If you can understand the future, will you invest differently?
Rich Dad's prophecy is Robert Kiyosaki's book, whose subtitles are:
Why is the biggest stock market crash in history still going on...
And how to prepare yourself and profit from it!
This book was written in 2002 together with Kiyosaki co-author and partner Sharon Lechter [CPA]. All predictions in this book are correct - if not done ahead of time.
The main "prophecy" is that there will be a major stock market turmoil in 2016. This year an estimated 2,282,887 "baby boomers" are over 70 years old - and the law requires them to withdraw from the 401[k] account. In 2017, the number of 70 people jumping increased by 700,000 to 2,928,818, and has increased every year since then.
What does it mean? Since the creation of pre-tax retirement funds, Americans have been motivated to deposit/save savings into stocks and mutual funds. The market will only rise when more people buy instead of selling. 2016 is a year when retirees are forced to withdraw from astronomical bubbles. The law specifies the specific provisions of the 401[k] account so that the tax expires and is paid to the federal government, rather than starting at the age of 70.
Based on the formulation of "ERISA" ["Employee Retirement Income Security Law" in 1974], Kiyosaki tells the story of his "Professional Dad's Prophecy". His "rich dad" foresees the issue of retirement fund control for individuals. These issues include:
1. Most people don't save anything, or they don't have less than retirement and medical expenses - this situation will continue to increase.
Those who created 401[k] accounts were forced to become "investors," an activity previously reserved for wealthy [and educated] speculators. In this process, the stock market is full of funds.
This is exactly what happened:
- Most people without corporate pensions - replaced by the optional 401[k] plan - correctly spend their money on physical products and save little or no [in fact, creating a record number Consumer debt].
- A small number of workers [still millions] who create investment accounts inject billions of dollars into stocks and mutual funds. With cash inflows, the stock market soared to record levels.
Note: After 1973, when ERISA collapsed to less than 600 Jones Industrial Average in 1973-1974, it was no coincidence that the 1974 passage was at the bottom of the market. After removing the dollar from the gold standard, 1974 was also the center of the recession purchased by the Middle East "oil embargo" and "Nixon shock".
As the rich father of Kiyosaki predicted, "always pay attention to the changes in the law.
All of these backgrounds laid the foundation for the expected collapse in 2016. With more than 2 million retirees forced to sell stocks [and pay taxes on any income], the market must shrink - or implosion!
Kiyosaki wrote this book that predicted the upcoming collapse in 2002. This was before the financial collapse of 2007-2008 [still continuing today]. In this crash, the market fell by 50% from a high of 14,000. [The 85% has been restored to 12,000 since then.]
Americans continue to have poor savings rates. In addition, the record employment created by the current economic downturn has forced many to save and invest to consume their retirement accounts. The number of new wage earners will not offset the number of retirees. After years of economic recession, the number of employed people actually decreased, they reduced investment and reduced investment.
Combine these issues and you will have an irreversible market. As millions of other workers observe the decline in the value of their investment and retirement accounts, they will also begin to sell - trying to save what value, even if they have to pay a fine.
This process is still going on and the market is accelerating! In the process, millions of people's retirement savings and investment accounts will be eliminated.
Bottom line: The forecast for the 2016 crash may be optimistic! Retirees can withdraw funds faster - if they don't need cash before, they can only postpone the withdrawal to 70 years old!
Kiyosaki balances terrible prophecies and best suggestions, especially how to build your "financial ark." He writes, "Sometimes your biggest chance comes from the worst period of the crisis. For those who are well positioned, this is not about disasters of survival, but about achieving financial independence and wealth."
He continued, "But this is not something to worry about. Rich Dad's prophecy not only reveals the best way to protect wealth, but also reveals how to achieve prosperity from future events. Baby boomers' fears, dreams and actions Will control our economic future. You should consider building your own financial economy cabinet to keep it in the turbulent waters ahead. In Rich Dad's prophecy, you will find out how to prepare for success from the upcoming financial disaster. Wealth in the next few years."
Rich Dad's predictions are not just about educating your predicted stock market crash. You will learn how to build your own personal "finance counter" to ensure that you not only survive the storm, but also benefit from the impending turmoil. To learn more about Rich Dad's prophecy - and other Kiyosaki books, resources and seminars - visit RichDad's Rich Dad website.
Orignal From: Robert Kiyosaki's rich dad's prophecy - comments
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