- [Advertiser] This is
the "Rich Dad Radio Show", "The Good News and Bad News About Money." Here's Robert Kiyosaki. - Hello, hello, hello. Robert Kiyosaki, the
"Rich Dad Radio Show", "The Good News and Bad News About Money." And the reason I'm a
little low energy today 'cause I'm talking to my
generation, the boomer generation. Because the boomer generation, this is my message to you,
if you're like my poor dad, you know, go to school, get a job, but make sure the job
had a steady paycheck and a pension, you've been screwed, you drank the Kool-Aid and you
are about to get wiped out. So I wish I had good news,
but for our, my generation, a boomer generation,
we're in serious trouble because I'm, today, talking
with Ted Siedle, Edward Siedle, we co-authored this book here together, it's called, "Who Stole My Pension?" And Ted Siedle is a former attorney of U.S. Securities and
Exchange Commission, and he's also America's leading
expert in pension looting. And the reason this is
near and dear to my heart is 'cause my poor dad always thought that pension would keep him alive, and he lost his pension long time ago because he ran for lieutenant governor of the State of Hawaii. And Hawaii's probably one
of the most corrupt states in the nation. I mean, "Forbes" magazine calls it the People's Republic of Hawaii because it's run by the labor unions. Now, I'm not against labor unions, but I'm saying that's
what Forbes calls it. And my father, poor dad,
was a very honest man and he couldn't stand
the corruption in Hawaii. So in the '70s he ran for office against the establishment
and he got crushed. So he ran for lieutenant
governor as a Republican, he's not a Republican. If anybody was more Democrat
or liberal it was my dad, but he just couldn't stand the corruption. I was in flight school in Florida at the time, Pensacola, Florida, and he said, "I'm gonna run for office." I went, "Oh my God." And so what happened when he lost, he got crushed. The governor of Hawaii
said, 'cause the governor, I mean you have to do
business with a lot of people if you're governor, I
mean a lot of people. And my father told me, he says he had to do
business with the mafia, the Hawaiian underground,
because that's what politics is. It's a very, very dirty game. So my father ran and got crushed. The governor said to my dad, "You'll never work in this state again." My mother died six months later, she couldn't take the loss
'cause they lost everything. And that's when my poor
dad became poor dad. He found that his PhD
didn't really help him. So he lost his pension. Now from my generation, when I came back from Vietnam in '74, my poor dad's now broke,
no job, no pension, and he tells me to do
the same thing he did, you know, da, da, da, da. But instead, as I flew
for the Marine Corps, he said, "Why don't you get
a job with United Airlines?" And most of my classmates
were flying for the airlines. But guess what? They lost their pension too. So that's why when Ted asked me, Ted Siedle ask me to
co-write this book with him, it's a subject near and dear my heart. And so I says the good news
and bad news about money, hopefully we'll have some
good news for you today, but if you're a boomer or
your parents are boomers and they're counting on
that pension, you know, as they say in Hawaii, it's aloha! Your pension has been stolen,
and that's not a mistake. And we're calling it in this
book "Who stole My Pension?" 'Cause all across the U.S. and the world, pensions are being stolen. That's what happens when you have no financial
education in school. You hear that school teachers? 'Cause your pensions, how would you feel if
you're like by poor dad and it disappears when
you're like 70 years old, and the stock market crashing,
your 401k turns into 101k? Think about that. 'Cause that's the future
we face right now. So this is a "Rich Dad Radio Show", The good news and bad news about money for the baby boom generation or for those of you who
have baby boomer presidents, I mean parents, you might
be in serious trouble. So pay attention to what we have to say. So Ted, welcome to the program. - Thank you, Robert. Great to be here, again. - Yeah. Please give us a quick background because that's very important because your past shaped
this book also, didn't it? - Yes it did. It certainly did. I tell the story in the
beginning of the book about how my dad worked
for the CIA in Africa, and he disappeared when
I was 16 years old. And because he disappeared, because his body was never found, they, his estate couldn't be probated, his will couldn't be honored, his social security benefits wouldn't pay, his life insurance wouldn't pay 'cause there was no proof
of death at the time. And fortunately over time, the U.S. government, CIA
and others came forward with information and we won
a lawsuit against Idi Amin who had killed my father. So it took like several
years, but eventually his finances became available. But for years I was, you
know, from basically, you know, 16 to 19, I was
orphaned and penniless. And so that's a very
frightening situation to be in. And so that motivated me, you know, to really talk about financial security, retirement security. - In my opinion, this market
crash is accelerating, so those are the 401k's
they're gonna go to 101k's, and if your pension's been looted, I mean this stock market
also affects most pensions, is that correct Ted? - Absolutely. And so
two things I just wanna, the first thing I wanna
say at the get-go is, there is this notion that your
pension has been promised, promised to you. That's just not so. That promise is worth
whatever, whatever, you know- - [Robert] The words. - Yeah. The words. And even the words are your, the person who's promised you that pension will later tell you was they
never meant to promise it, it really wasn't a promise, we didn't really mean promise. So it's not even worth the word. But the first thing
people need to understand, 'cause they always come to me and say, "Ted, how can they do this? "They promised me. "For 30 years, I worked for
the Screen Actors Guild." "For 30 years, I worked for
the Ohio State Teachers." And then at age 75, they tell me, "My promised retirement
security is an illusion?" So that's the first thing to understand. The second thing, and to
your point is, all of these, pretty much all these government
pensions around the country have a June 30th fiscal year-end. So we are now in the last,
you know, since June 30th, we have begun to hear their
performance for the last year. And it's terrible.
