The Financial Advice From Robert Kiyosaki During Economic Recession

Maybe you can figure out what Kiyosaki is trying to say in this article about bad financial advice

Basically, he bashes traditional financial advice, which tells us to ride out the waves of the stock market and continue investing in tax-deferred retirement accounts and mutual funds with strong track records. He starts talking about how investing in real estate made him wealthy, and he depends on his businesses and investments to live. But, then he goes on to say that his advice isn’t for everyone and it’s not for those who work for commission and a paycheck. And he says that he’s not recommending gold, silve, and real estate as good investments right now.

Okay Robert, if you’re warning us against bad financial advice, then what is your financial advice? You consider yourself an expert, right? This article was so wishy-washy, and he never took a position about anything. I’m starting to wonder if he wrote it or one of his little interns wrote it. There are plenty of people who become wealthy the old way, and advising people without the financial means to start investing in real estate is so risky that it’s the kind of risk that will make you go bankrupt. He says in the article that he got started in real estate investing with some “creative financing”. Creative financing is another term for getting financing when you can’t afford the loan. He was persistent and probably didn’t sleep until he had a renter in every one of his properties.

This article just bothered me on many levels, and I wanted to see what you all thought about it. The comments on Yahoo Finance were full of Kiyosaki lovers and haters, and not many people in the middle about his advice. What do you think? Do you think it’s bad advice to tell people to continue developing their “paycheck” career and invest in a mix of stocks and real estate with cash?

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college. Another one of Erik's projects is the site, Stuff We Google.

Learn more About Money Crashers - including co-founders Andrew Schrage and Gyutae Park.

http://www.thestrump.com TStrump

Here’s the deal with the Rich Dad Books – I enjoy them immensely but they’re not good for ‘quick financial tips’
They’re more about shifting your paradigm.
Anyways, what I think he means is that traditional financial advice is for people who don’t want to work at increasing their financial IQ.
They just want to buy prepackaged investment vehicles and ‘hope’ that the markets go up.
People like Robert don’t invest in these – they create their own financial vehicles which take alot of hard work, financial accumen and sometimes, extra risk.
I think he means that most people don’t have the desire or time to do this.
author

That’s a good point of view. By the way, when I ask readers for their opinion or how they interpret something, it’s an honest question because I learn more from reading about other people’s points of view about an article or opinion.

I think you are right, but I just don’t like that he seems wishy washy about his philosophy. I respect people more when they say, “this is how I think you should do it”, because it gives me the option to say, “I think your wrong” or “I like that advice, i’ll do more research”.

I agree with his philosophy that creating your own investment vehicle will be more rewarding and have a bigger upside, but the risk factor IS much bigger, and that is why I am weary of his advice because many people don’t get that part. Then, they end up losing their shirt, wondering why they didn’t become rich like Kiyosaki. If starting a business came with a small risk, more people would be business owners. But, most small businesses fail and that is why many people work for other companies. It’s not worth it to them to fail, fail, and fail again even if their fourth try makes them millionaires.

Anyway, thanks for your opinion about it.
Sandi

I completely agree with you on the wishy-washiness of the author’s “advice.” Maybe the 20% of the readers he’s supposedly talking to can follow what he’s saying, but I sure can’t. Personally I prefer to stick with the traditional financial advice, but to each his own….
ekrabs

Though it may not be readily apparent, I try my best to be fair and given people the benefit of the doubt.

Unfortunately, in the case of Robert Kiyosaki, I can’t say that I have found much in the way of helpful advice…. I mean, I really don’t want to end up being yet another Kiyosaki basher, but he just… well, this article is a good example isn’t it?
lally2301

I truly believe that FINANCIAL EDUCATION is the key for all kinds of financial challenges, including Recession and Depression. The economy does not dictate your financial circumstances. As somebody said. “Thank You Economy” because he knows how to find great deals. Anybody can get started reading book from successful people and investors; and with all my respect NOT from financial planners or Bank CEOs, who tell you how to deposit your money for the long-term. The best way to protect yourself is to learn how to set up your own business as 1) Create a Business; 2) Invest in Real Estate; 3) Buy smart stocks from savy investors, and not from Wall Street or similar ones; and 4) Invest in Commodities. HOW can you achieve that? FINANCIAL EDUCATION is the main key. 2013 will be the year for global recession to a Global Depression in 2014-2015 and last for 8 to 10 more years. Hope is OK, but TAKING ACTION change any reality.

The Financial Advice From Robert Kiyosaki During Economic Recession

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