Articles

The Pension Crisis Affects Your Retirement & Wealth—Robert Kiyosaki with Ted Siedle

August 14, 2019


(intense upbeat guitar music)
– This is The Rich Dad Radio Show,
the good news and bad news about money.
Here’s Robert Kiyosaki.
– Hello. Hello. Hello.
It’s Robert Kiyosaki.
The Rich Dad Radio Show,
the good news and bad news about money.
So, way back in 1999, I started writing
about this thing called the
biggest crash in history coming
and I said it would come around 2016.
Well, I was about a year-and-a-half off.
The crash began in September of 2018
and what’s gonna cause
the crash is pensions,
retirement plans and so
I’m still whole to my guns.
I said, “I want you to
listen to this program,
because we’re talking
about one of the biggest
financial crisis hitting my generation,
which is the baby boom generation
and many of them as you
know don’t have much
to fall back on and if there’s a crash,
many 401(k)s, many public
pensions and private pensions
and things will go to hell”.
So, that’s why we had The Rich
Dad Radio Show prepare you
and you can make up your own mind
what you want to do,
but the biggest crash has already started
and it has to do with pensions.
How long it’ll take to come
to fruition, nobody knows.
So, a special guest today is Ted Siedle.
He’s a founder of Benchmark
Financial Services Incorporated.
He’s an authority on
investment management,
security matters and retirement systems.
Benchmark is from that
pioneer – the merging field
of forensic investigations of
the money management industry,
and has conducted intelligence
investigations worldwide
involving excess of 1 trillion dollars
and assets under management.
So, he’s looking for the crooks
inside our pension plans.
So, today, you’re gonna
learn a lot about why
our pension system is
the next subprime crash.
So, welcome to the program, Ted.
– Thank you for inviting me.
– Hey. We were talking
before we got on air.
You have a very interesting,
very interesting,
underline interesting, background
and we started by saying you don’t have
a high school diploma.
So, would you tell the
audience how that happened?
– Sure! People often ask
me how I got involved
in the forensic work that I do.
I grew up overseas in the
Caribbean, South America
and East Africa and at age 16,
my father disappeared in
Africa – in Uganda, East Africa
and nobody knew what had happened to him.
So, I came back to the United States just
before my seventeenth birthday.
I had not gone to high
school in the United States,
not gone to tenth,
eleventh or twelfth grade
and I was essentially
orphaned and penniless
since my father had
disappeared in East Africa
and they couldn’t find his body.
His estate couldn’t be probated.
His life insurance wouldn’t pay.
His social security survivor
benefits wouldn’t pay.
He was missing and presumed dead,
but not legally declared dead.
So, fortunately on the education front,
I was able within a year – I
was accepted early into college
and so I went straight into
college after tenth grade
without ever getting
a high school diploma.
So, the bad news is I never
got a high school diploma.
The good news is I got
accepted into college early.
– And you went to law school and all that?
– Yeah, after graduating from college,
I went to law school and
became a lawyer after that,
but it was a very difficult
time and that experience
of I had to bring a lawsuit
against a foreign dictator,
against Idi Amin, the President of Uganda,
an international lawsuit
hiring a team of lawyers
in Washington, D.C.
So, that’s kind of
compelled me to consider
a career in law.
I would not have gone to law school,
I can tell you right now had
my father not been murdered.
Then, I forensically had to
investigate what happened to him
and I ultimately went back
to East Africa in 1997
to find his body and to meet
the people who killed him.
So, that’s the short story
of how I ended up focusing
on the forensic side of the
money management industry.
– In general parlance,
sometimes people call you
a whistleblower but also
the word is forensic.
You go back in and you look
into the records of things
and that’s how you became
quote-on-quote a whistleblower.
What does that mean to the general public?
– Well, being a whistleblower
means that you become aware
of wrongdoings either within your company
or around you – either
within the company you work
or around you and, you know, honestly
most people when they
are made aware of illegal
or wrongdoings as their employer,
they keep their mouths shut.
It’s not human nature to
want to piss people off,
particularly your boss
by confronting people
about the wrongdoings.
So, you know, nine out of 10
people when being made aware
that there’s something really
bad happening at their family
will keep their mouths shut.
A whistleblower is people who
choose to contact authorities
and tell the story about
the wrongdoing around them.
– Now a whistleblower if
you’re proven correct,
you are awarded part of
the finds or whatever it is
that the fraudulent
company is involved in.
– Today, that is the case.
I first became a whistleblower in 1988
when I was employed at a
large mutual fund company
and as Director of
Compliance I became aware
of illegal activity that
I reported it quietly.
It’s what called blowing a silent whistle.
I did not go public.
Back then, there were no financial rewards
or few for whistleblowers.
After dodge trade, the
SEC and other regulators,
financial regulators in Washington,
now have vibrant whistleblower programs
