Robert Kiyosaki, famed financial advisor 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. Here are his latest personal finance recommendations for the baby boom generation.
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Kiyosaki suggests that a market crash could wipe out some traditional income streams boomers may be counting on for a self-reliant retirement.
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The key here is to proactively approach whatever may unfold and adjust your financial plans to anticipate coming changes.
Instead of solely relying on a 401(k) or an individual retirement account for financial independence, boomers should consider focusing on increasing their savings and developing new income streams that don’t rely as strongly on overall economic performance.
Kiyosaki makes it no secret that he thinks we’re headed for a historic stock market crash. If he’s right, the traditional investment vehicles boomers have depended on could change from safe havens to risky bets overnight.
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 make appropriate changes while they have time.
This one might surprise some people, but Kiyosaki recommends getting out of 21 Affordable Small Cities To Retire on the East Coast 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 says, 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.
Are You Rich or Middle Class? 8 Ways To Tell That Go Beyond Your Paycheck 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 6 Hybrid Vehicles To Stay Away From in Retirement 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.
Kiyosaki says that 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.”
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.
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This article originally appeared on GOBankingRates.com: Robert Kiyosaki: 5 Things Boomers Must Do Before the Stock Market Crashes
