Wednesday, March 11, 2009

Robert Kiyosaki: October 2008 teleconference

Presenting the Rich Dad's point of view on the current economy.

Robert is foreseeing a depression. He compares the current stock market crash to the 1989 crash.
It is time to start investing. Keep your emotions low and look for opportunities. Invest at the bottom of the market.

It is not time to save, Hyper-inflation is about to come.
FDIC doesn't protect anyone, they have no money, they will only keep printing more money and devaluating more and more the money.
"The U.S. Federal Reserve Bank isn't federal, there are no reserves, and it's not a bank."
The bailout is going to top $5 trillion. The Bailout rips savers off. FDIC increased insurance to $250k because there is no money, they don't want people to come ask for it, and so repeat it is safe 'in the banks'. FDIC doesn't protect your money, it protects the banks from crashing.
Banks have no money, this is why they don't lend. Today cash is king, but soon cash will be trash.
We have 2-5 years to get rid of our cash before the inflation comes.
There is a risk that the currency completely collapses, this just happened to Iceland, their currency is worth nothing.
Gold, silver, oil, Real estate are good stores for your money, get stocks in solid companies. Don't do all of this, pick a domain and become an expert at it.
Invest for cash flow & dividends, not capital gain, don't hope to sell an asset for more than you paid for it.

Affordable B class Real Estate is more interesting, people can afford to rent it.
high-end is riskier.

Get Trained, follow courses in Stock trading, Real estate investment, Sales, accounting.
Look for very depressed markets that have a chance to go back.

401K workers are screwed:
forget about compounding interests, look at compounding mutual fund expenses, inflation and taxes at the exit.

Young people think "it's OK, retirement is far away, I have time to catch up..."
=> It's gone take 25 years to go back up and it's gone happen again moron !

(Suze Orman says the opposite, keeps advising to save in 401k, but her targeted audience is people who are already deep in bad debts)

The last depression lasted 25 years (1929-1954). Statistically there is one depression every 75 years. You're gone live through it.

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