Introducing the new Robert Kiyosaki Show, with Robert Kiyosaki and Rich Dad Advisors.

In this episode, Robert discusses why investing is better than saving for your retirement. Also, special Guest Garrett Sutton, explains why owning your own home can be more risking then you think!
Watch the Robert Kiyosaki TV Show! Enjoy!

Well guys, I think we still got opportunities creating wealth during economy downturn.
Here are some ideas.

1. Investing real estate. Buy foreclosed properties as the price is at the rock bottom. Having a house/apartment to stay is necessity, tenants (ex-house owners) still need a place to live after being foreclosed. There is still demand for renting property during recession. Robert G. Allen is expert in buying foreclosed properties, please read his famous book ‘Nothing Down’.

2. Buying a business. Slow down sales will hurt business. Find a good prospect business and strike at the right price. Sell off the business when the time is right.

3. Buying undervalue stocks. Find strong fundamental companies and buy their stocks if they are undervalued. Remember Warren Buffet’s advice, buy when people are scare enter the market, sell when people rushing to buy.

4. Buying unit trust/mutual fund. If the 10 years cycle assumption is correct, shares price will rise again. So buy now as almost all are in low price, they might be increase few years later. Advice from Robert Kiyosaki, investment by hoping for capital gain is risky. So, it’s up to you to decide.

5. Investing in precious metals. Precious metals like gold price tend to rise during recession. Same case might happen to current situation, but it is reverse currently due to banks and investors converting gold to USD. But still a lot of analysis suggested us to buy gold.

6. Buying devalued currencies. Currencies like AUD, NZD, SGD, IDR and ISK are dropping their value against USD. Some countries offering high interest rate, eg. Indonesia (10%), Australia (3.5%), Iceland (18%) and Sri Lanka (23%). You can have two types of profit: high interest rate return and potential of that currency to rise against USD. Some bankers offer facilities to deposit your saving into foreign currencies, check them out.

7. Obtain loan from low interest rate countries. Guess what you gonna do with this loan? Of course put into higher return places eg. blue chip stocks with high return or saving in other countries banks offering higher interest rate. Countries offering low interest rate so far are Japan and USA. You gonna have your stable passive income guys.

8. Buy tax lien certificate. You can buy this at most states of USA. I think the chances of house owner late paying tax are higher during recession. You may make a small fortune there.

9. Blogging. Since your workload is less during recession. Find some of free time to blog. You maybe rich because of this. Please helping mine too.

10. Offering loan to needy people. Setup business to serve that purpose. I notice in some countries, the loan given interest rate is more than double of bank interest rate. So these people will get loan from bank and offer loan to needy with higher interest rate. Please consult legal firm before setting up this kinda business.

Don’t panic and think positively, there are still a lot of opportunities to make money during economy downturn. You might become rich during this recession. Who know right?

Final words, try all these at your own risk.

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Opportunities During Economy Recession

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Ever been on a roller coaster? It’s scary to even see it tumbling down from a height, scarier still to be in it. Most people scream, close their eyes tightly shut, with hands tightly clenched over the support beams till their knuckles are white. Some pray and even wonder at their own wisdom of taking a roller coaster ride.

At the end of it, when it comes to a stop, most agree that it was one hell of an exhilarating ride that they had ever experienced. Similar is a stock market. In the middle of the ride, you’ll find lots of faces drained of their life blood—people who seem to be cursing their luck and the guy who had asked them to invest in the stock market. There are others who are throwing up, many who are crying and some who seem to be enjoying it.

If you were to talk to such people from the investment community, you’ll know that they are worried about the turmoil, but have chosen to keep their faith in the markets. They are in it for the long-term. They have chosen investments carefully and are not bothered about the turmoil that is shaking the world at the very foundations.

If there is one person who deserves a prize for sheer guts, it has to be American investor Warren Buffett. He has infused $5 billion into Goldman Sachs and another $3 billion to GE in the past 15 days. It’s not charity either.

Buffett is acknowledged as one of the savviest investors of our time, maybe of all times. He sniffed out a fabulous bargain. He got preferred stock from these companies that pay him a dividend of 10%, with the option of investing in the common stock to the same extent, within five years at a predetermined price.

It’s a win-win deal he has brokered for it is a vote of confidence on the company. Coming from Buffett, it’s like an investment grade rating or better than that as he is actually putting the money compared to rating agencies’ grades. That’s a good deal, isn’t it? Is there no risk at all here for Buffett?

Of course, there is. These companies are still vulnerable. That is the reason they required the cash infusion in the first place. But with Buffett’s backing , they will have access to more funds and have a shot at becoming healthy again. The price that these companies paid was the fat dividend that they had to fork out—a small price to pay if the alternative was to go belly up.

There are others who are scouring the wreckage of the financial markets to get juicy, valuable chunks. There are many bargains available at this point. But the average investor is so scared that he can see only darkness. The treasures are not visible to him. Savvy individuals invest in such turbulent periods as it presents them an opportunity to make extraordinary profits.

