– Fake money, fake teachers, fake assets. In 1971, President Richard
Nixon took the US dollar off the gold standard, turning the US dollar into FIAT money, government money, fake money. In 2008, the world economy crashed when fake assets, fake mortgages, and fake financial experts
led us down a path to ruin. Think about this. Why do schools choose not
to teach us about money? Why are 78% of all Americans
living paycheck to paycheck? Why are students staggering
under a trillion dollars in student loan debt? Because a fake world makes the rich richer and the poor and middle class poorer and that’s exactly how
the government wants it. The only way to protect yourself is to learn how to separate
the real from the fake. Go to richdad.com to get your copy of “Fake” by Robert Kiyosaki, and learn how to spot the
manipulation of reality we live with every day. Don’t get fooled again. Get your copy of “Fake” by Robert Kiyosaki at richdad.com, that’s richdad.com. (upbeat music) – This is The Rich Dad Radio Show, the good news and bad news about money. Here’s Robert Kiyosaki. – Hello, it’s Robert Kiyosaki
at The Rich Dad Radio Show, the good news and bad news about money. And today we have a very,
very important show. Our job at Rich Dad Radio is
to have you see clearly now what lot of people do not see. So this is my question this morning. What’s gonna be the cause
of the next big crash? What is gonna bring the
house of cards down? Now there’s many things, this might not be the only one, but once the house of
cards starts coming down, it goes to crash and collapse. So please pay attention because this is a very,
very important show, especially for those of you who are old guys like me, baby boomers, ’cause what’s gonna
bring down the next crash is a thing called pensions. And our pensions are sorely underfunded. Back in 1999, I started working on a book called “Rich Dad’s Prophecy”, and I said the biggest stock market
crash would occur in 2016. And I was off by two
years, it actually hit, the crash started in September of 2018. And the reason it didn’t come
earlier was simply because I did not foresee the
insanity of the system. How in the world can
the Federal Reserve Bank print trillions of dollars? Why do we let them do that? And the reason we let them do that, it was to save the rich. It was to save the very people that brought us the subprime crisis. And now they’re the same people, the same guys, Goldman Sachs, J.P. Morgan, all those guys who make billions off of the subprime crash in 2007, 2008, have made billions for
the last three decades off the baby boomers and pensions. And what we’re gonna talk about today is why are pensions a problem? Well one reason is
there’s no money in ’em. And we have, they estimate, what, 10 million baby boomers retiring every day in the United States alone, but this is all across the world. The baby boom came up
after World War II ended, and millions and millions
and millions of them don’t have any money to
set up for retirement, or they think they do. So the purpose of The Rich Dad Radio Show is to have you take a look to see what you might want to see. We’re not asking you to agree with us, ’cause it’s hard to see the
future a lot of the times. But I can tell you this much. There’s one thing for certain. We’re all getting older. And I wish the baby boomers
were not getting older, ’cause I’m one of ’em. And I wish I didn’t need a pension, but let me tell you something. When your working days are
over and you’re lying in a bed, you’re gonna wish you had a pension. And so that’s what
today’s discussion about, and today we have very special friend. He’s Councilman Sal Diciccio. He is District 6, same district I am in. He’s serving on the Phoenix Arizona city council since 2009. He’s been a guest on this program. We talk about this all the time. It’s how functionally incompetent
our public servants are. But worse than that is how
functionally incompetent our public servants are at
managing their own pension. As I always say, “What did
school teach you about money?” The answer is nothing. So in 2008, you may remember this, but a lot of these guys found out, a lot of people found
out their councilmen, or their so-called public
servants got taken by the banks, like Goldman Sachs and J.P.
