Why your 401(k) underperforms, even with cheep investments

I was reading recently about some study that said Americans are less secure about their retirement this year than they were last year.

Uh ohs.

The average 401(k) balance is about $100,000 at most age brackets and people aren’t saving a lot of money.

A hundred grand isn’t a lot of money. For most households, that’s like 2-3 years of income.

Meanwhile, when people retire, they live for 20+ more years.


The returns people are getting in their 401(k)s aren’t all that great either. Not over the long term. They’re not terrible but they’re not the 8% everyone believes they can get.

Some people do alright in the short term but… the long term average (~20 yrs) is hovering around 5% BEFORE taxes.

My wife pointed something out to me a while back that I’ve been thinking more and more about:

“People contribute to these retirement plans and just assume whatever they contribute will somehow automatically be enough, but they don’t understand how any of it works.”

She be a smart cookie.

Most people are confused by this financial stuff. A lot of it has to do with how the financial industry is set up.

There is zero education. There is zero accountability. And most of the systems in place are geared toward “black box building”.

What I mean by that is the financial industry has traditionally operated from a “father knows best,” authoritarian, “do as I say” perspective.

The client (you) is told not to think, not to have real opinions (or if you do, they are subordinate to your advisor’s opinions), and to just follow the plan unquestioningly.

The advisor never reveals the secret sauce because having a monopoly on information is good for business.

This is 1950s-1960s era financial planning and… most advisors alive today are from that era. Most financial advisors are in their 60s and early 70s.

Why do I bring all this up?

Because, for the past few months, I’ve been plotting and scheming… creating an interactive online life insurance buyer’s guide and… it’s nearly complete.

I’m spilling the beans about how life insurance really works. But also, I’ve put together an extensive section on how interest rates work, how to calculate investment returns, what an investment return is, statistical data and probabilities for achieving a specific return on your savings and so on.

Frankly, there’s a lot of bullsh*t on the Internet and enough evidence to suggest the Internet goorubes are pulling the wool over most peoples’ eyes.


This is not some lame or generic guide with stock photos of businessmen shaking hands. It’s also not a thinly-disguised sales pitch.

It’s a for-real buyer’s guide that discloses stuff about the industry, and about the internal workings of life insurance that have never been seen before by the general public.

There’s nothing new inside… i’m just opening the “black box” to show everyone the secret sauce.

Why am I doing this?

I have my reasons, which I won’t share right now.

Anywho, there is a downside to all this. I’m basically taking all the technical jargon that currently lives behind iron gates and translating it into plain English.

Even so, the guide is so in-depth, and covers so much information, and is so detailed… it will likely overwhelm some people.

Especially folks looking for a quick fix or no-thought, no effort, solution to their financial problems.

Those folks are going to be so frustrated, that they’re going to run around in circles like my dog when he’s antsy about going outside to play ball.

But even normal, rational, intelligent, people who are super busy MIGHT be overwhelmed… which is why I suggest you get my personal attention and have me hold your hand through the process.

But, before you get my personal attention, you must join my email list to get all the details and also the restrictions (yes, restrictions).

David Lewis, AKA The Rogue Agent, has been a life insurance agent since 2004, and has worked with some of the oldest and most respected mutual life insurance companies in the U.S. during that time. To learn more about him and his business, go here.