Kiyosaki calls 401(k)s liabilities, advises buying gold

Robert Kiyosaki says a 401(k) could be the biggest liability putting your nest egg at Wall Street’s mercy. The Rich Dad Poor Dad author warned on the Rich Dad Radio Show that the money most Americans pour into retirement accounts is flowing in the wrong direction. He argues that a 401(k) is tied to the stock market, to other people’s promises, and that it can behave more like a liability than an asset.

Kiyosaki’s point comes amid growing anxiety about market volatility and the long time people spend in retirement plans. He notes that workers contribute for decades without drawing income, and that the funds they invest in are chosen by the plan sponsor. Fees and limited investment choices can erode returns. Yet the plan still offers tax breaks, a potential employer match, and the ability to roll the balance into an IRA without triggering a taxable event if handled correctly.

The author stresses that a large 401(k) balance does not guarantee reliable income in retirement. A market downturn early in retirement can force investors to sell assets at a loss, especially when they need cash. Kiyosaki recommends diversifying into assets that are less tied to the equity market, such as precious metals, real estate, or other cash‑flow generating investments. He has long warned that government borrowing and money printing erode the dollar’s purchasing power, which is why he favors gold and other tangible assets.

If you’re worried about being at Wall Street’s mercy, start by reviewing your plan’s investment options and fees. Consider keeping a portion of your savings in an IRA or other vehicle that allows broader choices. And think about adding a small allocation to gold or rental‑property funds that can generate steady cash flow. By reducing your exposure to pure market risk, you can protect the nest egg you’ve built over decades.