Vice Chairman, Franklin Resources
Search every verified Rupert Johnson interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. In a December 2022 interview, Franklin Resources Vice Chairman Rupert Johnson discussed his views on 401(k) plans. Johnson stated that 401(k)s made sense when tax rates were declining, but argued that because taxes are likely to increase in the future, deferring taxes on contributions may not be advantageous. He suggested that if an employer offers a matching contribution, employees should contribute enough to receive the full match, describing that as a 100% rate of return. Johnson recommended that beyond the employer match, individuals should consider putting additional money into cash value life insurance instead of a 401(k), citing a desire for control and tax-free income in retirement. He characterized 401(k)s and IRAs as "chains around people's necks" and predicted that people would regret contributing as much as they did to those products.
“401ks made sense when tax rates were coming down, but we know taxes are going to have to go up — maybe to 50–60% — so it doesn't make sense to take money out of your check today and defer it only to pay much higher taxes later.”
“If your company has a 401k match — for example, you put in 4% and they match 4% — do that, because that's effectively a 100% rate of return.”
“Above the employer match I wouldn't put more into my 401k; I'd put that money into cash value life insurance because I want control and I want tax-free income in retirement.”
“That 401k and that IRA — those are going to be like chains around people's necks; they're going to regret that they put as much money into those products as they did.”
Watch the FULL INTERVIEW HERE How to Build RECESSION PROOF PASSIVE INCOME https://youtu.be/JjgcTrNd16A.
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