By Andrew Lisa
In 2014, Forbes compiled list of history’s 100 best quotes about money. No. 47 was a statement by self-help author Robert Kiyosaki: “It’s not how much money you make, but how much money you keep, how hard it works for you and how many generations you keep it for.”
Kiyosaki built his Rich Dad Poor Dad empire on the shoulders of his 1997 book by the same name. It is estimated the investor, speaker, consultant and lightning rod for controversy has parlayed his original success into an $80 million fortune, according to Celebrity Net Worth. Here are six things he thinks you should do with your money right now.
ACCUMULATE CASH-FLOWING ASSETS, NOT SAVINGS, FOR RETIREMENT
Kiyosaki is a major proponent of having enough money to retire comfortably after your earning years, but he doesn’t believe in saving or the traditional “nest egg” philosophy. The reason? Saving enough for retirement requires investors to answer three questions:
-How long will I live?
-At what rate will inflation rise?
-How will the markets behave?
Since no one can answer those questions, saving for retirement is gambling with your future, according to Kiyosaki. Instead, develop cash-flowing assets, not a finite pile of money.
“By purchasing and saving cash-flowing assets, you could build a pipeline of cash flow for life, a pipeline that would produce cash in good times and bad, in market booms and market crashes,” he told blogger Jeff Rose in a post on DailyFinance. “Your cash flow would increase automatically with inflation and, at the same time, allow you to pay less in taxes. (This) means your standard of living does not have to decrease, but can actually increase.
You can earn cash flow from real estate rentals, stocks via dividends, from bonds via interest, or from oil, books, and patents via royalties. In other words, there are many ways to stress-free retirement freedom.