How to Protect Your Wealth Before It's Too Late

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1:22Here's Robert Kiyosaki. Hello, this is Robert Kiyosaki, and I'm very happy, excited, and I'm going to be talking today about this here. It's called emergency. So I'm happy to be speaking to you because my favorite subject really is capitalism, and I'm concerned today because the world is in a state of emergency. So what has happened, over to give you some history of this whole thing, is in 1965, I left Hawaii where I grew up. I'm fourth generation Japanese American, which means I don't speak Japanese. I speak English. I flunked out of school because I can't speak English well either. But anyway, so 1965, I read this book here.

2:07I went to school in New York, and I went to military school. And in military school, they study different subjects, not like snowflake school, like Harvard or Stanford or Berkeley. At military school, we had to read this book here. So in 1965, I'm 18 years old, go all the way from Hawaii to New York, and I read this book here. This book is only about 50 pages, but everybody should read it because the emergency in the world today was predicted in this book here. So this was 1848, and we're in serious, serious trouble because as most of you know throughout the world today we're becoming Marxist and that's the emergency here.

2:56So I'll give you a little bit of my background for those who may not know. So I read this book here in 1965. In 1997 I published this book here, Rich Dad Poor Dad, and this is a capitalist tool the way you fight back against these guys here communism is you fight with capitalism and that's why I wrote this book here and then in that was 90 of 97 in 96 created this board game here the cash flow of board game I'll explain this later on but the way you fight back against communism is with capitalism. But the problem is, after I read this book here, again in 1965, I'm 18 years old, I realized most of my family are communists.

3:56They're good people, don't get me wrong. You know, communism is kind of like an economic religion. So a communist will believe that you should just give everybody money. You know, it's called D-I-E, diversity, D, inclusion, and equality. To me, it spells die. We all die when we do that because that's what communism teaches here. And we're in an emergency right now because our schools teach us nothing about money, capitalism. Rich Dad is an education company. We don't sell anything about educational products, but people have got to want to study. So I want to prove I know what I'm talking about here.

4:39I wrote this book here in 2013, 2013. It's called Rich Dad's Prophecy. And I said, why the biggest stock market crash in history is still coming and how you can prepare for it. This has got to be changed. The biggest stock market crash in history isn't coming. It's here today. That's why we're in emergency. Let me just say this much. The world is going to go into a depression. millions will lose their jobs unfortunately like in America today the banks are laying off people because people are not applying for loans anymore you know housing market is crashing the problem with the housing market crashing throughout the world it happened in 2008 but what happened after 2008 instead of fixing the problem and I just came out in 2013 they just printed more money that made the problem worse.

5:36And that's why I said here the biggest stock market crash in history is still coming. It's now here. We're crashing. The problem with real estate is real estate is like a sinkhole. You know, it takes everything with it. A stock market crash, big deal. You know, a few people lose their jobs and all this stuff. But when real estate crashes, it takes everything with it. And we're in an emergency today because what do our schools teach us about money? Nothing. So I wrote this book here with another friend of mine. His name is Edward Sedell, Ted Sedell. The biggest crime in history is taking place as we speak today is that Wall Street and our governments are stealing our pensions.

6:21So that means my generation, a boomer, baby boomer, 75 years old, we don't have pensions today. They stole them. My classmates, I went to flight school. I flew for the US Marine Corps. Many of my friends became pilots and they flew for United Airlines. So my friends were pilots for United Airlines. They were all happy because they had a pension. Well, what happened to my friends is somebody stole their pensions. And you're going to find out this emergency is going to get worse because you're going to be hearing about the news. You heard it from me that what's going to happen is the pensions are going broke.

7:00now the biggest pension in America is with the teachers unions but as you know we don't teach us anything about money at school so most teachers go to school and they want to get a pension so in California it's called CalPERS CalPERS is one of the biggest pensions in America it's broke so all these school teachers like my poor dad who didn't know they're a communist I'm not saying the bad people you know you can be a communist you can be a marxist you can be a socialist you can be a fascist their economic religions is all they are they're just different religions so you can be christian you can be buddhist you can be muslim you can be catholic they're just religions that's what that's what this book's about here so the pensions are gone now all those school teachers like my poor dad who believe that you know they believe in die diversity inclusion and equality but they never taught you anything about money I think we're all dying because we're an emergency today because we never taught anybody about money at school which is why I wrote this book here so I went to military school in New York I flew for the US Marine Corps in Vietnam twice and when I came back from Vietnam I got spit on by the teachers you know because they called us baby killers and all this stuff and I realized then exactly as this book said like in 1848 what happened in 18 1930 according to this book here it said communism would come in two steps two steps okay the first step happened in 1930 when the frankfurt school of germany sent teachers to columbia university in new york city and that's when the rioting started all across america so that was in 1930 in 1972 i come back from vietnam i'm getting spit on by students because we don't teach anybody about money, and today we're an emergency.

