Have you ever felt that whenever the word “investment” is being presented to you, your mind goes turns to mush and your thoughts go haywire? If you do, don’t worry! Given how many investment options there are coupled with how many “experts” are out there all promising you the same ridiculously high results for an equally high cost?
You’re not alone. In an environment with so much information freely flowing around, how do we know what is right and what isn’t? That’s why we’ve taken some time to interview none other than Robert Kiyosaki himself, the #1 Bestselling Author of “Rich Dad, Poor Dad”. Join us as Robert talks about his philosophies for investing as well as sharing his investment tips.
Robert, thank you for taking the time to speak with us. We know that for most people (ourselves included), investments can be a touchy and widely debated upon topic, but for those who have not or are still considering going into investing, why should they invest?
The answer is simple. If you want to become rich, you need to stop working for money. You need to find ways to increase your passive income because if you think you’re going to be rich from your 9 to 5 paycheck, you’re dead wrong.
Let’s not even talk about passive income. If you have any financial goals at all, from going on holiday to retirement, you need to start educating yourself on investing and to stop relying on your day job, because that is not going to give you the income you want, it’s not going to give you the lifestyle you have all planned in your head. The only thing it’ll give you is a single paycheck which you’ll live month to month on.
What about people who are insistent that they’re comfortable where they are financially without investing? We’re seeing a lot of people, especially in Singapore, who forgo investing entirely and as you mentioned earlier, are living from paycheck to paycheck.
One of the ironies with society today is that the middle class are becoming more and more comfortable while they are being sandwiched. People from the middle class are either becoming richer or poorer, there is no in-between.
The issue which worries me the most is that many people in the middle class are willfully ignorant, meaning that they have an idea of what’s going on and they know what’s going to happen to them, but yet they refuse to do anything about it. The rich are only going to get richer, and the same goes for the poor.
The reason is simple, and I have no choice but to repeat myself: The rich do not work for money. Most people do not understand that, because they’re taught to go to school and get a job for money. The rich don’t work for money.
And one of the reasons for that is money is no longer money. One of the reasons for that is in 1971, President Richard Nixon took the U.S. Dollar off the gold standard and basically screwed the world. It’s bad for the poor and middle class. As Bernie Sanders said, ‘wealth and income inequality is the greatest moral crisis facing America as well as the world today.
The gap is growing between the rich and poor. The rich don’t work for money. If you went to school and got a job, and you’re saving money without doing anything with it, you’re going to lose.
So for people new to investing or want to go into investing but don’t know how to, what’s the first and best piece of advice you can give them?
When people ask me what’s the first thing they should invest in, they start shooting off different types of investments and then ask me which one is best expecting me to give them a direction which they’ll follow blindly. That isn’t investing, it’s gambling.
Look, whether you want to build passive income or invest, the first thing you must do is to educate yourself financially. Invest in yourself, invest in a good financial education, and the money will follow.
The “hot” investment options these days are Gold, Silver, and Cryptocurrency. For seasoned investors, what advice would you give them on what to invest in now?
My answer is always the same. You got to come up with your own answers.
I love gold, I was buying gold at 70 bucks an ounce. I’m a gold bug. On the other side, there’s this guy named Harry Dent, a very smart guy, who says gold is going to drop to $250/ounce. Another very smart guy James Rickards, the author of ‘Currency Wars,’ says gold is going to go to $10,000/ounce. So somewhere in between is your reality.
All coins have three sides: head, tails, or hedge. Your job is to stand on the edge of the coin and listen to both sides. I love gold but I don’t use gold as an investment, I use gold as an insurance policy, a hedge. Because I suspect the U.S. dollar is going to be toast in a few years. Now, if it doesn’t, I still have gold. I’m hedging my positions all the time.
At the end of the day, your investment choices should be a combination of your financial education and how you’re protecting yourself through hedging. Don’t put all your eggs into one basket.
What are your thoughts on investing in Real Estate?
Real estate is a long-term hold. It’s not liquid. I don’t care if the market is up or down. What I’m looking for is a bargain. I make most of my money when the markets crash. I made most of my money in 2007. I made even more money in the subprime crash. I don’t care about the overall economy or the markets. I’m looking for an opportunity that no one else sees. I like residential real estate. I don’t invest in REITs or anything paper.
I do not invest in states like Hawaii, California and New York because of the taxes. Real estate is really not about real estate. It’s about debt, taxes and laws. I go to the areas that are favorable to investors, to capitalists.
Singapore has excellent conditions and policies to profit off real estate despite the spatial constraints. Real estate opportunities around the region are gaining traction as well, so Singapore is in an extremely good place right now.
With regards to investing and financial management, what’s the one thing that everyone must absolutely know regardless of where they are?
Lesson No. 1 in ‘Rich Dad Poor Dad’ is the rich do not work for money. That opens your brain up, well, what on earth do they work for then? If you act like a mule, chasing the carrot — the buck, the bonus, the paycheck, the commission, whatever you guys chase, you’re never going to ask the question: what are the rich working for? I work for assets.
Recently this one oil company crashed. Its stock was trading at $75 and dropped to $2 and I was ecstatic. Two dollars, from 70 bucks. When I studied the underlying analysis of it, they have huge oil reserves, they have assets in the ground, and the stock was trading at $2. So do I pay $2? No. I buy a 75-cent option to pay $2.
Money is the problem. It’s the money, stupid. We’re printing it, we’re printing it, we’re printing it, and it’s corrupt. And it’s toxic. Stop working for money, start acquiring assets. Use your brain.
Thank you, Robert, for your valuable insights and taking the time to share your experience and strategies for investments with us today!
Whether you’re a new investor thinking of how and where to start, or a seasoned investor looking for new avenues of income in other areas of investment, we hoped that you’ve taken with you a few nuggets of investing wisdom that will help you create the investment portfolio that will help you secure your financial future.
If you’re serious about your financial future, why not attend the Business & Investor Summit taking place at the Singapore Expo from 14 – 15 October 2017 where Robert Kiyosaki will be speaking for a full 8 hours over 2 days?
In addition, the event will feature speakers that will help your kick start or boost your journey into investments and trading such as Sandy Jadeja (Chief Market Strategist & International Trading Educator) and Andrew Cordle (Real estate investment).
Find out more about the upcoming event here by clicking the on the image below.