Rich Dad Poor Dad author Robert Kiyosaki says he believes that the price of bitcoin will reach $2.3 million, citing a prediction by Ark Invest CEO Cathie Wood. Meanwhile, he said stock, bond, and real estate markets are “set to crash,” and he expects the U.S. to go bankrupt. Robert Kiyosaki Foresees Bitcoin Hitting $2.3 […]
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Robert Kiyosaki, the author renowned for his best-selling book “Rich Dad Poor Dad,” has again captured the public’s attention with his unconventional financial strategies, this time revealing a staggering $1.2 billion in debt. The revelation follows a statement he made in September 2022 via a YouTube short, where he disclosed being $1 billion in debt at the time, accompanied by the caption, “The reason I’m so rich is because I’m in debt.”
In the YouTube video, Kiyosaki explains his financial status, saying, “If you understand history, the reason I pay no taxes is because I borrow money. I’m a debtor.”
He directly addresses his critics and those with contrasting economic ideologies, saying, “And check this out … I mean all you communists out there, check this stuff out … I am a billionaire in debt. You know why? Because I get tax breaks for borrowing money.”
Kiyosaki’s approach to wealth and debt contrasts with more traditional financial advice. He believes that leveraging debt is a key driver of his wealth because of the tax advantages it provides.
Kiyosaki goes on to critique the common financial advice of living debt-free, as popularized by financial expert Dave Ramsey, saying, “And my friend Dave Ramsey says ‘live debt free.’ Well, you’re an idiot. I mean he’s my friend, but I say ‘Dave, I like debt.’”
He acknowledges Ramsey’s caution toward debt saying, “I know but most people can’t handle debt.” This admission highlights a critical divide in financial philosophy — while Kiyosaki sees debt as a tool for wealth accumulation, he concedes that not everyone possesses the financial acumen to manage it effectively.
Kiyosaki’s commentary extends beyond personal finance to critique the broader educational system, arguing, “But that’s why there is no financial education in schools because if you knew how to handle debt you wouldn’t save that crappy dollar you have in your hand. I’d rather borrow the money tax-free.”
Through this statement, he advocates for a more nuanced understanding of debt and finance, suggesting that conventional wisdom on saving and debt avoidance may be limiting for those looking to maximize their financial potential.
The author’s financial strategy capitalizes on the tax benefits associated with borrowing in the United States. The principle at work here is that interest payments on debt, especially when used for investment purposes, can be tax-deductible. This means that the costs of borrowing can effectively reduce the amount of taxable income an individual or entity reports, lowering their overall tax liability.
In the context of Kiyosaki’s investments, particularly in real estate, borrowing money to finance these investments allows him to deduct the interest paid on the debt from his taxable income. This deduction is a significant factor in why he says, “The reason I pay no taxes is because I borrow money.” The tax code in the United States offers provisions that incentivize investment and business activities by allowing deductions for various expenses, including interest on loans that finance productive activities.
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Robert Kiyosaki, a best-selling author and seasoned investor, has a distinct philosophy on debt and investment. In a Nov. 30 Instagram reel, Kiyosaki elaborated on his debt philosophy, highlighting a critical distinction between assets and liabilities.
He said many people use debt to buy liabilities, while he uses debt to purchase assets. To illustrate his approach, Kiyosaki said his luxury vehicles, like a Ferrari and a Rolls Royce, are fully paid off, categorizing them as liabilities rather than assets.
In the reel, Kiyosaki also expressed skepticism toward saving cash, referencing the U.S. dollar’s detachment from the gold standard in 1971 under President Richard Nixon. Instead of saving cash, he saves gold and converts his earnings into silver and gold. This strategy, according to Kiyosaki, has led to an accumulation $1.2 billion in debt, an amount he admits to. He says he is in debt because “if I go bust, the bank goes bust. Not my problem.”