and yes you can receive financial rewards
for blowing the whistle.
– And the reason you’re on The
Rich Dad Radio Show with me,
I think you and I share a common concern
because as you’re investigating
many pension plans
and funds and you know fraudulent
activity that’s going on,
or corrupt activity that’s going on,
would you say that the
baby boom generation
may not be able to afford to retire,
that something’s rotten in the
pension programs of America?
– Absolutely! You know, if you look at the
baby boom generation and
if you were to do a study
of what does your average
baby boomer look like.
You know, do they have house insurance?
Are they overweight?
How much do they have in savings?
How much do they have in pensions?
The picture that emerges is very bleak.
I mean, I could go through
each of those issues.
You know, many – I would
say 78% of all Americans
are living paycheck to paycheck.
My research is that the
average 401(k) balance
is about 25,000 dollars
and this is for people
in their fifties and sixties.
The lack of house
insurance is a big issue.
So, the future is very
bleak for most baby boomers.
You know, I think it’s
over a half of Americans
who are retired they
depend on social security,
predominantly on social
security to live off,
which is not a lot of money.
So, that’s the demographic issue
and then in terms of pensions,
I tell people a simple way
to understand pensions is
that there is the three drivers
to the health of pensions.
One is how much money goes
into the pension system?
Two is how the money in the
pension system is managed
and three is how much money
is paid out of the pension
in the form of benefits?
So, the majority of pensions
in the United States,
certainly public pensions,
state and local pensions,
there is not enough money going in.
The money is being invested
terribly performing well
below any S&P 500 Index and
the benefits – I don’t view
the benefits as generally being that high.
Some people focus on that
the benefits are too rich.
For some people, they are
but the overwhelming
majority, they’re not.
The overwhelming majority
of policemen, firemen,
school teachers are not
retiring with a lot of money
coming into them,
but certainly the mismanagement
of the pension money
is a big, big issue and the one that’s
most often overlooked.
– And that’s what you write about
and in some of the papers
I’ve read about you
is that it’s not just mismanagement.
It’s actually stupidity and
corruption by the fund managers,
not the police officers, not the firemen,
not the teachers but the
people that they trust
their pension to are
either corrupt, incompetent
or completely have no
idea what they’re doing.
Am I summarizing that correctly?
– Yeah! I wrote an article called
“The Top 10 Reasons Why
Stealing From a Public Pension
Is a Smart Idea” and when
you look at public pensions,
one of the big problems
is they are not subject
to any comprehensive law.
So, ERISA, the federal
law that protects private
corporate pensions–
Right. For those–
– It really doesn’t.
– For those who may not know,
ERISA protects your 401(k)s
and those are private or IRAs,
but if you work for the government
and you have a public pension
like California’s CalPERS,
then there’s no oversight.
There’s nobody watching
what the so-called managers
are doing.
Is that what you’re saying?
– Yeah. The ERISA does not apply.
The huge loophole to ERISA
is that public pension money
is not governed by ERISA.
So, that’s a big, big
safeguard that the federal law
that protects retirement
savings does not apply
to state and local pensions.
The next big issue is that
the Boards of these pensions,
there’s no requirement
that the Board of Directors
of these pensions have any
training in vested matters.
So, most state and local pensions,
the Board consists of policemen,
kindergarten teachers,
sanitation workers, people who
are not at all knowledgeable
about financial matters
and then they, you know,
hire Wall Street to
watch over their money.
So, you got a Board of civil
servants trying to do business
with some of the craftiest
sharks in the world
at Wall Street.
– An article I saw you wrote,
you say a lot of these
more exotic investments
like private equity and then hedge funds,
they come to town.
They wine and dine these lack
of sophisticated managers
so they get free trips, booze, women, fun
and all this, which influences them to buy
the banker’s products.
Is that correct?
– Yeah. Wall Street basically
has an unlimited checkbook
to wine and dine clients
in pursuit of let’s say
a 100 million dollar account.
So, I’ve gone with these Board members
and Wall Street guys on hot air balloons,
rides over Albuquerque, on
helicopter rides over Maui,
to many high estate palaces in Honolulu,
Ruth Chris, you name it,
and that is what Wall Street does.
They wine and dine state
workers who are on these Boards
and show them the time of their lives
and that’s how they get the contract.
– I think I read that one of these guys,
one of these Boards invested
in Beanie Babies or something?
– Yes. That was the Ohio
Bureau of Workers’ Compensation
invested in Beanie Babies.
(Robert laughs)
So, I’ve seen any kind
of ridiculous investment
you can imagine.
One of the most popular
is right in your realm.
Phoenix.
– Real estate.
– Yeah.
Of Phoenix also?
– Why there’s most generally,
local pensions often invest
in local real estate projects.
So, you’ll have a pension that’s
financed a football stadium
or a convention center or, you know,
something that’s supposed
to be economically
targeting to a locality.