- Yeah, this is August- - As terrible as it is,
it's actually worse. But we're hearing this everywhere
from Norway to California. Pension funds across
the world are disclosing historic losses, the deepest
losses since the '08 meltdown. - So Ted, would you mind
for edification again, starts with your father,
started with my father, but can you give us some, you know, you're known as one of
the biggest whistle blower in the world. I mean, it's amazing,
you're still alive. (laughs) You've gone after those pension thefts. Could you give us a story of
one pension you worked on. - Yeah. Well, I've done over a trillion in forensic investigations
of pension funds. So I'm the only one who's ever
done these investigations, and the first one I did
was frankly, back in 2013, the first public, first public
one I did was in Rhode Island where our current Biden
secretary of commerce, this investment wiz girl,
gal known Gina Raimondo was the state treasurer. - And she works for the
Biden administration now with Pete Buttigieg and all
those characters, right? - Yeah. Or Wall Street, whoever, you can say she works for whoever, I don't know who's
exactly paying her salary. - I feel so much better. (laughs) - Yeah. But here you've got a woman who has a dismal business record. This woman has never done
anything successfully in the business world. She's been the successfully
elected as politician, as a politician, state
treasurer, state governor, and now she's commerce secretary. But this is a person who, I
used to say in Rhode Island, they should pay to go away, pay her money, pay her a million dollars
to just leave the state 'cause it would be the
best money ever spent. So what I did in the investigation
in Rhode Island in 2013 was to show that Gina
Raimondo had loaded up the pension fund on very
secretive hedge fund and private equity investments. So she ushered in an era of secrecy, public pensions in Rhode
Island and around the country had never been secret in the past, they're supposed to be the most
transparent of all pensions in the world and their state Freedom of Information
Act laws in every state, they're supposed to ensure that. Well, she came in and said all
of the investment contracts, all the investment dealings for the Rhode Island Pension Fund will hence force be secret. And so what she was doing was
gambling big on hedge funds. And I said in 2013, "This
is going to end very badly." And within a few years
she'd racked up losses of nearly a billion dollars. This is an $8 billion pension fund. So how does an $8 billion pension fund earn back that billion that she lost? Well, you know, there's
only one way to get it back and that's really to,
to go to the taxpayers. - Yeah. And just FYI, when
Ted told me about this, that she was being
moved on to Biden staff, I remember I attempted to say something and I was told to keep my mouth shut. Do you know what I mean? That is how secretive this whole thing is. - Yeah. I was told to
stop writing about Gina. - Yeah. Yep, yep. - When she was nominated for secretary. - So let me ask you this question. You know, in Africa we talk
about the Africa salute, goes like this. (Ted laughing) - Yeah. - Was that going on? - Oh sure. Yeah. (Robert laughing) So what I didn't mention is, so I've done all these
trillions of investigations of pension funds, Ohio,
North Carolina, Rhode Island, Florida, around the country. And in looking at all of
these huge investment funds, I have found a lot of illegal
activity and that, you know, was the more profitable side of my work, reporting whistleblower
wrongdoing to the SEC and the other federal regulators. So I won the largest
whistleblower awards in history a few years ago, $78 million
for reporting this wrongdoing I was seeing in pensions
all over the country. - So now the world, and now all over the world.
