Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki

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Don?t Believe Everything You Hear

OK, here’s your pop quiz of the week. The terms: inflation, recession, deflation and depression. Are they economic terms or are they psychological terms? Answer: When you let them operate together as the “little voice” between your ears, they become the same thing and you lose. The key phrase is, “when you let them.” It is no secret that in any difficult economic period, a lot of people get hurt and some people get very rich. Either way, it is the same economy, but a different psychology. The question is, Which person are you going to be? Let’s look at the terms and see how they apply. Inflation: How many times have you been overconfident, or even arrogant? What happens? Sooner or later, like an asset with value pumped out of proportion, the bubble bursts. Correction: Stay humble and connected to clients, associates, friends and their needs. Continue to always serve first. Deflation: Ever been disappointed? Not gotten the outcome you wanted? All your effort into a deal goes for naught when your prospect chooses another vendor or alternative. The money in your bank account is deflating. Do not rest on the laurels of yesterday. The best way to keep from deflating is to keep inflating through nonstop promotion, serving and selling. Keeping the pipeline and your daily calendar filled with revenue-generating activities keeps your energy up. Recession: Even though the government is undecided about whether this is happening or not, you and I know it’s old news. How about you? Ever feel like pulling back? Ever get tired of doing the same old thing? Ever have your energy level and passion level recede? And when it gets bad enough, have you ever felt like going back to bed and turning the electric blanket up to “womb” and forgetting about it? If you said no, you are lying. We have been there more than once. Now we are talking Depression. The No. 1 strategy to stave off all of these little voices and economic conditions is the same. It’s called Little Voice Mastery. It is gaining control of the war between your ears that takes you on an emotional roller-coaster ride every time you watch the market swing or hear the next politician or economist profess their confusing and alarmist rhetoric. There are more opportunities than ever. Weak competition is getting eliminated. That’s good for you and me because those of us who continue to educate and train on how to sell, how to communicate, how to recruit awesome teams and mostly how to manage our own emotions and “little voice” dialogue will WIN and snap up huge chunks...

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Vulture Funds On Hunt for Distressed Investments

A lot of us are worried in the global financial crisis that we are all facing. Companies are cutting down their costs. Unemployment rate rises. Economies are entering recession. Many are left homeless and are doing their best to make ends meet. While this scenario may be a disadvantage for a lot of us, this crisis poses an advantage and a great opportunity for the so-called “VULTURE FUNDS“. It’s a great time to hunt for their food. But what exactly are vulture funds in the first place? Just like vultures, birds who prey on dead bodies of animals, vulture funds also prey on dead things. They prey on distressed debts and assets of ailing companies experiencing financial turmoil. Sometimes, they are also called special situations fund. The ultimate goal is to buy these distressed debts and assets at a very low bargain prices and profit from it turning trashes into an instant gold. During the height of the Asian Financial Crisis in 1997, a lot of debts and assets turned sour. A lot of borrowers who availed loans in dollar currency were left with a ballooned principal and interest as an effect of rising mighty dollar against a basket of asian currencies. Because of this, there’s an aggressive increase of non performing assets in the balance sheets of banks which are considered as trashes ready for write down. In order to avoid huge potential losses from these trashes, banks dispose it by selling to vulture funds. One of the countries hardly hit by the Asian Financial Crisis before was our country Philippines. Non-Performing Loan Ratio (NPL Ratio), the ratio of non performing loans to total loans of banks, reached its peak to as much as 20% on their balance sheets. In order to address this problem, the Congress passed a law in 2002 called Special Purpose Vehicle Act of 2002 (SPV Act of 2002). This particular law gives huge tax incentives to vulture funds buying distressed debts and assets of banks. Six years after the passage of the law, banks now have considerably reduced their NPL ratio to as low as 5% disposing billions of distressed debts and assets to vulture funds set up by leading investment banks such as Deutsche Bank, Lehman Brothers, JP Morgan Chase, Morgan Stanley, Amroc Investments, and Barclays Capital. On the latest study conducted by Debtwire on Asian Distressed Debt Outlook for 2009 surveyed among 100 hedge funds, China and Indonesia posed the greatest opportunity for distressed debts and assets as an effect of the global financial crisis that we are currently facing. Truly, vulture funds can easily turn banks’ trashes into gold. But as with any other investments, high...

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Robert Kiyosaki TV Show

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!...

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Opportunities During Economy Recession

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...

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Investors need to overcome fear factor

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...

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The Rich Dad Difference Videos (#9 – #11)

Video #9 – Life’s 4 Quarters Video #10 – The CashFlow Game Video #11 – The Cone of Learning (Last...

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The Rich Dad Difference Videos (#5 – #8)

Video #5 – Bad Debt vs Good Debt Video #6 – Live Above Your Means Video #7 – 3 Types of Income Video #8 – Investing isn’t...

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The Rich Dad Difference Videos (#1 – #4)

Video #1 – 3 Types of education Video #2 – The Cashflow Quadrant Video #3 – Savers Are Losers Video #4 – Assets and...

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Don’t Fear Failure

~ Robert Kiyosaki One of the reasons so many people don’t become entrepreneurs is because they’re afraid of failing. They’re afraid of making mistakes. They’re afraid of losing money. But if people can’t overcome these psychological fears, they’d be better off keeping their day jobs. In the early 1980s, when my first major business failed, I thought I was the stupidest person in the world. Being flat broke and getting calls from creditors made me wish I had never wanted to be an entrepreneur. I even wanted my old job back. But instead of condemning me for failing, my rich dad gave me one of life’s most important lessons: “You’re fortunate to have failed. You now have the opportunity to learn how to turn bad luck into good luck. If you can do that, you’ll have a life of more and more good luck.” Here are three key points for turning bad luck into good luck: Don’t blame. When my rich dad asked me what went wrong, the first thing I did was blame my partners and the economy. He immediately said, “Never blame anyone for your failures.””But it was their fault,” I replied.Shaking his head, my rich dad said, “If you blame someone else, you’ll never learn from your mistake. If you blame, you give your power away.” Remember, there are no victims–only volunteers. And you volunteered to become an entrepreneur. Meet new partners. My rich dad said, “In every bad deal, I have always met good people. Some became new partners.” Still hating two of my partners, it was hard for me to understand this statement, yet I took my rich dad’s advice and began sifting through the wreckage.Today, one of my best friends came from that business fiasco. In the ruins of other business failures, I met my current partner in real estate and another partner in my franchise business. If not for the failures, I wouldn’t have met those fellow entrepreneurs and gone on to make millions of dollars with them. Study your mistakes. “Mistakes are priceless,” my rich dad told me. “Study them, learn and profit from them.”Again, this lesson was hard to hear. Being angry and broke, I wanted to run from my mistakes. But rather than run from my failure, I went back to my factory, studied my mistakes and resurrected the business. This is how I turn bad luck into good luck. Remember, making mistakes and becoming smarter is the job of an entrepreneur; not making mistakes is the job of an...

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How the Financial Crisis Was Built Into the System

~ 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...

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