Robert Kiyosaki: Bitcoin is the Best Alternative for Investors Losing Faith in the Stock Market

Robert Kiyosaki is beyond controversial.

Maybe even unethical.

He has a plethora of bankruptcies.

He uses fear as his lead marketing tactic, demonising poor people.

It’s challenging to see where he follows through with his advice. And there’s little consistency in his storylines. One perfect example is how the rich dad has remained a mystery in his world-famous book Rich Dad Poor Dad.

That person doesn’t exist.

Kiyosaki sets his ethical limit based on how much money is involved and often misrepresents the facts.

When you put aside his history of poor business practices, like not paying contractors royalties in line with contractual agreements and then shamelessly winding the company up after he gets sued, it does beg the question, should we be listening to this guy?

The court ordered Kiyosaki to pay $23.6 million after a jury ruled a share of his profits should’ve gone to the Learning Annex for using their platform for speaking engagements.

Mike Sullivan, CEO of Kiyosaki’s Rich Dad Company, said at the time, Kiyosaki was worth $80 million and still doing very well thanks to investments in other companies. But Learning Annex has contractual agreements with a company within Rich Dad that had no money.

And worse, they hadn’t traded for a few years when this finally reached court.

Mike Sullivan — Source

“Our dealings with Learning Annex were with a company that hasn’t been in business for several years.

I’m not surprised Learning Annex is upset and angry, the money doesn’t exist in that company, and we can’t bring money out of the group.

Robert and Kim [wife] are not paying out of personal assets.

We have a few million dollars in this company, but not 16 or 20. I can’t do anything about a $20 million judgment.

We got hit for what we think is an entirely outlandish figure.”

Bill Zanker, Founder of Learning Annex, says he made Robert Kiyosaki’s “Rich Dad” brand more popular and successful.

They made a deal where Zanker would receive a portion of the profits, but Kiyosaki never made good on his promise to pay Zanker.

Zanker had proof of their agreement, but it took years of going to court to resolve the issue, which resulted in Zanker winning even more money than he initially asked for from the jury. Still, Kiyosaki declared corporate bankruptcy instead of paying him.

Bill Zanker — Source

“I took Kiyosaki’s brand and made it bigger.

The deal was I would get a percentage, and he reneged.

We had a signed letter of intent. The Learning Annex is the greatest promoter. We put his ‘Rich Dad’ brand on a stage.

We truly prepared him for great fame and riches. But when it was time for him to pay up, he said ‘no.’

This has taken years in court. I won even more money than I asked for from the jury, then he declared corporate bankruptcy.

Oprah believed in him, and Will Smith believed in him, but he didn’t keep his promise to us.”

Baby Boomers Investing in the Stock Market Will Be the Biggest Losers.

As a teenager, “Rich Dad, Poor Dad” was one of my first personal finance books. While I found no actionable steps in the book, it made a lasting impression.

The book sheds light on the stark difference between assets and liabilities and how the financially poor invest in liabilities while the rich invest in assets. It’s no surprise that it became an instant sensation, given its clear and accessible language, free of jargon.

While Kiyosaki may be a controversial figure in the financial world, there’s no denying that his message is clear and easy to understand.

You may have noticed an uncomfortable amount of content with Kiyosaki on your Youtube, Facebook and Twitter channels. The business education mogul is now getting vocal about his concerns for the stock market.

And in particular, what it means for Baby Boomers.

Kiyosaki is warning that the current state of the stock market could lead to a tragedy like the 2008 financial crisis and that it’ll be the most significant crash yet.

He says all this is terrible news for Baby Boomers who are starting to retire and who may be counting on the stock market to provide for them in their later years.

In 1974 Governments created a new kind of retirement savings plan called the 401k. Kiyosaki argues that this has made it easy for Wall Street to take advantage of Baby Boomers approaching retirement age.

He thinks that many Baby Boomers have blindly trusted the stock market and are vulnerable to corruption because of the 401k.

Rob Kiyosaki —Source

“Our generation of Baby Boomers is in serious trouble for retirement because I don’t think there will be enough money. I’m doing my best to alert you.

However, you don’t have to be a victim of this situation. It could be the best time of your life, but choosing whose information you’re listening to is up to you.

I’m standing alongside my friend Jim Records that this next one (recession) will be the biggest. Now, it’s good news for some people but horrible news for the boomers starting to retire.

If you’re a stock market person, counting on the stock market to keep you alive, you might be in serious trouble.”

Kiyosaki is saying that in the past, people were not interested in the stock market and preferred bonds as they were considered safer. He explains government created 401k’s and IRAs to push Baby Boomers into the stock market, which central banks, the treasury, and Wall Street control.

Rob Kiyosaki — Source

“When I was a kid, people didn’t touch stocks.

Only gamblers were in the stock market. The only people that bought stocks were gamblers.

Everybody else in my time in the 60s and 70s was in bonds; they wouldn’t go in the stock market because bonds were safer.

Nobody bought real estate, they bought a house, but there was little real estate investment in commercial, at least.

They created the 401k and the IRA to force the baby boomers into the stock market, and who controls the stock market?

The central banks, the treasury, and Wall Street. The biggest crooks are on Wall Street — the most significant banks; are JP Morgan, Goldman Sachs, and Wall Street.

But that’s not capitalism.

That’s criminal.”

Kiyosaki thinks saving money and investing in stocks, bonds, mutual funds, and ETFs is dangerous advice, especially in today’s unstable economy.

He says gold, silver, and Bitcoin are better investments during times of instability, although their prices may fluctuate. He also thinks that the Federal Reserve Bank is hurting the real estate and stock market, causing Baby Boomers to lose money and become poorer.

Kiyosaki cautions you about an imminent crash that may lead to depression. The Federal Reserve Bank printed large amounts of money to maintain the economy, and Kiyosaki is projecting that by 2025, the value of gold may reach $5,000, silver $500, and Bitcoin $500,000.

He says people are losing confidence in the U.S. dollar, which is “counterfeit money”.

According to Kiyosaki, gold and silver are the best forms of money, while Bitcoin is the people’s currency.

Final Thoughts.

As you may have noticed, Robert Kiyosaki often uses fear as a tactic when he sells his message.

He paints a picture of doom and gloom and warns of the impending collapse of the economy to get your attention. He’s probably not wrong, but in the last 100 years, we’ve experienced far worse.

Some of his advice is valuable, but I’m always weary of fear-mongering tactics.

The S&P 500 is a market index of the 500 leading publicly traded companies in the U.S., showing average yearly returns from 1928 to 2021 of 11.82%.

If you had invested $10,000 in the S&P 500 index in 1992 and reinvested dividends, you’d now have more than $170,000.

Recent market volatility has seen a decline. However, the index has proven to be a winner over the long term, somewhat contradicting Kiyosaki’s sweeping statement about the stock market.

He might be right when referring to baby boomers coming to retirement age. They’re in trouble in the short term.

But it’d be best if you always bet on America.

Kiyosaki makes an enemy of the FED and proves his point about Bitcoin, the best-performing asset in the last decade, up over 2445% vs 400% of the S&P500 over the same period.