Few days age I've started a book by Robert Kiosaki, "Prophecy". The book contained a lot of great information. The author believed that these days problem has mainly caused by a change in law in 1974 known as ERISA. "One of the intended results of ERISA was to encourage individuals to save for their own retirement". According to this quote the retirement plans had came to life such as 401(K), 403(K), IRA and etc.
So the result of new law was that people without any Financial Education become responsible for their retirement plan, and got all responsibilities. these uneducated people invest for long term on something they even don't know how does it works. they even don't have any clear idea that how much they have put in that plan and how much they are going to earn form it in any market condition.
The explained law is present in many countries for example it is "Superannuation Plans" in Australia, "RRSP" in Canada or 401(K) in Japan. Then the same thing would happen in all those countries.
2 comments:
hi saleh
i'm glad you start to share your opinions on your blog....keep going.
about this post,i hope the matter in question were simple as kiyosaki explained..nowaday problem in economy is so severe that one factor can't be blamed for....most important factors such as deregulation of financial markets was overpassed wtih mr. kiyosaki....populistic politics for home loans(sub-prime mortgage) that encouraged every one to get loane, in my opinion, had more more impact than ERISA.
any way this is my opinion and probably is totally wrong.
good luck
my blog:
http://thecapitalmarkets.wordpress.com/
oh sorry, i forgot
happy new year
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