EXPOSED: The Tax Bill Hiding Inside Your Retirement Account — And How to Get Out

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1:14There's a tax bill waiting for you on money you never actually made. Sounds impossible. It's not. It's built into the fine print of one of the most common accounts in America. Today I'm going to show you the difference between owning something and just being handed a promise and why the thing they sold you as safety might actually be a leash. The way out is a lot more simple than you think. That's coming up right here on the Rich Dad Radio Show. This is the Rich Dad Radio Show, the good news and bad news about money. Here's Robert Kiyosaki. Welcome to the Rich Dad Radio Show, the good and bad about money.

1:58This is Robert Kiyosaki, and today is just you and me. And we're talking about what the rich are teaching their kids about money. Somewhere right now, something is riding through your retirement account. Not a hacker, not a scandal, four things. quiet, legal, wearing a suit, and you invited them in yourself. Most people call it a 401k, or a mutual fund, or a bond, or an annuity. I call them something else, four horsemen. And by the time this is over, you'll never look at your statement the same way again. Let me name them the 401k. 401, okay, good luck. The mutual fund, the bond, the annuity. Four different names, one system.

2:51Here's the problem. Nobody ever taught you the difference between an asset and a promise. A 401k is a promise. A mutual fund is a promise. A bond is a promise. An annuity is a promise. That's the difference. Now think about who's on the other side of that promise. You put in the money, you take the risk, you wait. The corporation doesn't wait, the government doesn't wait, they don't buy the paper, they own the thing the paper is a claim on, or they own the company selling the paper in the first place. Let me say this again, you are the customer, they are the house. That's not talent. That's not luck.

3:40That's which side of the transaction you were taught to stand on. And people get angry when I say this. But nobody ever sat you down and asked which side you wanted to be on. They just handed you a form and a match and a brochure and called it responsible. There's a different kind of asset, one that doesn't ask you to trust anybody. We'll get there. Here's what nobody at your bank will ever tell you. If you don't hold it, you don't own it. A number on a 401k statement is a promise. A paper certificate for a bond is a promise. An annuity contract is a promise. Not one of them is a possession. Think about it.

4:26You can't live in a mutual fund. You can't rent out a bond. You can't dig gold out of an annuity. They ask you to trust a prospectus. I learned this from my rich dad. Real protection doesn't come from a friendlier salesman or a better fund. It comes from owning something you can see, touch, control. A rental property pays rent whether Wall Street has a good quarter or not. A business pays income whether a bond manager guessed right or not. Gold has held value since before any bank existed to print anything at all. That's the difference. A promise needs someone else to keep it. A possession just sits there and works for you.

5:11Most people don't realize this until it's too late. They find out the day they need the money, and it isn't there. Not the way they thought, because they were never protecting your future. They were protecting the fund. Now here's what I haven't told you yet. There's a reason this system keeps running, decade after decade, generation after generation. It's not a mistake, and it's not even the worst of it. Let's talk about the annuity specifically. They sell it as safety, income for life, no headaches. Here's what they don't lead with. Every dollar you pull out gets taxed as ordinary income, not capital gains, the highest rate they've got.

5:57Think about it. You already paid tax on the money going in. Now you pay tax again at the worst rate coming out. And if you die with it, your family pays too. Estate tax. Then income tax on the same dollars. Let me say this again. This isn't a mistake in the paperwork. This is the paperwork working exactly as designed. Try to get your money out early. There's a penalty for that too. surrender charges, sometimes for years. So ask yourself, does this sound like a plan to make you rich or does it sound like a plan to make sure you never leave? That's the difference between an income stream and a leash and that's just the annuity.

6:45Every other paper asset you own has its own version of the same trap. You think you're diversified, you think you're protected, and when we come back I'm I'm going to show you exactly what that word diversified has been hiding from you the whole time. Don't go anywhere. Hey, thanks for listening to my show. I wanted to tell you that according to my friend Jim Rickards, a former advisor to the CIA and the Pentagon, with close ties to the Trump administration, President Trump is about to make a move that will shock the markets and open the doors to the world's single biggest gold deposit right here on U.S.

