The Rich Somers Report What Rich People Know About 401k’s That You Don’t | Kassidy Warren Saturday Edition E389
Aug 23, 2025
Cassidy Warren, a savvy real estate investor, dives deep into the flaws of the traditional 401(k) system that often benefits Wall Street more than regular folks. He shares compelling arguments against conventional retirement paths, illustrating how leveraging 401(k)s for real estate can yield greater returns. The conversation encourages listeners to rethink financial strategies and highlights the advantages of real estate investing. Cassidy's personal experiences reveal how taking control of investments can accelerate wealth-building and reshape the American dream.
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401(k) Often Fails To Build Real Wealth
- The 401(k) system was created for institutional benefit and doesn't reliably build wealth for most people.
- Median balances show most retirees will not have enough saved to live comfortably from 401(k) assets.
Median Balances Reveal Retirement Shortfall
- Median 401(k) balances by age are shockingly low, peaking near $88k for 65+.
- That level can't sustain typical retirement spending using the 4% rule.
4% Rule Loses Power With Taxes And Inflation
- The 4% withdrawal rule produces taxable income that shrinks with inflation and may be insufficient.
- A $1M 401(k) yields about $30k post-tax and loses purchasing power over decades.