- Yeah, all over the world. Yes, as well. Because as we point out in our
book "Who Stole My Pension?" America is the leading
financial innovator. And when I say that, we create
toxic financial products that we distribute worldwide, hedge funds, private equity funds, venture funds, all of that stuff began in America. And then we exported it,
currently we're exporting it to Australia, Japan, and
many of these pensions are being told that these
are proven investments that have been sold in
the U.s. for 10, 15 years. Well, that's not true. Recently the faults in
these toxic products have become increasingly apparent. True, they've been sold in the
U.S. for the last 15 years, but in the last five years, the fact that these
investments are terrible have, the chorus is growing, but that's the very
moment when Wall Street starts selling the same crap overseas. - Yeah. If we can take a walk
down memory lane, you know, you started in 2013, but
the 2008 crash, you know, they call it the subprime
mortgage crash and all that. That was, you know, creative
financing, you know, mortgage-backed securities,
collateralized debt obligation, they call them derivatives. And today the derivative
market is not in the trillions, it's in the quadrillions. And when this baby goes off, it's gonna be louder than
a thermal nuclear device going off all over the world- - I do remember back in '08, one of the shocking revelations was, there were all these
mortgage-backed securities and derivatives, and low and behold, they discovered the banks didn't
actually own the property, the mortgages, they
hadn't done the paperwork, they were selling securities
backed by investments they didn't own. I don't know what you call that, I think it's called fraud- (laughs) - That's a pretty strong term. - Yeah. The the paperwork
just wasn't there. Complex financial products
that are dependent on all kinds of legal and other edifices that when push came to shove, turns out, a lot of those assumptions were wrong. They didn't have title to the property, and, or the investments
weren't properly valued. There was rampant overinflated values of residential property and stuff. So all kinds of faults
in the system came up, became apparent after '08. But all of this stuff
was being sold globally for 20 years or more. - And that's why the repo market collapsed long before the 2008 went down. 'Cause the repo market is
where you get the collateral, what's real, what's fake. And I saw the repo market
collapsing and went, "Oh my God." And just to prove I'm not, you know, Ted and I are not just blowing smoke here, this is my book here was
called "Rich Dad's Prophecy", and this was written
about the same time, 2013. And I said, "Why the biggest
stock market crash in history "is still coming." So this was after 2008
and, "How you can prepare "yourself and profit from it." While the thing is "in
history" is still coming, needs to be said, "is now here." And it is today and you
watch what's gonna happen. They're predicting the
biggest crash is not only in the stock market, but
also real estate, gold, silver, everything's gonna come down. This is a thing that's
a little frightening for my generation is
because we're also sold that bill of goods, your house is your biggest asset. Now the problem with the
real estate market crashing, not only is it 'cause a
lot of it's debt or credit, that when real estate goes
down, it's like a sinkhole. And when real estate go down, not like so much the stock market, but when real estate goes down,
other businesses go with it. And all these guys like,
you know, carpenters, people who fix the houses,
people sell insurance, car dealerships, it's a sinkhole. And so as a real estate guy, you know, when people come up to me and say, "Ah, I took your advice. "I'm buying real estate." And I'm not Catholic, but I'd take laps around the rosary beads and I'll pray for you tonight, because the crash is here today. So Ted, would you mind
explaining what happened to, you know, my friends
flew for United Airlines and they lost their ESOP or something, Employees Stock Option Plan. What happened to United Airlines pilots? - United Airlines was the largest pension default in history. And that was back, I think, in 2006. - (laughs) I hate to laugh
because my classmates were saying, "Oh, you stupid idiot. "We got a job with United
and we're all pilots. "And we got, da, da, da, da." And then a few years later
they're looking for work, 'cause their pensions are gone. - They came, the United Airlines pilots and the U.S. Air pilots
came to me and asked me to do a forensic investigation. I did not do one of the United pilots, but I met with the Pension Bailout Group, the PBGC, along with the United pilots. And we begged them to do
a forensic investigation into what had caused the
United pension to collapse. And they refused to do it. The government said they
had no interest in learning what had caused the pension to fail and who may have profited as a result. Then I met with them again
with the U.S. air pilots, and, again, the PBGC said
they were not interested, but the pilots asked me, commissioned me to do a
private investigation. - Well, the PBGC is a Pension
Benefit Guarantee Corporation. - Yes. The PBG is the federal agency that's supposed to backstop all corporate, not public, government,
but all corporate pensions. But as you know, the PBGC is at least- - Is broke.
- 50 billion in the hole. Yes, sir. The insurer of corporate
pension is itself broke, yes. - So all you guys that got that safe job with the airlines right now, or driving UPS trucks
or whatever you're doing with that pension, I'd
pay attention right now. - Yeah. Their pensions
were dramatically cut, you probably know better than
me, but I think the numbers, these pilots were looking at in excess of 100,000 a year in pension benefits. And when the PBGC took over, they were treated basically
like flight attendants. I think they capped the maximum. The flight attendants
didn't suffer so much because their their maximum benefit was, let's say, 40, 50,000. But the pilots came
right down to that level, they saw their pension
benefits cut like 60, 70%. - I got the phone calls. "Oh, what happened?" I said, "You idiot, you
should have listened to me "a long time ago" because they
were just like my poor dad. You know, when they lost
everything they lost, when they lose their pensions,
they lose their future, and then they're too old to recover. So I have friends who
were pilot, you know, they're high paying, high flying probably 300, $400,000 a year pilots, and they thought they
were a King Tut, you know. - Yeah. And I don't know
if you remember back then, but at that time, about 20 years ago, the pilots had a mandatory
retirement age of 60. - Yeah, 60.
