Page 266 - Why We Want You To Be Rich - Donald Trump, Robert Kiyosaki.pdf

260 I CHAPTER TWENTy-THREE

Age boomers and Information Age boomers will become even more
apparent.How they will fare in the next few years may depend upon which
rules ofmoney they followed - the rules ofthe Industrial Age or the rules
ofthe Information Age.
Just as the first wave of baby boomers was leaving college, the world
started changing. First we had the Vietnam War - a costly war that divided
and nearly tore our country apart. Then in 1971, the United States came off
the gold standard. In 1973, the first gas crisishit. And then in 1974, ERISA
was enacted.
In 1971, just as many of the first baby boomers were getting out of
college, gold was $35 an ounce. Today, gold has hit $700 an ounce. That is
an example ofhow much the dollar has lost in buying power.
In 1971, many of the baby boomers were getting married and buying
homes. Back in 1968, my father paid $50,000 for his home. Today,the same
home is worth nearly $2 million. While this increase in value is good for
the baby boomers, it makes it tough on their kids and grandkids to be able
to afford a home oftheir own. Some baby boomers now have a tough time
getting their kids to move out ofthe house.
Many baby boomers do not have pensions due to the changes that began
in 1974. Many boomers do not have the Defined Benefit Pension plans their
parents did, and ifthey do, many ofthose DB plans are in trouble. Having
received no financial training in school, they didn't understand the
difference between a Defined Contribution plan, a savings plan and their
parents' pension plan. Millionssimply turned their money over to "financial
experts" and had no idea what was happeningwith their money. In 2000, the
stock market crashed and woke many ofthose boomers up to the reality that
their retirements maynot be that secure.Many found out that their "experts"
had lessfinancial training than they did.
In 2006, after buying huge gas-sucking SUVs, boomers were once again
hit with an oil crisis.This time it is a real one, not apolitically contrived one.
Back in 1973, oil was about $3 a barrel. It is now expected to go over $100
a barrel, maybe even higher in the near future.
The increase in the price ofoil means those counting on living on fixed

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WHY WE WANT You To BE RICH
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