Today, Robert Kiyosaki, the author of the best-selling personal finance book “Rich Dad Poor Dad,” tweeted that the potentially most severe stock market crash in global history, which he predicted back in 2014, may have already occurred, possibly destroying the futures of millions of baby boomers worldwide. He stated that current 401(k) and IRA plans, being defined contribution retirement plans, mean that retirees can only recover a portion of their assets in the event of a market crash (if there are any investments left). Additionally, Kiyosaki criticized ETFs for gold, silver, and Bitcoin, asserting that they are as deceptive as the U.S. dollar and U.S. Treasury bonds.
(Background: Kiyosaki: The U.S. debt exceeds $230 trillion, preparing for bankruptcy. I’m using “fake money” to buy discounted Bitcoin.)
In his 2014 publication “Rich Dad’s Prophecy,” Kiyosaki predicted that the world would face the most severe stock market crash in history. Unfortunately, this “prophecy” has come true, 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. U.S. baby boomers are the first generation with a 401(k) and…”
— Robert Kiyosaki (@theRealKiyosaki) March 9, 2025
The 401(k) and IRA retirement systems of the U.S. baby boom generation may collapse. Kiyosaki pointed out that 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 differences between these two systems in the event of a market crash are as follows:
During a market crash, defined benefit (DB) pensions must pay retirees according to promises made to investors. However, during a market crash, defined contribution (DC) pensions only have to pay back the portion that investors themselves contributed… if there is anything left after the crash.
Defined contribution (DC) retirement plans, such as 401(k) and IRA, involve contributions from both individuals and employers (if there is a matching mechanism) that are invested in the stock market, bond market, and other investment vehicles. The amount of retirement funds depends on investment performance; if the market crashes, the value of the portfolio may significantly diminish or even incur severe losses, leading to a drastic reduction or total loss of funds in retirement accounts.
Kiyosaki: ETFs are as deceptive as the dollar and Treasury bonds. While predicting the future market crash, Kiyosaki also critiqued the current financial system, stating:
“Our education system lacks reliable financial education, while Wall Street profits off ‘foolish’ investors. The public naively believes that their academic education can protect them in this world controlled by corrupt and criminal ‘bankers.’ These bankers deceive the financially ignorant 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? Kiyosaki then stated: ‘Invest in and hold real gold, silver, and Bitcoin.’ However, the advice here is not to invest in ETFs for gold, silver, and Bitcoin, as he believes ETFs are as deceptive as the dollar and Treasury bonds:
“But I would never buy ETFs for gold, silver, or Bitcoin; to me, ETFs are as deceptive as the dollar and U.S. Treasury bonds.”