Morgan and Wells Fargo. They went in there and just
ripped off the pensions. But now it’s too late,
this is 10 years later. Now it’s too late. They’re gonna rip us off one more time, the very guys who brought
you the last crash, and they’re about to crash it again. There’s only one big problem: Baby boomers are out of time. There’s either time or money, and baby boomers have
no time and no money. So I’m talking about me right here. Like I said, I wrote this book
called Rich Dad’s Prophecy. I predicted it would come in 2016. Well, I was a year and half late. But it’s coming right now. That’s what happened in September of 2018. It started to crash. So ladies and gentlemen, this
is a very important show. Even while not a baby boomer, but trust me it will affect you, especially you have a father or mother or grandfather or relative
who’s a baby boomer and they’re out of money,
they gotta move in with you. Or they don’t have money for medicine. And when you look at what’s
going on in politics today, all of these guys, Socialist left, I should
only call them Communists, they’re basically saying
they want free food, free education, free manicures. That’s great. I mean, I support that, too. I wish everybody could have free. They now say, “Well, whether
you want to work or not work, “we’ll give you money.” Well, that’s good. I can support that. There’s only one question everybody asks, “Well, how we gonna pay for it?” And so, I’m not saying
it’s right or wrong, but when you have Communists
running our system because they’re functionally incompetent, we have a problem. And Sal, you’ve been on
this program so many times talking about how incompetent
our public servants are. Any comments on this? – Well, I think you can sum
it up into one word, corrupt. – No don’t tell me that.
– I have to tell ya. The system itself is
completely corrupt, and it is. And they know what they’re doing. And it’s not just the
politicians that know now. I mean, you gotta know now. By this point everyone’s talked about it. It’s the people that are in
charge of the pension system, in charge of the local governments. They’re completely corrupt. They know what they’re doing. And they know that if they don’t fix it, you’re going to see less and
less money going to services. You wanna know why you don’t have your potholes taken care of, why you don’t have enough
police on the street, is because more and more
money is being soaked up and eaten by these pension systems. So the collapse is already
starting to happen, Robert. It’s starting to happen in
our cities across the nation. When you start seeing cities where, in Phoenix, we have, I call
them the melting street signs. They look horrible. They’re not even replacing
those doggone things. The reason why is that the funds are being eaten up by the pensions. We have more money than we’ve ever had in the history of the city ever, except we don’t have enough
money to do anything else. We cut our back on our
services across the city. – And services are like
police, fire, medical and all this stuff. – That’s exactly true. So what you’re seeing now– – This is the very people who
are counting on the pensions. – Oh, it’s corrupt. You’re a lot nicer about it than I am, even though I’m a politician, too, you’re a lot nicer about it. It is a system that is
fundamentally corrupt, and it’s going to hurt everybody. – So let me give you an
example of corrupt, okay, ’cause it happens. We all know it happens. These guys come, J.P.
Morgan or Goldman Sachs, they come to town, and they wine and dine the public servants in charge of the pensions, and they say, “Oh, by the
way, we happen to have some “private equity, we have some hedge funds, “and would you like a trip to Paris? “And we’ll buy you women
and song and dance, “and we’ll have a good time.” That’s part of the corruption, isn’t it? – Oh, of course it is. I mean, if you look at
it, even in Arizona. So we have hard-working police
officers and firefighters, hard-working, but the
people that manage the fund, the whole fund itself is corrupt, because they have themselves running it. And they’re the ones that
get all these entitlements. They get the nice
dinners, the nice places, and who knows what else
is going on with them, because it’s so corrupt. And if you go after their pension fund, it makes it sound like you’re
going after police and fire when, in fact, you’re protecting them. You’re protecting those
hard-working guys and women, but the people that are
running this thing are corrupt. In Arizona, we had a situation
where we made more money off our pension system, but they had no extra money going in. $43 million went to
the large institutions. This whole game, remember that whole– – That’s J.P. Morgan, Lehman Brothers– – All of ’em. All of ’em. If you look–
