Kiyosaki's book Prophecy is about building an ark, similar to the one Noah built in the Bible.  But this is a financial ark – an ark of assets to protect you from the coming financial storm. 

In his book, Kiyosaki recalls his Rich Dad explaining that the 1974 ERISA law is the cause of this financial storm.  In 1974, ERISA basically told employees that they had to plan for their own retirement instead of the traditional path where the company provided retirement benefits.  Many vehicles, including the 401(k) and IRA were born when President Ford signed the bill into law. 

When this happened, we moved from a Defined Benefit (old-fashioned pension plan) model to a Defined Contribution model (401(k)).  Now almost everyone has a 401(k) as their retirement plan, which is invested largely in the stock market through the various financial vehicles.  This would not be such a negative, but most of the population does not have the financial literacy required to competently manage their investments. 

Why does Kiyosaki predict a crash?  When all of the Baby Boomers begin to retire, they stop automatically pouring money into their 401(k)s and that decreases demand, which causes the market to go down.  Compounding the problem, this largest generation - 75 million people strong - begins to pull their money out of the stock market, which increases supply – putting further downward pressure on the markets. 

It does not take a genius to predict what’s going to happen.  This is a trend and it can not be changed by anyone or anything. 

Imagine millions of people retiring every year during their peak earning years and pulling their money out of the stock market.  Kiyosaki isn’t the only national celebrity talking about this. 

Maybe it’s time that you begin building your financial ark so you can weather the Perfect Storm…