- So if you lost your pension at 60, you're shit outta luck, you're not going to get another shot. Now they have since changed
it, I think it's now 65. And there's a pilot shortage
now, as you may have heard. But at that time it was, you know, if you lost your pension at 59, 60, you could not legally go to work. And so it was a very
devastating situation. - I really shouldn't laugh, but when I was in flight
school in Pensacola, Florida, all my friends were saying, "Man, man, when I'm through
with this gig," you know, think five or six years you had to pay for your pilot training, "I'm gonna get a job with the airlines." And I'm going, "Good luck boys. "Because my dad had just-
- Well, it's funny you say that. 'Cause when I represented the
U.S. air pilots back in 2012, they told me just the opposite. They tell their kids who
are flying in the military to stay in the military 'cause the benefits are better, today. Or at least they were 10 years ago. - But this was '69, '70. And my father got wiped out in '70, and it's all these guys
are saying, you know, they're trying to get
them to C-130 pipeline, you know the different aircraft because certain aircraft
got special dispensation for the airlines. And then I took the helicopter gunship, which means no airline
would hire me, (laughs) which is a good thing. We don't want gunship pilots. 'Cause when I said, "Strap
in ladies and gentlemen," I do mean strap in (laughs). Anyway, it's kind of a
walk down memory lane for Ted and myself. We both had fathers who got
sucked into the pension stuff. And when we come back we're going into more what you can do. This is especially
important for those of you who are children of baby boomers, because you're gonna have new roommates. We'll be right back. (light upbeat music) - [Advertiser] The elite, backed
by the accreditation laws, have had access to all the
early investment opportunities. They have had the opportunity
to invest in tech companies in the private markets
before dumping their winners into the public markets for huge gains. But now you can take back your power. Introducing the ChainRaise platform, the platform built for
the people by the people. On ChainRaise, you will
find blockchain companies, tech startups, real estate deals and more that you can invest in. Any one 18 and over across the world can create a diversified
portfolio with under $1,000. Go hunting for the next tech unicorn or look for cash flow opportunities all through one platform. Join us in taking back your power. Go to ChainRaise.io today. - [Advertiser] Feeling
powerless over current events and your financial future? Financial freedom is your freedom. Robert Kiyosaki is the best selling author of "Rich Dad Poor Dad." Over 40 million people
have taken Robert's advice. Now it's your turn. Attend Roberts free virtual
wealth building event. Claim your free access
now at RichDadFree.com. Don't wait. Access is limited. Go to RichDadFree.com. That's RichDadFree.com. - Welcome back Robert Kiyosaki
of the "Rich Dad Radio Show". "The Good News and Bad News About Money." Today we're talking
with Edward Ted Siedle. He's a former attorney with United States Securities
and Exchange Commission, and he's America's leading expert in pension loading or looting, and he's a co-author with
myself on this book here, "Who Stole My Pension?" And once again, if you could say, "Well, I'm not, I don't need a pension." But if you have parents or
grandparents that do, as I said, you're gonna have new roommates because when that pension
disappeared for Ted's father and my father, and we're
talking about my fellow pilots who lost their pensions, it's not a funny thing
because you're out of time. So those who are young right now, "so I don't have to worry
and all this stuff." Well, as I said, you
might have new roommates called mom, pop, grandpa, great-grandpa. And you know how much a
nursing home costs today, it's about 15,000 a month. So they're gonna move out
of the retirement home, and you'd be changing diapers at home. (laughs) So anyway, so get
my "Who Stole My Pension", I'd read this book right away. So Ted we're talking
about the life expectancy of an airline pilot. What was it? - Yeah. I was very surprised when the pilots came to meet with me. Two things surprised me, one: they said, "Our pension
fund has never been audited." And I said, " Well,
that just can't be true. "That just can't be true." They showed me this, the report, and indeed it had a footnote
that this was not a full audit, it was what's called
a limited scope audit. That was the first time in 2012, after 30 years in the
business, that I became aware that these massive
multi-billion dollar pensions overseen by the government,
subject to ERISA, are often not, more often than
not are not fully audited. They get what's called
a limited scope audit- - And RERISA led to the 401k's Employee Retirement Income Security Act. - Yes.