– And Goldman Sachs, I think. – All you have to do is, what happened to that $770 million that President Obama and others promised? Remember that? What happened to that? It didn’t go anywhere; it
didn’t help our economy. You didn’t see one dollar really going into our cities anywhere. You saw it just paying
off these large entities, and you’re gonna see more and more, it’s just corrupt. The people that are very wealthy, the ones that are in charge, the insiders is what I call them, always get paid out. Always. And the politicians go along with it. – Right, so if you had a crystal ball, you’ve been on this program
many times warning people, and you’re a real estate
guy too, on top of it. The last time we were
here, I still remember, you said, “So these guys who
are protecting the pensions, “they went and built this brand new low-income housing condominiums “that cost more than the best
properties in Scottsdale.” I mean, they built it on
the worst part of town. It cost more money than
high-income property. – Exactly. – And who ran off with the money? – They did, the government. The government workers (fumbling words) What they did is, you gotta
pay off these pensions somehow, and you gotta pay off
these high incomes, right, from these individuals. In the city of Phoenix,
we’re supposed to be known as a conservative city, we’re not. But the average total
compensation per employee for 13,000 employees
is 115,000 per person. The reason it’s so high is they have to keep feeding the beast. So all those monies have
to be paid back somehow. What they did is they used
these low-income projects, these affordable housing projects, instead of going out for
the highest and the best bid and the best quality, right? What they did is they chose
themselves to manage it so they were able to take the money. So in an apartment complex, it was $277,000 a unit
was the hightest priced private sector complex out there. – In a bad neighborhood. – No, this is the good one. (talking over each other) The city of Phoenix, I shouldn’t say the worst,
but it’s a bad area, on land that we owned was building low-income housing apartments $281,000 per unit. – So more than the 277. – Yeah, in a nice area
that had valet service, people would come by and
pick up your laundry, did all that stuff, Olympic-size pool. Over here, this was a low-income project because what happened is
they chose themselves, and they keep the extra money, because they’ve gotta take
the money from somewhere else. So the poor are being sacrificed at the expense of these pensions and the corrupt government officials. – We’re gonna go into this
idea of these pensions. This is not just Phoenix,
Arizona; this is worldwide. Like in Japan, they have a baby boom– – Greece. Italy. Spain. – It’s the old guys, the baby boomers, who are going to be toast. The sad thing about baby boomers, they were the luckiest
generation in history. They were born in right
after World War II, they were in a boom. They bought a house, it
went from hundred thousand to a million dollars. They put the money in the
stock market, it went up. But now the baby boomers
are about to crash. So that’s why I said in
1999, I started this book called Rich Dad’s Prophecy, and it says, “Why the biggest
stock market crash in history “is still coming, and how
you can prepare yourself “and profit from it.” And that’s the key. How bad is the pension
system in Phoenix, Arizona? – It’s horrible. It’s really bad, Robert. And the fact of the matter is is we’re not giving real numbers out. They’re not true numbers. Matter of fact, we were talking
about this at the break. Congressman Jason Chaffetz,
whose now a Fox commentator, and I have sponsored an initiative
we wanna take nationwide that requires you to put out real numbers, ’cause the numbers you’re seeing now, the supposed $200 trillion in public debt that’s unfunded, 200 trillion, not 2
trillion or 20 trillion. It’s 200 trillion that’s unfunded is based off of a wrong number. So they’re using phony numbers
to keep the public at bay is what they’re doing right now. And so the one we’ve got in Phoenix requires you to use a real number, a 10-year average without getting into all
the weeds on this thing. but the bottom line is if
you don’t have real numbers, you don’t know what the problem is, and you don’t know how to fix it. – So when we come back, we’ll be talking more
about what you can do. And Sal’s been my friend
for about 20 years now. We work closely,
professionally, of course. It’s how we protect
ourselves from what’s coming. That’s probably the most important reason for the Rich Dad Radio Show, so you can see clearly
what’s really going on that our public servants won’t talk about. One last thing real quickly, the public servants you’re talking about, you’re not talking about
police or firefighters. You’re talking about these city managers, a lot of ’em.
