Robert Kiyosaki reveals 'the biggest liability' that puts you at Wall Street's mercy. Is your nest egg about to crack?

Robert Kiyosaki, author of "Rich Dad Poor Dad," warns that a 401(k) may be the biggest liability most Americans own. He argues that a 401(k) can be a liability because workers contribute to it without receiving income, and its value depends on market performance. Kiyosaki defines an investment as something that puts money in your pocket, while a liability takes money out.

He believes that many people have too much of their retirement savings tied to Wall Street, which could be disastrous if a downturn occurs early in retirement.

To mitigate this risk, Kiyosaki suggests exploring alternative investments that are not solely tied to the stock market. One option is a gold IRA, which allows investors to hold physical gold within a retirement account. This can provide a hedge against government borrowing and money creation, as gold is not printed at will by central banks. However, gold also has tax disadvantages, but there are ways to minimize these.

Another investment Kiyosaki recommends is real estate, as it can generate cash flow if rent exceeds all associated costs. Investors can purchase shares of rental properties through platforms like Arrived, which lets you invest as little as $100. For accredited investors, Lightstone DIRECT offers access to private-market real estate assets with minimum investments starting at $100,000.

Kiyosaki cautions against relying solely on diversification, as even well-balanced portfolios can be vulnerable to unforeseen events. He advises investors to consider their age, income, and risk tolerance when determining the right mix of assets for their retirement strategy.