- It's like the Inflation Reduction Act they was floated in 2022. Anything they say the act it's gonna do's, is gonna do exactly the opposite. So 1974, ERISA came out,
which led to the 401k, and suddenly all these school teachers, I was just getting out the Marine Corps, and all these school teachers are becoming financial
planners, went voila! And I said, "well, that's a
really interesting profession. "You have the poor leading the blind. "What else could you ask for?" (laughs) And today we're in serious
trouble, 401ks are crashing, pensions are being looted. And then Ted who warn
me about Gina Raimondo is now on Biden's, I mean, you can't call it a cabinet's clown show, he's up there with Pete Buttigieg
who took maternity leave and he's our transportation (indistinct). He takes maternity leave during the biggest supply
crisis in world, you know, and he is the supply guy! And Gina's up there,
and we got the warning, "Don't say anything" going, "Holy Mackerel, who's on Biden's cabinet?" I'm going, "My God." But anyway, let's get
back to first of all, the PBGC, Pension Benefit
Guarantee Corporation's bankrupt. Okay.
- Yes. - Just like social security. - It has been for over a decade. It's not news. It's been running in the
red for the longest time. And you mentioned ERISA, and your listeners should understand that ERISA is a comprehensive federal law that applies to federal, I
mean, to private pensions, corporate pensions.
- Right. - It does not apply to state,
county and local pensions, CalPERS, New York State,
these government pensions are exempt from ERISA. So as bad as ERISA is, there is no ERISA for the state pensions. This is totally the Wild West. But getting to your other point- - Again, as they say in
Hawaii, aloha! (laughs) - But the other point we were discussing during the break was that the
pilots really surprised me, and they said, "Ted, how old do you think "your average pilot lives until?" "Cause when you talk about pensions, you're talking about longevity. And in any profession, they're,
you know, school teachers live so long.. So they shocked me by saying
your average pilot died at like age 55. And I said, "Well, how can that be?" And you said the answer,
radiation in the cockpit. - Yeah they're sick man.
- That's what they said. I don't know if any of this is true, but this is what they told me. - That's what we were
told also a long time ago. And that's why I was saying
in 1969 and '70, '71, when I was going through
pilot training in Pensacola, all my friends couldn't
wait to fly the C-130. And the C-130's a four-engine transport, which was a guarantee
to go into the airlines, and me like an idiot I
chose helicopter gunship and no airline wanted me. It was kind of a blessing
in disguise. (laughs) So anyway, that's why I'm 75
and you're approaching 70. We didn't get that high paying
job with a pension. (laughs) - But it's when you get into
pensions, it's surprising, it's often, you know,
you find that NFL players die very, very young because of, you know, injury-
- Damage- - But also because of drugs and guns and fast driving.
- Women. (laughs) - Yeah. Fast driving. The fast driving lifestyle. Life of the fast lane, if you will. - I like that. Yes. - But I think, you know, if you look at what's the
average age that policeman die, it's not, I think, pilots die at a younger age on
average than policemen. So there's a lot of contradictions there. What are the health risks? What are the mortality risk? But you learn a lot when
you look at pensions 'cause you're studying
different workforce populations. - Right. And the thing
of, being 75 right now, Kim and I own a, one of the
biggest assisted-living homes right on Camelback Avenue in Phoenix and it's for high-end baby boomers. And I think it's like 15, 20,000 a month. That's a lot of money, you
know, to change your diapers. So there is, so if you're
a millennial or younger right now, if you don't
wanna be changing diapers, pay attention to this "Who
Stole My Pension?" Podcast with Rich Dad and Ted Siedle. So any suggestions for, I think it's too late for
the boomers, personally, because when they can't
afford their house, 'cause the value of the
house is gonna come down also and they can't sell it
'cause the market's so soft because there's a big sinkhole. Real estate's a big, big sinkhole. Any recommendations for
the younger generation, if you have parents, grandparents
and great-grandparents who are heading for the little
retirement home, your home. (Robert laughing) - Well, one of the things we
talk about a lot in the book is the end of transparency at
the state and local pensions. So one of the things,
the really initial task that anybody's concerned
about their pension has is, can they get access to the information? It is harder today than
it was before the advent of the internet to get
information about pensions and financial matters. So, you know, we thought
with the information age, information would flow to
the public faster than ever. No, that has not happened. Wall Street has made sure,
and politicians have made sure that doesn't happen. These pensions are less transparent now than they were 20, 30 years ago. - Yeah. But let's talk
to the younger generation with parents, grandparents,
great-grandparents headed for the big retirement home before the last retirement
home in the sky. Any suggestions for
the younger generation? - Well, I don't have, I don't recommend anything specifically, but one of the things that, you know, the key thing to understand
is that Wall Street and the wealth management
industry is basically out there to make money off your money. And they are not interested
despite all the rhetoric doing what's best for you, the client, is not their primary interest. So a lot of what you talk about, you know, to the extent that you can get
control over your investments and originate them yourselves, that's all great because
if you put your money into these Wall Street funds, you're basically making
somebody else rich. So think about what you could do locally and in your own life. Certainly entrepreneurialism
is a great way to get started. I told my two kids, my hope for
them is that neither of them ever has a resume. 'Cause if you don't, if you have a resume it's
'cause you're looking for a job. I don't have a resume, and I haven't looked for a
job in 35 years, 40 years. So if you can get that sort
of entrepreneurial mindset that there is nobody out
there who's going to give you the perfect job, the perfect pension, the perfect retirement security, that's a powerful message. What you do with that message, whether you get into real
