Most people work for money. After all, we all have bills to pay. However, according to Robert Kiyosaki, author of “Rich Dad, Poor Dad,'' wealthy people think in a markedly different way.
On X, formerly known as Twitter, he wrote, “Rich Dad Lesson #1: 'Rich people don't work for dollars.'” Why? Because our wealth is designed to be stolen from fake money through taxes, inflation, and the stock market. ”
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Fourth-generation Japanese Americans make valid arguments about the vulnerability of wealth. A portion of every paycheck goes toward taxes. On the other hand, inflation is slowly eroding the purchasing power of money, and stock markets are inherently volatile.
“The poor and middle class work jobs that pay them a fake taxable income, save a fake $$, and invest it in stocks, bonds, mutual funds, and ETFs, but I am writing this. “At this point, it's crashing,” he continued.
According to Kiyosaki, wealthy people are not obsessed with these so-called “fake paper assets.”
“Wealthy people want assets that essentially put tax-free money in their pockets, and they know how to save in real assets like G, S, BC, etc.,” he said, referring to gold, silver and Bitcoin. He added that they “provide lifelong financial security.” & freedom. “
Let's take a closer look at these assets here.
gold and silver
Precious metals, especially gold and silver, have long been popular as a hedge against inflation and uncertainty. It is not printed blindly like fiat currency, and its value is thought to be largely unaffected by economic conditions around the world.
Mr. Kiyosaki has long been a fan of gold, purchasing his first piece of the yellow metal in 1972. He has said in the past that this is because he “doesn't trust” the Federal Reserve, which controls the money supply. And he is known for being outspoken about what he thinks about their policies.
In October he predicted“Gold will soon break above $2,100 and then take off. You will wish you had bought gold below $2,000. The next gold stop is $3,700.”
Kiyosaki also likes silver. “Silver from $23 to $68 an ounce,” he said, predicting a significant upside for the gray metal.
Indeed, even though precious metals are a “safe haven”, prices can still fluctuate. Gold prices rose about 12% in 2023, and silver rose about 5% over the same period.
Although there are many ways to obtain gold and silver today, Kiyosaki prefers to buy the metal directly. “I don't touch paper gold or silver ETFs. All I want is real gold or silver coins,” he says. I have written last year.
Therefore, it may be time to visit your local bullion store or online seller.
read more: 'No taxes at all': Warren Buffett talks about the 'best investments' you can make to fight inflation
Bitcoin
Bitcoin investors learned the hard way how volatile Bitcoin is.
In November 2021, the cryptocurrency reached a high of $68,990. It is currently hovering around $44,111. Prices fell nearly 65% in 2022, but have recovered about 165% this year.
However, Kiyosaki doesn't seem to mind the big swing.
He said this in October when Bitcoin was testing $30,000. tweeted“Next stop Bitcoin is $135,000.”
If Kiyosaki's prediction is correct, it would mean a 206% rise in cryptocurrencies from current levels.
Buying Bitcoin is very easy these days. There are many online exchanges, brokers, and even ATMs where you can purchase. You can be charged up to 4% in fees, so look for sites with low or no fees.
cash flow assets
While Kiyosaki emphasized the importance of saving gold, silver, and Bitcoin, he also pointed to assets that generate cash flow.
“Wealthy people work for assets that put tax-free money in their pockets – cash-flowing assets like rental real estate, oil and food production,” he said.
So how much should investors allocate to these investments?
In a post on X last month, the entrepreneur and businessman said: I have written“Before you sink the ship, consider moving to 75% gold, silver, Bitcoin and 25% real estate/oil stocks.”
He said this asset mix could allow investors to “survive the biggest crash in the history of the world.”
It's easy to access cash flow assets these days. Investors can use their brokerage accounts to buy oil stocks that pay dividends. Also, if you want to invest in real estate, there are ways to earn rental income without becoming a landlord.
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This article is for information only and should not be construed as advice. PROVIDED WITHOUT WARRANTY OF ANY KIND.
