Courtney Moeller criticizes 401(k) plans and advises converting employer retirement plans into self-directed IRAs to gain control over investments. She also recommends holding extra cash temporarily in a High Yield Savings Account and keeping some liquidity to seize opportunities. The segment is presented as direct, actionable financial advice.
My first question is why do you have a 401k? That's the biggest scam that's ever been introduced to the US employee like ever in the world. First of all, I would convert these 401ks or any of these retirement plans you have to a self directed IRA so that you now have control of the checkbook and you can determine where those dollars get invested. That would be the very first thing that I would do. And you've got some extra cash outside of these retirement accounts that need to be converted to something else like a self directed ira. I would make sure that you've got it first of all sitting High Yield Savings Account while you're waiting to figure out what you're going to do with it. And so I don't recommend letting it sit around for too long because it's always great to have a little bit of cash on the side so that if opportunity presents itself you've got cash that you can deploy. It's good to have a little bit of liquidity.
