Robert T Kiyosaki Interview on the Philippe Matthews Show

12/3/2014 Robert T Kiyosaki Interview on the Philippe Matthews Show

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Robert T Kiyosaki Interview on thePhilippe Matthews Show

Philippe Matthews & Robert T. Kiyosaki

In countless countries and in every bookstore, there is a name synonymous with

creating generational wealth, Robert T. Kiyosaki. In this exclusive interview on



the Philippe Matthews Show, Robert

talks candidly about his philosophy

on personal finance and paying the

price to be rich and the many ways to

become rich.

Born and raised in Hawaii, Robert T.

Kiyosaki is a fourth-generation

Japanese-American. After graduating

from college in New York, Robert

joined the Marine Corps and served

in Vietnam as an Officer and

Helicopter Gunship Pilot. Following

the war, Robert worked for the Xerox

Corporation in sales. In 1977, he started a company that brought the first nylon

Velcro 'surfer wallets' to market. And, in 1985, he founded an international

education company that taught business and investing to tens of thousands of

students throughout the world.

In 1994, Robert sold his business and retired at the age of 47. During his short-

lived retirement, Robert, in collaboration with co-author Sharon Lechter, his CPA

and Business Partner wrote the book, "Rich Dad, Poor Dad". Soon after, he

wrote Rich Dad's CASHFLOW Quadrant, Rich Dad's Guide to Investing, Rich

Kid, Smart Kid, Rich Dad's Retire Young, Retire Rich and Rich Dad's

Prophecy - all of which earned spots on the best-seller lists of The Wall Street

Journal, BusinessWeek, The New York Times, E-Trade.com, amazon.com and

others.

Prior to becoming a best-selling Author, Robert created an educational board

game - CASHFLOW® 101 - to teach individuals the financial strategies that his

Rich Dad spent years teaching him. It was those financial strategies that allowed

Robert to retire young.

In August of 2003, CASHFLOW: THE E-GAME was launched. Today, gamers from

around the world in over forty countries and forty seven states can test their

financial skills online twenty for hours a day as members of Rich Dad's INSIDERS

playing CASHFLOW online. In 2001, the first of the series of Rich Dad's Advisors

books was launched. This team of professionals supports

Robert's belief that "Business and investing are team sports." Several of the seven

Rich Dad's Advisor books have made the top best-sellers lists.

In Robert's words, "We go to school to learn to work hard for money. I write books

and create products that teach people how to have money work hard for them.

Then, they can enjoy the luxuries of this great world we live in."

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Philippe Matthews:

You say that most people are not willing to pay the price to be rich; what is paying

the price?

Robert T. Kiyosaki:

"There are many ways in which you can become rich. For example, most people

try to get rich by being cheap and the price for that is that you live cheap and

there is so much money out there; why would you want to live cheap? People, who

live below their means, save for a rainy day - the price is a cheap life. There are a

lot of people who have a lot of money; but at the end of the process, they are still

cheap; so they have made money their God. They are hoarding their money and

the problem with that is Greenspan is printing it faster than they can order it, so

their money is going down in value. The price is their life. Even when I was broke, I

didn't live cheap."

Philippe Matthews:

How was that possible? To be broke and not be cheap?

Robert T. Kiyosaki:

"It was mindset…nothing but mindset."

Philippe Matthews:

What are some of the other ways one can become rich?

Robert T. Kiyosaki:

"Another way of getting rich is you can marry somebody and the price for that is



you know what they call you? The third way to get rich is to be a crook, but there;

too, is a price to pay.

Unfortunately, most crooks are not in jail. Another way to get try and get rich is to

try and be lucky by playing the lottery or going to Vegas. There are a million ways

to get there, but each of the process has a price to it. I am not here to pass

judgment; but if you want to marry a rich woman or a rich guy that is up to you, but

I personally would not do that."

Philippe Matthews:

Let's talk about that briefly; being altruistic, let's say that you didn't marry for

money, but the person you married happens to have money; is there a price you

still have to pay?

