(upbeat music) – Hey guys, welcome to Advanced
Lessons in Millennial Money featuring Robert Kiyosaki. I’m Alexandra Gonzalez
(speaks in foreign language), in this episode, I got
a chance to speak with Robert Kiyosaki and his advisor
on paper assets Andy Tanner. Andy isn’t only known for
his stature, he’s 6’7″, but also his expertise on
making money with stocks. Whether the market is
going up, or going down. He’s the author of “401(k)aos”
and “Stock Market Cash Flow” we’re gonna talk about the best place to invest your money, based
on your financial education. Let’s see what he has to say. – Markets got up, and markets come down and there’s a lot of people that when that market comes down, if it happens at the wrong time, there’s absolutely nothing
they can do to get that back. So my advice is, I don’t give advice, I recommend people study it,
read a little bit about it and decide what quadrant
you wanna operate in then you can make your choice. – We go on to discuss what that looks like and how a financial education, can help protect you and
your money, let’s watch. – Can you draw, you know, a
cycle of the stock going up and stock coming down, you
can make money both ways. – Yeah, I mean this is
really what it looks like is, you know this is where we are right here, if you look at the 90’s, we had a lot of internet stuff going on, people saying we can make money, you know Al Gore invents
the internet or whatever and then we have a crash in
2000, it looses half its value. We’ve had low interest
rates, I went up, up, you know we had a housing boom and a sub-prime mortgage melt down here and it lost half it’s value. We printed even more money, now it’s got up as high as it can get. – Highest ever in history – Highest ever and it’s expensive, if you put $1,000 a month
away in your 401(k), you’re buying a lot of asset here, you’re buying less here,
less here, less here, you’re buying less asset now, with that $1,000 bucks a
month you’re putting away than you ever have, and in my opinion, you’re buying pretty
expensive stocks here. What financial education can do, is you know, if and when there is a crash and it’s just inevitable,
there is always a crash, always, where people get wiped out, with a little education, you can learn actually how to make money,
we get pretty excited about these down recycles. A 401(k) person cannot get excited, ’cause they’re never in a position to capitalize on the downside. – Next, Robert asks Andy to
explain how someone makes money when the market crashes,
here’s what he had to say. – How does a person make money
and market’s coming down? – Well it can be a little
complex, it does take some study, but there’s something
called a short position. Now that’s jargon, so if you don’t know what a short position is. – Shorts are illegal in some counties. – Yeah, if you don’t know what that is, there’s your first clue
of what to go study but a lot of the wealthy people and in fact like Goldman
Sachs and institutions they’ll take short positions here, where they get paid as it goes down, just as a long position gets paid. So there’s two positions to learn about. The long position and the short position. Since both happen, it
would make sense to me that a person would learn both if you’re gonna see both in the market. – In other words, options, right? – Yeah and options is a great
way to place for cash flow. One of the best opportunities
to make money in the world is insurance, you sell a premium, and people pay you insurance, that’s exactly what an option is, and so if people want cash
flow during the ups and downs, then you would learn about options. I’d also say this Robert, is, options, people say they’re risky and all this, they’re actually designed to protect you and to give you an assurance. Think of it this way, one of the greatest lessons
Robert ever taught me was there’s a relationship
between risk and control, I can’t control this, you
know buy low, sell high, with an option, I can control where I buy and where I sell, by
paying a little premium. So it actually brings
that control to the market and gives me the opportunity
not only for cash flow but maybe more importantly for protection, you have insurance on
your real estate, right? It’s the same thing. – Next, Andy discusses his
book “Stock Market Cash Flow” and how it helps you decide which investment vehicle is best for you. – What is your book “Stock
Market Cash Flow” about? – Well that’s really the essence, is how you take financial education and turn it into monthly income, so rather than a 401(k) where you wait ’til you
got a long white beard, hoping it goes up and up and up, first of all, how do I
navigate these ups and downs and how can I get involved by being an options
seller or an option buyer, to produce a cash flow
that’s more like rent that you get in real
estate, you know, rent. – It’s a little sophisticated.
– It is. – There’s courses that
teach you options trading now then, a caveat here is, it takes about five years to
learn to be an options trader. – Yeah. – You don’t just take one course, I’ve taken three courses
and it just hurt my brain ’cause I’m a real estate guy, you know, I like real estate better, but for guys who are techies and all that, options are fantastic, you know, if you like computer screens
and all that, you’ll do well. Guys like me, don’t do well in options I’m a real estate guy. Would you say that’s pretty much true? – Yeah, yeah, many of the
principles are the same the big pictures is the
