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Robert Kiyosaki Warns 401(k) Investors Are Closer to a 1929-Style Crash Than They Realize

Kiyosaki warns stock-heavy 401(k)s could face a major crash

By Jordan Major , Edited by Laura Hohenstein

Updated Sept. 29, 2026

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Retirement accounts invested heavily in stocks could be vulnerable if the market suffers a severe downturn, and "Rich Dad Poor Dad" author Robert Kiyosaki has gone as far as warning that another crash comparable to 1929 could be coming.

Kiyosaki singled out people with 401(k)s and IRAs filled with stocks while explaining why he prefers gold, silver, and Bitcoin. His comments are a reminder to review your retirement plan and check whether your portfolio matches your age, timeline, and tolerance for risk.

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Kiyosaki warns investors with stocks in their 401(k)s

Kiyosaki began his warning on X with a direct question: "DO YOU have a 401(k) or IRA filled with stocks?" He then claimed that investing legends Warren Buffett and Jim Rogers had sold "most if not all" of their stocks and bonds and were instead holding cash or silver.

His own approach looks very different from a traditional stock-heavy retirement portfolio. "I sit tight with gold, silver, & Bitcoin," Kiyosaki wrote before delivering his biggest warning: "We may be on the brink of another 1929 crash and another Great Depression."

The "Rich Dad Poor Dad" author tied his concerns partly to the size of America's debt, arguing that the country couldn't continue relying on borrowing and money creation indefinitely. "You can only print money to pay your bills….for so long."

More broadly, Kiyosaki argues that investors heavily exposed to traditional financial markets could suffer if those pressures eventually contribute to a major economic downturn.

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Buffett has not abandoned the stock market

Kiyosaki also pointed to Berkshire Hathaway's investment moves as support for his warning, but retirement savers should be careful about drawing too much from that comparison.

"If you do not know why Buffett and Rogers have sold their stocks and bonds, you may want to find out," he wrote.

Berkshire Hathaway did build an enormous cash position while selling more stocks than it bought for an extended period. However, that isn't the same as Warren Buffett selling "most if not all" of Berkshire's stocks. The company continued to own a massive equity portfolio containing companies such as Apple, American Express, Coca-Cola, and Chevron.

More recently, Berkshire moved in the opposite direction. During the second quarter of 2026, the company bought nearly $20 billion more in stocks than it sold, ending a 14-quarter stretch as a net seller of equities. Its cash holdings also declined from $380.2 billion at the end of March to $364.7 billion at the end of June.

A 401(k) is not the same thing as owning stocks

Kiyosaki's question about whether your 401(k) is "filled with stocks" also misses an important distinction: A 401(k) is an account, not an investment itself.

Most workplace plans offer a range of investments, including stock funds, bond funds, and target-date funds. How exposed you are to a market crash therefore depends on what you actually hold inside the account.

Someone decades from retirement may intentionally keep a large portion of their portfolio in stocks, while someone approaching retirement might choose more bonds or other lower-volatility investments.

The Securities and Exchange Commission (SEC) says an appropriate asset allocation depends heavily on your time horizon and tolerance for risk. Investors with longer timelines may be better positioned to withstand market volatility, while those nearing a financial goal may prefer a less aggressive mix.

Gold and Bitcoin come with risks of their own

A severe stock-market downturn is always possible, but moving an entire retirement portfolio into gold, silver, Bitcoin, or cash because someone predicts a crash isn't necessarily safer.

Such a move would simply replace one set of investment risks with another. Gold can provide diversification and has historically been viewed as a store of value, but it doesn't produce earnings or dividends. Bitcoin has generated enormous long-term gains, but the SEC warns that its price has historically been highly volatile and can decline drastically.

The SEC recommends diversification as a way to manage investment risk. Spreading money across different investments can't prevent losses during a downturn, but it can reduce the damage caused by relying too heavily on one company, sector, or asset type.

Predicting the next 1929-style crash is a challenge

Kiyosaki's warning has attracted fresh attention, but the 1929-style collapse he predicted has not materialized. Since his July 2025 post, the S&P 500 has instead gone on to reach record highs during 2026.

Of course, that doesn't mean another bear market or recession can't happen. Stocks inevitably experience downturns, and portfolios heavily concentrated in equities can fall sharply during a sell-off.

Still, the episode shows how difficult it can be to predict exactly when a crash will arrive, especially one comparable to the collapse surrounding the Great Depression.

Bottom line

Kiyosaki's warning highlights a real risk for anyone with a large portion of their retirement savings tied to stocks: A major downturn could significantly reduce their portfolio, particularly if it happens close to retirement.

Trying to predict the next 1929-style crash, however, may be less useful than preparing for ordinary market volatility. Reviewing how much of your 401(k) is invested in stocks, bonds, cash, and other assets can be a useful financial fitness check before making changes based on a crash forecast.

This article is for informational purposes only and should not be considered investment advice.

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Author Details

Jordan Major

Jordan Major is a writer for FinanceBuzz specializing in taxes. With over six years of experience covering financial topics, he helps readers navigate tax decisions that can impact their finances, from steering clear of common filing mistakes to spotting tax breaks that might come with risks.