You’re wasting your money by investing in a 401k.
This retirement trick pays you $3,173 a month for the rest of your life, and you don’t have to wait until you’re 65 to claim any of it.
All your life society has coerced you into paying some retirement fund manager to look after your hard-earned cash, all while this retirement strategy has been available to you the whole time.
I’ll break it down for you…
Shoveling money into a 401k is great, if you have no other options. And most people don’t, but that’s because they simply don’t look for other options.
It happens to all of us: we grow up being told that we need to put 5-10% of our paycheck in a 401k account. What we don’t know at first is that there’s some greedy manager making a fortune off our hard-earned cash.
That fund manager takes a big portion of your gains and makes out like he’s doing you a favor by returning less than 5% per year.
In my strategy, you’ll be your own fund manager, but it’s not as complex as it sounds.
You’ll only have yourself to worry about, and you’ll be investing in ready-made funds that are inherently diverse and have long-term growth—a “$3,173 a month for the rest of your life” type of growth.
Before I explain where your money will be going—and coming from—I need to get one thing straight: those of you who are investing in a retirement account, but say you hate the stock market, should realize that retirement accounts are a part of the stock market.
Your fund manager takes your money, turns to the stock market, and sugar coats it as a retirement account with high tax penalties if you withdraw too early.
My $3,173 return a month method simply cuts out the middle man and makes your cash available to you whenever you need it—with no tax penalties.
Fund managers don’t want you to learn about how easy it is to invest on your own, because then they’d be out of a job.
But I’m here to expose them for the frauds they are.
Anybody who has a bank account is eligible to invest in Exchange Traded Funds (ETF).
ETFs are traded like stocks, but comprise of multiple stocks. You get ETFs that cover energy, finance, retail, and more.
The type of ETF I’d like to introduce you to has a strong pattern of growth AND has a high dividend rate.
There are many ETFs out there that have these qualities, but one of my favorites is Vanguard High-Dividend Yield ETF (VYM), which tracks the FTSE High-Dividend Yield Index.
VYM contains more than 400 stocks, including Visa (V), Johnson & Johnson (JNJ), and Wells Fargo (WFC), which have consistently been strong individual stocks.
The reason I’m such a big fan of VYM is because of its sustainable progress, and its high dividend rate.
It pays around 3.1% in dividends per year alone. When you add that to the gains of its stock price you’re able to lock in a $3,173 a month for the rest of your life.
For example, if you had a retirement account that consisted of $60,000, and you shifted your money into VYM in 2009, your total return so far would be $304,649. That’s a 407% increase in just 8 years.
Experts claim that you should be seeing a 5% return per year from your 401k. Even if that’s realistic, you’d be looking at a measly 40% return after 8 years. I’d prefer the 407% any day.
Again, your ETF investment is within your reach whenever you need it. A 401k penalizes you for any withdrawals before 65.
I’m sure you see which of the two is more beneficial to your wealth. $3,173 a month will get you through retirement, but with a bigger investment, the returns are heavily magnified.
You could be retiring in luxury in no time.