– Exactly. All of ’em. – They come in. They get elected. They make their money. They move to another
city, is that correct? – Well, they don’t get elected. They get basically hired on. And they do a pension hopping themselves. The lower level guys never do this stuff. The higher level guys, they jump from one pension to the next. That’s why you see a lot
of movement in government. – Bowel movement (laughs). – It’s a scam. The whole
thing’s been scammed, Robert. I feel so bad for the public, and they need to pay attention to this. – And so what this
ultimately means is that, what Sal is saying, if the funds are empty, that
means you lose services, like fire, police, emergency medical– – Streets.
– Streets, schools, you start losing a lot, because the very guys that
brought you the subprime crisis are bringing you the next crisis
called the pension crisis. (upbeat music) – You’re listening to
the Rich Dad Radio Show, with Robert Kiyosaki. – Don’t be like Charlie. Charlies is that do-it-yourselfer who does himself in. Do-it-yourself is good for tile and grout. It is not good for asset protection. Charlie thought he’d save a few dollars forming his LLC online. With no guidance, he did it wrong. When he sold the property, he lost thousands and
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$100 off your formation fee. That’s corporatedirect.com,
corporatedirect.com – What is your number one expense in life, your number one expense? It’s taxes. And (fumbling words) ask the question is how come there’s no financial
education in school, but why isn’t there
education on taxes either? They tell you to save
money, which is stupid. They tell you invest in the stock market, which is stupid. But what they teach you about taxes? So here we have Rich Dad
advisor Tom Wheelwright. We’re talking about his
revision for his book, Tax-Free Wealth. Welcome, Tom. – Thanks, Robert. – So what’s the Tax-Free Wealth about? What’s different this
time (fumbling words) revised edition? – Well, so what we did was, this is the first major tax reform we’ve had in 30 years, 2017. – ’86 was the last one. – ’86 was last one, back
when I was in Washington, DC. – So many guys got wiped out
because of that tax change. – They did. It wiped
out an entire industry, savings and loans. This new tax law is just as big, but in a very different way. It affects different industries. You know the tax law’s always
a series of incentives, and the question is
always which incentives, and which ones apply to me. So the key to revising
Tax-Free Wealth was, what changed so much in this new tax law that we can absolutely
take advantage of the, I mean, seriously, the amazing incentives. For example, I mean, the bonus
depreciation, for example, for real estate is unbelievable. You buy a million dollar apartment, get a $300,000 reduction or
more the very first year. – So if you wanna make more
money and pay less taxes, like Donald Trump and myself, get Tom’s book Tax-Free Wealth. (electric bass music) – Financial freedom begins
with financial education. Now back to Robert Kiyosaki
and the Rich Dad Radio Show. – Welcome back, welcome back. Robert Kiyosaki of the
Rich Dad Radio Show, the good news and bad news about money. And you can listen to the
Rich Dad radio program anytime, anywhere on iTunes or Android, and all of our programs are archived at richdadradio.com. We archive them because we’re
purely an educational show. We don’t sell anything or advise you to do something with your money. So we archive them so you can
listen to this program again as an educational program, you listen to this program one more time, your intelligence, your retention
will jump and skyrocket. Your mind, your eyes, you can see clearer. But also you can then
get your friends, family, and business associates
to listen to this program and discuss it. When all of you listen
to it and discuss it, you’ll find your quantitative learning will jump through the roof. So that’s why we archive
it at richdadradio.com. And we’re talking today
about the coming crash. What is the next crash? And back in 1999, I started writing a book called Rich Dad’s Prophecy. Says right here, “Rich Dad’s Prophecy, “why the biggest stock
market crash in history “is still coming, “and how you can prepare
yourself and profit from it.” And it was supposed to come in 2016, and the reason is the baby boom generation is gonna bring it down. Baby boom generation has been
the luckiest, easiest life. You put money in the stock
market, you got rich. You bought a house, you got rich. But those days are over, sports fans. The problem with baby boomers is their out of time and
many are out of money because our pensions are bankrupt. We’ve been robbed by the very, very people that robbed us in the
subprime real estate market in 2007, 2008, and the same
guys are robbing us again through our public pensions. And so we have Congressman Sal Diciccio. He’s our friend, District 6 councilman, serving the city of Phoenix, Arizona, and he’s been a guest on
the Rich Dad Radio Show, always sounding the warning, talking about those
corrupt public officials, and the labor unions and all these guys who know nothing about money. But they get money by stealing. They’re complicit with guys like J.P. Morgan, Morgan Stanley. If you remember the 2008 crash, they found a lot of the
things people invested in were just bogus. And the reason that happens is because, let’s say J.P. Morgan comes in and they wine and dine
us, a public official. So they get free trips around the world, flashy hotels and dancing
girls to their hearts’ content. “And, oh, by the way, here’s a hedge fund, and here’s a private equity
fund I want you to invest in for the public employees.” and that’s why we’re in
the biggest crisis today. It’s coming. This one cannot be stopped simply because the baby boomers are out of time and out of money. They cannot recover.
