Rober Kiyosaki and his predictions...

[Dennis Ng]

Follow Robert Kiyosaki's article at the following link:

http://finance.yahoo.com/banking-budget ... 7/dead-cat

An excerpt:
The next interesting point is 7,286, the low of 2002, when the rally began. According to Russell, if the Dow holds at 7,286 and begins a rally, this might be a good time to buy. But if it fails to hold at 7,286 and slides past 6,547, then look out for dead cats dropping from the sky. Russell predicts that Dow 1,000, the number at which the Dow began its rally in the 1970s, may not be out of the question. If that happens, there will be millions of baby boomers joining the dead cats falling from the sky as their 401(k)s and IRAs implode.

Actually, Robert Kiyosaki has a few predictions in the past that have not become true at all.

Let's see this round whether he can "get lucky".

I have to say that his books, including Rich Dad, Poor Dad, Cashflow Quadrant were some of the books that changed my Mindset about Money when I started on my Personal Finance learning journey more than 10 years ago.

However, last year during National Achievers' Congress when he was selling his Rich Dad Silver Coins at almost 50% higher price than American Eagle coins, I sort of have this feeling that he is "not educating" the public, but using his knowledge to "take advantage" of the ignorant seminar attendees who didn't know they bought over-priced Silver Coins from him.

It is my belief and opinion that those who have Knowledge, should use their knowledge to help and educate others who might not have the knowledge, and NOT to use the knowledge to take advantage of others.

I have almost 10 or more of his books, all his books, he keep repeating that you must learn "how to make your money work for you". However, after reading all these books written by him or under Rich Dad Advisors' Series, I found that I learned little to nothing on the "how" to do it, at all, which makes me wonder maybe he does not want to "teach" or share at all.

[alvin]

I agree totally. He keep repeating like a broken record. Reusing his material again and again.

He will say that his principles have not changed which I agree. But he should not come out with new books if he has no new ideas.

Anyway, I thought I could share his 8 'new' rules of money. (Not totally new afterall)

Rule #1 – Money is Knowledge

Robert said we do not need money to make money. As long as we have the right knowledge, we can make money with it. In other words, we should improve our financial literacy. He quoted the example of shorting shares, we must first know that it exists and we can make money when stock price goes down. Next step is to know how to do it. Instead of believing in everything that a investment product salesman, we be financially literate to make our own investment decisions.

Rule #2 – Learn how to use debt

We need to differentiate between good debt and bad debt. Good debt puts money in our pockets and bad debt take away money from us. Hence, taking up good debts is a form of leverage, putting more money into our pockets. At the same time, we must avoid bad debts. Our bad debts make other people richer.

Rule #3 – Learn how to control cash flow

We must constantly be aware about the world’s cash flow. It can be done by observing 3 things.

1) Observe where workers are moving to.
2) Where are jobs created?
3) Which asset is money exchanged for? Stocks/bonds/commodities

The value of assets rise whenever money flows to them. Hence, monitor where cash is flowing.

Rule #4 – Prepare for bad times and you will only know good times

Robert gave the account of the famous story of biblical character, Joseph. Joseph’s dream and interpretation of 7 bad years convinced the Pharoah to prepare for the famine. This alone made Egypt the most powerful country. If we are able to deal with financial crisis, we will be very profitable in good times.

Rule #5 – The need for speed

We need to accelerate the amount of money earned. The rate of money earned should follow an exponential scale instead of a linear relationship. In other words, we should avoid getting paid by time, exchanging an hour for a fixed amount of money. We only have 24 hours per day. We should have the type of income that is able to increase in folds so that money can flow to us as quickly as possible.

Rule #6 – Learn the language of money

Robert says, “money begins with words, and words are free.” Our thinking shapes our behaviour, and our behaviour and responses determine our results. To change the results, we need to change the root, which is our thinking. The rich thinks differently from the average and the poor. The rich thinks in abundance while the average and the poor think in lack. So is the cup half-filled or half-empty?

Rule #7 – Life is a team sport. Choose your team carefully

People are good in different things. We need to tapped into resources of the experts to help us in our life and businesses. We need lawyers, accountants, financial advisers and more. It is important to assemble a team of experts where we can call upon when we need them. They must be trustworthy and have a good understanding of ourselves as well as our plans to offer tailored advice. ”Team” is part of Robert’s B-I triangle.

Rule #8 – Since money is becoming worth-less and less, learn to print your own

Money is worth less due to inflation. We must grow our money faster than the rate of inflation. One way is to “print” money like the banks. Banks collect interest by lending our money. We should also use other people’s money to invest and profit from the capital.

[Dennis Ng]

19 JUl 200 - haha. Robert Kiyosaki is wrong again.

If you had listened to him that Dow might drop to 5,000 points and shorted the U.S. stock market, today, you'll probably be bankrupt, since Dow closed at 10,154 points on 19 Jul 2010, or just slightly over 100% higher.

Many people still blindly listen to Robert Kiyosaki though.

Cheers!

Dennis Ng, http://www.HousingLoanSG.com

Follow Robert Kiyosaki's article at the following link:

http://finance.yahoo.com/banking-budget ... 7/dead-cat

An excerpt:
The next interesting point is 7,286, the low of 2002, when the rally began. According to Russell, if the Dow holds at 7,286 and begins a rally, this might be a good time to buy. But if it fails to hold at 7,286 and slides past 6,547, then look out for dead cats dropping from the sky. Russell predicts that Dow 1,000, the number at which the Dow began its rally in the 1970s, may not be out of the question. If that happens, there will be millions of baby boomers joining the dead cats falling from the sky as their 401(k)s and IRAs implode.

