EP60 – Major changes coming to your 401K and it’s not good; Listener says Baby Steps are not realistic

Play episode

Before we get into the social media questions I wanted to talk to our Rock Stars briefly about some big changes coming to your workplace retirement plans if you’re fortunate enough to have a 401K. 

Many hard-working American’s are already confused by their 401Ks. They are automatically placed into Target Date Funds when they are hired (which really isn’t that terribly bad – we just coach they can earn consistently up to twice as much with our recommendations). Furthermore, we have sales wolves aka financial advisors who place these same hard-working Americans into 8, 10 or as high as 17 funds within their 401K. 

And just when you think things could not get worse – along comes the lobbyists from the financial industry to the U.S. Department of Labor who were able to finagle the government to allow new investment choices into the 401K plans.

The new choices are private equity firms and hedge funds. These are horrible, absolutely horrific investments for our listeners. These are also known as dark investments meaning that after you contribute to this investment choice you will have no idea what they are doing with the money. Hedge funds have been shutting down at a high rate because they cannot beat the market or a simple index, the wealthy are not investing in these vehicles as they did in the past. Now, they want the average Americans money. 

Because of the low cost providers of Vanguard, Schwab and Fidelity offering super low fee and commission investments many of these private equity firms need to find other ways lure investors. By getting the U.S. Department of Labor to approve this option in 401Ks they can now obtain large amounts of funds to invest. 

Later this year near open enrollment season you will begin to see commercials on TV, junk mail, emails, and web ads touting how great these options are for you. 


We coach you select the S&P 500 index fund in your 401K as the core along with 1 or 2 other funds in the growth stock / large cap section of your 401K that consistently outperforms the simple S&P 500 index.

We will continually educate as we get closer to open enrollment to protect you, our listeners, from these wolves who want your hard-earned monies.

Also on the podcast we get into your questions including:

  • Listener feels the Baby Steps are just no realistic and wants to know how this works?
  • Teenager wants to start a petting sitting side gig in order to raise money for her first car. Wants to know how to set her pricing.
  • What are some alternatives to YouTube TV after they announced a price increase beginning August 2020.
  • Is becoming a notary a great side gig? What does it take to become a notary?
  • “My car loan is about 11,900 and my student loans 82,688 are my last ginormous hurdle before being debt free. How do I stay motivated?”
  • “How do you guys avoid maintenance fees at the bank? I’ve already been charged $45 this year.”

**This post contains affiliate links, and we may be compensated if you make a purchase after clicking on the affiliate and/or partner links.

Subscribe to the podcast – all links located here:
Call us with your questions : 989-888-ROCK (7625)Facebook Group:

FREE STOCKS – Get 2 FREE stocks valued up to $1,000 here

Join the discussion

More from this show