same, but like Robert says, it’s a faster game than real estate is, it’s liquid, it moves
(snaps fingers) has booms and busts, so it’s
a little bit faster game. But there’s winners and
losers in both games, and what I’ve found, it’s not the investment,
it’s the investor. I think a lot of people say,
they’ll ask us all the time, “What should I buy?” “What should I invest in?” They’re focused on the investment, our invitation is to work
on yourself as an investor. The smarter you are, I
think the risk goes down. – For a lot of old timers out there, the stock market is a
familiar investment vehicle, but Robert gives millennials the biggest lesson to learn
from the stock market. – So the lesson is, you know,
for your millennials out there you gotta find your game and you know, and it’s like some people like soccer and guys like me like radio, it’s very, very different games. They look the same, but in
soccer you can’t hit people and rugby you hit people,
big difference, you know? – Robert always says, that
Wall Street rips you off, when it comes to
investing, so I asked Andy that very question, let’s
see what he has to say. Robert always says how Wall
Street rips you off, right? And so I wanted you to go,
to see if you could explain how exactly Wall Street rips you off. – Well that’s, that’s easy! – [Alexandra] Yeah the 401(k)
– That’s not complicated. – I wouldn’t say they rip you off, they just provide a service. – Yeah, the most important– – For uneducated people – (laughs) I think the
most important words for anyone on Wall Street, is this term assets under management. In other words, their money, they almost treat it
like it’s their money, and whether it goes up, down,
sideways, earns or loses, they’re gonna collect
something called fees. – So every month, you’re
sending your money to a 401(k) account,
you may not make money, but they make money on fees. – Every time, and when you think about it it’s really good for them, when you talk about the
other side of the coin. Alex, how much of their
money have they put in? – None, yeah.
– None! How much risk are they taking? – Nothing.
– But what’s their return? Well it’s infinite, because
there’s none of their money in the deal, so their investors, they’re doing it the way,
they’re the I-quadrant people. And so there’s winners and their losers and you get to decide what side of that coin you want to be on. – Next, I ask Andy
what’s the biggest lesson we can learn about market crashes. – I think the biggest part about crashes, markets crash about every ten years, the last crash was 2008, okay, so now it’s climbing to an all time highs. The suckers are come
jumping in right now, right? – Yeah, I mean, it’s a lot
of excitement, right now there’s a lot of these, I
think it was Warren Buffet said something like this “Be
greedy when people are fearful, “but be fearful when people are greedy.” Right now, people are very, very greedy. – Today the market’s going so fast, but that’s when the pros are getting out and amateurs are coming in. Now the good news is, is I
make even in real estate, I make more money in a crash. So there’s always like, I
call it three sides of a coin, heads, tails and the edge of the coin. As I see it going like this,
I say “Okay, this is good,” I’m just not in the market, I’m out. In the real estate
market, I’m just watching, you know we’re going to
cash in a lot of places. But you don’t have to be a loser, you don’t have to lose out there if you have financial education. – Finally, what we all want to know, is what’s the best
strategy when the market is at an all-time high? Here’s what Andy had to say, take a look. So, what’s the best strategy for when the market is at an all-time high? – Well, I would tell you to
go watch the movie “Titanic”. The problem with the Titanic
wasn’t that it hit an iceberg it wasn’t even that it sank, it’s because there were
insufficient life boats. So I’m content to make
money and make money and make money and make
money, as far as this goes, but the difference between what I do and what 401(k) is, I’m
gonna have a life boat every, single, time and when
that baby starts to sink, I’m gonna have insurance
through my options I’m gonna have exit strategies
and things called hedges, I’m not gonna chain myself
to the side of that Titanic (laughs) and go down with it,
I’m getting in the life boat! So again, it’s not that
the Titanic sink or crashed is that people got on
there without a life boat. Think about it, would
you get on a cruise ship with insufficient life boats? – (laughs) no way. – Well if you put your
money in your 401(k) where’s your lifeboat? And so that’s where our strategies differ from a basic, hey I’ll ride this up. Am I going to be bullish? As long as the market tells me to be in, I’ll be in and go higher
and higher and higher. But when it does turn (laughs), I’m not gonna, like those
guys playing the music, you know as they sink down with the ship, I’m abandoning ship. – And that’s it for this episode of Advanced Lessons in Millennial Money, don’t forget to subscribe to our channel, give it a thumbs up and comment
if you have any questions. Signing off from sunny Arizona
(speaks foreign language). Hi guys, welcome to Millennial Money, mmmh, bye.
(beep) Hi guys welcome (laughs) sorry.
– (background laughter). – I’m Alexandra (laughs).
– (background laughter). – We on, eugh (mumbles).
(beep) Don’t forget to give it a, eugh (beep). (sighs) sorry (laughs).
(background laughter). (dramatic whoosh)

