4:01 K. Everyone’s told that’s your retirement, right?
They just completed in 2024,
a study on the last 20 years.
For the average 4:01 K, it’s producing 4.2%.
Inflation is sitting at 4.1.
Which basically means if your money is in a 4:01 K,
it’s breaking even. And here’s the bigger problem.
Combine your 4:01 K with maybe a more lucrative,
you know, IRA at earning at 6%.
Let’s just say your money is earning 6%.
To put in perspective, the difference between 60% and 6%.
60% is not 10 times more with compound interest,
it’s literally 100 times more plus.
So a lot of people don’t understand that.
So you, you got some money you save in a 4 1 K or IRA for someday,
it’s earning these single digits.
And at 6%, 20 years,
all it’s done is triple. So it’s like, cool,
my 50 grand turned into 150 grand in real estate.
If all you were turning was it was earning 25%,
which is four times the ROI,
it makes 27 times more money.
It makes $4.3 million in that same span of time.
Understanding ROI is actually a really big part of the game.