Rich Dad pointed out today via Twitter that the most severe stock market crash in global history, which he predicted in 2014, may have already occurred, potentially destroying the futures of millions of baby boomers worldwide. He noted that under the current 401(k) and IRA plans, which are defined contribution retirement plans, retirees can only retrieve a portion of their assets during a market crash (if any investment remains). Additionally, Rich Dad criticized ETFs for gold, silver, and Bitcoin, asserting that ETFs are as deceptive as the U.S. dollar and U.S. Treasury bonds.
(Background Summary: Rich Dad: The U.S. is over $230 trillion in debt and on the verge of bankruptcy; I am using “fake money” to buy discounted Bitcoin.)
(Background Information: Rich Dad warns: This year will see the largest stock market crash in history! Millions will be unemployed; “buying Bitcoin can save lives.”)
Robert Kiyosaki, the author of the bestselling personal finance book “Rich Dad Poor Dad,” tweeted today that in his 2014 publication “Rich Dad’s Prophecy,” he predicted that the world would face the most severe stock market crash in history. Unfortunately, this “prophecy” has come to pass, potentially jeopardizing the futures of millions of baby boomers (those born between 1946 and 1964).
IN Rich Dad’s Prophecy, published in 2014 I predicted the biggest stock market crash was still coming. Unfortunately that crash has arrived….possibly wiping out the futures of millions of baby boomers worldwide. US Baby boomers are the first generation with a 401k and… — Robert Kiyosaki (@theRealKiyosaki) March 9, 2025
U.S. Baby Boomers’ 401(k) and IRA Retirement Systems May Collapse
Rich Dad emphasized that U.S. baby boomers are the first generation to have 401(k) and IRA (defined contribution retirement plans), while the World War II generation (those born before 1933) had defined benefit pension plans. The distinction when facing a market crash is as follows:
In a market crash, defined benefit (DB) pensions must pay retirees as promised. However, in a market crash, defined contribution (DC) pensions only pay the portion that investors personally contributed… if there is anything left after the crash.
Defined contribution (DC) pension plans, such as 401(k) and IRA, are funded by both individuals and employers (if there is a matching mechanism) and invest these funds in stock markets, bond markets, and other investment vehicles. The amount of retirement funds depends on investment performance; during a market crash, the value of the portfolio may significantly shrink or even incur severe losses, leading to a drastic reduction or total loss of funds in retirement accounts.
Rich Dad: ETFs Are As Deceptive As the Dollar and Treasury Bonds
While predicting the impending market crash, Rich Dad also took the opportunity to criticize the current financial system, stating:
“Our education system lacks reliable financial education, while Wall Street profits off ‘foolish’ investors, and the public naively believes that their academic education can protect them in this corrupted and crime-ridden world controlled by ‘bankers.’ These bankers deceive the financially illiterate public through vast amounts of money and campaign contributions, influencing naive political leaders.
So, how can one escape and defeat this corrupt monetary Ponzi scheme?
Rich Dad then stated: ‘Invest in and hold real gold, silver, and Bitcoin.’ However, this advice does not pertain to investing in ETFs for gold, silver, and Bitcoin, as he believes that ETFs are as deceptive as the U.S. dollar and U.S. Treasury bonds:
“But I would never buy ETFs for gold, silver, or Bitcoin. In my view, ETFs are as deceptive as the U.S. dollar and U.S. Treasury bonds.”
