Sunday, April 10, 2011

Robert Kiyosaki : why I dont have a 401k

Rich Dad Robert Kiyosaki explains the difference between an earned income and a passive income and why you should not own a 401K , Robert Kiyosaki : “When you put your money in a 401k, it’s earned income when you pull it back out. It goes in as portfolio, but comes out as earned; so it’s the most highly taxed income there is. That’s why I don’t have a 401k, I want as little earned income as possible, but I want as much passive as possible because it pays less tax. I can pay zero tax on passive; fifteen percent on portfolio and earned income I would be in the fifty percent tax bracket. The harder you work for money, the more you are taxed, the harder your money works, the less it is taxed; which is why the 401k is so deceptive.” in a recent interview with the Philippe Matthews Show

1 comment:

  1. Frankly, if the employer is giving you a match, I would never miss that chance. Some employers I speak to are matching up to 7% in this economy. That's a 7% bonus; I wouldn't walk away from free money!

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