April 23, 2020

How To Make Millions In A Market Crash | Robert Kiyosaki on The School of Greatness with Lewis Howes

Check out The School of Greatness Episode Page & Show Notes

Key Takeaways

• Running a successful business is not easy. You will experience failure along your journey, learn from those experiences and continue forward 
• For younger generations, COVID-19 can be the worst thing to happen to them or the best thing–It’s all about your perspective and whether you play a victim or seek opportunities 
  • “If you’re an entrepreneur right now, the world is open to you” – Robert Kiyosaki
• The COVID-19 pandemic has hit baby boomers the hardest: Their pension and 401Ks are gone, and Social Security and Medicare are broken
  • “The Federal Reserve has only one purpose, to keep the rich, rich”  – Robert Kiyosaki
  • “The Fed is not a bank, it’s a cartel owned by the richest guys on Earth”
• School can teach you how to be a rich worker, but it won’t teach you how to be a wealthy owner
  • “The best teachers aren’t in colleges, the best teachers are on Youtube”
• Robert’s 3 pieces of advice for listeners:
  • “Knowledge is finite, stupidity is infinite, so stay stupid because that’s how you get knowledge” – Robert Kiyosaki
  • “Be careful who your teachers are. Make sure your teachers actually practice what they teach”
  • “Don’t hide behind a diploma”

Intro

• Robert Kiyosaki (@theRealKiyosaki) is an American investor, entrepreneur, and best known for being the author of Rich Dad Poor Dad
• Host: Lewis Hoes (@LewisHowes)

Books Mentioned

• The Black Swan by Nassim Taleb
• Antifragile by Nassim Taleb
  • Robert loves Nassim’s books and encourages people to become more antifragile
• Robert wrote FAKE: Fake Money, Fake Teachers, Fake Assets: How Lies Are Making the Poor and Middle Class Poorer, to tell people they don’t need to go to school to become rich
• Robert enjoyed the book, The Gulag Archipelago by Aleksandr Solzhenitsyn because the book teaches people the importance of responsibility–your current situation in life is a reflection of your actions
• Robert recommends the book The Creature from Jekyll Island by G. Edward Griffin to learn more about what the Federal Reserve actually does
• Robert recommends reading, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes by Tom Wheelwright, to learn how to save on taxes
• If you want to learn how to make money in both up and down markets, Robert recommends the book, The Stock Market Cash Flow: Four Pillars of Investing for Thriving in Today’s Markets by Andy Tanner
• For real estate books, Robert recommends reading Ken McElroy’s books
• Robert’s newest book is called Who Stole My Pension?

You Will Make Mistakes As An Entrepreneur

• Everyone makes mistakes when starting out as an entrepreneur
  • Robert created several products that didn’t sell well
  • He also created an ad and forgot to put the business’ address and phone number
  • He raised too much money and the company started going under
  • Robert’s CFO stole money from the company and disappeared 
    • A good lesson to remember: Just because someone is smart, it doesn’t mean they’re honest
• Running a successful business is not easy. You will experience failure along your journey, learn from those experiences and continue forward 

School Isn’t A Requirement For Success

• “Teachers don’t know shit…I don’t think school teaches you much” – Robert Kiyosaki
  • Walt Disney, Mark Zuckerberg, Bill Gates, Henry Ford, and many others dropped out of school and still became successful
• Lewis Howes was in a special needs class for his whole childhood education and needed a private tutor to pass school
• One crucial skill school doesn’t teach: Personal finance
  • That’s why Robert created the Cashflow board game
    • “I learned more about life playing Monopoly than I did in four years of college” – Robert Kiyosaki
      • School can teach you how to be a rich worker, but it won’t teach you how to be a wealthy owner
        • “The best teachers aren’t in colleges, the best teachers are on Youtube”
          • That’s why Robert wrote FAKE: Fake Money, Fake Teachers, Fake Assets: How Lies Are Making the Poor and Middle Class Poorer 
• Robert says Ph.D. stands for poor, helpless, and desperate
  • “Why would you go to school, just buy some book” – Robert Kiyosaki

Responding to the COVID-19 Crisis

• The COVID-19 pandemic has hit baby boomers the hardest: Their pension and 401Ks are gone, and social security and Medicare are broken
  • “The Federal Reserve has only one purpose, to keep the rich, rich”  – Robert Kiyosaki
    • Robert recommends the book The Creature from Jekyll Island by G. Edward Griffin to learn more about what the Federal Reserve actually does
      • “The Fed is not a bank, it’s a cartel owned by the richest guys on Earth”
• For younger generations, COVID-19 can be the worst thing to happen to them or the best thing–It’s all about your perspective and whether you play a victim or seek opportunities 
  • “If you’re an entrepreneur right now, the world is open to you” – Robert Kiyosaki
• Robert made more money from the 2008 crisis than he did in his whole life–he borrowed $300 million from a bank and invested in a ton of property
  • Robert believes he’ll make a ton of money from this crisis as well

Investing & Taxes

• Robert loves Bitcoin because it’s open-source and the Federal Reserve can’t touch it
  • He also keeps a lot of his money in silver and gold in other countries
• Robert recommends getting a Defined-Benefit Pension Plan instead of a Defined-Contribution Plan
• Taxes are an incentive:
  • If you donate to a charity, you get a tax break
  • If you own real estate, you get a tax break
    • If you own debt, you get a tax break so Robert buys even more real estate to pay fewer taxes
• Don’t save your money, invest it
  • Robert predicts that the US will print $6-10 trillion to help the economy so it doesn’t make sense to save money if interest rates will be at 0% and more money is being printed
• Robert believes the US economy is heading into a depression
• Robert is saying away from office real estate
• Robert recommends reading, Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes by Tom Wheelwright, to learn how to save on taxes
• If you want to learn how to make money in both up and down markets, Robert recommends the book, The Stock Market Cash Flow: Four Pillars of Investing for Thriving in Today’s Markets by Andy Tanner

Robert’s Parting Advice

• Robert’s 3 pieces of advice for listeners:
  • “Knowledge is finite, stupidity is infinite, so stay stupid because that’s how you get knowledge” – Robert Kiyosaki
    • Be humble and make mistakes
  • “Be careful who your teachers are. Make sure your teachers actually practice what they teach”
    • The best teachers are in books and on Youtube
  • “Don’t hide behind a diploma”
    • Robert doesn’t care about an entrepreneur’s formal education; he cares about their company’s financials

Additional Notes

• Robert believes there are 4 types of intelligence: Mental, Physical, Emotional, and Spiritual
• There are 2 types of leaders: Peacetime and Wartime 
  • Wartime leaders love hard times because they’re excited by challenges and know that surviving it will make them stronger
• Robert enjoyed the book, The Gulag Archipelago by Aleksandr Solzhenitsyn because the book teaches people the importance of responsibility–your current situation in life is a reflection of your actions
• Robert believes the US is becoming a socialist country
• Robert says history isn’t truly accurate because the winning country of the war gets to write the story of what happened and often writes in a way that justifies their actions

School of Greatness : finance, personal finance, rich dad poor dad, robert kiyosaki, show notes
Notes By Alex Wiec