There are many pervasive myths and misconceptions about what it takes to build wealth. If you’ve ever been taught about the benefits of the 401k plan or the power of tax deferral in your retirement plan, it’s probably time to widen your financial perspective. Today’s guest, Garrett Gunderson, has devoted his career to debunking myths about wealth building and financial efficacy.
Garrett is a New York Times best-selling author, and the CEO of Wealth Factory, a company dedicated to helping entrepreneurs understand and develop economic independence. On this episode of Investing in Real Estate, Garrett is sharing game-changing tips on how you can become financially independent in this economy, and build lasting wealth for generations to come.
On this episode you’ll learn:
- The glaring issues with the 401k plan.
- How to lay the foundation for building legacy wealth for your family.
- What the Rockefellers did differently than other wealthy families.
- How to build a healthy relationship with money.
- And much more!
The Glaring Issues with the 401k Plan
When you sign up for a 401k with your employer, it’s important that you understand that the custodian of that plan is making money. With a 401k, your money is being invested into the stock market with a risk. However, you’re not the one who is making the returns. Garrett explains that if you follow the money, you’ll understand why these plans are set up the way they are—and why institutions heavily promote them. Not to mention, with a 401k there’s a heavy penalty for withdrawing your money.
How to Lay the Foundation for Building Legacy Wealth for Your Family
Garrett explains that instead of focusing on retirement, you should spend your energy focusing on creating the right career through entrepreneurship. Invest your time into building skill sets like speaking, communication, and marketing. When you have a strong skill set, you can add more value to the world. By building up a strong skill set, you can then capitalize on your skills and unleash your power as a value creator.
What the Rockefellers Did Differently Than Other Wealthy Families
In his book, What Would the Rockefellers Do?, Garrett studies the history of the Rockefellers. He dives into the details of how they were able to build generational wealth. While most wealthy families are only able to sustain their wealth for about three generations, the Rockefeller family has doubled that figure. One important ritual that the Rockefeller family engaged in was holding weekly meetings to invest in the development of their heirs. They did not focus on money and entitlement, but instead building skill sets and seeking opportunities.
How to Build a Healthy Relationship with Money
It’s important to have a healthy relationship with money. In our society, you need money to function. But if you get caught up in the game of always chasing more money, you can miss out on the other parts of your life. Garrett suggests focusing on creating a life that you love and finding a way to create cash flow with your skills. Offer your unique value to the world, but don’t chase an ever-changing target of more money.
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