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The traditional approach to investing, particularly relying on 401(k) and IRA plans, is criticized as ineffective. These strategies promise retirement savings but often leave individuals with just $70,000 to $90,000 at retirement, insufficient for a sustainable lifestyle. The speaker argues that this system is a scam, benefiting Wall Street and the government while not genuinely serving retirees. The assertion is that the notion of accumulating enough to live comfortably after retirement is unrealistic and fundamentally flawed, emphasizing the need for a reevaluation of investment strategies for wealth building.