Author of “Rich Dad Poor Dad” robert kiyosaki He recently sounded the alarm about the impending crisis in baby boomers’ retirement savings.
In a social media post, he warned that baby boomers “will be wiped out by the biggest bubble in history” because they are “the first generation with flimsy 401(k)s.” Kiyosaki advised his followers to “buy real assets like gold, silver and Bitcoin before the biggest bubble in history bursts.”
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Kiyosaki’s dire predictions about the potential collapse of the U.S. dollar and stock market may seem extreme, but he’s not entirely off base when it comes to the precarious state of baby boomers’ retirement savings. That’s what new research suggests.
Recent study A study by the Boston University Retirement Research Center found that many young baby boomers and subsequent generations who rely solely on 401(k) savings accounts are at risk of outliving their funds. Economists compared the rate of withdrawals between people with traditional pensions and those with only 401(k) accounts, which have been the norm in recent decades.
Economists compared the depletion rate of 401(k) accounts to traditional pensions. Historically, retirees with pensions have maintained or grown their nest eggs after retirement, said Gal Wetzstein, senior research economist. But this “past optimism” doesn’t apply to the 401(k) reality most people face today.
The analysis revealed that 401(k) balances decline significantly faster than pensions. By age 70 and her age 75, retirees with only 401(k)s have much less savings than pensioners. As Wettstein told his CNBC, “When people have a 401(k), they spend a lot of what they have.”
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This accelerated spending reduction means a number of things. 401(k) investor Even though about half are likely to live longer, they could completely deplete their funds by age 85. Without the guaranteed income of a pension, retirees must rely heavily on withdrawals from ever-dwindling 401(k) balances to cover expenses.
Wettstein pointed out that the main benefit of pensions is that they can induce sustainable spending rates by ensuring stable payments. “You don’t get that in a 401(k),” he said.
While Kiyosaki’s call to abandon traditional retirement accounts and invest in alternative assets such as precious metals and cryptocurrencies may be extreme, this study shows that baby boomers are in a position to help ensure they continue to save for retirement. highlights the very real challenges faced by As the first generation to rely primarily on his 401(k) plan, many can find themselves in a precarious financial situation in later life.
In order to avoid running out of funds in retirement, it is important for all generations to regularly review their savings amount and make adjustments as necessary. Consult a qualified financial advisor It can help you determine if your nest egg is sufficient to support your desired retirement lifestyle. Advisors can provide personalized guidance on strategies to make your savings last, including prudent withdrawal rates, investment allocation, and incorporating pensions and reverse mortgages.
Proper retirement planning is essential to avoid the dire scenarios Kiyosaki warns of. With life expectancies increasing, baby boomers need to make sure they use up their 401(k) and other savings. While Kiyosaki’s call to invest in non-traditional assets may be controversial, his central message emphasizes the importance of taking retirement security seriously.
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*This information is not financial advice. To make an informed decision, we recommend individual guidance from a financial advisor.
Jeannine Mancini has been writing about personal finance and investing for the past 13 years for a variety of publications including Zacks, The Nest, and eHow. She is not a licensed financial advisor and the content herein is for informational purposes only and does not and does not constitute investment advice or investment services. She Mancini believes that the information contained herein is reliable and obtained from reliable sources, but makes no representations, express or implied, as to the accuracy or completeness of the information; There are no guarantees or promises.
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This article Robert Kiyosaki, author of “Rich Dad, Poor Dad,” predicts that a catastrophic “baby boomer collapse” is imminent – “The biggest bubble in history will wipe out the baby boomer generation,” he claims. Is there any truth? originally appeared Benzinga.com
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