In an upcoming documentary An Unfair Advantage Robert Kiyosaki delves deeper into chapter 11 of his new book “The Conspiracy of the Rich” to reveal his strategy for printing his own money and creating infinite returns.
When you look at a financial statement there are 4 basic asset classes that you build to create wealth.
1) Business. (500 employees or more) The number 1 asset a person can have is also the toughest to start. If you can start your own successful business then you have an enormous ‘unfair advantage’ because of the tax breaks and cash flow that a business can bring.
Thomas Edison of General Electric, Bill Gates of Microsoft, Henry Ford of Ford Motor Company, Richard Branson of Virgin Enterprises and Steve Jobs of Apple are all examples of entrepreneurs who started out with very little and built multibillion dollar businesses. And what Robert Kiyosaki also points out is that these successful business owners have something else in common that was a huge unfair advantage… each one NEVER finished school.
2) Real Estate. With real estate you can use debt and other people’s money to get rich. This can also be one of the safest long term asset classes to put your money into as history has shown that a good property bought at a good price can yield high returns for a long, long time.
Robert makes the point that you want to HOLD on to your property’s “if an assets making me money, why would I want to sell it?”
There are many who ‘buy property’ and then ‘flip’ them and make some small gains. The problem with that strategy is that you lose the asset and the future cashflow AND you have to pay capital gains tax.
It’s better to hold the asset, pull out any growth in value to be used to invest in another asset and then you still retain the property and continue to receive the cash from it. That is definitely an unfair advantage.
3) Paper Assets. Stocks, bonds, mutual funds, savings. Many people get in to these assets because they are easy. You do not need much financial intelligence and you can buy them on a credit card and scale up as you make money from them. So you can start with as little as $100 bucks.
4) Commodity’s. Oil, gold, iron ore, wheat etc.
To create an unfair advantage for yourself Robert Kiyosaki recommends having all 4 asset classes working for you.
An unfair advantage is learning how to create infinite returns. That is to continually acquire assets that grow in value and reinvest the returns into buying more assets and so on so that you become richer every year.
Holding on to your assets allows you to do this. Holding assets that increase in value is a great strategy for creating wealth and provides the owner the greatest ‘Unfair Advantage’ because it is how you can essentially print your own money and create infinite returns.
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