Robert Kiyosaki (cont.)

Through exchanging emails with my Father about Robert Kiyosaki’s most recent update on www.conspiracyoftherich.com, my dad brought up some interesting points. In the beginning of the post, Robert says not to buy gold and at the end suggests buying gold.

Dad says, “Gold can only be cash once sold”, and mentions that investing in gold is not investing in monthly cash flow. This reminds me of my recent discussion with a friend, whom just became a financial adviser for Northwestern Mutual. He argued that Robert contradicts himself by saying to invest in cash flow because he recalls reading a book where Robert suggests buying penny stocks or startup companies. He argues the average person cannot afford to invest for cash flow.

Both my Dad and my friend argue very good points. I received my Bachelor’s in Finance with an emphasis in Risk Management and Insurance. I was licensed to sell insurance; I can understand where my friend is coming from. Ending the conversation with my friend, I told him he would just have to read “Conspiracy of the Rich” for himself. After all, you have your own learning curve and transform through the Graves System at your own pace.

My friend works for the conspiracy. I agree with him some people have good jobs, are starting families, and want to have life and health insurance. Robert’s point though is, if you have a financial education and are invested for cash flow than you have no reason to worry about life insurance because cash flow is being left behind, as long as it is managed properly.

Well is that not what a financial adviser does? Do they not manage your paper assets in a portfolio? Robert utilizes management companies to handle this for many of his businesses. In fact, it is an expense for him as an entrepreneur.

Robert’s point I was trying to make to my Father about gold was that he suggests gold and silver as safe vehicles for holding money. As a place to currently hold your earnings from cash flow investments. To an older investor who is established, they need to diversify their portfolio.

Not everyone is in the same place or position in life. Some people have to work their jobs just to pay their bills. Others have cash to invest into startup companies, as a way of making big money, to have the potential to earn dividends, which is a cash flow. Different people need to make different decisions. Financial advisers are important people, for some people. If you are looking for one, I know one working for Northwestern Mutual!

Again, in the book my friend refers to, Robert was writing for the times. If you read his older books now, there is great value in seeing things from his perspective. The financial markets go up and down in cycles. "The rich make money in an up market, horizontal market, and down market."

In this case with Robert’s most recent post online, he is speaking to a person of his generation that might be worried about retirement and want to have their money in a safe place. The post was written as a rejection to someone who was arguing not to invest in gold and silver. He was writing from a perspective to give you the other side of the coin and allowing you to choose for yourself depending on where you are in life. For instance, like me, a person may not have excess cash lying around to make gold or silver purchases, even if they agree with Robert.

The money sitting in 401k’s are taxed as income once the money starts coming out of the accounts. Would you rather pay taxes on that money or use that money as a business expense investing into a business that cash flows? Will you trust Wall Street or yourself? Or maybe you have not even thought about money like this?

I have been beginning to see money in a whole different way. It is the tool people use to vote each time they spend money. Examples: “I vote for this plumber, I will spend my money here on him because he supports the local community with donations;” “I will buy food from this farmer knowing I trust their business practices;” “This dentist is nicer than that one, I choose to pay him.”

For whatever the reason, when you spend money with whomever, you are in essence voting that you approve of them or their business practices.