Outdated Advice: “3 money moves you should take before 40”

I seen a article recently I want to talk about. My goal here is not to trash the article. It’s to explain these methods are outdated and or will not work in the future. The article I will be referring to can be found here.

https://www.cnbc.com/select/tips-for-saving-money-at-age-40/

“1. Increase your retirement contributions

There’s a good chance that when you land your first full-time job in your 20s, you only put a small percentage of your salary into your 401(k) retirement account…”

Maybe, maybe if you’re 40 you can count on 401k’s but for young people all these retirement plans are going to collapse before you retire. America has to much debt. 401k’s, pensions, all this stuff is not going to last because the U.S. government racks up to much debt and kicks the can down the road. If you’re depending on these plans your going to get burned. Eventually America will be forced to pay it’s debt. When that happens say goodbye to these safety nets.

“2. Start saving for your kids’ college early…”

Please do not do this. College is a scam. Instead of spending between 100 to 300k on college you can invest that money at the childs age of 20 and they’ll have a very nice retirement when they reach that age. The only thing college will give you is a debt you”ll be paying for a lifetime and the government will not let you file bankruptcy for it. Don’t believe me look up what I said in italics. See for yourself.

“3. Put your money into a high-yield savings account or CD…”

No, no, no, no! Interest rates are near 0 at the moment. Listen I know people and a saving account of $20,000 didn’t gain 5 dollars over the past half of a year. I know that’s not a CD. I’m just saying interest rates are trash right now. If you want to make money pure saving is not the right path at the moment. You want to either invest that money or leverage debt — and leveraging debt requires at lot of experience in my opinion.