They recovered in 2008. They’re out of time for 2019 right now. So ladies and gentlemen,
it’s a very important show. The question is “Can you see clearly now?” Our guest, again, is Sal Diciccio. He’s blowing the whistle
for a long time now. So Sal, what would you
say to a person right now, how would you protect yourself? What would you say to do? – Well, the first thing you’ve gotta do is be aware that the politicians that are in charge are cheating you, and the people in charge of
government are cheating you. And I’ve mentioned this quite a bit, it’s not even right or left issue anymore. It’s not. It’s the people
that are the insiders that are profiting off the poor. And we use this example– – How about the middle class? – Even the middle class over everybody., So why would government build a project that’s more expensive than you
can do in the private sector? This whole thing about,
“Oh, it’s more expensive “because it has to go through government.” No, it’s all a lie; that is not true. The reason that they do that is because they need the extra monies. So government is profiting off the poor. It’s profiting off the middle class, it’s profiting off of
everybody but themselves. It’s designed to protect themselves. So if you look around
and it’s really simple– – And they’re complicit
with the biggest banks. – They’re complicit. They want more themselves, that’s it. It’s just greed. That’s their choice, but
we should know about it, and you need to quit
electing these politicians that are complicit there, too. – That’s not gonna, you can’t change that. – It’s shocking to me how bad it is, but if you look around, and this could be anybody on your program, if you see potholes,
you see streets sighs, you see less police on the streets, you seed less firefighters. It’s because the public, the crisis is here. The public pension debt is already here. – How big is the public pension debt? – Well, I’ve heard numbers to
two trillion dollars unfunded, that means that there’s
no money out there for it. The crisis is already here,
it’s starting to happen. You see it every day. – So we’re cruising into it right now. Again, that’s why I wrote
Prophecy way back when. I got trashed by Wall Street. They said I didn’t know
what I was talking about. I said, “Yeah, I think I do know.” – And it showed out to be true. – Yeah, and so, anyway,
that’s where we are today. I think what we’re laughing about is you have people like my poor dad. He’s highly educated, and my father was head of
the teacher’s union, too. So they’re on that side of
the equation, should I say. They’re highly educated Ph.ds, but they don’t know anything about money. So these pension funds
and hedge funds come in, they wine and dine ’em. And what was that one, that one pension, they invested heavily in
Beanie Babies back when. They know nothing, and they’re directing the
public servants’ pension. So we’re not blaming the teachers or the firefighters or police. It’s the guys who manage the city, right? – Yeah, they’re not professionals at it. They’re professionals at taking more, and trying to find ways
to protect themselves. – And as Sal says, they get a job here, they
move on to the next city, and they do the same thing
over and over and over again. So why is socialism
gaining in popularity now? You know, they want Alexa Ocasio-Cortez, and then Elizabeth Warren,
who is part-Indian. I’m more part-Indian than she is. I look more Indian than she does. We’re not solving problems, are we? – No, these are all distractions, and they’re distracting
you from the real problem that’s facing our country and
our states and our cities. That’s what’s occurring right now. And everybody’s being led by the nose, and we all jump in on that stuff, and think, “Oh my gosh,
what’s the next thing we’re going to be offended by, right?” but what we should be offended by is what the politicians have
done and the managers have done to really screw up everything, and to take more from us,
to give us less services. That is what we should be upset about. – But there’s no way we’re
going to change that. – I think it is, I’m hoping.
