Robert Kiyosaki: 5 Things Boomers Must Do Before the Stock Market Crashes
Written by
Kristopher Kane
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Jasmine Browley
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Robert Kiyosaki, famed financial advisor, money expert and author of “Rich Dad Poor Dad,” isn’t known for being shy about dispensing money advice. He frequently takes to social media, namely X, to share pithy, on-point takes on the economy.
Whether it’s investing for the long term, understanding dollar-cost averaging or just assessing your risk tolerance, here are his latest personal finance recommendations for the baby boomer generation when it comes to weathering any bear or bull market.
Rethink What Financial Independence Means to You
Kiyosaki suggests that a market decline or even crash could wipe out some traditional income streams that boomers may be counting on for a self-reliant retirement. The key here is to proactively approach whatever may unfold and adjust your financial plans and asset allocation to anticipate coming changes.
Instead of solely relying on a 401(k) or an individual retirement account (IRA) for financial independence, boomers should consider focusing on increasing their savings and developing new income streams other than buying stocks that don’t rely as strongly on the overall economic performance of the S&P 500.
Re-Evaluate Your Portfolio
Kiyosaki makes it no secret that he thinks America is headed for a historic stock market crash. If he’s right, the traditional investment vehicles and asset classes boomers have depended on could change from safe havens to risky bets overnight, thanks to market volatility.
Kiyosaki says traditional buy-and-hold assets may become unreliable in a significant market downturn. Savvy retirees will want to plan ahead by examining what they’re currently invested in and making appropriate changes while they have time.
Limit or Ditch Your Real Estate Holdings
This one might surprise some people, but Kiyosaki recommends getting out of real estate while the getting’s good. Though housing prices may be at all-time highs, this is another market that Kiyosaki sees going belly up in the near future.
“I am not counting on my home to be an asset,” he said, suggesting that these traditional retirement investments should be sold now while the prices are still high. This might be a tough pill to swallow for a generation that prizes home ownership and is resistant to renting, but the advice comes from Kiyosaki’s conviction that the housing bubble is going to pop.
Buy Gold, Silver and, Yes, Bitcoin
Precious metals have often been considered wise investment options for uncertain market conditions, and Kiyosaki recommends boomers take heed and redirect their savings to these kinds of material assets.
He also suggests investing in Bitcoin, and while cryptocurrency is still a comparatively new investment option, Kiyosaki thinks it could provide greater returns and more opportunity for growth. Though crypto investments may not be for the faint of heart, they may offer protection from the crash Kiyosaki is predicting, especially if other investors move their assets into Bitcoin as well.
Don’t Push Your Luck
Kiyosaki believes boomers have been lucky, which is a sentiment most economists would agree with. He points out that the kind of market prosperity boomers saw during the real estate, stock and bond markets of the 1970s was tied to that generation’s first home purchases and 401(k) plans. Now that they’re getting older, all that is likely to change.
“In the 2020s, boomers’ old age will cause real estate, stock and bond markets to bust,” he said.
Kiyosaki’s view is that it’s time to cash out of the economy boomers built before it slips away from them. “If I were a child of a boomer, I would nudge my parents to sell their home, stocks and bonds now while prices are high, before the crash that is coming.
Caitlyn Moorhead contributed to the reporting for this article.
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