In a shocking turn, The New York Times best-selling author of Rich Dad Poor Dad now says to hide your money from banks and essentially hide it under your mattress. Um, what?
It takes a lot to surprise me, but when the world famous author of Rich Dad Poor Dad now says to hide your money from banks, well, it’s time to ask some tough questions.
Not everything goes as planned when I look to interview authors who offer advice and suggestions for baby boomers and those older to help them build wealth and prepare for their retirement. I thought it would be a great idea to interview Robert Kiyosaki, an investor the author of The New York Times bestseller released in 2000. Rich Dad Poor Dad sold 26 million copies. In it, Kiyosaki talks about getting wealthy by investing in real estate, owning a business and improving your financial knowledge. If you want to make money, you have to own assets that produce income and not work for someone else was a message he portrayed.
Kiyosaki had his detractors when the book came out with some saying he was giving bad advice that wasn’t helpful to people.
Well, I wanted to hear for myself and see what advice Kiyosaki could have for our readers since he just released a new book, Second Chance – for Your Money, Your Life and Our World.
It took about a month to set an appointment with a busy Kiyosaki and when I finally had a chance to interview him for advice he has for our readers, it wasn’t what I expected. Far from it.
In touting the interview with me and his latest book, Kiyosaki’s public relation’s staff cited how the old formula of financial security – one in which people go to school, get a job, save money, buy a house, get out of debt and save for retirement – doesn’t apply today in a world facing economic crisis. This is why the gap between rich and poor continues to increase was the pitch. While we had a stock market and real estate crash during the Great Recession, the next crash would be worse was the message he was trying to get out.
I figured all right. It’s good to be prepared. After all, the last economic downturn hit the nation and world very hard and millions lost their job and had to postpone retirement because of hits they took in the stock market. Many people also lost value in their biggest investment – their house.
After talking to the 67-year-old Kiyosaki, however, it seemed like the tone I got from him was something we might have heard from our grandparents in the midst of the Great Recession and bank failures – put your money in a coffee can and bury it in the back yard. My mom always joked that my grandfather did that.
I’m not criticizing his opinions. He’s a very successful man and sold 26 million books, but I can’t live my life in fear like the end is near.
It’s good to be cautious. I have done that. When I was in a newspaper reporter, I tried to make sure I had other options available outside the newspaper industry because it had constant layoffs. My own advice served me well and protected me over the years, especially during the Great Recession. Of the people I have interview, I prefer this advice from this author: Read Here: http://nowitcounts.com/getting-rich-50-isnt-nearly-hard-sounds-seriously/
I will tell you what Kiyosaki believes and let you decide if his advice can help guide you in the coming years.
“I wrote the book because the subject of where the economy is at today is confusing. The reason it’s pertinent to senior citizens like me at 67 that they will see we are on the precipitous of one of the biggest market crashes in the history of the world,” Kiyosaki says.
The author says he’s been saying for years that the big crash is coming in 2016 and what happened earlier is nothing in comparison to what’s going to happen.
So what is your advice, I asked him.
“What is person does, depends upon them. What I do, I wouldn’t recommend anyone do. I am in the stock market, but I am not in it for the long term and I don’t have a 401(k) and I don’t save money. Why would I save money when the government is printing money? If you’re saving money hoping to survive, it might be a good idea for you but not for me.”
Kiyosaki says he continues to believe that using debt is the best way to get rich. That runs the opposite of others who say we should get out of debt, he says.
“What I am saying is the opposite of what the pundits say to do,” Kiyosaki says. “What people do is up to them. Old school is get a job, work hard, save money, live below your means, and invest for the long term in the stock market. I’m afraid that people doing that will be wiped out. I hope not.” READ MORE HERE: http://nowitcounts.com/starting-business-tough-really-know/
Kiyosaki, an Arizona resident, says he will continue to use debt and taxes to make himself richer, but unfortunately for many people, that makes them poorer. That’s why the rich are getting richer, he says.
Kiyosaki says he writes his books to help people, especially those who are edging closer to retirement. He says he’s been crucified by people when he has maintained for years that your house is not your asset.
“The mainstream media came at me like I was bin Laden,” Kiyosaki says. “All I was doing was predicting the future. People who owned houses and were saving got their asses handed to them. Savers were losers and people who thought of their houses as assets got creamed. I hate to say that. The middle class who their house is their biggest asset, they’re in big trouble.”
The average person has no financial education, Kiyosaki says. They know “nothing about money.” He says the crash could come a little later than 2016 but expectd plenty of bad to happen by 2020.
“I wish I could say don’t worry and go to school and get a job and save money and live below your means, invest in the stock market or do a reverse mortgage but I would lying to you. I don’t think it will work,” Kiyosaki says.
Sorry Robert, but I can’t live in fear and heed that advice and I wouldn’t suggest that of my readers as well.
I think the old formula has served as well. The problem is when we don’t follow it like we should or are afraid to take chances to use our talents.
Even Robert does that. He owns businesses and is an entrepreneur. He owns and rents property. That sounds old like part of the old formula to me.
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