions that are made.

[00:06:44]>> They sent me this notice. Been sending me this notice.

[00:06:47]Big bold print. This is my amount. Cool, cool, cool. So, time for me to go ahead and withdraw. Oh, no, no, no. Look at the small print.

[00:06:56]Because you didn't vet it.

[00:06:58]That's not your true amount. We're going to knock off several thousand off the top.

[00:07:09]And then on the transfer they take a percent.

[00:07:15]And then the California takes a percent.

[00:07:18]And then to top it all off these jokers sent me a tax notice.

[00:07:25]So, then I'm going to have to pay taxes on America's really not a fair place.

[00:07:40]It's really really hard to to do things right here.

[00:07:46]That's my money.

[00:07:52]You gave me a whole booklet.

[00:07:56]And and explain to me if I sign up for this, I get X amount of this and then you send me the notice I get this and then you're like, "No, got you."

[00:08:08]You conned me out of my money.

[00:08:12]And then you use all these big words and these big jargon and all of these things to make it sound like it's just normal.

[00:08:20]It's not normal for you to take money from me that I worked for.

[00:08:28]>> So, I don't want to make this video too long, but I can see exactly where she's coming from because it's just like think about how much time, effort, sweat, you know, sometimes missing out on very important things in life just to work, just to make ends meet, just for money to go on your 401k and then something's be snatched away from you just like that.

[00:08:51]You know, I look at things totally different um because it it's insane what's happening around us. It's insane what is going on. It's insane how expensive things are and you think you can think that you're doing something the most most perfect way, that you know, everything's going to be, you know, just straight forward and then all of a sudden that straight path that you're we're going on there's big curves, there's big curves, there's this big hurdle and it's just like, why? Like if you could have seen in time, you probably would have made a different decision and I know a lot of people feel the same way because right now the way that things are done, the way that things are situated, you know, the outcome of certain things it's just not fair to a lot of people. It is not. But what are we to do about it?

[00:09:37]What are we going to do about it? Make different decisions and just when you hear certain things and see certain things, just take that into perspective. Just like take it into perspective for once because I don't want certain things to happen to certain individuals so as well. Again, everything is all allegedly. Let me know what you guys think about today's video in the comment section and original links for these videos will be in my description box in case you guys want to go watch them yourself and I'll see you guys on our next one. Take care.