9:14But it started with this book here. So I wrote this book here, Capitalist Manifesto. It is to counter, see, this, the way you fight communism is with capitalism. The good news is the capitalists are going to get richer. Unfortunately, 80 % of the world's population will get poorer. So let me give you an example how I'm getting richer. Number one is I don't invest in the stock market. I'm not saying you shouldn't invest in the stock market. I don't. But I'm a capitalist. I can create my own assets. I don't need to buy standard oil stock. I don't need to buy BP. I don't need to buy anybody's stock.

10:03So what I do instead, because I'm a capitalist, is I invest in oil wells. I'm an entrepreneur. I don't buy oil stocks. Although I worked for Standard Oil, I don't buy Standard Oil stock. I don't have to because I'm a capitalist. The capitalist manifests to. So I own oil wells. So my oil wells, I don't own stock. I don't own Standard Oil. I don't own BP. I'm a capitalist. Okay. So what happened? I have oil wells in North Dakota. Louisiana, Texas, Oklahoma. You know, when the middle class is sitting there, they're filling up the gas tanks in their cars. They can't afford the gas. Now gas also, oil also affects food.

10:52Because how do you grow food? Because food comes from oil. And not only that, you know, like I always say to people, if you want to invest in something valuable, buy a can of tuna. And they go, why would you buy tuna? I said because tuna fish in a can is a derivative of oil diesel so the fishing boats go out they're burning diesel and they catch tuna and they put it in this can to me the can of tuna is more valuable today I'll prove it again this book was written in 2013 the the biggest stock market crash is still coming it's here today we're in emergency so let me give you the good news okay this is the good news.

11:35The beautiful thing about this word here, emergency, there, see out of this emergency, you can emerge. You can become better, smarter, richer. I want you to get richer. That's how you emerge here. So I'm going to explain how you get richer, how you emerge, because one of the things I dislike about school is they teach us nothing about money. That's not a mistake. And I'll read you the back of this book here, this is from the Capitalist Manifesto. We've been warned for years. This is from Nikita Khrushchev, he is the premier of the Soviet Union. In 1959 when I was in school, he said to us, He said this to Americans.

12:31Your children's children will live under communism. We're there today. Anyway, he says, your children's children will live under communism. You Americans are so gullible. No, you Americans are so gullible. No, you won't accept communism outright. That's exactly what he said. He said communism would come in two stages. 1930 was the first stage when the Berlin School sent teachers to Columbia University in New York City and our teachers became communists. So when I read this book in 1965, I was in New York, I realized my family and most school teachers are communists. They're not bad people. That's like you're saying, well, you're a Muslim, you're a Catholic, you're a Buddhist.

13:20Not bad people, just different religion so it says your children's children will live under communism you americans are so gullible no you won't accept communism outright but we will keep feeding you small doses of socialism until you finally wake up and find you already have communism we're already here communists have taken over the free world we're no longer a free market economy. You will finally wake up and find out you already have communism. We will not have to fight you. We will so weaken your economy. This is 1959. As the Soviet Union was crashing, he was warning us. Russoff was warning us.

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14:49We're crashing right now. We're in serious, serious, serious trouble. Now, the good news is you can emerge. Like I said, there's millions of ways you can get rich. Like, I still invest. I don't invest in oil stocks. I invest in oil wells. I don't invest in food, I invest in cattle. You know, I invest in Wagyu cattle. Why Wagyu cattle? Because the rich will always be rich. The poor will eat hamburger, cheap meat, but the rich will always eat brand meat. Wagyu is a brand. But anyway, today I buy breeding bulls. So I'm getting richer. Every time that breeding bull has sperm, we sell the sperm. Capitalism, free market capitalism, and they pay a premium for that bull to do that stuff.

15:49Open your minds. There's more opportunity to be, and you can emerge rich. And I'll say it again, the trouble with the real estate market crashing, it takes everything with it. Our pensions are gone. This is not good news. So I'll be finishing up by talking about how you fight back as a capitalist.