7:25soil. Inside this deposit is the equivalent of more than 161 million ounces of gold, which at today's prices would be worth nearly$1 trillion. And as gold continues to hit new highs this year, this deposit could make some people very, very rich. That's why Jim, a world-renowned gold expert with over 40 years as industry insider, just made a huge prediction about this Trump move and what he calls Donald Trump's secret$2 gold mine. And for all the details on this little-known$2 gold company, simply go to offair26.com to watch this presentation. That's offair26.com, paid for by Paradigm Press. The system was never broken.

8:18It was built this way. People keep asking me why the system feels rigged. Let me be blunt. It isn't broken. It's working exactly as designed. Designed by the rich, for the rich, to keep everyone else locked outside the room where the real money is made. It starts in school. It keeps you working for money instead of learning how money works for the rich. There are two sets of rules. One set for people who work for money. Another set entirely for the people who print it, control it, and move it. I'm not telling you this to make you angry and helpless. I'm telling you because once you see the game, you can learn to play it.

8:54The rich didn't get rich by working harder. They got rich by understanding rules nobody bothered to teach you. Learn the real rules. That's the only rebellion that actually works. That is why I'm introducing you to Devin and her Capital Club. Capital Club brings democracy to investing and opens a backdoor for you. so you can participate in some of the greatest investments you normally would not have access to or be invited to. To learn more, go to CapitalClub33.com. That's CapitalClub33.com. Go there and beat the system. Don't let the system beat you. CapitalClub33.com. Okay, we're back. Four horsemen riding through your 401k, your mutual fund, your bond, your annuity.

9:42And in a minute, I'll tell you whose idea this really was. But first, let's talk about the lie you've been told since day one. Diversify your portfolio. Most people don't realize that phrase was never designed to protect you. Let's start with the name itself, mutual fund. There's nothing mutual about it. The manager gets paid whether you win or whether you lose. That's not mutual. That's one-sided. Here's the problem. If you own five mutual funds, you don't own five things. You own one thing five times. Stocks, bonds, REITs, ETFs, sector funds, REIT. REIT should stand for real estate, in theory.

10:33You don't own the building. You own a slip of paper that mentions one. All of it, paper. All of it, the same asset class wearing different labels. Warren Buffett said it himself. Diversification is protection against ignorance. Let me say this again. It's a multivitamin. Take three bottles. You're not more protected. You're just taking the same vitamins three times. And when the market crashes, it doesn't crash one fund at a time. It crashes all of them at once, together. 2007 proved it. Stocks fell. Real estate fell. Even Buffett's own fund fell. That's the difference between diversified and de-versified.

11:18One protects you. The other just makes you feel protected. And feeling protected is not the same as being protected. Most people never find out the difference until it's too late. Now here's the part your financial advisor never brings up, systemic risk. Ask him what it means. Watch and try to explain it without using the word crash. Here's what it means in plain English. When paper assets fall, they don't fall one at a time. They fall together. Stocks, bonds, mutual funds, REITs, all in the same asset class wearing different labels, all tied to the same market, and that market doesn't always go up.

12:05From 2000 to 2010 it went nowhere, a whole decade. People call it the decade of nothing. You could have part your money in a mattress and done just as well, except the mattress doesn't charge you a fee. Most people were told the market always comes back, eventually. Nobody told them eventually might be longer than their working life. Let me say this again. Diversifying inside one asset class isn't protection. It's a bet that the whole class doesn't fall at once, and it already has more than once. That's the difference between a plan and a prayer. Somewhere out there is an asset that doesn't move with the herd.

12:51Now here's a part they really don't want you looking at, the fee. Every mutual fund, every 401k, Every bond fund, there's a fee buried in the fine print. Most people have no idea what it is or how much it costs them. Think about it. A fund manager gets paid whether the fund goes up or down. You take the risk. They collect the check. That's not a partnership. That's not a plan. That's a toll booth on your own money. And here's what nobody tells you about compounding. It works two ways. It grows your money over 40 years, and it grows their fees over 40 years even faster. A 1 % fee doesn't sound like much.