estate or cryptocurrency, I'm not gonna tell you, but I would tell you to have a healthy- - What you saying is take
care of your own retirement. - Yes. - I mean that's exactly my thing 'cause we're talking about the resume. I remember my friend was a
pilot for a Aloha Airlines and he says, "Why don't
you come down and apply?" And I was still in the Marine Corps and when I went down there, they said, "Gunship pilot. Bye." (laughs) It was the best thing ever happened to me. They didn't want me because of my, the way I flew. But anyway, so the good news
is I went into real estate and I took real estate investment courses. Today on a ton of gold, we took a gold company
public on July 8th, 2022, we have silver. We had James Rickards on who was giving ideas for, and we check
out James Rickards show with Rich Dad because we have ideas, especially for you younger people. Face it man, your father,
grandfather, great grandfather are out of time. But you still have time, and that's why I speak to
the younger generation. And when I hear people saying, "Well, I've got a 401k or a pension." I said, "Then you're being set up. "That's my opinion." Now it might work. But I think what happens
if the same thing happens to my generation that happens to you, when you're 65 and you find out
there's nothing in your 401k or your pension or whatever it is. It's too late because the
greatest asset you have is your time. I mean, that's what I would say
to younger people right now. I wouldn't, you know, we
have the CASHFLOW game, we have clubs all over the world. But you better start training
your brain because, you know, financial education is a great protection from financial slavery. - Yeah. I know for me,
my dad was terrified that I would never
graduate from high school 'cause I was just terrible at school. And the irony is, Robert, I never did graduate from high school. I got accepted into
college after 10th grade, but I never to this day,
got a high school diploma. - (laughs) Wow. - He was right to be worried, and he was right that I would never get that high school degree, but I went on and did things
in a very unconventional way. And I would encourage younger people to think unconventionally because I call 401ks the great 401k experiment. It didn't work.
- No. - It was sold to Americans to workers, as a replacement for a pension, but it was never going
to provide the same level of retirement security as a pension. And it was never meant to be a pension. It was meant originally to be-
- Three-legged stool. - Yeah. It was supposed
to be a supplemental plan for senior management. And then they went out and
sold it as a retirement plan. It's not a retirement plan. Don't think of it as, it can
help you towards retirement, but it is not in and of
itself a retirement plan. - Correct. I mean, we don't
like to give financial advice, but I wouldn't be a
passive investor today, I'd be an entrepreneur. I'd be creating my own assets, doing my own study,
managing my own account, finding out about tax laws. And all the stuff that
Rich Dad stands for. - And the sooner you do it the better. If you wait till you're 50, you've got to start thinking about this as you are entering the workforce. I'd say, go to work somewhere
else for someone else for three to five years, and then the writings on the
wall, start your own thing. Learn from others, but then quickly exit and start your own thing. - So I remember in '74, I was
still in the Marine Corps, still flying out of Hawaii, and took my first real estate course, and that's when I knew. And I was just following
my rich dad's footsteps, and my poor dad kept saying, you know, go back to school, fly for United, get your PhD and have a pension. And that was my father's
advice and didn't work for him, but he was still telling me to do it. You know, James Rickards
was just on our program just before you, and he says, the problem with the last depression, it lasted longer than the depression. You know, I mean, this, he
said, the crash of 1930, let's say, lasted into the '60s because the memory of how
severe it was of a depression. And I think the most
important thing a young person needs to take care of today
is their attitude, their mind, and their education. Because this boom, I mean, I'm gonna prove I don't
like to tout my own stuff, but this here proves I
was speaking back then, what's happening today? "The biggest stock market crash
in history is still coming." I need to change that, "is now here." And, you know, if your
house is your biggest asset and your 401k is gonna keep you alive, and your savings. I mean, how can you save money when they're printing
tons of it, trillions. Every stimulus is the
theft of your wealth. If you think about that, when they print money to give
to people who don't work, they're stealing your
money, you're own wealth. So that's why ladies and gentlemen we have the "Rich Dad Radio
Show", the Rich Dad Company, thE CASHFLOW games and all the thing. We don't give financial
advice, but I would say, become your own entrepreneur and create your own assets, 'cause that's what I do today. So Ted, you know, thank you. Thank you. Thank you very much. One final thing. Name one European country,
where the pensions are toast. - I'm not sure, I can't
name one in particular. But one of the interesting
things that just came out. The Norwegian pension funds
announced their results and their results were
significantly worse. Most of the American
pensions are showing losses for the last fiscal year of 3 to 6, 7%. The Norwegian pension fund
came out with like 14, losses of 14%. But what the reason is
because America's pensions are hiding the losses on
private equity in these opaque, secretive invest, they're
not marking them to market. So when American pensions, your state pension
funds says they lost 6%, that's not the true number, the number's probably
double maybe triple that. So to their credit, the
financial press is getting that, they are saying in a
lot of these articles, "CalPERS announces losses of 6%." But then they say, "But this does not include
losses on certain other." I don't really know because-
- It's not the truth. - Apples to oranges, but I know that many of the foreign
pensions are being more honest about how bad things are than America's politically-driven state pensions are. - So as a closest statement,
let's talk about CalPERS. 'Cause a lot of people don't know it. That's the one I watched the most. What is CalPERS? - Well, CalPERS is the
largest public pension, largest government pension
in the United States. - And who are they?