100 thoughts on “I WOULD NEVER INVEST IN A 401(k) -ROBERT KIYOSAKI, RICH DAD POOR DAD (bloopers at the end)

  • Millenials have very little cash to invest. Time to switch gears and help millenials find opportunities with their obscure degrees and help them strategize growing investible income while paying down debt.

  • Dangerous misinformation and half-truths. These two are total hacks, knew it the moment I realized he was sincere about the video title

  • I can assure you- if these guys knew how to time the market, they would not need to sell you books for a living. So few people truly know how to time the market- these clowns have relatively zero education on stock investments. Comparing options trading to collecting rent- Ha! Never trust a man trying to sell you a course- the money he makes is in the course, not the market.

    The men who REALLY know the market won't take your money if you beg them- Read about James Simmons.

  • So let me get this straight you are a licensed professional and your advice is that you don't give any advice get the fuck outta here… misinformation.

  • oh yeah. My 401k is now worth over 1.4mil, started with $40 a week 30 years ago. yeah… Money which would otherwise be thrown away.

  • What do you do when your employer matches 100%?

    Secondly in my 401k I plan to switch to bonds when markets peak then will reallocate from there.

    Third even after moving all to bonds I will buy regular 401k stock offerings as it goes down waiting for the bottom…as opposed to all in bonds or having left my whole amount in stocks that are going down.

  • This is such horrible advice. Stock market crashes usually last anywhere from 3 months to 3 years. If you’re not already retired, a stock market crash has ZERO effect on you and when it does crash you increase your 401k contributions and stockpile the shares you have in the mutual fund(s) you’re invested in. After the crash is over, your shares will begin to skyrocket to all-new highs. These guys also have no idea what “compound interest” does to a 401k account.

    Aside from a 401k, you should have a Roth IRA, build up a reserve of physical gold and/or silver and hopefully have at least one rental property…. never listen to someone who says you should be going after one thing like these guys do. That’s a major red flag.

  • The advice in this video is ignorant, and clearly show that they do not know what they are talking about. A 401k is just a type of an account. Many companies match or contribute to an employees account, so by not contributing to their 401k, are leaving $ on the table. Once the $’s are in the 401k, you can choose what you invest in, stocks, bonds, cash, etc. if you feel stocks are overvalued, stay in cash within your 401k until the “crash” and then shift into stocks. A 401k is not an “overvalued stock” as thy are repressing, it’s simply a type of an investment account. Try interviewing someone that understands investing next time.

  • This guy is pathetic. He probably also doesn’t pay his employees health benefits or provide them with a 401k. Hahaha. These idiots need to take a basic finance class. Lmao.

  • This is so simple to say for this two guys because they are a investors so wich clearly means they are already rich they already make the money of their life' but its not the same case for a person who just even starting or dont have any money.. .. i believe the 401(k) its just a way to invest in your life in longterns incase you dont get lucky and dont make money like these guys on your way to be old. In my own opinion i belive anyone can do both at the same time.. get rich by investing on anything that make grow your household income and get even richer when you hit that retirement age.

  • He’s saying “time the market” which has been proven to almost never work out. Also, if you REALLY wanted to try to time the market you could do that in a 401k. You just put your money into fixed income then transfer to stocks when it crashes. If your company has a match, and you don’t take advantage of it, you’re throwing away money.