Actually, Robert Kiyosaki has a few predictions in the past that have not become true at all.

Let's see this round whether he can "get lucky".

I have to say that his books, including Rich Dad, Poor Dad, Cashflow Quadrant were some of the books that changed my Mindset about Money when I started on my Personal Finance learning journey more than 10 years ago.

However, last year during National Achievers' Congress when he was selling his Rich Dad Silver Coins at almost 50% higher price than American Eagle coins, I sort of have this feeling that he is "not educating" the public, but using his knowledge to "take advantage" of the ignorant seminar attendees who didn't know they bought over-priced Silver Coins from him.

It is my belief and opinion that those who have Knowledge, should use their knowledge to help and educate others who might not have the knowledge, and NOT to use the knowledge to take advantage of others.

I have almost 10 or more of his books, all his books, he keep repeating that you must learn "how to make your money work for you". However, after reading all these books written by him or under Rich Dad Advisors' Series, I found that I learned little to nothing on the "how" to do it, at all, which makes me wonder maybe he does not want to "teach" or share at all.

[marvic]

I did not read many books about investing etc. But I did read Robert Kiyosasi and some others. Of these, I prefer books by another author called David Bach.

[lootster]

Saw this

http://www.youtube.com/watch?v=HE6nT0oyPt8

[spezlezz]

Hmm... didn't expected this
Anyway it is a corporate bankruptcy. Not personal.

Rich Dad, Poor Dad now a bankrupt dad: Best-selling author files for corporate bankruptcy after losing $24m judgement

http://www.dailymail.co.uk/news/article ... ement.html

[candy_chia]

Hi lootster,

Thank you for sharing this video. It revealed the outrageous advanced training fee of $12,000 to $45,000 (should be in US$) charged in Robert Kiyosaki workshop!

The value for money workshops by Dennis will help us get out of the rat race one day!

wealth juggler.png (98.55 KiB) Viewed 22720 times

Saw this

http://www.youtube.com/watch?v=HE6nT0oyPt8

I must still thank Robert Kiyosaki becos after reading his book in 1998, I started to change my mindset to money, he taught us to think about "make money work for you, instead of working for money"...but other than that, frankly, I didn't learn much from him despite buying/reading more than 10 of his books and those under Rich Dad's Advisors' Series...

On Good Debt vs Bad Debt, actually I already learned such concepts "Live" during the Asian Financial Crisis when I personally witnessed businessmen who over-borrowed and ended up from Rich to bankrupt in just a few months, after working hard building up their businesses for over 30 years...

Most of what are taught in those books are very general concepts, not specific how to eg. how to borrow money, what factors to look at etc, etc.

hard day.png (152.69 KiB) Viewed 22720 times

After teaching Cashflow game for 2 years (year 2001 to 2002), it became very clear to me that the way to Wealth is NOT Cashflows, but Capital Gains, this is how one can really make alot of money through the Small Deals while in the Rat Race..

..when I played the game, after I focus on Capital Gains, I can get out of the Rat Race with Passive income of S$1 million to S$10 million, and end up with hundreds of millions of dollars in the Fast Track (we run out of dollar bills until we just write S$10 million on pieces of paper...)...those were the days...

As I mentioned, for a person who is not Rich to become Rich, focusing on Cashflow cannot lead one to Wealth, this is very obvious to me and I begin to doubt whether Robert Kiyosaki got Rich through what he teaches or he got Rich by teaching.

Becos he'll know the focus should be on CAPITAL GAINS for an average person who want to become Rich and NOT Cashflow (or Passive Income).

Apple.png (77.32 KiB) Viewed 22720 times

Cheers!
Dennis Ng

[lootster]

You're welcome Candy!

Would also like to thank you on behalf of all seminar graduates for your continuous effort with your daily posting ever since our sifu left.

Thank you!

[walkinepark]

I've put some of my thoughts to the teachings of Robert Kiyosaki (RK) and Dennis. Both are probably right actually.

RK focus on "Cashflow". That's a marathoner's version to achieving wealth.
I think he's coming more from a "Businessman's" perpective vs an "Investor's" perspective.
See, IF the Cashflow is positive and Huge enough, one can get wealthy faster.
And, IF one already knows how to create and manage a positive cashflow, by carefully using Other People's Money (OPM) via good debt, he can leverage up with confidence and get wealthy even faster. IF he becomes reputable, wealth takes on a new life via the so-called "self-fulfilling prophecy".

Dennis focus on "Capital Gain". It's probably a faster track to wealth, given that the world's economy is rather fake and stimulated by central bankers via money printing.
So, IF the asset you are holding happen to be in the position that benefits from these huge amount of stimulus, you double or triple your wealth faster.
Since Life is short (and we are mostly impatient), Dennis method looks more practical or viable than RK's because it takes a shorter time to achieve our wealth target.

RK: Cashflow Businessman
Dennis: Market Cycle Investor
We: A mixture of Investors + Speculators. No offence to the real businessmen/women around here

Here's what the following 2 "Investing" Gurus said:
Benjamin Graham: "Investment is most intelligent when it is most business-like"
Warren Buffet: "Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years."

Do they sound like Businessman or Investor?

Cheers