Episode Details

My special guest for today's show is Robert Kiyosaki of Rich Dad Poor Dad fame.

I spoke with Robert on my podcast last year at the beginning of Covid when he warned Australians about the challenges for our economy ahead and the opportunities that he felt would come at the other side of the downturn.

Now I didn't agree with everything he said, but I respect that he has taught not only me, but millions and millions of people about the basics of financial literacy, so I was keen to hear his opinions.

Fortunately, Robert's dire predictions didn't come to pass, so I was pleased when he reached out to me again recently to be on my podcast so I could ask him what the biggest surprise was for him over the last 12 months.

You'll hear how Robert's teachings challenge conventional thinking about money and he suggests that you should be doing what the 99% are not doing.

You'll hear Robert speak positively about Australia's opportunities, but you may be shocked by some of his predictions of what will happen before these opportunities arise.

As I said, I don't agree with all of Robert's thoughts, his ideas about real estate, and his forecasts for what's ahead for the economy, but rather than debating him, I gave him the airtime he deserved, and then after our chat, I'll share my views.

So don't panic if you hear some of Robert's extreme thoughts, but please listen to the whole show including my thoughts, and then you'll have both sides of the discussion argument to make your decisions on.

My Chat with Robert Kiyosaki

For many years Robert Kiyosaki has been one of the most respected voices in the world on growing wealth.

He is best known as the author of Rich Dad Poor Dad which is the #1 personal finance book of all time and Robert has challenged the way tens of millions of people around the world think about money.

Some of the topics Robert and I discuss:

• Robert's background and credentials
• What surprised Robert over the past 12 months
  • He believes the United States is desperate and dumping money straight into the economy, rather than through the banking system
• Why real estate is Robert's preferred investment vehicle
  • He likes being able to use debt to buy real estate and lower tax obligations
• He believes that his concepts are applicable to Australia as well as the US because he's made money in Australia using his concepts
• Robert's investment philosophy hinges on self-education rather than trusting the government
• Robert's explanation of his Cash Flow Quadrant
  • The Quadrant uses the letters are "E", "S", "B" and "I". "E" stands for Employee. "S" stands for Self- employed or Small business. "B" stands for Big Business and "I" stands for Investors.
• Why Robert believes that the world's biggest financial crash is on the horizon
  • He believes that we're in a bubble because the US has been printing money instead of fixing mistakes
  • He does not believe the bubble is likely to deflate slowly
  • Robert believes that it's difficult to know what will cause the bubble to burst, but that it will probably be something small added on to a pile-up of things
  • He believes that Australians should not be complacent about their susceptibility to a bubble
• Robert also believes that a home is not an asset
  • This is because he believes that assets bring in cash, while liabilities cost money, and a home costs money
• Robert will be doing a live event with Harry Dent while he will explain more about what he believes will happen and what opportunities will arise from it.

My response to Robert's thoughts

In the show I give you an alternative view on 2 of Roberts assertions:

1. What's in store for our economy and
2. His concept of what makes a good propert