(Robert laughs)
– So, Ted. I mean, this
is very interesting.
We’ll come back and
we’ll get going into it,
but if you wouldn’t mind,
I think the issue is what
does the average person do,
especially if you are
one of those pensioners
in a public pension plan?
You have enough trouble if
you’re in a private one,
like a 401(k) or IRA,
but if you’re in a public one,
like CalPERS out of California,
the whole allowance system,
what can you do?
So, once again, this is Robert Kiyosaki.
This has been one of
the reasons we’ve formed
the Rich Dad Company.
It’s because we have no financial
education at our schools
and the people that
ripped us off during the
subprime mortgage era are ripping us off
in the pension area.
When we come back, you’ll
find more from Ted Siedle,
(low upbeat music)
the founder of Benchmark
Financial Services
and he’s an insider
who’s blown the whistle
on some of these corrupt and
mismanaged pension funds.
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– You’re listening to
the Rich Dad Radio Show
with Robert Kiyosaki.
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– corporatedirect.com.
– What is your number one expense in life?
Your number one expense?
It’s taxes and I’ll go ask the question as
how come there’s no financial
education in school,
but why isn’t there
education on taxes either?
You know, they tell you to save money,
which is stupid.
They tell you to invest
in the stock market,
which is stupid,
but won’t they teach you about taxes?
So, here we have Rich Dad
advisor, Tom Wheelwright.
We’re talking about his
revision for his book
“Tax-Free Wealth”.
Welcome, Tom.
– Thanks, Robert.
– So, what’s the Tax-Free Wealth about?
What’s different this time?
It’s a revised edition.
– Well. So, what we did was is this is
the first major tax-free
firm we’ve had in 30 years.
Right.
– 2017.
– ’86 was the last one?
– ’86 was the last one back
when I was in Washington, D.C.
– Some of the guys got
wiped out because of
that tax venture.
– (Tom laughs) They did.
They did.
– Yeah.
– It wiped out an entire
industry in savings and loans.
This new tax law is just as big,
but in a very different way.
It effects different industries.
You know, the tax law’s
always a series of incentives
and the question is
always which incentives
and which ones apply to me?
So, the key to revising
Tax-Free Wealth was
what is it?
What changed so much in this new tax law
that we can absolutely
take advantage of the,
I mean, seriously, the amazing incentives.
For example, I mean,
the bonus depreciation,
for example, for real
estate, is unbelievable.
You buy a million dollar apartment
and get a 300,000 dollar reduction or more
the very first year.
– So, if you wanna make more
money and pay less taxes
like Donald Trump and myself,
get Tom’s book, “Tax-Free Wealth”.
(lively electric guitar beat music)
– Log onto richdadradio.com
while you listen.
Now back to Robert Kiyosaki.
(lively electric guitar beat music)
– Welcome back.
Robert Kiyosaki at the
Rich Dad Radio Show.
The good news and the
bad news about money.
You can listen to The
Rich Dad Radio program
at any time and anywhere
on iTunes or Android
and all of our programs are
archived at richdadradio.com.
So, you can listen to this program again
because we’re an education company.
We don’t make recommendations or sell much
and if you listen to this
program again with Ted Siedle,
the founder of Benchmark
Financial Services,
but more importantly if
you’re in a public pension
or you’ve a relative
that’s in a public pension,
this is a very important program for you.
So, listen to this program again.
Then have your friends,
family or business associates
listen to it because my
prediction is this pension crisis
is gonna be the next subprime crisis.
This one could be the very big one
and my concern is my
generation, the baby boomers,
are not prepared for what’s gonna come.
Those baby boomers are out
of time and out of money.
At least in 2007, they had some time
and they had time to make some money back.
This next crash might wipe them out.
It might wipe all of us out
and if you’re a millennial
or a child of a baby boomer,
pay especially close attention to this
and discuss it with your baby
boomer parent or grandparent.
So, once again, our guest
today is Ted Siedle.
He is the founder of
Benchmark Financial Services.
So, Ted, thank you for
being on this program.
Can you tell us a little
bit about CalPERS,
which is a nation largest
public pension plan.
– Yeah. I’ve known CalPERS since ’99
and I’ve known their Board members
and it obviously is the
nation’s largest public pension.
For many years, it enjoyed
a reputation as being
a sort of the gold standard, you know.
That CalPERS was so big, so
professionally well managed
that they were always on the cutting edge
and they were the standard other pensions
should strive to meet,
but over the years –
over the last 20 years,
become increasingly obvious
that they’re not at all
the gold standard.
They had been rocked by
scandal after scandal.
I wrote an article in May, 2017 called
“How To Steal a Lot of Money From CalPERS”
and the first line in the article was,
“How hard would it be to
steal millions from CalPERS,
the nation’s largest public
pension with 320 billion
in its assets? Easy peasy!”–
(Robert laughs)
– was the answer.
So and it talked about – I
started by in the article
talking about how in a 2015
meeting the Board admitted
they didn’t even know what
the fees they were paying
to Wall Street money managers.