16:12So you can emerge out of this thing richer, happier, smarter. These are the four things I suggest to you. Be careful who your teachers are. Because this is your most powerful, most valuable asset is your brain. And if you have poor teachers, you're in serious trouble. Be careful who your teachers are. If they're Marxists, be careful. So you want to choose your teachers. I had to choose my rich dad versus my poor dad. As I said, my poor dad's a good man. He was a head of education for the state of Hawaii, PhD, Stanford. Northwestern, University of Chicago. Very good man, but he was a Marxist. He believed, like most Marxists believe, in the abolition of private property.

17:10He said, my poor dad, I said, the rich were evil. The rich were greedy. You listen to people like teachers, like Klaus Schwab, you're in trouble. But millions of people are, because most teachers are Marxists. I hate to say that, but they are. They're not bad people. They really believe in what they're teaching. They teach the rich are evil, the rich are greedy, and you should all die. Diversity, inclusion, equality. That's stupid. I want to be rich. You want to be equal? Go someplace else. I've always wanted to be rich. That's why I like breeding bulls. I like to have the breeding bull because they produce more calves.

17:56They produce more cows. they produce more capital cattle comes from the word capital so that's why I invest in breeding bulls you should too they're really good next thing the thing is skills you're looking for teachers I'll give you new skills and so one of the reasons we created here the cash flow board game is to give you new skills and some of you have played it some of you haven't but this year was you know the rat and all this stuff here it used to have a ferrari on it but anyway this here is the board game from the inside and the reason I do this is because my rich dad taught me to be a capitalist playing Monopoly you know four green houses one red hotel today I own thousands and thousands of rental properties I own hotels and all that stuff so this here is the cash flow board game is produced all over the world.

18:59When you go to school, you wind up here. It's called the rat race. Go round and around and around and around and around. And you wonder, what happened to my life? And today, because they have bad teachers, they're stuck in here. You know, like I said all the teachers are there for their pensions and it's stolen they're being stolen so how do you get out of the rat race this is the real game board here it's called a financial statement and so in school this is called accounting and when i was in business school there was no subject more boring than accounting so in 1994 96 we created the cash flow board game so you could learn this and again this is for new teachers but you need new skills you need the skills of how you run a book bookkeeping accounting so this here this game teaches these skills here this is a balance sheet income statement statement of cash flow now the reason this is a better teacher again let me go back to this here is because as Maria Montessori said she's an educational entrepreneur she says what the hand does the mind remembers so the reason this board game is such a great teacher is because you have to fill this out with your hands you have a pencil you said you're putting numbers in here you're filling these numbers out so let me say it again as maria montessori said what the hand does the mind remembers the game is a teacher it'll teach you new skills so you have income statement balance sheet statement of cash flow this here is the most important person on this game board it's called the auditor you know what it's called today in real life blockchain the auditor is blockchain so what gives crypto its power is because of auditor blockchain and the cash flow game again is a great teacher teaching you new skills here.

21:34So I would suggest getting the game. Get together with three or four people, play the game. Play it once a week for one year and you'll see a whole different world. But remember the auditor. The auditor is blockchain. The most important thing you can do is when you fill this out here, you have to pass it to the next player and the player audits your numbers here. In real life, I have all audited financial statements. That's how I can take companies public. That's why I'm an entrepreneur. I have auditors auditing my books here. So when you play this game here and you're having a good time and you're learning, you have kids here, you know, people find out very quickly that kids are liabilities, not assets.

22:21They're very expensive here. one more thing I talk about my Ferrari the wonderful thing about my Ferrari is the way I get my Ferrari is I buy an asset so I buy let's say an apartment house and the apartment house buys my Ferrari that's how you get rich that's called capitalism you want to learn capitalism not Marxism from a school teacher so the reason we have this board game here is so you can have fun if you play it once a month for 10 times with your friends, you'll find your mind opening up because what you're gaining

23:03is you have a new teacher, but you're getting new skills. And that's what makes you rich, not a college degree. The next thing that's vitally important is information here. And the reason this is important is very simply because misinformation. They're also called lies. You know, be careful. Be careful of the information, who your teachers are, what your skills are and all this, because misinformation is it. Another thing, there was a man named George Orwell. He wrote the book 1984. Very important statement in there. And these guys use it all the time today. He says, when you can't win the argument, change the story.

