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

(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. (louder upbeat music) – You’re listening to
the Rich Dad Radio Show with Robert Kiyosaki. (low electric guitar 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 your 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 or call 800-600-1760. Mention Rich Dad and
receive a hundred dollars off your formation fee. That’s (low keyboard music)
– – 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
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 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 or call 800-600-1760. Mention Rich Dad and
receive a hundred dollars off your formation fee. That’s (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 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 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 Thank you for listening to
The Rich Dad Radio Show.

47 thoughts on “The Pension Crisis Affects Your Retirement & Wealth—Robert Kiyosaki with Ted Siedle

  • 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.

  • 👏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)💸

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

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

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

  • 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.

  • 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

  • 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.

  • 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. …..

  • 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!

  • 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..

  • 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.

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

  • 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.

  • 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.

  • 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.

  • 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

  • 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!

  • 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

  • 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

  • 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

Leave a Reply

Your email address will not be published. Required fields are marked *