Page 64 - Why We Want You To Be Rich - Donald Trump, Robert Kiyosaki.pdf

58 I CHAPTER FOUR

as401(k), IRA and Keogh plans. My generation's problem isthat a DB plan
is a true pension plan and a DC plan is not a true pension plan; it is a savings
plan. In fact, the 401(k) was never intended to be a pension plan. In other
countries, the problem is the same; they just use different names for their
Defined Benefit and Defined Contribution plans.
In very simple terms, a Defined Benefit plan will cover you for as long
asyou live.A Defined Contribution plan will cover you only aslong as there
is money in your account. In other words, a DB plan, in theory, will not run
out ofmoney while a DC plan can run out ofmoney. That may be why USA
TOday found that the greatest fear in America today is running out ofmoney
during retirement. Most of us already know that up to 80 percent of the
baby-boom generation does not have enough wealth to fall back on.
The generations following the baby-boom generation, often called
Generation X and Generation Y, will have a different set of financial
problems to handle. If the baby-boom generation does not do a good job
cleaning up the messleft by its parents, there will be an even bigger mess for
Generation X and Generation Y to handle. Generation X and Y will not
only have to handle their own financial problems and the debts of our
country (the biggest debt in the history ofthe world), they will also inherit
their baby-boomer parents' financial
problems, and maybe even their
grandparents' problems, since we are
Everyone,has money
all expected to live longer. By living
problems. Ifyou want
longer, we may expect to extend our
to make yourself rich, working years by retiring later, but

solve p_~()blem? what ifwe live longer and are not able
to continue working?
Identifyinga problem
The growing size of this problem,
creates the opportunity
now in the trillions of dollars, is
for creating a solution. daunting. Merely pushing it forward,
on to the next generation, just makes
- Robert T. Kiyosaki the problem bigger and more complex.
The bigger and more complex the

WHY WE WANT You To BE RICH