If you follow the advice of a traditional financial planner, you are likely counting on a 401(k) and investments in the stock market to sustain you through retirement. Yet those vehicles are both subject to market volatility and assume that the tax rate will remain the same for the foreseeable future. Rebecca Walser is NOT your traditional financial advisor, and she has designed a better strategy for building long-term wealth—a strategy that includes investing in multifamily real estate.
Rebecca is a tax attorney, wealth strategist, Certified Financial Planner, and one of Investopedia’s 2018 Top 100 Most Influential Financial Advisors. She has combined her expertise in law and finance to design a unique approach to building and sustaining wealth that conventional advisors won’t consider. Rebecca has been featured in Bloomberg Business, The Boston Globe, and The Miami Herald, among many other media outlets, and she is the author of the groundbreaking book, Wealth Unbroken: Growing Wealth Uninterrupted by Market Crashes, Taxes, and Even Death.
Today, Rebecca joins me to explain why the 401(k) is a big mistake (unless your employer matches funds) and share her insight around deferring taxes until retirement. She covers the best alternatives to the 401(k), the greatest threats to building wealth, and the non-traditional asset classes that aren’t subject to market volatility. Listen in for Rebecca’s take on why traditional financial advisors don’t recommend real estate investments and learn the three key takeaways from her bestseller, Wealth Unbroken.
Rebecca Walser – Key Takeaways
What sets Rebecca apart from other financial advisors
- Ten years of experience in finance industry
- Advanced degree in tax law
Why Rebecca considers the 401(k) a big mistake
- Hasn’t changed since inception in 1981
- Boomers retiring + likely tax increase
The danger in deferring taxes until retirement
- Assumes you will earn less, tax rate stays same
- Taxes currently at lowest rate since 1930’s
Rebecca’s top alternatives to the 401(k)
- Roth IRA
- Cash value life insurance
The greatest threats to building wealth
- Market volatility (correction coming)
- Reported returns don’t account for lows
Rebecca’s best strategies to avoid market volatility
- Real estate
- Short-term CDs
- Bonds (held to maturity)
Why traditional financial advisors avoid real estate
- Don’t have control or feel equipped
- Don’t bother with strategies outside norm
The key takeaways from Wealth Unbroken
- Can’t afford lows of 100% market-based portfolio
- Convert 401(k) to Roth NOW while taxes ‘on sale’
- Leverage non-traditional asset classes (non-negotiable #)
Connect with Rebecca
Resources
Wealth Unbroken: Growing Wealth Uninterrupted by Market Crashes, Taxes, and Even Death by Rebecca Walser
Heads I Win, Tails You Lose: A Financial Strategy to Reignite the American Dream by Patrick H. Donohoe
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
Michael’s Live Training Webinars
Podcast Show Notes