So, it is a very poorly managed pension
that loses a lot of money
because of politicalization.
I call politicalization
of the investment process
and other mismanagements.
– My Attorney, who follows all this,
he said that CalPERS were sued to find out
how far under water CalPERS was
and he said it was one trillion dollars.
Can you verify that or not?
– I’m not familiar with that–
Okay.
– study.
– All I know is that it
underperforms chronically
and the fees that it pays are astronomical
and, you know, billions
higher than it needs to.
– Yeah.
– So, I sent a letter to the Board.
I think it was about 8 years
ago saying that I was aware
of investment wrongdoing related
to their active attention
and I would be prepared
to meet with the Board
to discuss it and they
had no interest in meeting
with me (laughs) at all.
– I wonder why.
– A Board member at CalPERS
asked me to send the letter.
He walked it in and
they were not interested
and one of the Board members said,
“How is this letter from
Cidel any different from
the thousands of others we receive?”.
(Robert laughs)
– I said – my response to that was,
“Look, if you’re getting
thousands of letters
from leading experts in pension forensics
that something you’re doing is wrong,
then that’s really screwed up!”.
Obviously they’re not
getting those letters.
My letter was unique but my
credentials are really unique.
There were very compelling
reasons to meet with me.
No financial downside.
I wasn’t asking them to
pay me to meet with me.
So, all they could have done
– all that could have happened
is they could have learned,
but they didn’t wanna
learn what I had to say.
So, that was the downside.
– You think they’re covering up something?
– Oh, they certainly are
covering up something!
One of the good things
about public pensions
for your listeners is
that they are public,
their minutes of meetings,
their contracts and things
are generally available
under state public records
or Freedom of Information Act law.
So, your listeners should, you know,
if they have concerns write to the pension
and ask to see the documents.
Most public pensions, all the
ones that I’m aware of today,
have websites and post
a lot of these documents
about the pensions, performance reports.
The information is often
long, but you can get a lot
of information from their website
and from public records requests.
– But Ted, you know, you
say that this is your forte,
this is your strength.
You know, you go in and take a look at it.
The average person probably
could not see what you see.
Now, moving on. You went after
the pension of Rhode Island.
What did you find there
and, as a whistleblower,
there was a large reward going out?
– I think you might be
confusing two things
that I recently received the
largest whistleblower award
in history from the CFQC,
30 million dollars, and 40–
– Congratulations!
– Thank you! Thank you! Well-deserved.
– Yeah.
– (Ted laughs) Then the
largest award in history
from the FTC of 48 million.
– Oh, okay.
– So (laughs), it was total–
– What is the CFTC?
– The CFQC is like the FTC
but they regulate commodity,
commodities trading,
the commodities markets
and the SUC regulates
the securities markets.
Most mutual funds, for
example, invest in commodities
and stocks.
Most mutual funds do future
as options, whatever,
as well as investing stocks and bonds.
– Okay.
– But that was the biggest
whistleblower award in history
that I ever received,
a total of 78 million.
When I went to Rhode
Island a few years ago,
or actually it’s six years ago in 2013,
the new Treasurer of Rhode Island,
who was a very popular Democrat,
said she had found a way to solve
the nation’s retirement
crisis and the way to do that
was to get workers to agree
to accept less benefits
than they’d been promised.
So, she attempted to cut the benefits.
They went to court.
The court agreed she could do this.
So, workers’ benefits in
Rhode Island were slashed
and by 3%.
The cost of living
adjustment was eliminated.
So, that was part of the story,
was that she was going to cut benefits.
What she didn’t tell workers and taxpayers
was she was going to gamble
the money in hedge funds.
– Ha (laughs)!
– So, she ended up cutting
workers’ benefits by 3%
and paying Wall Street 4%.
Hedge funds charge fees of
2% plus 20% of the gains,
which amounts to about 4%.
So, it was a sort of
slight of hand where all–
She said that by cutting
workers’ benefits,
the pension would be restored.
Less money would be
going out of the pension,
but what she didn’t tell them was that
by paying Wall Street more,
the pension would actually be worse off
and that’s what happened.
That’s what I exposed
in Rhode Island in 2013
that this was not an austerity program.
This was not a pension reform.
This was basically taking 3% from workers
to give Wall Street’s works.
– Wow! When you think
about the mindset that
would have done something like that,
and by the way did Wall
Street pay off on that,
I mean did it make sense?
I mean if they returned
20%, it would be great,
but you’re paying them 4%
and you’re losing money.
That’s a whole other story.
– Oh no. They did terribly.
As I predicted, at the time in 2013,
Warren Buffett had warned public pensions
all over the country not
to invest in hedge funds.
I don’t know if your listeners know it,
but Warren Buffett very publicly bet
a group of hedge funds a million dollars
that they would underperform
the stock market
over the next 10 years and
they were foolish enough
to take that bet against Warren Buffett
and your readers can