It’s not luck which is on their side. They go in search of luck, meet it in the form of opportunities and take intelligent and calculated risks. Without risks, extraordinary returns are not possible. The risk now may actually be lower than when the stock market was at a high, as the chance of the market correcting was more when the index cruised higher and higher.

But investors were more than willing to come in then. Now, when it’s at 50% of the peak, investors have deserted it. The logic being it may go down. Markets could go down from any point. Higher the point, more are the potential chances. Knowing this, does it not make sense coming in strongly at this point and buy aggressively?

Like Tata Consultancy Services (TCS), which bought Citigroup Global Services and also got with it an outsourcing deal of $2.5 billion over a nineand-half year period. Each one can become a savvy investor at this point in time. You don’t have to be a Warren Buffett and buy up companies.

One just needs to pick up small quantities of shares of fundamentally strong companies now and wait for the market to turn. Most investors are acting like the poor dad from Robert Kiyosaki’s book “Rich dad, poor dad”. They are afraid of risks, assailed by fear and ignorance, and don’t have the foresight to take advantage of opportunities and lack the sagacity to take failure in their stride as a learning experience.

Investors need to see this whole turmoil in proper perspective. This is something that started in the US and there is little exposure that we have. There is “collateral damage”, of course. Foreign entities are pulling out from the world-over to cover their losses.

Also, they are ironically pulling out from countries like India as the emerging markets are seen as “more risky”, the problem started and has engulfed the advanced economies, principally! India happens to be a domestically driven, investment-led economy.

This augurs well for us. We could continue to grow as long as we the investors have faith in our own economy. We don’t need an outsider to tell us that there is tremendous growth potential in India, irrespective of what is happening elsewhere. Just see the state of infrastructure and you will know there are opportunities aplenty. We need to conquer the fear and invest now to get an asymmetrically high return in future for this effort.

Fear can be looked as a positive factor too. The saying in a soft drink advertisement is: “we are of course afraid. But we will do it… Because Darr ke aage jeet”. You need not swill any sugar water. Take the darr ke aage jeet line to your heart and just do it!

(Suresh Sadagopan is Chief Financial Planner, Ladder 7 Financial Advisories)

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Investors need to overcome fear factor

~ Robert Kiyosaki

How did we get into the current financial mess? Great question.

Turmoil in the Making

In 1910, seven men held a secret meeting on Jekyll Island off the coast of Georgia. It’s estimated that those seven men represented one-sixth of the world’s wealth. Six were Americans representing J.P. Morgan, John D. Rockefeller, and the U.S. government. One was a European representing the Rothschilds and Warburgs.

In 1913, the U.S. Federal Reserve Bank was created as a direct result of that secret meeting. Interestingly, the U.S. Federal Reserve Bank isn’t federal, there are no reserves, and it’s not a bank. Those seven men, some American and some European, created this new entity, commonly referred to as the Fed, to take control of the banking system and the money supply of the United States.

In 1944, a meeting in Bretton Woods, N.H., led to the creation of the International Monetary Fund and the World Bank. While the stated purposes for the two new organizations initially sounded admirable, the IMF and the World Bank were created to do to the world what the Federal Reserve Bank does to the United States.

In 1971, President Richard Nixon signed an executive order declaring that the United States no longer had to redeem its paper dollars for gold. With that, the first phase of the takeover of the world banking system and money supply was complete.

In 2008, the world is in economic turmoil. The rich are getting richer, but most people are becoming poorer. Much of this turmoil is directly related to those meetings that took place decades ago. In other words, much of this turmoil is by design.

Power and Domination

Some people say these events are part of a grand conspiracy, and that might well be. Some people say they represent the struggle between capitalists, communists and socialists, and that might be, too.

I personally don’t participate in the debate over a possible global conspiracy; it’s a waste of time. To me, the wider struggle is for power and domination. And while this struggle has done a lot of good — and a lot of bad — I just want to know how to avoid becoming its victim. I see no reason to be a mouse trying to stop a herd of elephants from fighting.

Currently, many people are suffering due to high oil price, the slowdown in the economy, loss of jobs, declines in home values, increased bankruptcies and businesses closings, savings being wiped out, the plummeting stock market, and rising inflation. These realities are all direct results of this financial power struggle, and millions of people are its victims today.

An Extreme Example

I was in South Africa in July of this year. During my television and radio interviews there, I was often asked my opinion on the world economy. Speaking bluntly, I said that South Africans had a better opportunity of comprehending the global turmoil because they’re neighbors to Zimbabwe, a country run by Robert Mugabe.

In my interviews, I said, “What Mugabe has done to Zimbabwe, the Federal Reserve Bank and the IMF are doing to the world.” Obviously, my statements disturbed many of the journalists. I did my best to comfort them and assure them I was not an anarchist. I explained, as best I could, that Zimbabwe was an extreme example of an out of control power struggle.

