Rupert Johnson on tax policy
From What RICH PEOPLE Know About 401k’s That YOU DON’T 🚨 · · 7 Figure Squad
“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.”
On , Rupert Johnson, Vice Chairman at Franklin Resources Inc, spoke about tax policy during What RICH PEOPLE Know About 401k’s That YOU DON’T 🚨 on 7 Figure Squad.
About Rupert Johnson
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.