Why Financial Advice Fails & What to Do Instead: Insights with Robert Kiyosaki & Ron Willoughby

Rich Dad Radio Show: In-Your-Face Advice on Investing, Personal Finance, & Starting a Business

The Rich Dad Company

Entrepreneurship, Business, Investing

4.1 • 3.9K Ratings

🗓️ 1 May 2024

⏱️ 35 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In this insightful episode of the Rich Dad Radio Show, Robert Kiyosaki explores the critical financial decisions facing professionals like doctors and lawyers, particularly focusing on retirement planning and the relevance of financial planners. Kiyosaki introduces the historical context of the 1974 ERISA act leading to the emergence of 401ks and IRAs, highlighting the challenges baby boomers face with retirement due to these defined contribution pensions. Guest Ron Willoughby, a veteran of the financial services industry, sheds light on the transition from commission-based to fee-based financial advisement, its implications for investors, and the superior benefits of cash value life insurance over traditional stock market investments.

Through their discussion, they underline the failures of the modern financial advising industry, critique the motives behind financial advisement, and argue for the importance of informed and diversified investment strategies beyond stock and real estate markets.

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Please read carefully.

This is not financial advice.

You may be asking, “what does that mean?”

Let me explain…

Do not just do what I, my team, or my guest says. That would be stupid and irresponsible. Take the education, then use your own brain and make your own decisions.

YOU must take responsibility for your future and your success. That is why you are here. Neither I, or my team, or my guests, know your risk levels, prior education, emotional maturity, or how much money you can afford to lose.

We are only telling you what we believe to be smart moves. But you must decide for yourself. There are NEVER guarantees.

Also understand that we are REAL teachers. We practice what we preach. With that in mind we often invest in the very projects that may be mentioned on this show. While it is never our intent, we could possibly profit from others investing in our recommendations.

Take the education we provide but then determine your own actions. If it does not make sense to you, get more education before you invest. We will continue to provide education and there will always be more opportunities.

Transcript

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0:00.0	This is the Rich Dad Radio Show, the good news and bad news about money.
0:07.0	Here's Robert Kiosaki.
0:09.0	Hello, Hello, Robert Kiosaki, The Rich Dad Radio Show, the good news and bad news about money.
0:14.0	And we broadcast from beautiful Phoenix, Arizona, where it's either heaven or hell, and right now it's
0:18.9	heaven, it's beautiful, it's perfect time of year. But soon it'll be hell. I mean it's hotter than hell and literally that
0:25.8	mean. So we have a very important show today as a friend of mine for years. As some of you may or may not know, there's a saying that they're the saying that if you have
0:37.2	nothing good to say don't say it or if you don't know what you're talking about, don't say it.
0:44.0	But my generation is the baby boom generation.
0:47.0	So I was getting out of the Marine Corps in 1974.
0:51.0	And that's an important date, not that I was going on the Marine Corps, but
0:54.0	1974 was a start of what they call ERISA, Employee Retirement Income
0:59.4	Security Act, which today is better known as the 401k or the IRA.
1:05.0	And there was a long way of saying the baby boom generation is the first generation without a pension.
1:14.0	And what they put us into was a thing called defined contribution pensions,
1:19.0	which is a 401k, an IRA, and things like this.
1:22.0	Whereas my parents generation, they 401k and IRA and things like this.
1:23.0	Whereas my parents generation,
1:24.9	they had a defined benefit pension plan,
1:27.8	DB versus DC.
1:29.8	Defined benefit means you were guaranteed, let's say, $1, dollars a month for the rest of your life.
1:35.6	The baby boomers don't have that and today the boomers are now pushing into the late 70s and they're starting to retire and the stock market has been
1:47.8	boomed up simply because there are so many
	...

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