After they were assured I was only using Zimbabwe to illustrate my point, I said, “If you want to understand the world economy, take a refugee from Zimbabwe to lunch.” I advised them to ask the refugee these questions:

1. How fast did the economy turn?

2. When did you know that you were in financial trouble?

3. When did you finally decide to leave Zimbabwe?

4. If you could do things differently, what would you have done?

Three Approaches to a Crumbling Economy

I spoke to three young couples from Zimbabwe while I was in South Africa. Two couples were recent refugees now living in South Africa, and one couple still lives in Zimbabwe. All three couples had interesting stories to tell.

One couple said that they would have quit their jobs earlier. Instead, they hung on, hoping the economy would change. Then, virtually overnight, the value of the Zimbabwean dollar dropped and inflation went through the roof. Even though they received pay raises, the couple couldn’t survive and soon depleted their savings. They left Zimbabwe by car with almost nothing. If they could’ve done something differently, they told me, they would have started a business in Zimbabwe and began exporting products to South Africa, so that they would have had South African currency and a bank account there before they fled.

The second couple that fled the country said they saved money and paid off their house and other debts even as the Zimbabwean dollar fell in value. Looking back, they say they would’ve saved nothing and gotten deeply in debt in Zimbabwe, allowing them to pay off their debt with the cheaper dollars. Instead, they fled after they lost their jobs, leaving behind their house and owning $200,000 in nearly worthless Zimbabwean dollars.

The third couple still lives in Zimbabwe. When they saw the writing on the wall, they set up a business in South Africa and, with the profits, began acquiring tangible assets in Zimbabwe. Often, they’ll buy an asset in Zimbabwe and pay the seller in South African currency. They believe that once Mugabe is gone and order is restored, they’ll be in a strong financial position.

Many Problems, Few Solutions

There are three major problems with the events of 1913, 1944, and 1971. The first is that the Fed, the World Bank, and the IMF are allowed to create money out of nothing. This is the primary cause of global inflation. Global inflation devalues our work and our savings by raising the prices of necessities.

For example, when gas prices soared, many people said that the price of oil was going up. In reality, the main cause of the high price of oil is the decreasing value of the dollar. The Fed, the World Bank, and the IMF, like Zimbabwe, are mass-producing funny money, thereby increasing prices and devaluing our quality of life.

The second problem is that our economic crises are getting bigger. In the 1970s, the Fed faced and solved million-dollar crises. In the 1980s, it was billion-dollar crises. Today, we have trillion-dollar crises. Unfortunately, these bigger crises mean more funny money entering the system.

Apocalypse Soon

The third problem is that in 1913, the Fed only protected the large commercial banks such as Bank of America. After 1944, the Fed, the World Bank, and the IMF began bailing out Third World nations such as Tanzania and Mexico. Then, in 2008, the Fed began bailing out investment banks such as Bear Sterns, and its role in the Fannie Mae and Freddie Mac debacle is well known. By 2020, the biggest of bailout of all will probably occur: Social Security and Medicare, which will cost at least a $100 trillion.

Even if we find more oil and produce more food, prices will continue to rise because the value of the dollar will continue to decline. The dollar has lost over 90 percent of its value since the Fed was created. The U.S. dollar will continue to decline because of those seven men on Jekyll Island in 1910.

Granted, the funny-money system has done a lot of good — it has improved the world and made a lot of people rich. But it’s also done a lot of bad. I believe somewhere between today and 2020, the system will break. We’re on the eve of financial destruction, and that’s why it’s in gold I trust. I’d rather be a victor than a victim.

Here is the original:
How the Financial Crisis Was Built Into the System

Millions of people have sought Robert Kiyosaki’s advice on investing in real estate. The author of Rich Dad, Poor Dad believes America’s financial dilemma is directly related to the rest of the globe.

” I think the world economy is contracting which is why oil is coming down, gold is coming down, property is coming down all over the world,” said Kiyosaki.

When it comes to investing, Kiyosaki said too many people get their advice from someone trying to sell them something.

“So you’ve really got to be careful who you take financial advice from because ultimately that six inches between your ears is your greatest asset so be careful what you put in there.”

Kiyosaki has made his money in real estate – primarily commercial real estate like apartment buildings. And his decision about what to buy might surprise you.

“Real estate is based upon jobs. If the jobs are good, real estate’s good. If jobs are bad, real estate’s bad – it is that simple.”

Good jobs, he says, indicate economic stability.

“It really has to make basic business sense. So I’m buying real estate, apartment houses in Oklahoma. Why Oklahoma? Oil. That’s the number one reason – it’s a pretty stable economy, oil is always there.”

If you are thinking of investing in real estate, Kiyosaki says there are three important considerations.

“Number one, you have to have good partners, that’s smart partners. Number two you have to have good financing and the sub-prime was bad financing. And three with real estate you have to have good management.”

He also stresses the importance of financial literacy.

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?Rich Dad, Poor Dad? Author gives Investing Advice