Robert T. Kiyosaki:

"Absolutely. The price is called your knowledge. You always know that you did not

earn it. If you took all of my money away, I would have it right back. I don't really

care about money. I mean I do but why worry about it because I can make my own

money all the time. So why would I go and sell my body for it? I know a couple who

really think that they made it but what they are doing is they are living off of a rich

person. This one woman married a rich attorney and she thinks she made it but

the fact is you married a guy who makes a lot of money. Two years ago she was

broke and now she lives on Park Avenue. Call a spade a spade. If he left, would

she still have the money if she had to make it on her own; she would have to sue

him."

Philippe Matthews:

I have noticed over the years that you and your wife Kim are on the same page

and I distinctly remember the Porsche story where Kim told you to get an asset to

pay for the liability.

Robert T. Kiyosaki:

"I still have that Porsche, and I still have the asset and I don't have the bill."

Philippe Matthews:

How much was it luck that you found a wife that was on the same wealth-building

page and had the same values as you toward building wealth?

Robert T. Kiyosaki:

"I was very clear. Coming through the sixties and seventies, that was the era of the

hippies and I was a marine; I would meet these hippie chicks who would tell me

that money was not important and I would say, 'Well, I guess I have to find

somebody else then.' Before we got married, I wanted to make sure that we had

the same values."



Philippe Matthews:

Interesting. So, right up front during the dating process you scoped that out?

Robert T. Kiyosaki:

"Oh, absolutely! Today, I wouldn't be here without her. She is the brains of the

outfit, but she really wanted to learn what my rich dad had taught me, so she has

taken off like a duck to water. She has her own corporations; she has her own

cash flow. We don't have prenups and all of that but if we ever split, it's already

split. She has her own corporations and assets, but the most important thing is

that we work together and have fun together. I always say, first of all, she is my

best friend, secondly she is my business partner, and thirdly she is my wife. So, I

didn't marry one of these bimbo types. The smartest thing I ever did was marry

her."

Philippe Matthews:

Were you willing to be alone before finding the wife who fit your values?

Robert T. Kiyosaki:

"You have a choice in life. Would you rather be lonely or miserable? I would rather

be lonely. A lot of people are miserable in a marriage and they don't get along with

their wife or husband and it's not worth it."

Philippe Matthews:

When you were faced with losing your business and losing money, were you

married to Kim at the time?



Robert T. Kiyosaki:

"Yes I was."

Philippe Matthews:

How did she support you when you didn't make money and lost your income?

Robert T. Kiyosaki:

"She just hugged me."

Philippe Matthews:

She never told you to go out and get a job, or used your lost income against you?

Robert T. Kiyosaki:

"Absolutely not. Absolutely not! She is the best, most genuinely loving person I

ever met. She worried, but she was never like, 'When are you going to go out and

get a job?!' She would say, 'We will work through this together.' We have learned

so much together."

Philippe Matthews:

Recently, the media hasn't been very kind to you, and those of us who know you

and your integrity have found it frustrating to say the least of some of the pock

shots that have been thrown at you and the many quotes that have been twisted.

How do you respond to reporters who don’t get what you do, or who are jealous of

what you have achieved?

Robert T. Kiyosaki:

“It all depends upon the reporter. When they come after you, there is really

nothing that you can do because a reporter doesn't have to write down what you

say. I've been misquoted so many times that it is frightening. Ninety percent has

been good and ten percent have been real crooks. With the freedom of

speech, doesn't mean you have to tell the truth.”



Philippe Matthews:

What about the financial reporters and the special wealth advisors on the news

programs?

Robert T. Kiyosaki:

“There are a lot of financial reporters gunning for me. A lot of the reporters at the

Los Angeles Times can’t say anything against their advertisers, which is common

knowledge so most publications today have a great deal of censorship, especially

in print. Everybody is entitled to free speech, but that doesn't mean you have to tell

the truth and that goes all the way down to when you read a Pro Forma Statement

on a company, or a piece of real estate; most of them are lies and you as an

individual investor really need to know how to distinguish or get the facts. Most

people don’t; they just read something on a report about IBM and they just take it

as gospel.”

Philippe Matthews:

Some say you were already rich before Rich Dad came out, is this true?

Robert T. Kiyosaki:

“Rich Dad came out April 1997, I was already well off before I wrote the book but I

wasn’t rich. The book has been on the New York Times Best-Sellers List since that

time, and is in forty languages now and seventeen million copies. It’s on the Best-

Sellers List in England, Mexico, China, Japan and Korea.”