23:48misinformation said well no no no no there's no inflation they change the story I call it lies so again the world America the US dollar all fiat currency we're in serious serious emergency here and I and again I want to toot my own horn I said it was gonna come in 2013 is here today so what they're doing is when they didn't pay off the first crash in 2008 they borrowed more money to pay off the debt then they borrowed more money to buy the bonds to pay off the debt and they kept interest rates low and they blew the world into this huge bubble so a stock market bubble we have a bond bubble we have a real estate bubble and the world's going to go crashing i cover in this book here it was coming all these years 2013 so remember you don't have to be a victim you got learn from capitalists so anyway to be careful of misinformation they're also called lies so the reason you want to be staying ahead is be careful on the source of your information so when I say I wrote this book here i can prove it here's the book 2013.

25:12i'm not just saying the crash is coming i can prove i wrote the book you can you'll you'll you'll find me on cnn calling for the crash of lehman brothers and all this just go to rich dad i've been calling this stuff for years here i have proof it's not misinformation and the final the most important thing is who is on your team I'm a US Marine. When we went into battle, I flew the gunships. We always went and we flew as teams. So when we fought, we fought as teams. What did they tell you to do in school? Go by yourself. If you ask for help in school, you're called cheating. In the military, it's called teamwork.

25:54So the other thing that you want to stay ahead in this economy as we go into this time here, huge emergency I suggest use the cash flow game as a great teacher learn new skills be careful of information going into your head and when you're playing the cash flow game you'll find out whether or not that person should be on your team you don't want a communist on your team you don't want a school teacher on your team because the problem with a school teacher is they think their grades matter they think oh but i was a straight a student i had good grades you don't want that person on your team because what did your grades have to do in school so the most important thing here is when you're playing the cash flow game educate each other play the cash flow games study learn seek information there's more opportunity than ever before you know i just i told you too right now i have oil wells and i have japanese bulls i'm getting richer and richer and richer i also own apartment houses i use debt as money i drive ferraris because i like ferraris but i also have a fabulous team here on my team are my bookkeepers accountants attorneys and all that i have a great team my poor dad a school teacher nobody i'm an a student so i'm the smartest person in the world i don't need anybody because i'm an a student that's the problem with the school teacher they think their grades matter they actually think their grades matter what's wrong with those people do i'm saying and the worst thing about it is they don't make mistakes well how in the world do you learn if you don't make mistakes the reason you want to play the cash flow game is to make mistakes you make mistakes with fake money play money the more mistakes you make the smarter you get but most teachers they think oh i made no mistakes that's why i'm smart no that's why you're stupid tell the teacher that you make no mistakes that's why you're stupid.

28:08That's why you're poor. Be careful who's on your team. In the Marine Corps, we made sure we had a great team. There was two pilots in my aircraft, two officers, two machine gunners, there were enlisted guys, and one crew chief. We flew as a team. We also flew with other aircraft. Went into battle, we fought as teams. It's like a rugby team or a soccer team. Most people are golfers. I'm going to do it by myself. You want the best team. You do that, you will win.

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29:19So I'll be closing with this thing here. It goes back to this here.

29:26This is your most important teacher. Learn to do this. Learn with play money, fake money. Make as many mistakes as possible. teach each other teach each other if somebody doesn't want to learn get them off your team you want somebody who understands this on your team because i'll leave the final words on this you know i flunked out of high school twice why because i can't write now ironically my books i'm an international bestseller but in high school i couldn't write made too many mistakes but let me say this much when I was flunking out of high school my rich dad said this to me and I'll pass it on to you my rich dad said to me says Robert my banker has never asked me for my report card my rich dad never went to school he said but when I go to my banker they want to see my financial statement I'll say it again okay most school teachers don't have one of these things that's why they're poor so when I was flunking out of high school back in the 60s my rich dad said my poor dad was all upset because he was an A student you know PhD and all this stuff my rich dad says to me is this Robert this is what my banker wants to see my banker wants to see my financial statement because your response statement is your report card when you grow up ladies and Gentlemen, grow up.

30:57This is what your banker wants to see. Play the cash flow game. Pay at least once a month. Teach people. Find your team. Learn. Don't be fooled by misinformation. But remember this, this is your report card when you grow up. I promise you, if you play this game once a month for a year and you teach people along the way, you'll find your team, but you'll also get richer because you're richer up here. So good luck. We're in very serious trouble financially. But guess what? Your banker only wants to see this. This is your report card when you grow up. Thank you.

31:40This podcast is a presentation of Rich Dad Media Network.