– Not in time for what’s gonna come anyway. – Robert, it’s here. – Yeah, it’s here. – You see it every day. If your city is facing financial problems even thought it has
more than it’s ever had, the crisis has already hit you. You’re just cruising into it as you said. – So we have a lot of people
who are police officers and retiring and all of this. – I feel bad for them. – Yeah, me too. But they also, they also held themselves
to the system, too. – Well, at some point you gotta rely that you’ve got some people up there that know what they’re doing, when, in fact, I believe that they do know what they’re doing. They’re profiting themselves,
the people at the top. – You know, with Facebook right now, we interviewed one of the
investors in Facebook, and he says, “Misinformation “sells better than real information.” and so now you have all
this noise going on, and so people don’t know what’s going on, and that’s really, really tragic, but that’s why I’m glad
you come on our program to speak what you know and all this stuff. What happened in Venezuela was Cuba sent teachers into Venezuela
to teach Communism. The Russians had been doing
that in America for years. That’s why most of our schoolteachers, like my Poor Dad
unfortunately lean towards – The left.
– Moscow. (both laugh) How we gonna change that,
unless we can’t, I don’t think. – You know, we sat back and
allowed the system to fail us, the system we built, you know what I mean? So no one pays attention to that, Robert, and it’s the baby boomers’
fault, quite frankly. We’ve been cruising, and we’ve been the luckiest
generation for sure, but at the end of the day, we also had an obligation and a responsibility
to take care of things, and we didn’t do that. – You know what, fake
money is pretty obvious. They can print as much
as they like, you know. Why would you save it? I
mean, that makes no sense. And fake teachers, what do
you teachers know about money? What does Elizabeth
Warren know about money? – Menge, except she’s
been getting the money. – I know. – She’s been on the dole the whole time. – Yeah. And then you have fake assets. Now the definition of an
asset from Rich Dad Poor Dad, assets put money in your pockets. The trouble is your 401(k),
your pensions, all that, not putting money in your pocket. It’s going into the pockets of the rich. Your bankers, your pension
managers, and all this stuff. And we’re in the middle of it right now, and that’s what’s really,
really, interesting should I say. So anything else you wanna
say to the public right now? – No, I think that they
really need to pay attention. When you look around, all you have to do is look at your city, look at what you drive on, look and see if you’ve got
enough police protecting you, and if you don’t, you’ve got a major
problem hitting your city. – Okay, Phoenix is your city, my city. How bad is our pension? – It’s horrible. It’s really bad. I mean, all you have
to do is drive around. We’ve got nothing but potholes throughout the city right now. One of our biggest complaint, we have less police officers now than we’ve had at one of our
best points with more people, and we have more revenue than
we’ve ever had in our history, but we don’t have enough
money to fix everything, the things that we are obligated to fix or we have a responsibility to fix. The crisis is here, and it’s
happening across America. – You’re a politician, you’re
also a real estate developer. – I hate the word. – I know, but I’m glad you’re there. – I know, thank you though. – You know, Sal and I– – I rip on politicians. – Yeah, oh, I know. – But Sal and I work together. We’re real estate guys. And it’s just amazing seeing the world from our point of view. But it’s just shocking, just
shocking, shocking, shocking what’s going on in the world today. – It is, and if you look at it, who’s the biggest inhibitor
of growth and job creation? It’s been your government. I helped create what’s
called a 24 hour inspection, a 24 hour permitting inspection
and five day site plan. We’re the fastest in the nation now to get job growth occurring, right? You know who fought that?