look on-line the results
of the bet were that Buffett candidly won.
The hedge funds
dramatically underperformed
the stock market.
In 2013 in Rhode Island,
the pension was told,
“Do not do this”, by
investment luminaries like
Warren Buffett, John Vogel and Ted Siedle,
but they went ahead with the gamble
and it ended up losing 500 million dollars
in the first eight years.
– So, how does that affect
the pensioner in Rhode Island?
What does that mean to them?
– Well, I mean, what it
means is that their benefits
were cut to supposedly make
the pension more sustainable,
but then the people writing
the pension gambled.
So, the pension’s actually worse off
or certainly no better off.
So, they took a pay cut for nothing.
– Jeez!
– Their benefits were cut and
the pension ended up losing
far more than the pension saved
by cutting workers’ benefits.
– So, did you hear this latest
thing I heard just recently
that New Jersey because
their pension is so depleted,
they’re now gonna charge a rain tax
on New Jersey’s residents to pull–
– I haven’t heard that, but I do know that
New Jersey has been
terribly managed for decades
and I believe is one
of the worst pensions.
Kentucky I think is on
the verge of bankruptcy,
but New Jersey is certainly–
New Jersey and Illinois
are certainly poster childs
for how not to run a pension.
– And since I’m from Hawaii,
how is Hawaii doing?
– I haven’t checked on Hawaii lately.
There was an investigation
I was proposing to do
in Hawaii and that was 15 years ago.
You know, the first public
pension to fail was Sipan.
– Oh!
– So, I was out giving a
speech in Guam and Sipan
and Sipan attempted to go bankrupt to–
– Not pay their employees.
– Exactly! Right!
So, Hawaii. I’m not sure
of where they’re at today.
I do know that there was an investigation.
I tried to do something,
I was aware of there,
but nobody wanted the investigation done.
– And then what is wrong with Kentucky?
– Well, Kentucky I say is the
worst because they are only
at this point I think 12% funded.
– Jeez!
– So, you can look up the exact number,
but the point is they have
12 cents for every dollar
they promised workers and when
you get to that low a level,
you are basically spending
all the money you have.
More money is going out
and the end is within view
within a few years away.
So, the investment program
in Kentucky has been
terribly managed for
decades and the pension’s
about to run out of money.
There is a lawsuit being
brought against the Board
or at least I think it’s against
all the Wall Street firms,
the hedge funds that
mismanaged the pension,
and of course let us
not forget Puerto Rico,
another public pension – US pension,
that has run out of money.
So, there are–
– Jeez!
– Puerto Rico’s an example of what happens
when pensions expire.
Sipan is an example.
Kentucky is an example and
then Illinois and New Jersey.
Many other states, Connecticut,
are cases where the
amount of money the pension owes is just
astronomically greater
than the amount of money
that’s actually in the pension.
– So, the final question
that is if I’m living
in Kentucky or Sipan or
Puerto Rico or Illinois
or California – I’m counting on CalPERS,
what can a person do?
Let’s say you’re 60 years old.
You’re set to retire in a few years
and your pension’s about to go bust.
Do you have any suggestions for them?
– What you can do is you can,
because of public pensions,
you can request documents,
get information, see if
you can attend meetings,
you can go to the websites
and what I encourage
people to do is to have
an investigation done of
the pension of your own.
I crowdfunded an investigation
on behalf of workers
in Rhode Island.
We raised – they raised
30 thousand dollars
to have me investigate what
was going on in the pension
and so nowadays that can be, you know,
as little as like a hundred
dollars per person or less,
fifty dollars per person.
In California, the pension is so good.
It has so many participants that to have
an independent professional
expert review done
would really cost the workers
less than an evening out
for dinner.
Well, that’s good news.
– So I would suggest–
It is. The crowd funding
the internet offers that
possibility because, as you say,
they can get the documents,
but I’m not sure an expert in the field–
You’re not gonna know what to make of it.
– Correct. Well, Ted!
– But I would encourage
people to be a thorn
in the side of these systems.
Let the people running these systems know
people are members or
concerned and are active
and are going to be watching them.
– Well, Ted! You know,
thank you very much.
Wish you had more time.
I’d like to have you come
back on this program,
but thank you for doing what you’re doing
and especially you may
not be a whistleblower,
but be a great informative teacher
on a very important crisis
facing America today.
(upbeat guitar music)
So, thank you again, Ted.
– Thank you.
– And we come back in
the next most popular
part of our program,
which is “Ask Barbara”.
(loud upbeat music)
– You’re listening to
The Rich Dad Radio Show
with Robert Kiyosaki.
(jazzy guitar beat music)
– Don’t be like Charlie!
Charlie is that do-it-yourselfer,
who does himself in.
Do-it-yourself is good for tile and grout.
It is not good for asset protection.
Charlie thought he’d save a few dollars
forming his LLC on-line.
With no guidance, he did it wrong.
When he sold the property, he lost
thousands and thousands of dollars.
He did himself in by
trying to do it himself.
Don’t burn yourself!
Use Corporate Direct
to set up and maintain