Philippe Matthews:



Tell me about success stories of the rich. What is this book about?

Robert T. Kiyosaki:

“Basically, it is success stories about people who turned their life around

financially. For instance, there is a story in there about a single mother on welfare

and she did one transaction and was off welfare; she bought a medical practice.

There are people in there like doctors who the lights go on for. Doctors gross a

lot, but they don’t net a lot; taxes on doctors and lawyers are extreme even for

accountants. So, in the book there are doctors, accountants, lawyers as well as

single moms on welfare and kids---thirteen years old who are buying their own

property.

Everybody will see themselves in one or two of the stories. You will be able to

relate to them like the woman who works for me, she and her husband lost

everything in the stock market crash. She thought their lives were over and that

they couldn’t recover. They lost over a million dollars and were only making fifty

thousand a year; so it seemed hard to get back to the million bucks. She went out

and bought a Laundromat; and now she owns two, and still works for me. The

success stories are just people taking control of their lives. There are always

opportunities right in front of you, but most people don’t see them until they make

these changes. It’s a feel good book.”

Philippe Matthews:

Talk to me about the Industrial Age versus the Information Age.

Robert T. Kiyosaki:

“It’s two different stories and that is what is so hard for people. The industrial age,

the older you got the more valuable you became and in the information age the

older you get the less value you become. So, the idea that you are going to get a

perpetual pay raise is an obsolete idea. In the industrial age there is a lot of

scarcity, in the information age, there is abundance. If I share an idea, I have it

and you have it. The Information Age is extremely abundant, but the trouble with

the Information Age, is that it’s wiping out a lot of people because there is not the

traditional job and payroll stuff anymore.”

Philippe Matthews:

What kind of education does one need to make it in the Information Age?

Robert T. Kiyosaki:

“Oversimplifying it, I think a person needs two professions. One for you and one

for your money. If you look at my profession, most people know me as a Writer; so

I work as a Writer, but my money works in real estate. I have to know two different

professions.”

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Philippe Matthews:

Everybody can’t write best-selling books, but I assume you are saying everybody

can do real estate, yes?

Robert T. Kiyosaki:

“If you look in the white pages and the yellow pages, everybody in there is

attached to real estate. Everybody is involved in real estate unless you live on

Atlantis or something.”

Philippe Matthews:

Talk to me about people who have jobs and careers that don’t make a lot of

money, but love what they do like school teachers for instance; how do they

become rich?

Robert T. Kiyosaki:

“I could be a school teacher and be rich. It has nothing to do with your money; it

has to do with your knowledge. If I was a Schoolteacher, I would be ten times

richer because I have more time off! They get the summer off, holidays off,

weekends off.”

Philippe Matthews:

It’s really mindset isn't it?

Robert T. Kiyosaki:

“Absolutely!”



Philippe Matthews:

What about people who are in debt. Do you have to have "A" one credit, to many

of the real estate deals that you do to become rich?

Robert T. Kiyosaki:

“No. You generally need 'A’ one credit if you are going to a traditional banker and

it’s good to have 'A’ credit; but it’s not an excuse for not having it. There is a loan

for everybody. You can buy a dodge truck with bad credit. The whole economy

since 1971 has been based on debt; so our dollar bills are no longer money our

dollar bills are now debt. For this economy to keep expanding, they need more

and more people who are willing to go into more and more debt, which is why there

is going to be a massive crash. It can only go so far.”

Philippe Matthews:

Do you see something coming reminiscent of the Great Depression coming?

Robert T. Kiyosaki:

“Possibly. What I see more is like the Paso crisis of 1990, the Asian crisis and the

Russian crisis. It’s happening right now. The dollar versus the Euro is 120 and

going to 134. The world is saying your cash is trash. It’s good for the economy

because it makes our products more affordable--- which is not bad, it’s just when

you go over seas, and I remember when the Euro was 85 cents to one dollar and

now it is 1.20 to a dollar; so that’s a 35 percent swing in less than two years –

that’s massive! What this means is that you will have to start paying more to live

because your money is worth less and less. That’s why I am in gold because the

more Bush runs up the deficit, the richer I get because I am in gold. Gold was at

4.09 an once this morning, and I have a million and a half shares in one gold

mining company and everyday it goes up a buck, I make another million and a half

bucks – that’s leverage! You have to learn how to play both sides of the fence.”