  • I'm not even going to listen to this. Saw the title and came to see the comments. Anyone that doesn't invest in a company matched 401k is leaving a bunch of money on the table.

  • This is some of the worst advice anyone could ever follow. The information and logic they give is so deceptive and flawed. Do not listen to this video at all.

  • I think for us peasants it’s smarter to have a 401k. He has almost $100M so it’s probs not worst it for him

  • Hello,

    My company matches on 401K up to 3%, I am contributing 15% currently. Should I lower my contribution rate to 3% and invest the remaining someplace else or just leave the contribution rate at 15%?

    I am currently 29 years old, working a pretty stable job at around 70k a year.

    Thanks for all of your help, Danny

  • Uhhhh what did she say her name was…………sheeeeeeesh! Oh also bad advice………Boo! On my way to a million dollars, couldn’t do it any other way! I still watched it, not because of the advice but because the girl on the far left is a cutie!

  • Uh – the only problem is that a 401k is a long term investment that is designed to take advantage of the index's consistent 8 percent growth over time. Even Warrem Buffet can't beat the market.

  • I hate everything about this video , including your stupid unnecessarily long last name that you feel you need to tell us. Alex is fine.

  • Waste of time video…they share no details. I've traded options, not easy. He's selling a book. This is typical Kitosaki stuff, a lot of talk with no details.

  • As someone who actually, trades the stockmarket, part of what the guy in the blue shirt is true. You can trade both sides of the market. Learn to trade options. Where he is wrong is you can manage a 401K mutual fund by trading your 401K mutual funds
    instead, of passively, leaving it alone. Buy and hold is a dangerous strategy. They are correct that 401Ks charge fees and probably, high enough to affect your returns. And when stocks are setting new highs, it means that stock is being bought by investors and traders. Stay with the stock, do not sell it but, put stop losses to protect your profits. If you have very large profits, buy put options to insure your position.

  • Can you double your money in the stock market by trading a few stocks? Yes, it's hard but it's possible. But its proven that no investor can continuously outperform the S&P 500 index. If you want to take your hand at trying to double your money go for it! But, invest in the overall stock market when it's going up and even more when it's going down because it has reputedly shown a good average rate of return since the beginning!

  • Does anyone ever take into acccount that the company match is your return on investment or is that just to obvious? Lets say you contribute 10% of your pay and the company matches with 4% that's a 40% return and over time that's going to be substantial

  • As soon as they went to the graph and and started talking shorts I went to comments for the real entertainment! Rule No 1, DO NOT learn investment stategies from u tube vids, unless its a private video from a professional! Rule No 2, invest in books to learn the many different strategies of investing commit some time to read them! Don't let these videos like this teach you to be stupid!

  • Invest in Marijuana stocks now. The market has started for them. Do your research on the ones t hat are out there.

  • 0:30 Sounds like that old Al bundy skit " i am Alexandra #%djdhdn#$*$% Gonzales" 🤣🤣🤣🤣

  • Can you be more specific about "Financial education"? What books or courses do you recommend?
    Thank you for responding.
    I enjoy your channel

  • Man can't short shit in my country, no even single options, just buy and sell that crap, third world bullshit for you.

  • You can’t time the market. If everyone knew when the market would crash then everyone would already be out.

  • This is the dumbest advice, 401k isn’t meant to hit it big right away. For example my college offers employees 9% match so if you make 35,000 and you invest 3,000 the employer will give you a free 3,000 to add to the 3,000 you invested.

  • Oops

  • Terrible advice to give millennials. Most stock investors lose money, and expecting inexperienced investors to time the market this way will lead to financial disaster. 401k is great for passive investors, which is about 99% of working people. Pay the fees, invest in 401k, and sleep well at night knowing you have professional investors working for you!

  • Not only is this advice poor, it's just flat out wrong. You CAN hold cash in a 401(k) in many instances in something like a money market account. If you are insistent on timing the market, you can do it that way. If you haven't watched this, save your time.

  • People would ABSOLUTELY get on a cruise ship without any life boats on it lol….. because who ever went on a cruise and inquired about the number of life boats, their captain, or the safety standards? 🤔

    ….It's just a complicated way of saying that people are so focused on the good times that their completely UNAWARE of what to do during the bad times.

