Original subtitles

robert kiyosaki is back with us he is

the author of

why the rich are getting richer robert

this is a question that has rocked

political campaigns for decades

what is the answer well

debt and taxes for a young man like you

will be your largest single expense

you see but for a rich person with

financial education

debt and taxes will be my largest source

of income

it's so opposite of what everybody

teaches you so that's why i wrote why

the rich are getting richer

because it's really not fair you'll work

very very hard

and debt and taxes will eat you alive or

a guy like me because i had a rich dad

and like president trump taxes make us

richer

it's it's opposite so how do i get to

your end of the spectrum is it largely

through investing in real estate

well first of all it's an education

there's many ways you can do it

i primarily do it via what i call the

mcdonald's formula

if you you know there's a movie founder

with uh

michael keaton he said mcdonald's

business

is real estate it's not hamburgers it's

real estate

and so my business the rich dad company

is real estate

and that's why i use debt and i use

taxes to acquire large sum

large tracts of real estate and pay no

taxes legally legally

it's a very interesting discussion as

the government looks to put forth tax

reform

i mean what are people getting wrong

when it comes to taxes just not knowing

the loopholes out there

correct if you're a hard-working

employee or a doctor or an attorney you

will pay the highest taxes

but for the professional investor

like i'm an entrepreneur and i create

investments

i pay no taxes so as long as that's why

rich dad poor dad

lesson number one was the rich don't

work for money because the moment you

work for money you're taxed

and so this tax reform is a good idea

but for a young guy like you it's best

to learn early

why guys like me use debt and taxes to

get rich

whereas debt and taxes will eat you

alive now you know many people think oh

i'll just start my own business and

that's how i'll move up

the economic scale but in the book you

say that may not be the best

idea explain well again it goes back to

what is your level of financial

education

we're taught to be employees not

entrepreneurs go to school get a

job not go to school and create jobs

and the mindset between a person who

creates jobs

and a person who looks for a job are

opposite it's like

you know two sides of a coin so that's

why

you know both the president i know he's

not the most popular guy with a lot of

younger guys but he's a good man you

wrote a book with him yeah

two books now he's a good man but we're

concerned about financial education

so he and i are entrepreneurs we uh

thousands of employees lots of real

estate

and because we do that the irs

gives us tax breaks because we use debt

because the government wants us to

borrow money which is why interest rates

are so low

and because we borrow create jobs and

buy real estate we pay no taxes

legally well you mentioned low interest

rates and with that you also say

saving is for losers explain that

tagline because i think it runs contrary

to what a lot of people have been taught

thank you for saying that for years i've

caught hell as you know

because i kept saying savers are losers

and you saw interest rates

when i was your age interest rates were

15

now in japan and switzerland there's

sub-zero

why would you save money it makes no

sense to me some people say i'll save

money

but the but the whole economic system

which we're part of right now

wants debtors they don't want savers

so we have too much money in the system

so because they have too much cash in

the system

they punish the saver and reward the

debtor

with low interest rates and no taxes so

what's the the other solution then to

that i mean should i put the money into

the stock market should i

take on debt and invest that money in

the stock market

well as you know you guys are so lucky

being your age

so we're in the information age

the problem is our school system's still

in the stonehenge

and they don't provide you the knowledge

to process information so like when you

say go to school and get a job

it doesn't make sense to me because i'll

be taxed

and so really with the knowledge age and

information so the most important

investment

is your financial education which is not

taught in school

and so that's why so many bright young

people like you come out

their student loan debt up to here

they're looking for this mystical

high paying job and they'll live it with

mom and dad

so your number one tip for young people

would be well i would seek financial

education for what i call

real teachers because when i was in

school muslim were fake

you know i mean they really didn't know

what they were talking about like my

accounting teacher i'm in the mba

program i knew more about accounting

than he did

because the poor guy never left school

he was like my poor dad

real world experience

really yes surprising i went to flight

school i

flew for the marine corps i had to have

real teachers

you know you don't want some guy who's

never flown before or just flew a little

piper cub

to teach me to fly in combat i need real

teachers

so as young people i always say to them

choose your teachers wisely make sure

they're real

make sure they know what they're talking

about they're not people just working

for that paycheck

you know like like most financial

planners are good guys but they're not

rich people

why would you take advice from them and

robert before we let you go

what is your advice for women and

investing what kind of mistakes do women

make when it comes to investing

the biggest you should talk to my wife

kim you know she's beautiful on the

outside beautiful the inside

but she says this to all women women

you and i know that when it comes to

money

women are smarter than men that's from

my wife

all right robert kiyosaki thank you so

much for joining us

robert kiyosaki is back with us he is

the author of

why the rich are getting richer robert

this is a question that has rocked

political campaigns for decades

what is the answer well

debt and taxes for a young man like you

will be your largest single expense

you see but for a rich person with

financial education