13:43Over four decades, it can eat a third of your retirement, sometimes more. Let me say this again. You're not just losing a fee. you're losing the growth that fee would have earned for the rest of your life. Most people never do that math because nobody at the bank is going to do it for you. That's the difference between a number that sounds small and a number that is small. They rely on you never checking. And there's a second flaw hiding right behind this one, the kind that can tax you on money you never even got to keep. Don't go anywhere. Here is something your financial advisor and Wall Street do not want you to know.

14:29The best deals in the world will never show up on your brokerage app. That is not an accident. The rules of money were not written for you. They were written for the rich by the rich. That is why the average investor is funneled into stocks, bonds, and mutual funds and told to sit tight for 40 years and hope. Meanwhile, the best deals in the world are private, real estate, oil and gas, small businesses. These assets are not subject to the same public market rules, and they consistently outperform Wall Street. You find them through relationships, education, and deal flow built over years. That is not an accident.

15:05It keeps the good deals inside a small circle while everyone else fights over what is left in public markets. If you want real returns, stop looking where everyone else is told to look. I've got a solution for you. Meet Devin Johnson, founder of Capital Club. Devin has access to deals most people don't even know exist. Deals that let you invest in a business before it goes public. Deals that cash flow regularly and consistently. Deals that can prevent you from ever paying taxes. Deals that Wall Street doesn't want you to know about. Now Devin is opening a door so you can have access to her deals.

15:42To learn more, visit Devin at CapitalClub33.com. That's CapitalClub33.com. Hey, thanks for listening to my show. I wanted to tell you that according to my friend Jim Records, a former advisor to the CIA and the Pentagon with close ties to the Trump administration, President Trump is about to make a move that will shock the markets and open the doors to the world's single biggest gold deposit right here on U.S. soil. Inside this deposit is the equivalent of more than 161 million ounces of gold, which at today's prices would be worth nearly$1 trillion. And as gold continues to hit new highs this year, this deposit could make some people very, very rich.

16:31That's why Jim, a world-renowned gold expert with over 40 years as industry insider, just made a huge prediction about this Trump move and what he calls Donald Trump's secret$2 gold mine. And for all the details on this little-known$2 gold company, simply go to offair26.com to watch this presentation. That's offair26.com, paid for by Paradigm Press. We're back. Let's get to it. I told you there's a second flaw hiding behind the fee. Here it is. Now here's a part that should make you angry. Most people don't know mutual funds have a tax flaw built in. Here's how it works. When the market drops and investors panic, the fund has to sell its best stocks to cover the withdrawals.

17:25Those stocks made money over the years, so selling them triggers a capital gains tax. And who pays that tax? Not the fund. You do. Think about it. The value of your account went down and the IRS still wants a check for a gain you never actually got to keep. I know a man, a retired airline pilot, spent his whole career trusting paper assets, watched his fund lose value one year and still got a tax bill for the gains, paying income tax on income he never received. Let me say this again. You can lose money and still owe taxes on it in the same asset in the same year. That's not an accident. That's just what happens when you don't ask and nobody's rushing to tell you.

18:18That's the difference. None of this touches the one asset that was never built this way. There's a reason they want you confused about debt. Not all debt is the same. There's debt that pays you and debt that empties you. Good debt buys an asset. It puts money in your account whether you go to work or not. Bad debt buys a lifestyle and leaves you with a payment and nothing behind it but your promise. That's the difference. Most people can't tell them apart. Wall Street likes it that way because as long as you're confused you keep buying their products instead of building your own. They don't need you to be poor, they need you to be confused.

19:05Confused people buy mutual funds. Confused people buy annuities. Confused people never ask why the bank is so eager to lend for a car and so reluctant to lend for a rental property. Let me say this again, debt isn't the enemy, confusion is. And confusion is profitable for somebody, just not for you. Good debt is the first clue, it buys something real. So what actually protects you? Not a fifth product, not a better fund, not a nicer salesman. Ownership. Something you can see, touch, control. A rental property pays you rent whether Wall Street has a good quarter or not. A business pays you income whether some fund manager guessed right or not.

