Hi Guys I’m just interested in what people think of the prediction made by Robert Kiyosaki in his book called “Rich Dad’s Prophecy” I have not read the book but I know someone that has.
Basically he is predicting that sometime between the year 2009 and 2015 there is going to be a massive stock market crash as all the baby boomers will be pulling there super funds out of the market to retire on.
I my self am a little skeptical about this claim. But then again it could happen I guess
So if the prediction comes true what are the smart investors going to do?
Will there be any warning signs and if so what should we look for ?
There is also another book written about the subject called the roaring 2000’s
By Harry Dent. Anyone read this book?Any comments welcomed
interesting topic. Here in Australia we have the same bell-curve in the population, too. When Australia was settled there was like 16 working age people for every old person. Now there are only 7, or something. That is why taxes are high and pensions will be scrapped. the country just can’t afford it. It has been suggested that immigration will make up the shortfall in the working age people if the population becomes too unbalanced, in Australia as well as America.
Dolf de Roos says buy into old-people -friendly accommodation. A lot of older people are selling their 3 bedroom house with 1/4 acre and moving to low-maintenance units with little gardens. Also disposing of their assets before the government take it away to pay for them when they go into a home.
So i think there will be a perfect tenant if you buy low maintenance rental units within walking distance of shops, even more in the future than now.
I think old people’s accommodation is a growing thing, and developers will do well if they build them now.
Oh yeah, just remember a book I read ages ago, by Stuart Wilde, who said he thought America would completely crash when oil ran out, because their economy is totally reliant on it. Interestingly when recently some nations started trading oil with Euros, (they’re not supposed to, because the US$ tells the world we have to buy oil only with US$ -) – well guess what? the Euro went up, and the dollar went zooming down. US financial crash alert! Fast forward a few terrorist attacks, and US wages a little war on the naughty nations that had been trading oil in Euros. oh, i mean, terrorist nations. whatever.
OK, i digress!! however, the point was that the oil thing (it is expected to run out in the next 20 years, isn’t it? I guess, until they happen to find a whole bunch of oil in a few countries they just had a war with???) – and the running out of it – is another thing which could cause the US to crash (and not just the stockmarket) in our lifetime, because if the dollar devalues too much, the true extent of the US’s debt will be exposed. I read that this was 18000 US per head of population debt to the world bank. that country’s financials aren’t that good, is the bottom line, and yes, it could very well crash for more than one reason.
cheers-
miniHi mini,
Well aren’t you a multifaceted soul, not unlike the rest of us[
]…..Stuart Wilde eh, Do you still read his stuff? One of my favourite authors!After the billfromoz schmozle you have just won back some brownie points[
]Wayne
Crikey, Stuart Wilde, it’s been a while…
I remember, 15 year ago, when I was ….
oh sorry, gone off track there!!!!Keep smiling
FelicityKiyosaki’s assertion that the stock market will crash is based on the fact that in America, when they hit retirement age (I think 65) they MUST start withdrawing their super/IRA/401k. They cannot leave the money invested and live off the earnings.
So, if x million people start selling the shares, and keep doing it over a long period, there’s going to need to be buyers with that much money to purchase them. If we’re moving into lower population areas, then he’s saying that there aren’t going to be enough people wanting to buy.
Cheers
MelThe prediction on the stock slump is floored.
1. If they have to draw down on there 401s what will they do with it all. Go to Vegas. Don’t think so. They will need an investment to live on.
If shares start to go down, would that not be an attractive alternative to cash ??? Also in the US the Boomers do not dominate the demographic like they do here.2. Its relevance to Australia though is to our own property market (as mini stated ) The big alternative is NEW town house developments for the Over 55s, AND in our area, the NTH West of Sydney on the arceage blocks the developers have been going after everything they could get (state Govt has foreshadowed changes here… )
In Australia the boomers are almost one to one with Gen X, will Gen X be able to afford the Boomer homes ?????? If not then Boomer wealth and the economy will fees it.On Oil, if the US drives cass like the rest of us and give up their trucks (pickups are 3 of the top four vehicles in sales.) then we will all be okay.
As most US stocks do not pay dividends, there is no income stream from their ‘investment’. So when they draw down their 401k, they are cashing in, and using that money to live on. they are retired, so there are no wages.
And I disagree that the Boomer population is not the same proportion as Australia.
Cheers
Mel
]…..Stuart Wilde eh, Do you still read his stuff? One of my favourite authors!
]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