The government unions. The government unions came out in force saying, “We don’t need this.” They were afraid that we’re gonna lose a little bit of power, maybe lose one job, instead of look at the tens of thousands we’re able to create in the economy. If you don’t do things like that, deregulate and find ways to be better, faster than your competitor,
you’re going to fail. – So what do you have to say to people like Alex Ocasio-Cortez and Warren, and they’re gonna tax the rich by 70%, they’re gonna have free income now, whether you’re wanna work or not. – That four letter word,
free, appeals to everybody. Everybody wants something free, right? – How real or how serious
should they be taken? – Oh, I think they
should be very taken, no, the minute that they came out with this and people were laughing at it, I, like, “No, you don’t realize.” The majority of the public
wants something free; all of us do. I mean, everybody wants something free. If someone said, “Hey, look
Robert, I’m gonna give you “a big building for free,
really no cost to you,” – I’ll take it. – You’d take it. Why wouldn’t you? So if we’re not taking these
comments from the Socialists that are coming out,
thinking that it’s okay, right now they’re gonna
say “Tax the rich”; of course they’re gonna say that. – That’s popular. – That’s popular, of course. I would say the same thing if I were them. What’s gonna eventually come out is like, “Well, wait a second, we
don’t have enough money. “Now we’re gonna have to
go after everyone else.” And sooner or later, you’re
going to be in the minority. You will be in the minority. If you’re a producer in this economy, you will be in the minority very shortly. – So when you hear these
people talking like this, everybody wants something for free now. From your point of view
as from inside the city, are people that desperate today? – I don’t think that they’re desperate; I think people want things to be easy.
– Just like the idea? – Yeah, they like it. Why wouldn’t they? If someone handed you
something, you would take it. That is our nature to do that. We can’t go around human nature. The problem is sooner or
later it all collapses, and all you have to do is look
at what’s already occurred. When you have government running anything, they will be the profiteers. They are the new profiteers of the future. It’s not as much corporate
America as small business guys. The large guys, for sure. I mean, people don’t realize this. I’m a Conservative,
obviously, more Libertarian, but the large entities are the profiteers, and so are the government. And they’ve all learned from each other, and they take care of each other. – Once again, it’s Robert Kiyosaki, the Rich Dad Radio Show. We’re talking to Councilman Sal Diciccio, District 6 councilman, serving the city of Phoenix, Arizona, been friends for years. ‘Cause one of the most
important parts of what you do is called zoning, right, in real estate. You can take a piece of
property that’s zoned O and change it to a C, and the value jumps and all this. So that’s why, ladies and gentlemen, if you wanna know why Sal is my friend is because he can help me in my zoning. That’s part of the real
estate rule out there. But of course, we run into
massive, massive headwind from those who are not in
the real estate business. You look at what’s happening with, what’s his name, Howard
Schultz of Starbucks. He can’t use the word billionaire anymore. Doesn’t that disturb you? He has to now say, “I’m
a person of means.” What is going in this country? – What’s going on is
that everything we do, I mean, again, it goes back
to this whole distraction that’s occurring in our country right now, whether it’s Trump or Ocasio-Cortez, these are all distractions. It’s keeping our eye off the ball, and it is done very
well right now, Robert. I mean, these distractions are keeping us away from fiscal matters, are keeping us away from
doing the right thing. – So we’re going down. – It’s horrible what’s
occurring right now. – I’m a biggest pessimist and optimist. As a pessimist, I go, “Okay, “if it’s gonna go down,
what am I gonna do?” Or you can pretend somebody will save us. So that’s why with the Rich
Dad Radio (slurring words), “You’re such a pessimist.” Let’s just say something else. The last crash I made more
money than ever before. Do you know what I mean? That’s how I got that
