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Robert Kiyosaki's book Prophecy is, as the author puts it, about building an ark. Similar to the ark that Noah builds in the Bible, but this is a financial ark, an ark of assets to protect you from the coming financial storm.

In his book Robert recalls his Rich Dad sitting his son and him down and explaining that in 1974 a law called ERISA (Employee Retirement Income Security Act), enacted by President Ford is the cause of this financial storm that is brewing. In 1974 ERISA told employees that they must plan for their retirement instead of the company that they work for just handing over a retirement to them. With ERISA the 401K was born. When this happened we moved from a DB (Defined Benefit) pension plan to a DC (Defined Contribution) pension plan. Now everyone has a 401K, which is their money (their retirement), invested in the stock market. This would not be such a bad thing, but most of the population does not have financial intelligence, thus the coming crash is almost inevitable.

Why and how does his Rich Dad predict a crash? When all of the Baby Boomers, children born between 1946-1964, begin to retire, they must pull their money from their 401K, the stock market, so that they can live. Well it does not take a genius to see the downfall of this. There are more baby boomers then there are of the next generation. So we have 75 Million people selling out of the stock market and not enough buying. Also, with the cost of medical care rising, what is to say that some of these baby boomers get sick, where do you think the money to treat these illnesses is going to come from? The Stock Market. So what happens if the baby boomer population needs Medicare or Medicaid? This presents another interesting problem because if 75 Million people are getting $1000 from the government a month, which means that $75,000,000,000 has to come from somewhere to pay for this per month.

If you gain some financial intelligence, there will be a way to not only ride out this storm, but profit from it. It just takes some education, will power, and the mind set to do it. You need to prepare yourself. This is why Robert Kiyosaki, also author of Rich Dad Poor Dad, wrote Rich Dad's Prophecy. It is an excellent book about the future of the economy and what you can do to prepare your financial ark for the coming storm.

Learn more about this author, Lane Fournerat.
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