19:56Silver and gold have held value since before any central bank existed to print anything at all. None of them ask you to trust a prospectus. They ask you to show up and manage what you own. This is where good debt earns its name. Good debt buys the rental. Good debt buys the equipment for the business. The tenant makes the payment, not you. That's leverage working for you instead of against you. Most people never flip that switch. They spend their whole life servicing bad debt and calling it normal. Here's what nobody wants you to realize. The system that sold you the 401k, the mutual fund, the bond, the annuity.

20:42It isn't broken. It's working exactly the way it was built to work. And I'm going to tell you exactly who built it and why they're counting on you, never asking. I told you the system that sold you these four things isn't broken. Now here's why. It was never built to make you rich. It was built to keep you contributing, keep you quiet, keep you grateful for a match, while your retirement quietly buys less every single year. The 401k does exactly what it was built to do. The mutual fund does exactly what it was built to do. The bond does exactly what it was built to do. The annuity does exactly what it was built to do.

21:25Let me say this again. Nothing here is a malfunction. The only failure is your failure to look closely enough to see it. So stop asking Wall Street to fix a system that's working perfectly well for Wall Street. Stop waiting for a regulator, or a law, or a friendly or financial planner. None of them are coming. And if they did, why would you hand your future to the same people who built the trap in the first place? That's the difference between someone who waits to be rescued and someone who gets out on their own. Most people never make that choice. They keep waiting. There's a reason some people never get caught in this.

22:10Here's the only thing that's ever worked against this. Not a law, not a regulator, not a friendlier salesman. Your own financial education. Learn the difference between an asset and a liability. Learn the difference between a promise and a possession. Learn what protects Wall Street and what protects you. Do that and for the first time you're not the customer riding in front of the house. You're the one deciding whether the house ever gets close enough to matter. Most people wait for permission to take their future back. There is no permission coming. Your retirement was never their gift to give.

22:51It was never theirs to give away in the first place. Let me say this again. They didn't take it from you in a single moment. They took it one contribution at a time, one match at a time, one statement you never really read. That's how it always works, quietly, legally, one decision you didn't know you were making. Most people never look closely enough to notice. Why do I tell you all this so you can break free? If you know the difference between a real asset and a promise, you can win their game instead of feeding it. Owning real assets is the way to wealth, period. You can buy them or you can build them.

23:37Both paths work, both come with trade-offs, but a real asset does the one thing a promise never will. It puts money in your pocket every month. That's how freedom is made. Period. Four horsemen, one system. Most people will read their next statement and see a number. You'll see something else now. You'll see who's on the other side of it. That's not a comfortable thing to know, but it's the only thing that's ever protected anyone. Not the plan, not the paperwork, not the person who sold it to you, you. And once you see it, you don't unsee it. Thank you for your time. Thank you for caring about your future.

24:29Thank you for understanding that you are the only one who cares about taking care of you. Take care. Hey, thanks for listening to my show. I wanted to tell you that according to my friend Jim Records, a former advisor to the CIA and the Pentagon with close ties to the Trump administration, President Trump is about to make a move that will shock the markets and open the doors to the world's single biggest gold deposit right here on U.S. soil. Inside this deposit is the equivalent of more than 161 million ounces of gold, which at today's prices would be worth nearly$1 trillion. And as gold continues to hit new highs this year, this deposit could make some people very, very rich.

25:18That's why Jim, a world-renowned gold expert with over 40 years as industry insider, just made a huge prediction about this Trump move and what he calls Donald Trump's secret$2 gold mine. And for all the details on this little-known$2 gold company, simply go to offair26.com to watch this presentation. That's offair26.com, paid for by Paradigm Press.

26:10Thank you.

26:34This podcast is a presentation of Rich Dad Media Network.

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