The financial landscape in 2023 is filled with uncertainty and risk. Many are predicting a major economic crash, comparable to the great recessions of the past. Despite these daunting predictions, ‘Rich Dad’ Robert Kiyosaki sees a unique opportunity to amass wealth. In a YouTube video on the channel Millionaires Investment Secrets, Kiyosaki shared his investing strategies and his perspectives on the current economic climate.
Seizing Opportunities in a Crisis
Kiyosaki’s investing acumen is proven, having made significant fortunes following the 2011 mortgage-backed securities and CDL crashes. “In 2011, I made the biggest fortunes in my life…That’s when I decided to borrow 300 million dollars to buy the best real estate across the Southwest,” said Kiyosaki.
This experience has shaped Kiyosaki’s approach to investing, where he prefers real, tangible investments over traditional paper assets. “I own no stock, sponsors, mutual fund, ETF’s. I do not touch paper,” Kiyosaki expressed in the video, emphasizing the need to look beyond traditional investment vehicles for financial growth.
Real Estate as a Safe Haven
With the looming economic crash, Kiyosaki’s strategy revolves around investing in real estate. His approach is characterized by buying apartment houses and improving their value, thereby increasing their worth. By avoiding the common practice of flipping houses, which can incur substantial tax consequences, Kiyosaki instead focuses on refinancing his properties. “I don’t flip houses… Every time you flip you have a tax consequence. I finance out, that’s tax-free money,” he notes.
Kiyosaki explains the numerous benefits of his approach, including various tax breaks such as appreciation, depreciation, and amortization, which significantly enhance the profitability of his investments.
Oil as a Strategic Investment
In addition to real estate, Kiyosaki has turned his attention to investing in oil. Rather than investing in oil stocks, he invests directly in oil in the ground. This approach, according to him, provides a significant tax break, further augmenting his financial gains.
Navigating the Current Economic Climate
With the current state of the economy, characterized by increased inflation and uncertainty, Kiyosaki advises a strategic and thoughtful approach to investing. He suggests that there is more opportunity today than ever before, as long as individuals avoid the trap of traditional thinking regarding investments and financial growth.
Kiyosaki’s investing philosophy is one of resilience, foresight, and innovative thinking. By focusing on tangible investments like real estate and oil and by leveraging strategic financial mechanisms, Kiyosaki continues to build his wealth, even in times of economic downturn. His insights offer a valuable perspective for investors looking to navigate the complexities of today’s financial world and underscores the importance of adaptability, knowledge, and a solid investing strategy in achieving financial success.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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