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Robert Kiyosaki warns retirement accounts can become “liabilities”
He argues the value of a 401(k) is tied to market “promises,” and early withdrawals can trigger taxes and penalties.
Robert Kiyosaki, the author of Rich Dad Poor Dad, said the “biggest liability” for many Americans may be retirement savings accounts that they fund for decades but cannot reliably convert into income when they need it, warning during an episode of the Rich Dad Radio Show, according to Moneywise and Yahoo Finance.
Kiyosaki argued that money invested in workplace retirement plans is ultimately tied to the stock market and to investment promises made by others, and he suggested that retirement outcomes can be hurt if markets deteriorate around the start of a person’s retirement.
The article notes that a 401(k) can still offer tax advantages, may include an employer match, and can be used to hold stocks, bonds, or other funds selected by the plan sponsor, but workers also face plan fees.
It also highlights that walking away from an employer match rejects part of compensation, while cashing out early can result in taxable distributions, though balances may sometimes be rolled into an IRA or another eligible workplace plan to avoid a taxable event.