- That's the California Public Employees
Retirement System. - And who are they? Who are they supposed to fund? - Well, there state workers
other than school teachers and there local pensions
that some of their money is at CalPERS as well. But CalPERS used to be known
as the biggest and best managed pension in the country. But then over the last 20 years, they have gone through
scandal after scandal, their one board member was going to prison for investment fraud,
he committed suicide. Another board member was shot and killed. So it's been a lot of controversy there, and they are no longer the
gold standard for anything. If anything, they're the gold
standard for misbehavior. So that, and again, this
is the largest pension in the United States, and the other pensions
look to it for guidance, but it has lost its way. It loses billions and billions every year. And the taxpayers are paying for it along with the workers themselves. - Good. So in final words,
I wanna say this much to everybody listening, is Ted and I learn from our fathers. And if your father is still
telling you to get a job with a pension or a 401k, I'd look for advice right now. Because if you're young,
your greatest asset is time, and don't wait to be an old guy like our fathers or our generation, Ted's and my generation,
we're out of time. And time is your greatest asset. So Ted, thank you very much. Keep up the good work. Keep sending me those disturbing texts. It's a good thing I don't need a pension otherwise I'd be on
suicide watch. (laughs) - Well, my advice to
younger people is, you know, you can enjoy your 401k or
whatever, but, or pension, but be skeptical and
make plans of your own, like Robert says, because
ultimately it comes down to you. And most of these retirement
schemes are not the promise that you thought they were. - Right. So ladies and gentlemen,
thank you to Ted Siedle. And we will be right
back for our final word. Thank you, Ted. (upbeat music) - Welcome back, Robert Kiyosaki
of the "Rich Dad Radio Show" "The Good News and Bad News About Money." But this time it's the pensions. And I really wanna thank
my co-author on this thing, Edward Ted Siedle,
"Who's Stole My Pension?" And our message today, for most of you young people out there, don't listen to your parents. If they told you to get
a job and get a 401k and count on the government
taking care of you, and let the PBGC, Pension
Guarantee Corporation, and then Biden's team up
there and the White House protecting I don't know who, I mean you're in serious trouble. So I will just back it up again, is rather than listen
to your mommy and daddy. The reason I brought up the stock market, I mean the last depression, it lasted years beyond the depression 'cause people remembered how bad it was. So Ted and I were fortunate, we both had dads who lost their pensions, but that woke us up. And the greatest asset,
if you say you're under 50 is your greatest asset today is time. So we at the Rich Dad
Company, we don't, you know, if you wanna invest in stocks,
bonds, mutual funds, ETFs, and all that stuff, knock
yourself out, you know, but I'd rather be an entrepreneur. I'd rather be an insider investor, I wanna control my own deals. So I just took a gold company
public on July 8th, 2022. You can check it out, richest
gold mine in the world, 140 years old. But that's what I do. I don't hope that someone's
gonna manage my money for me 'cause that's what losers do. And so it's not the "Rich Dad Show". So "Who's Stole My
Pension?" with Ted Siedle. Again, he is a former attorney, of United States Securities
and Exchange Commission. Like he said, he never
finished high school, but he just kept going,
and the guy's a genius, and he's an amazing man. It's a fantastic book. And again, if you don't
want your great-grandparent, your grandfather, your mother and father becoming your roommate and you
have to change their diapers because they can't afford a
retirement home, which I do own. Anyway, it's very
expensive retirement home, but it's your greatest expense
is at the end of your life. And if you lose your pension, like at age 50 or 60 you're toast. So please listen. The young people out there, greatest asset you have is
your time and your mind. And be careful who you
take financial advice from. And the prove I know what
I'm talking about is, I wrote this book here,
it's "Rich Dad's Prophecy." This came up, once I
saw saw the 2008 crash I knew at that moment they
hadn't fixed the problem, they made the problem worse. There were floating these
things called derivatives, MBS, mortgage-backed security, CDOs, collateralized debt obligation. The market crashed. I made a fortune because all
the real estate prices crashed. So we went back in and we bought
all this cheap real estate. So crashes are really, really good. But I think this crash it says here, "The biggest stock market crash
in history is still coming." It's here. This is 2022. It's here. Pensions are crashing. Real estate's gonna crash. Gold's gonna go down. Silver's gonna down. Bitcoin's gonna go down. But it could be the best
opportunity of your lifetime if you take responsibility
for what's inside your head and who puts it there. So Sarah final words. - [Sarah] I wanna try to explain this because we've had Ted on before, and a lot of the comments are, "Well, I have a 401k,
what am I supposed to do?" Or, "I work for the state,
what am I supposed to do?" And I think the point is-
- Loser. I mean, think. - [Sarah] I think the
point is, they're screwed. - Yes.