your LLCs and corporations.
Corporate Direct is owned and operated
by Attorney and Rich Dad
advisor, Garrett Sutton.
Garrett wrote the best sellers
“Loopholes of Real Estate”
and “Start Your Own Corporation”.
He is Robert Kiyosaki’s
Attorney for asset protection.
He and his team will do it right.
Visit them at corporatedirect.com
or call 800-600-1760.
Mention Rich Dad and
receive a hundred dollars
off your formation fee.
That’s corporatedirect.com.
Corporatedirect.com.
(funky upbeat keyboard and drums music)
– It pays to listen!
Now back to Robert Kiyosaki
and The Rich Dad Radio Show.
(funky guitar music)
– Welcome back! Welcome back!
Robert Kiyosaki at The
Rich Dad Radio Show.
The good news and bad news about pensions.
Again, our thanks to Ted Siedle.
You know he was talking about
the next retirement crisis.
I’ve been concerned about this for years.
That’s why I wrote Rich Dad’s Prophecy,
how the biggest stock
market crash is coming
and what you’ll find out
why the crash is coming.
It’s the very people that
brought us the crash of 2007,
2008 are the very same
organizations that’ll bring us
a crash of pensions.
It’s Goldman Sachs,
barristers, Lehman Brothers.
They’re all out. Some
of them out of business,
but the very same problem still exists
and instead of the homeowners
getting ripped off,
this time it’s going to be
the pensioners ripped off.
So, that’s what our next
crash is coming from
and that’s why I wrote The Rich
Dad’s Prophecy a while ago.
So, anyway, I wanna thank Ted.
His website is benchmarkalert.com.
Please get his articles.
He’s a very prolific writer.
He’s a great writer and
you’ll learn a lot more.
So, once again, you can listen
to The Rich Dad Radio Show
any time, anywhere on iTunes or Android
and all our programs are
archived at richdadradio.com
We archive them so you can
listen to this program again
and after you’ll listen to the schedule,
you’ll hear a lot more.
You’ll learn a lot more,
but most importantly
get your friends, family
and business associates
to listen to this program
and discuss it because trust me!
This is the next crisis and
it’s on its way right now
and the worst thing is is
the baby boomers, my age,
are out of time and out of money.
So, even if you’re a young person,
you’re gonna say, “Well,
what happens if my father
or my grandfather has no place to live
or his retirment has gone?
What happens if his pension is bankrupt?
What do I do then?
What do I do about
taking care of his health
or her health?”.
That’s why this Rich
Dad program is created
so you get an insider
view that Wall Street
or a bubble vision or the
papers will never report.
So, anyway, thank you to Ted Siedle
and what’s the first question?
– Our question today,
Robert, comes from Sophia
in New York
Favorite book “Rich Dad Poor Dad”.
She says, “Robert, I
hear you ringing the bell
on the coming pension crisis.
I’m nearing retirement
age, but I’m fearful that
something will happen
and I’m somehow not going
to be able to access my
pension in my retirement years.
Do you know what happens
to people’s pensions
if a company closes or
files for bankruptcy?”.
– Well, first of all. Thank
you for paying attention
to The Rich Dad Radio Show
and I feel for you right now.
As you know, the story of
my Rich Dad and Poor Dad
was my poor dad lost his job at 50
and he never recovered.
He had nothing.
He spent his pension
trying to start a business
and he had nothing.
So, if there’s a compelling
reason for me to create
The Rich Dad company and talk and speak,
it’s because we’re facing a crisis.
I don’t think anybody knows
how big this crisis is.
I mean I don’t, but it’s
estimated to be over
a 225 trillion dollar problem, unfunded!
That’s how much money they’re short.
So, if you think the last bailout was big,
the last bail off was
only like 40 trillion.
This is 250 trillion.
So, that’s why I wrote Rich Dad’s prophecy
and this Rich Dad company was formed,
but to answer your
question, a big question is
who is the insurance
company behind your pension?
If it’s the PBGC,
the Public Pension Benefit
Guarantee Corporation,
it’s like the FDIC,
the Federal Deposit Insurance Corporation.
So, the FDIC backs up your savings.
The trouble is FDIC is bankrupt.
You know, if there’s a run on the bank,
there’s not enough money
in the FDIC to cover
the 250,000 they’ve promised
me to get my money back.
So, Kim and I have a
problem of excess cash
and we started broke, but we
just kept following our plan.
Yeah. So, we have 250,000
dollar deposits all over
in different banks and all that,
but what if FDIC is not there?
It’s the same thing for the PBGC,
the Pension Benefit Guarantee Corporation.
It’s bankrupt also.
The good news is you’re early.
You can do something about it
yet before the crash comes.
So, again, that’s why I
write this when I talk,
but my whole thing here
I think it’s important
that you take responsibility
for your education,
your financial education
because our school teachers
know nothing either.
As Ted Siedle talked about,
many of these pensions
are managed by school teachers,
firefighters and all that,
people who know nothing and
then Wall Street comes in
with a private equity in hedge funds
and takes advantage of
uneducated public employees.
So, ladies and gentlemen,
young lady I wish I had
a quick answer for you, but I don’t,
but I thank you for
listening to this program
and I thank Ted Siedle again and,
once again, you can
submit your questions to
“Ask Robert” at richdadradio.com.
Thank you for listening to
The Rich Dad Radio Show.

