Again Why Financial Education?

Kia Ora,

Probably best again to emphasize why it is time to look at Financial Education.

I was already on this path when I saw this book to the left. Reading it then doing some follow up, really worried me that I was not going to ready in time to both avoid the worst of what is coming & to take advantage of the opportunities that are starting to appear (not that they aren't there all the time, but this is really good opportunities).

It is all based on facts that can be followed up & it is based on history but also having that financial IQ to see it. Rich Dad seen the first part fall into place, based on history in 1971 when President Nixon took the US (& therefore the world) off the gold standard.

This was then followed by the implimentation of the US retirement scheme that has morhped into what they know as 401(K) & the fault within that scheme. NZ's Kiwi saver has followed alot of what is in this scheme & will be affected by the flaw as well as proposed changes to US law regarding Mutual funds.

The flaw? It requires those that put their money into the US schemes to begin pulling their funds out at age 70 & a half. Now with an estimated 65 to 75 million Baby boomers beginning to retire & a large number being on this plan it might just have an effect on the market. If they have anything left in their portfolios after the last few years.

Then with the US talking about limiting withdrawals on the 'safest' Mutual funds which many NZ Kiwi saver schemes are likely to be in or in the same stocks, then it will effect people wider than just the US.

Couple that with the inflation caused by going to a fiat currency in 1971 it means you might still get your money at the end of time (if the funds fees haven't eaten much of it up-what Gareth Morgan(NZ Maverick economist) is always warning about), but what will it actually be able to buy?

This is why financial education is so important & not what the governments, most financial advisors or banks say is financial education either.