I am not a financial advisor, but I did have investments that I saw ‘going down the toilet’ and it concerned me greatly.  As a person with very little investment experience, I felt the need to search for satisfactory answers.

I always find it interesting that when you diligently look for something, the answer invariably appears, and so it was with my search.  I was led to a book written by Robert T. Kiyosaki called Rich Dad’s Prophecy.  I had read Rich Dad Poor Dad a few times but that was the only Robert Kiyosaki book I had ever read.  I immediately purchased a copy and what I learned was one of the biggest eye openers I have ever experienced.

We are all aware of the cyclical nature of the stock market.  We expect it to go up, down and sideways.  However, in the long term we always expect to see a gradual incline.  When we look at a graph we can see the little dips but for the most part, we see an upward motion.

A major part of the problem is that by the year 2016, the first of the 75 million baby boomers in the U.S. will be turning 70.   Most of us are aware of the possible drain on the Government coffers but that’s not the whole story.  A great percentage of these people have money in a 401k.  They are going to be obligated to take out their money by the time they reach age 70.5 years of age.  As most of these people have their pension money in a Defined Contribution Plan (a plan where the amount you receive is not cast in stone; the amount in the plan is always fluctuating based on the stock market) it will mean that they will have to sell all the mutual funds or bonds, or whatever they have in their portfolio, lock, stock and barrel.

to be con’t in next BLOG;

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