  • It's a logical fallacy to compare 401k to using option. 401k is essentially a pretax savings account, that grows every two weeks because of your contributions. With bi-weekly contributions, you're buying when the market is low and when it's high so that overall reduces the risk, the fund diversified for you, but just pay attention to the fees. Buying stock as an investor uses after-tax money, and normal investors either buy to earn capital gains or dividends. Both tools should be used. This type of presentation only creates more ignorance. Options were designed to narrow the window for the price of commodities, which a buyer actually took possession of. Using options without owning the stock is not what options were intended for. Banks make money from the margin call from speculators being out of the money so now you can buy long or short without holding the asset because the bank doesn't take the risk but the buyer/seller of the option does. You can't pretend that options don't have fees either 😉 The potential for losses can be greater with options over a 401K, the lost from options could hypothetically be infinite. Warren Buffet recommends buying indexed funds, not using options. Don't get me wrong, I think options are great, you'd have to be a market sector expert to effectively use options. I wouldn't recommend a novice investor use options, but would certainly recommend everyone learn how to use options.

  • This is one of the worse advice on financial investing I've ever seen. Seems everyone who invests in mutual fund or index funds over the years is doing very well. This market goes up goes down nonsense graph is just that…nonsense. Look at the average return of the market over time. Also they don't even touch on dollar cost averaging.

  • Yeah there's fees for 401k's but for a majority of the public they wouldn't be saving anything if they didn't have that automatically opted-in 401k, not to mention most companies match (free money). Buy and hold long term, use dollar cost averaging, and go read A Random Walk Down Wallstreet. This video is weak. You're insurance for when the market is down is to keep holding. There hasn't been a single time the market has never come back up.

  • I'm Alejandra Gonzalez Canosa Galvez Torrez Cabello!! WTF!! That's a stereotype right there!😀😀😀

  • To effectively understand and use options requires quite advanced mathematics. The credit markets have a lot of mathematical depth that most people are not equipped to be good at

  • So your giving advice to the average working person who contributes to a 401k to start getting involved with short selling (unlimited loss potential) and options (predicting the market)? 🤔 I’m guessing he’s the poor dad

  • The millennial is annoying. Her speaking skills are terrible she seems clueless and the excessive hand waving and body shaking makes the video unwatchable.

  • AUM, assets under management.

    They collect a percentage, typically 1-2% in fees based on the assets.

    So the advisor makes LESS money if the account value goes down. And MORE money if the account does well in the market.

    So the advisors income from fees is tied to the performance of your investment that he/she is managing.

    So your advisor is incentiviesed to make sure your account continues to make massive gains.

  • Robert Kiyosaki has no credibility anymore. These guys who sell books and claim to be experts want one thing, YOUR MONEY for a book that really tells you nothing. Retirement accounts like a 401K are perfectly fine. Problem is people start too late and contribute too little. You will never be wealthy if you don't save money, and as much as you can responsibly afford. A balance of 300K that earns 10% will earn you 30k not including what you contribute for the year. An account with 50 grand in it, same 10% year will only get you 5k. Bottom line you need to pump large amounts of money in to really have it grow to a large nest egg. Too many people would rather buy a $5 coffee every morning and drive a 45K car and then wonder why they have no real net worth.

  • Girl Alexandra u have to be more serious in video
    We talking about real estate here
    We are mature people not 14 anymore
    You not bad person at all
    I don't want u to get offended but again in real estate we have to more more calm and serious when we talk in this major

  • 401K’s are a waste of time. You’re caped by law what you can contribute, it doesn’t generate cashflow and phantom cash flow, somebody else is in charge of your money. You can’t depreciate, amortize or leverage stocks or mutual funds. You also can’t re-appraise and pull out your initial downpayment from stocks whereas you can do that with real estate. 401K’s are only accessible when you retire and by that time your life is over.

  • The REAL question is what is your TRUE return after accounting for all expenses. Nothing beats BUY and HOLD. Once you buy, you ideally never sell.

  • 401ks can earn ~10% year on average if you ride out the market for a decade, and they don't call at midnight because the toilet overflowed

  • Everytime I invest 4% of my paycheck my company invests 10% into my 401k. 401k is a good idea Even if you don't get a company match… it should not be your entire investment strategy but it is a good part.

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