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 in taxes for a young man like

you will be a largest single expense you say but for a rich person with financial

education Denton taxes will be something

richer it's it's really not fair you'll work very very hard and debt and taxes

will eat you alive for a guy like me because that are rich dad and like

president Trump taxes make us richer 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 feel what I call the McDonald's formula if you know there's a movie

founder with was Michael Keaton he said McDonald's business is real estate it's

not hamburgers it's realistic and so my business the Rich Dad company is real

estate and that's why I use debt and I use taxes to acquire a large stuff large

tracks are real estate that 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

I'm 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 there's this tax

reform it's a good idea but for a young guy like you it's best to learn early

why guys like me used in taxes to get rich whereas death 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 a 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 our opposite it's like you

know two sides of a coin so that's why I you know both the president I know it's

not the most popular guy have 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 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 with pay no taxes legally literally what 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 or losers and you saw interest rates when I was

your age interest rates for 15% now in Japan and Switzerland there's sub-zero

why would you save money it makes no sense if you some people's all save

money but the people 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 I you guys are so lucky being your age so we're in the information age

the problem is our school system still in the Stone Age and they don't provide

you the knowledge to process information so like when you say go to school to get

a job it doesn't make sense to me because I'll be taxed and so really were

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 some bright

young people like you come out the student loan debt up to

they're looking for this mystical high-paying job and they live it with

mom and dad so your number one tip for young people would be well I would seek

financial education for like all real teachers because when I was in school

most of them were fake you know I mean they really didn't know

what they were talking about like my accounting teacher I'm a man be a

program I knew more about accounting that he did because the poor guy never

left school he was like my poor dad people teach real world experience

yes surprising I went to flight school I flew for the Marine Corps I had to have

real teachers you know you know once son guy who's never flown before our two or

just flew a little Piper Cub to teach me to fly in combat I needed real teachers

so as young people I always say to them choose your teachers why's that

make sure they're real make sure they know what they're talking about they're

not people is 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

I'm Robert before we let you go what is your advice for women and investing what

what kind of mistakes to women make when it comes to investing but because you

should talk to my wife Kim she's beautiful on the outside view up on the

inside when 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