His approach involves using debt strategically to enhance wealth. Kiyosaki categorizes debt into good debt and bad debt, with good debt being that which helps build wealth, such as loans used for acquiring income-generating assets like real estate, businesses or investments. He advocates using debt as leverage in investments, particularly in real estate, seeing it as an effective way to ride market fluctuations and capitalize on opportunities.
Kiyosaki’s investment strategy is multifaceted. He is known for his stance against fiat money, labeling it in derogatory terms and instead advocating for investment in what he calls “real assets” like Bitcoin, silver, gold and Wagyu cattle. Bitcoin, in particular, is a favorite of his, perceived as a hedge against the deteriorating value of the U.S. dollar. Kiyosaki views gold, another key component of his portfolio, as more stable and reliable than cash, which he calls “trash” because he just doesn’t “trust the frickin’ dollar.” He has expressed a willingness to increase his gold holdings even if prices drop significantly.
Silver, too, forms a significant part of his investment strategy. He views it as a long-term investment, particularly because of its increasing rarity and relatively lower price compared to gold. Real estate remains a cornerstone of his investments, valued for its dual benefits of rental income and capital appreciation. His investment in Wagyu cattle, a less conventional asset, reflects his belief in diversifying his portfolio beyond traditional investments.
Kiyosaki’s approach to debt and investment is rooted in a broader perspective on finance and wealth. He views money as a form of debt or obligation, a tool that can be used for acquiring assets and generating wealth. His philosophy emphasizes education in finance, suggesting that people should be well-informed about financial matters.
While Kiyosaki’s methods have been successful for him, they come with risks, as illustrated by his past financial troubles, including filing for bankruptcy in 2012 after a legal dispute over royalties.
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Emphasizing the importance of financial education and preparedness, “Rich Dad Poor Dad” author Robert Kiyosaki expressed concerns about the current financial system and societal structures in the U.S. in a YouTube video titled “Robert Kiyosaki Exposes The System That Keeps You Poor & The Downfall of The USA.”
In the video, interviewer Rob Moore asked Kiyosaki, “Is the money system rigged?” Kiyosaki replied, “You want to get me in trouble, don’t you.”
He then elaborated, saying, “We’re at the end of an empire right now. It is the end; it’s the end of this, and all empires always come to an end.”
He provided historical examples to support his viewpoint, mentioning the Roman and Greek empires, and noting that the earliest Chinese civilizations were the first to use paper money. Kiyosaki concludes by asserting that what is being witnessed today is akin to the end of the American Empire, suggesting that this period is fraught with danger.
He discussed the shift in 1964 when coins in the U.S. changed composition, indicating a deviation from backed currency to fiat currency, which he correlated with the downfall of empires.
Kiyosaki underscored the necessity of financial literacy and preparedness, urging the audience to consider the ramifications of the points he raised. He expressed concern about wealth disparity and its potential fallout, saying, “We are witnessing what could be the end of an empire if we don’t address these issues.” Kiyosaki didn’t predict doomsday but stressed the importance of being financially knowledgeable and flexible in times of uncertainty.
He maintained a balanced approach throughout the video, steering clear of sensationalism and alarmist rhetoric. Instead, Kiyosaki asked viewers to contemplate the economic challenges ahead and strategies for safeguarding their financial futures.
Kiyosaki touched on the role of debt in wealth creation, contrasting the perspectives of average people with those of real estate investors like himself and former President Donald Trump. He pointed out how leveraging debt has facilitated wealth accumulation for some, while others, adhering to traditional financial advice, find themselves struggling.
Addressing global issues, Kiyosaki reflected on the geopolitical tensions and the shifts in the global economic landscape, including the rise of China and the potential consequences of the U.S. losing its status as a dominant economic power.
The video also includes Kiyosaki’s anecdotes and opinions on topics ranging from sports to politics. He emphasized the importance of understanding the changing nature of money and investing in assets like gold and silver instead of relying solely on fiat currency.
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