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If you're like me, you were taught that the way to make money was to get a job. I was programmed to be an employee. If you went through the American education system, you were probably programmed the same way. ?Go to school, get a good job,? and later, we were all told, ?Invest in a 401(k).? That was and still is the American dream being shoved down the throats of students.

That advice might have been right for our parents?for that time period, for the information available. But we know better now?we just keep repeating the same message and mistakes.

Years ago, I had a conversation with a young man about 401(k)s. ?I have a question for you,? he said. ?I've read that you say 401(k)s are the worst investments, but I don't understand why you say that.?

?What is it that you don't understand?? I asked.

?Well,? said the young man. ?Most employers match your contribution. For instance, my employer matches up to four percent of my salary. Isn't that a hundred percent return? Why is that a bad investment??

?It's a bad investment,? I said, ?because it's your money to begin with.?

He looked puzzled and perplexed.

?Listen,? I said, ?If it weren't for 401(k)s, your employer would have to pay you that money as part of your salary. As it is, they still pay it, but only if you give up four percent of your existing salary in to a retirement account where you have no control. And if you don't, well the employer comes out ahead. It's your money, but they're in control.?

Thinking Like an Employee

The young man still didn't look convinced, but I could tell he was thinking hard about it. The reason this young man and many others don't understand my reasoning is that they only think like employees. As an employer, I know that if it weren't for 401(k)s, I'd have to pay that money to employees in their salary in order to be competitive.

For me, as an employer, a 401(k) is an advantage because I don't have to pay the money unless an employee opts in, and if they leave my company too early, I don't have to pay because they aren't vested.

Our conversation, though it happened years ago, could easily have happened just last week. The mindset of an employee is alive and well today.

In my local Governor's race here in Arizona, the thing I hear most about during the contentious TV ads is how each candidate wants to create more jobs. While every trade is important?I certainly am not a plumber and do need their services?the mindset of just becoming an employee is the wrong mindset.

If you're wondering if you think like an employee, here are five signs you do:

1.You value the security and guarantee of a steady paycheck over the uncertainty of greater wealth.

2. You prefer a job with few problems.

3. You fear making a mistake.

4. You strive for raises and job promotions.

5. You value time on the job over results.

The other sign that you might be thinking like an employee is the latest dip in the market. Did you find yourself panicking? Wondering if you're ever going to recover? Educated investors are prepared for whatever the market does?up, down or sideways.

A 401(k) Steals Your Money

A recent study confirms what I'm saying and should help those of you who still find this logic confusing or not convincing. According to Stephen Gandel, a study issued by the Center for Retirement Research indicates that, ?All else being equal?workers at companies that contributed to their employees' 401(k) accounts tended to have lower salaries than those at companies that gave no retirement contribution?In fact, for many employees, the salary dip was roughly equal to the size of their employer's potential contribution.?

Translation: companies that don't offer 401(k)s must pay a higher salary to compete with companies that do. Those company's employees simply get their money as part of their salary rather than having to match it and save it in a tax-deferred retirement plan where they have no control and have high fees.

No Financial Intelligence? Stick with the 401(k)

Control is an important aspect of investing. As I mentioned, with a 401(k), you have no control over your investments as you generally invest in funds and indexes controlled by brokers, who are controlled by bankers, who invest in companies that are controlled by boards ? all of which you have no control over.

If you want to be rich, you must have a financial education and control over your money and your investments. This is why I like to invest in my own business, purchase real estate and create products. I have a lot of control over those investments.

Generally, a good matrix is the more control you have, the higher your potential return. The less control you have, the lower your potential return.

Of course, it takes high financial intelligence to invest in things where you have control because you have to make a lot of important decisions. This is why being forced into a 401(k) probably isn't a bad thing for most people. This is because most people have little-to-no financial education and wouldn't know what to do with the extra money other than save it or spend it.

But I suspect you to be head and shoulders above the average person in terms of financial intelligence. The reality is that if you're investing in a 401(k), you're not making a return on your employer's match. You're simply getting what is owed you by your employer.

For some, this might be the first time you've ever thought of this. For others, I'm probably preaching to the choir.

Most people will follow the old advice of their parents. But if you want to be rich, I recommend getting a financial education rather than working the rest of your life making someone else rich.

Regards,

Robert Kiyosaki
Editor, Rich Dad Poor Dad Daily

The post 5 Signs You're Trapped: How to Escape the ?Employee Setup? appeared first on Daily Reckoning.