Philippe Matthews:

That comes from time and education?

Robert T. Kiyosaki:

“That comes from being real with the world. One of the lessons I learned from my

rich dad was that forty five percent of the people think the market is going to go up

and forty five percent think it is going to go down. The ten percent in the middle

just don’t care, whichever way it goes, they will go with it. When you go to a Jets

and Giants game right, what you do is sit there and if the Jets are winning, you put

the Jets hat on and if the Giants are winning, you put the Giants hat on. This will

drive your friend’s nuts! That is what an investor is doing; they are just watching

which way the thing is swinging.”

Philippe Matthews:

Do you believe that some people should cut up their credit cards and live below

their means?

Robert T. Kiyosaki:

“Me personally; no, but some people should. If you can’t control your credit card



spending and you are deeply in debt, you definitely need to cut it up. For me, I

don’t process or think that way. For instance, I don’t save money. Save is a four

letter word! I like to borrow money because I can get richer faster on borrowed

money. I have what is called retained earnings, so I don’t have to save money. If I

need money, I will go out and borrow it. I just bought an eight and a half million-

dollar investment property; how long would it take for you to save eight and a half

million dollars? How long would it take for you to borrow it? Two weeks maybe?

So, who gets richer faster? That’s why I have a hard time when they say, Save

your money and max your 401k.’ For ninety percent of the people, that is good

advice; but you are not going to get rich doing that.”

Philippe Matthews:

Are you saying that the principle for which you teach are not for the masses or

everyone?

Robert T. Kiyosaki:

“They are definitely not for the masses, no. They are only for people who want to

get rich. Most people want to get rich, which is why they go to Vegas; or buy a

lottery ticket; they are just not willing to pay the price, which is how our whole

conversation started. It comes back to the question--- ‘Are you willing to pay the

price, and how bad do you want it, and how are you going to do it?’ How bad do

you want it, and which process are you going to take? The process I chose was to

get financially educated to be an Entrepreneur; to understand real estate and to

understand the stock market. I floated a company a few weeks ago, and I made

more money in a day than people will make in a lifetime. The thing moved---I had

$.15 a share and the thing went to $3.25 a share – a million and half shares. But,

it’s all on paper and I know it is bogus; so if I lost it all, it wouldn't affect my lifestyle.

I can lose three million dollars because it’s just paper. Thus, my lifestyle is not

dependent up the stock market.”



Philippe Matthews:

This is what you talk about in your books when you discuss the difference

betweenearned income, passive income and portfolio income. Most people have

earned income.

Robert T. Kiyosaki:

“When you put your money in a 401k, it’s earned income when you pull it back

out. It goes in as portfolio, but comes out as earned; so it’s the most highly taxed

income there is. That’s why I don’t have a 401k, I want as little earned income as

possible, but I want as much passive as possible because it pays less tax. I can

pay zero tax on passive; fifteen percent on portfolio and earned income I would be

in the fifty percent tax bracket. The harder you work for money, the more you are

taxed, the harder your money works, the less it is taxed; which is why the 401k is

so deceptive.”

Philippe Matthews:

Why are these concepts of wealth seemingly so easy, yet so difficult for many

people to retain?

Robert T. Kiyosaki:

“Most people can’t because they have been trained to be workers. It’s called a

working class mentality rather than an investor mentality. Lesson number one

inRich Dad Poor Dad is the rich don’t work for money; they learn how to make

their money work hard for them. I've learned how to make money work hard for

me, so I don’t have to work for money. It’s a completely different education

http://frankellis.hubpages.com/hub/Earned-Income-Tax-Credit-Calculator



process.”

Philippe Matthews:

You say in your book, whomever you owe money to you becomes an employee.

Wow!

