Billionaire reveals the #1 financial mistake keeping 50% of people 'poor'
Billionaire entrepreneur David Friedberg has exposed what he believes to be one of the great lies in America right now, indicating that relying on a government pension is the biggest financial mistake that keeps people 'poor' across the nation.
Pensions are a vital government service that people all across the world both pay into and rely on in old age, but Friedberg believes that they're a risk that's not worth taking for the vast majority of people.
He outlines a staggering $183 trillion disparity between America's 'two halves', where the bottom 50% of the United States holds just $6 trillion compared to the jaw-dropping $160 trillion held by the middle-to-upper classes.
Key to this in Friedberg's eyes is the switch from pension-related savings to stocks and investments, with the former creating a barrier that prevents the transition from regular workers to people owning equity for people across America.
Why David Friedberg thinks pensions are a 'lie'
When asked what he thinks the three biggest lies in America are, Friedberg outlined the social security system as his third choice on The Diary of a CEO with Steven Bartlett.
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"[That] social security will take care of you when you get old, and it's a fair system," the billionaire and current advisor to U.S. President Donald Trump proclaimed, shaking his head in the process.
"Everyone should have ownership in stocks, is the truth about that lie," he continued, "because all of the money that went into social security went out to the government to pay bills and it wasn't actually kept in the trust.
"So as a result, social security is going to go bankrupt. So, social security was one of the great lies [in that] you'll be safe and protected when you retire."
In essence, Friedberg thinks that it's incredibly limiting and risky for people to hand over their money to a separate entity in the promise it will be there in several decades, when you could instead own stocks yourself and not only control your own funds but also earn far more theoretically over the same time period.
"The idea is that the accounts and the investors will do a good job investing that money for you and you'll get your benefit at the end," he argues, but "if they don't do a good job, then the pension plan is bankrupt and you don't get your retirement check.
"And if they do too good a job or you put too much money in, then the pension plan is overfunded and you should be getting more money out than you're actually getting."
What are the other big lies in America according to Friedberg?
While social security and government pensions are Friedberg's biggest financial red flags for people, he does also outline two other major mistakes that people should avoid if they want to escape the bottom 50% of America.
The first is one that has only grown in recent years thanks to rapid advancements in AI tech, as Friedberg downplays the idea that you'll have a great job waiting for you if you do any degree at any college in America.
It has become increasingly difficult for even top graduates to secure a job in a shrinking employment market, and many are facing the reality that great roles are only going to those who have either moved incredibly proactively while in college, or have the connections necessary to make an immediate jump.
Friedberg also believes that owning a home isn't the pinnacle of the American dream, and discourages people from viewing a house as their primary investment or chief source of equity.
Instead, he implies that opting for stocks is a much wiser move, as you're able to actually move these around and transform them with ease while you're likely stuck with a house that you either can't or don't want to sell.