This ALWAYS Happens Before A Total Market Collapse | Robert Kiyosaki

Robert Kiyosaki advocates for investing in income-generating assets like real estate, oil, gold, and silver, using strategic debt, and avoiding traditional savings and stock market investments, as he predicts an impending economic collapse due to excessive money printing and a Marxist educational system.

• Prioritize acquiring income-generating assets (e.g., real estate, oil, gold, silver) over traditional savings or stock market investments.

• Utilize strategic debt to acquire assets and benefit from tax advantages, avoiding conventional financial advice that discourages borrowing.

• Embrace financial education, continuous learning, and building a strong team of expert advisors to navigate economic shifts and avoid being 'lazy' in financial matters.

Robert Kiyosaki asserts that market crashes present significant opportunities for wealth accumulation, criticizing the U.S. government's continuous money printing, which he believes will lead to a collapse similar to Zimbabwe's hyperinflation. He promotes a financial philosophy that prioritizes acquiring assets that generate cash flow and depreciation benefits, utilizing debt strategically, and rejecting conventional advice such as saving money or investing in 401ks, which he considers 'losers' strategies propagated by a Marxist education system. Kiyosaki emphasizes the importance of financial literacy, continuous learning, and building a strong team of financial professionals to navigate economic realities effectively.

Money Printing & Collapse

• 00:00:05 Inflation and currency collapse are significant concerns, with the United States' ability to print money likened to Rhodesia's (Zimbabwe's) financial disaster, where excessive printing led to economic ruin. Kiyosaki asserts that the U.S. dollar is next to face such a collapse due to continuous money printing to cover a 2-trillion-dollar annual deficit. This process devalues the currency, making real money (like silver) more valuable than printed bills, which he calls 'toilet paper.'

Rethinking Assets & Debt

• 00:01:41 Kiyosaki challenges conventional financial wisdom, stating that saving money is 'stupid,' savers are 'losers,' and a personal home is not an asset if it takes money out of your pocket. He explains that an asset generates cash flow into your pocket, while a liability takes cash out. Kiyosaki, who holds billions in debt, views debt not as a problem but as a powerful tool for wealth creation when used to acquire income-producing assets like real estate and oil wells, which banks are willing to finance.

Financial Education & Advisors

• 00:03:17 A critical component of financial success is understanding the 'game' of money, which is not taught in schools. Kiyosaki highlights the importance of financial literacy, including understanding income statements, balance sheets, and cash flow, to effectively communicate with bankers and other financial professionals. He emphasizes building a team of trusted advisors—including bankers, accountants, and attorneys—to navigate the complex world of finance and execute wealth-building strategies.

Investing in Cash Flow Assets

• 00:10:09 Kiyosaki details his investment strategy, focusing on assets that provide continuous cash flow and significant tax benefits, such as oil wells and apartment houses, often financed with 100% debt to minimize taxes. He dismisses stock market investments and 401ks as 'for losers,' advocating instead for control over investments and the ability to leverage them. His approach involves constantly moving money into new assets like billboards, which offer bonus depreciation to reduce tax liability.

The Value of Mistakes & Honesty

• 00:34:50 Kiyosaki shares personal experiences of learning through mistakes, including being court-martialed twice during his Marine Corps service. He emphasizes that humans are designed to learn by falling down and making errors, and the crucial lesson is to never lie about mistakes. He credits this principle, shared by other successful individuals like Kevin O'Leary, with enabling him to learn and grow, ultimately contributing to his wealth despite financial losses in his own companies.

Capitalism vs. Marxism

• 01:51:51 Kiyosaki attributes the lack of financial education and prevalence of traditional savings advice to a Marxist influence within the U.S. school system, which he believes promotes concepts like income tax (essential for communism) and labor unions. He views the Federal Reserve Bank as a 'criminal organization' and a Marxist entity that causes homelessness by printing fake money, making the rich richer and the poor poorer. Kiyosaki positions himself as a capitalist who leverages tax laws written for capitalists and creates money through debt, rather than being a 'patriotic' saver as advocated by figures like Dave Ramsey.