Robert T. Kiyosaki:

“Of the three religions, Christianity, Judaism and Muslim, did you know that they all

outlawed interest? It’s against religious tenants to charge interest. Lending money

isn’t bad – interest is bad. That is why the richest people on earth are via interests

– did you know that? Why do people own banks? Because every dollar you put in

there, you can lend out twenty times. That’s why they tell you to save money. It’s

called the velocity of money. They tell you to park your money and they move your

money. This is a very different philosophical thought pattern. You are getting one

percent on your dollar and let’s say they are getting five percent; but they are

getting five percent on twenty dollars. Kiss my ring on that one! That is why the rich

get richer. Greenspan printed one trillion dollars in 2003, but your savings are less

and less. This is why I don’t have a job, nor a 401k; and I don’t have savings.”

Philippe Matthews:

In closing Robert, define in one or two sentences why you should play both sides

of the wealth game.

Robert T. Kiyosaki:

“If I go to a football game and the Jets are playing the Giants or the Bulls are

playing the Raiders, I want the Hot Dog Concession Stand! I don’t care which side

wins, I just want the hot dog concession.”

Philippe Matthews:

Robert, you have everything you could possibly want and have achieved more

than your wildest dreams, what more could you possibly want in life?

Robert T. Kiyosaki:

“I want to educate more people. This really is a jobless recovery---that’s why one

of the things about the information age is there is a lot of work to be done but

fewer jobs. It’s like when you go to a ghetto, there’s a lot of work but no jobs.

People have jobs, but they are substandard and they are not paying enough

money; so we have to do something to change their perspective and the world is

not doing a good job telling people to work hard and save money in your 401k –

that’s why they are going broke. They work for earned income; they are over

taxed, they invest in earned income and they save money, while the Federal

Reserve is printing it like crazy. The reason I came out with my Cash Flow Game is

so you could learn, and then teach five other people. Then, you can teach your

kids. You've got to play the game about four or five times and your mind will

change. You will see a whole new world.”

Philippe Matthews:

For the record, is there any message you would like to send to the media about

the story of your Rich Dad and Poor Dad being conjured up and not true?



Robert T. Kiyosaki:

“They are entitled to their opinion – kiss my ring! Get a Concession’s Stand! They

don’t know, but I know. You learn something from the story [of Rich Dad Poor

Dad]. It’s a true story, but they would rather sit there and debunk it, trying to argue

with it rather than trying to get the lessons from it. One of the things I didn't like

about school is that every time they told a story about a rich guy in school, he was

an evil guy. Our school system is programming us to think the rich are greedy and

evil, and a lot of those reporters come from that school system."

Philippe Matthews:

But, what about the experts who write for the financial magazines?

Robert T. Kiyosaki:

“Even those that write for financial magazines. What they won’t admit is that they

have to write for their advertisers. All of these mutual funds that are under

indictment right now ask those guys how many of them recommended those

mutual funds. All of these so-called Mutual Fund Gurus, where are they today? I

have been consistent--unfortunately, mutual funds are the biggest rip offs going.

You can do better in real estate. For instance, if I went to the bank and said I

would like to borrow eight million dollars on mutual funds, what would they say?

But, if I wanted to buy eight millions dollars of real estate, they would at least listen

to me. That should tell you something. If I wanted to buy insurance on my real

estate, I could buy it, but you can’t buy insurance on Mutual Funds. If I lose a

million dollars in the stock market, do you know how much I can write off a year?”

Philippe Matthews:

How much?

Robert T. Kiyosaki:

“Three thousand. If I lose a million in my business, I can write it all of right now. It

would take you three hundred year to write off a million bucks in the stock market!”

Philippe Matthews:

Any closing thoughts or suggestions?

Robert T. Kiyosaki:

“Go play that Cash Flow Game, and play it three or four times and encourage

other people to go play it. They don’t even have to pay anything, they just have to

find someone with a game and when they sit there and play the game, they will get

educated.”

Rich Dad's Organization is the collaborative effort of Robert and Kim Kiyosaki, and

Sharon Lechter; who, in 1996, embarked on a journey that would afford them the

opportunity to impact the financial literacy of people everywhere and carry the

Rich Dad mission to every corner of the world.

For More Great Interviews, Visit the Philippe Matthews Show

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The Philippe Matthews Show features world class thought leaders,

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Robert T Kiyosaki Interview on the Philippe Matthews Show