‘Rich Dad’ Robert Kiyosaki Reveals Why the 401(k) Is a ‘Horrible’ Retirement Plan (pension plan, move)
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Whatever it takes for these financial 'gurus' to get publicity.
Sure, some of the things he says about 401K's may be true, but that depends on how diligent people are to avoid these things. And his false security of employee match concept makes absolutely no sense. I have no idea what he's talking about when he mentions that if you didn't have a 401K, your employer would still be expected to pay you the equivalent of the match.
Bottom line, despite its detractors, the 401K plan has been a godsend to so many employees like myself. It's designed to automatically help people invest by taking money out of your paycheck. That money taken out is something you don't spend, and it compounds in the account. Out of sight, out of mind, so simple.
Financial expert Robert Kiyosaki, famed author of “Rich Dad Poor Dad” holds an opinion that may seem unpopular. The opinion in question: The 401(k) is a “horrible” retirement plan. Why does the most popular retirement plan in America seem to be such a bad idea, according to Kiyosaki?
While his arguments are technically correct, they ignore the whole picture.
1. Not all plans have outrageous fees.
2. Some companies offer Roth 401(k)s.
3. The day after you leave the company is the day you can move the money to your own IRA. And you should.
4. Very few people hit the contribution limit.
I don't have any particular opinion about 401K (I was self-employed, ie, my form of equivalent retirement plan would have been a SEP-IRA, which I did have but didn't use much because I focused on building a personal pension self-created with annuities), but isn't the Kyosaki guy a real estate investment guru? If I decide I don't want to get involved with tenants (ever again!), what would be the significance of Kyosaki's advice for me anyway?
i have yet to see an actual action plan from him .
his company was also driven in to bankruptcy
Prior to his 1997 publication of Rich Dad, Poor Dad, Robert Kiyosaki never had any documentation of the wealth he supposedly amassed (Forbes)
There really wasn’t a rich dad, even though his book specifically claims there was one (Smart Money Magazine, February 2003)
In the end, this “non-fiction” story is just fiction, and so it calls into doubt the advice he gives to readers and followers.
Even though his advice may sound good: be an owner, invest in cash flow investments, etc – the fact that he (or his business) didn’t maintain solid financial health is sad.
Over the course of my career, my employer not only provided a quite nice pension at no out of pocket cost to me, (though I acknowledge I probably could have made a higher salary elsewhere, if I live to just 85, I will have collected over $1.2M from it. Well worth the trade IMHO) but I added up the 401k contributions which totaled about $250k, NOT including the investment returns on that match. None of which I have even touched over the last almost 5 years. Non governmental pensions are pretty much gone, and most 401ks are a godsend to the masses that have them available. Kiyosaki was a boob. Personally, I think they should be mandatory above a certain pay scale.
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,073 posts, read 7,511,991 times
Reputation: 9798
For some, kiyosaki, is correct. For some others, kiyosaki, is off. And there are the betweeners where the “advice” is somewhat correct/inadviseable.
Tax wise, present and in retirement age, there are some who are now higher income and higher assets, will find alternatives.
The opposite end of the income scale and little asset, there is only forced savings-investment aspect.
Personally, kiyosaki, is filler material and end-of-year planning.
For this article, his staff pulls tidbits that might be true in some situations, and then generalizes them to always true in order to create some sensationalism.
With so much good and reliable information available, just ignore Kiyosaki.
i once wasted time watching a pbs broadcast with him .
what a complete time suck
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