- You cannot rely on those pensions. So I'm gonna try-
- But wait, so they'll listening to mommy and daddy
and the school teachers. - [Sarah] Well, yeah, and it's over. I mean, they got into, they went to work for the city thinking, "This is a great cushy job. "I work for the city of Phoenix "and I'm gonna be taken care of." However, Ted, prior to this
show, in prep for this show, he sent me this article about
the New York state pension. And so I just wanna read a stat because I wanna prove my point. "The rising pension costs
threatened to strain the finances "of the largest U.S. city. "New York's financial plan, "which was released in June," so he said last year's
information came out in June, "and doesn't reflect
the projected increase "already anticipates a $4.2
billion deficit in 2024." So to prove my point, you
can't rely on the pension. So when you say, "Well,
what am I supposed to do?" Our advice at the end of that
show was exactly what they do. They have time left, you have to take care of your own retirement. Which means investing in unconventional, which we don't think is
unconventional, real estate, gold, all of the things that the
government can't print. - I'd invest in your brain. Like in 1974, when my dad was unemployed, I'm coming back from
Vietnam and getting spit on by all these hippies and all that stuff, you know, the loved children, oh my God. But anyway, I'm sitting there, my poor dad says, you know, "get your PhD and fly for the airlines." I go, "You've got to be nuts." And then my rich dad
says, "You wanna be rich, "you go to start your own education." So I took a real estate course
in 1974, cost me 385 bucks, and I learned how to buy
real estate for nothing done by a real instructor. See the problem with
academics is most instructors are smart people, but they
don't do what they preach. So the most important thing
you can do as a young person is look for a teacher who
actually does what they do. - [Sarah] This just popped into my head. I was watching a news station,
I'm not gonna say who it is, and the guest was a law
professor, and he starts, so they we're asking about this Trump raid on the White House, and I
know we're way off topic, but I just wanna say something, 'cause that always
sticks in my head, right. Our professors don't
actually do the real thing. So when you go to business school, do they run their own business? Blah, blah, blah, blah, blah. Well, the law professor
said, "I'm not an attorney. "I've never practiced
law, but I teach it." - No! - [Sarah] Yes. And they used
him as the expert to discuss the White House or the White
House, the Mar-a-Lago raid- - Which violated the Fourth Amendment. You cannot just search somebody's house. - So, again, back to our
point about credible sources and who we listen to. Do you wanna take advice from someone who's never practiced law? - Not really. Like you don't wanna take, I wouldn't wanna take flight instruction from a college professor who never flew. - [Sarah] Exactly. So be careful who your teachers are. You have nothing but time, take control of your own retirement. - And every time you bring
up school, my, you know, I was following my poor dad's advice. So I'm flying for the Marine
Corps, still in Hawaii, and I was stationed in Hawaii, and I went to take my MBA program, and I got kicked out of that program also. Well, number one, I walked into the class with a Marine uniform on in 1974, no '73, you don't do that. I got spit on, harassed
by all these hippies who became school teachers and
attorneys and all that stuff. But then the accounting teacher, he was teaching me accounting,
and I'm not an accountant, but he didn't know what
he was talking about. So if you look at the CASHFLOW board game, that's real accounting. That's called entrepreneur's accounting, income statement, balance sheets, statement of cash flow
with the auditor on it. That's real accounting. And so I'm sitting there getting spit on by all these hippies. They're now baby boomers, and they're probably out
of a pension, but anyway, and I question my accounting teacher. And my accounting teacher
said, "Are you," he says, "what qualifies you to
teach me accounting?" He says, "I'm an accounting teacher." I said, "Well, do you run a business?" He goes, "No." I said, "Well, how can you teach me?" And with that, that ended my MBA program. So ladies and gentlemen,
lesson number one for rich dad, choose your fricking teachers wisely. Your greatest asset is
the time you have left. And if your mommy, daddy, grandfather, or granduncle and all that move in and you're changing their
diapers, just remember, they probably listened to
their mother and father, and school teacher. Thanks for listening to
"Rich Dad Radio Program". (upbeat outro music)