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47 Comments

  • Reply rajat khadtare March 27, 2019 at 5:31 pm

    Hi. Robert i know you haven't posted it , but the matter of fact is i see you as my mentor . And hence i would like to meet you on person and assist me to lead my life.

  • Reply rajat khadtare March 27, 2019 at 5:34 pm

    In case you thought of helping me you can reach [email protected] +919067607617
    &
    [email protected]
    P:S – maybe i can also help you grow your business in India. Through many ways. Ex: you know

  • Reply Alquiler Profesional March 27, 2019 at 5:41 pm

    👏awesome tips! Each of us certainly must take individual responsibility for his/her own retirement! (the sooner you begin the less painful it will be)💸

  • Reply Craig Scott March 27, 2019 at 6:00 pm

    I have been waiting to hear the same issue since Robert Maxwell(?) guy who stole pensions, or something like that in the 80s (?)

  • Reply Herb Levin March 27, 2019 at 6:07 pm

    AAAAND, they do NOT even talk about when this recession/depression starts soon and the pension investments go to HALF!! LOLOL

  • Reply WRO March 27, 2019 at 6:08 pm

    Great discussion. Everyone should listen to the issues of Illinois, Kentucky, Rhode Island, and California in this show.

  • Reply Robbie Cruz March 27, 2019 at 6:19 pm

    I got two more gumball machine and two more gumball toys and candy machine

  • Reply Carlos Dias March 27, 2019 at 6:55 pm

    Thank you So much.

  • Reply Randy C March 27, 2019 at 6:59 pm

    It seems to me once they allow pensions to purchase crypto currencies not only will help pension funds but make the price of cryptos soar unimaginably. This will happen to avoid riots. Done deal.

  • Reply PUNDITH KUPAMANDUKA March 27, 2019 at 7:00 pm

    Sir when do you predict next recession please make your next podcast on it

  • Reply Passive Income Tom March 27, 2019 at 7:58 pm

    Start your own business, build up your savings for the crash and create your own retirement plan.

  • Reply Jeff Dorris March 27, 2019 at 7:59 pm

    https://finance.yahoo.com/news/almost-half-older-americans-zero-210656147.html

  • Reply Kingdom Builders Business Network March 27, 2019 at 8:14 pm

    This is great info! I need to talk about this kinda stuff on my channel…

  • Reply Rocky Shadow March 27, 2019 at 8:24 pm

    I've just get born and there is already a crisis starting I guess I must learn how to make money during crushes i love rich dad

  • Reply William M March 27, 2019 at 10:41 pm

    Robert!!! Urgent!!
    if the pensions fail what about the investment in resthomes??!!!

  • Reply Pavor March 28, 2019 at 12:14 am

    I am Canadian and whenever someone asks me if I have kids I say yes, the Canadian Pension program. The problem is that 1. Baby Boomers do not deserve to be taken care of based on how they left their children a society picked to the bones to live in and 2. If you dont control population than the moment one generation is bigger than the preceding one it collapses.

    I think it should be the responsibility of employers to provide pensions as a form of benefit. Nationalized pension programs will never work unless you design half of your society around them.

    Also screw previous generations. If you didnt save up and provide for yourselves despite consuming 20 generations of resources in a single generation like baby boomers have done then get rekt and go die.

  • Reply Boris Sitnikoff March 28, 2019 at 1:02 am

    Pensions are like a picture of a carrot driving a mule

  • Reply Frank Muhammad March 28, 2019 at 1:09 am

    Love those glasses!!

  • Reply Lady pilliwick March 28, 2019 at 2:14 am

    The GM auto company put all they're pension in treasury notes…. who then put the close to a trillion into the Clinton Fund…
    which is now bankrupt. …..
    ??????

  • Reply Color Storm Fur March 28, 2019 at 3:26 am

    I know this is wayyyy off topic but may I ask do you know if there is a way around article 13 that isn’t illegal? please respond my small business really needs to put up its website soon or we will go out of business!

  • Reply Daniel Jackson March 28, 2019 at 3:33 am

    Why don't you guys just put a camera on you when you do these shows? You'll get a lot more view time. Not just clicks..

  • Reply Nomad Black March 28, 2019 at 3:57 am

    Can you turn of the ads on this channel? You have enough money, respect this channel and make it about the content. A fawking ad every 10 minutes its shameful. Turn it off! It hurts your brand.

  • Reply Can We Go Nowhere Any Faster? March 28, 2019 at 7:00 am

    Pensioners should start acquiring the KBC and KCB gold backed cryptocurrency coins.

  • Reply PhyZeik March 28, 2019 at 7:02 pm

    Baby boomers fucked the U.S.

  • Reply PrincessNadira80 March 28, 2019 at 7:37 pm

    My retirement plan is a colt 45.

  • Reply Brayden Statters March 28, 2019 at 8:13 pm

    so according to this, should young people NOT be maxing out contributions to these kind of accounts? What if your employer matches?

  • Reply unboxing theboxx March 28, 2019 at 9:16 pm

    THE GREATEST TEACHER OF MONEY😉

  • Reply Iulia F March 28, 2019 at 10:04 pm

    thank you for promoting that wealth and money= happines, not friends, nor family, culture, tradition, just money and wealth that is all you need. bullshit. bullshit and again bullshit.

     what if you live for tomorrow, what it paying taxes is all you can do? can you see how life is for the majority of us? or are you blind? people are diying because they don''t have anything to eat… and you speak about taxes, incomes???

    please come to a poor country and see how it is. diagrams??? noooo…. nothing is shure, everything is corrupt. and you want to come to one of this countries…. to give lessons? what? you want to take some money? from people that are already poor? nice. good luck. intelligent. thank you for this contribution for this world. i have a business.. wise words.

    i can live. this is my reality, i don't put money aside. of course not, just if i would steal from people poorer than me and unluckier, could i do that ( like the politicians). thank you for promoting that wealth= happines, not friends, family, culture, tradition, but money and wealth. and you know what?

     i am one of the wealthy people of my country… that means i can survive. that's it. you are on the wrong way. reconsider all of your life choices, you filthy pig.

  • Reply The Farmers Daughter March 28, 2019 at 10:54 pm

    My brother told me the pensions were saved by the houses in 2008.
    Hey, maybe it is their turn.

  • Reply Forecaster NZ March 29, 2019 at 12:43 am

    For too long the world was mislead to believe that America was the richest country. Cat is now out of the bag. But dumb people will never learn.

  • Reply Steve Buller March 29, 2019 at 1:18 am

    Great content, thanks! So Kentucky… 12% funded… when does it qualify as a ponzi scheme?

  • Reply deepak vaidya March 29, 2019 at 5:01 am

    Don't cut speaker

  • Reply StarWars R March 29, 2019 at 3:15 pm

    hi old man how many girl friend do you have?

  • Reply Financial Freedom [F.F] March 29, 2019 at 3:34 pm

    The tips is super Awesome ❤️

  • Reply BBM March 30, 2019 at 2:16 am

    You two act as though we've not heard about this since age 15 approximately 1986

  • Reply Spokane Apartments March 30, 2019 at 4:49 am

    As this massive real estate bubble implodes, I need more Robert podcasts. You helped me get rich during the first cycle, I need you now again Uncle Robert.

  • Reply Jacob Stromburg March 30, 2019 at 8:39 pm

    Good thing I don't have money in 401Ks and pension funds.

  • Reply BassBreath100 March 31, 2019 at 7:33 pm

    WE CANNOT AFFORD A UNIONIZED GOVERNMENT !!!!!

  • Reply Metal Bum April 1, 2019 at 3:25 pm

    Thanks for all you do Robert Kiyosaki and Ted. This is exactly why I'm stacking precious metals. I made a gold and silver youtube channel thanks RK

  • Reply S Douglas April 3, 2019 at 8:38 pm

    I heard about a case where the pension fund was overseen by the boss and the boss was a labour-law specialist; luckily, he believed in very safe, to him, investments. Wow!

  • Reply Blind to Billionaire April 5, 2019 at 8:06 pm

    This is so interesting and such a great video. Thank you very much! I love the channel and your videos. You always have such great informative information. Thanks, Matt

  • Reply Mick Puhar April 9, 2019 at 2:38 pm

    Ok. Great info but you didn't really answer what we can do to protect ourselves. Okay maybe nice to pay Ted to find out if the pension plan is corrupt but that still doesn't help the person being affected

  • Reply Patrick Keophoxay April 12, 2019 at 1:01 am

    I got to say, when it comes to pension, I tend to think of the private kind.

  • Reply All American Dream Chaser April 14, 2019 at 12:13 am

    Are postal employees at risk??🤔

  • Reply ing yellow May 17, 2019 at 1:40 am

    why didn't say that in 1990? planty of bullshit, This guy only get a good inheritance from his rich dad

    A poor person never can get rich, it's really, really rare, stop inspire hope for poor people

  • Reply Victor Jaggwe May 25, 2019 at 7:15 pm

    Am from uganda, i have heard Idi Amin who ruled uganda from1972 to 1979

  • Reply Sonny12681 June 7, 2019 at 4:05 pm

    What about State Pensions. Are the State Pension in big trouble to?

  • Leave a Reply