property on (laughs). When things crash, it’s
really a good time. So that’s we speak on
both sides of the coin. If it’s really bad, it
could be really good. If it’s really good,
it could be really bad. But the question is, “What
are you gonna do about it?” So Sal, I really thank you for being a friend all these years and coming about and speaking
when nobody else is speaking saying what you’re saying. – I’m doing the best I can
to get the message out there, because at the end of the day, you’ve taught this, and
you taught me early on in the whole real estate world, too, you’ve gotta be able to rely on yourself. No one’s gonna come in and save you. If you think that that’s gonna happen, it ain’t gonna happen. – Yeah, and you gotta have
good friends around you, too. – That know what they’re doing. – Right. So once again,
it’s Robert Kiyosaki, the Rich Dad Radio Show. I’ll thank Sal Diciccio. When we come back, we’re going to the most
popular part of our program, Ask Robert. – You’re listening to
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Corporatedirect.com (upbeat bass music) – Your financial education continues. Now back to Robert Kiyosaki
and the Rich Dad Radio Show. – Welcome back, Robert Kiyosaki, the Rich Dad Radio Show, the good news and bad news about money. And once again you can
listen to Rich Dad Radio Show anytime, anywhere on iTunes or Android, and all of our programs are archived at richdadradio.com. Once again, we archive them simply because repetition
is how we learn best. If you wanna be able to see clearly now, I’m talking about where
the next crash is coming. And it’s gonna be many areas, but one of the big crashes that’s gonna come is in pensions. And I wrote that in my
book Rich Dad’s Prophecy. I said it was coming in 2016. Well, a year and a half
later in September 2018 it started to crash. So ladies and gentlemen, question is “What are
you gonna do about it?” So once again, you can
submit your questions to Ask Robert at richdadradio.com. So Melissa, what’s the first
question for Ask Robert? – Our question today, Robert, comes from Grayston in Round Rock, Texas. Favorite book Rich Dad Poor Dad. – I love Round Rock, beautiful area. – Yeah, he says, “Robert, “I get what you’re saying,
and I hear the warning bells “on the coming crisis “with the impending
collapse of the 401(k). “I’ve stopped contributing,
but I’m wondering. “Should I withdraw my money now, “and take the tax hit? “Just looking for high ground “before it all comes tumbling down.” – So I appreciate the
question, but as you know, Rich Dad Radio Show, we don’t give advice. We’re not financial
planners or stock brokers or real estate brokers. I tell you what I am investing in. But I think the big
question on your 401(k) is it’s up to you. And let me just say something else. If you don’t know what
to do with your money, leave it there. That would be my advice, because you could get
penalized pulling it out, and who knows? It might go up. I mean, I don’t know. Nobody knows. But I can tell you what,
it’s coming down also. This whole economy is coming down. So I think for people out there who are wondering what to do, is my book “Fake” is coming out, and I’ve been a gold bug since 1972. I bought my first gold coin, a Krugerrand from South Africa in 1972 for about $50 in Hong Kong, and I bought it in Hong Kong because it was illegal for
Americans in 1972 to own gold. Imagine that. It’s illegal to own gold. Now they changed that in 1974. But that Krugerrand today
is worth about 1500 bucks that I paid 50 bucks for. So that should give you
a relative indication of how worthless cash is. So the book “Fake” is about fake money, fake teachers, and fake assets. The big question I ask to my
friend here in Round Rock, a beautiful part of Texas, is “Who tells you what to do?” You know, you can listen to me. I have multi-, multi-,
multi-millions of dollars. What I would do is different
than what you would do. But I started off with nothing also. So the point here is this: The problem with our fake teachers is you’re listening to teachers who know nothing about money. You know, my poor dad is a Ph.D; he knew nothing about money. Why would I listen to him? And so what’s happening, the reason we’re in this
massive financial crisis is so many people have
been programmed to be, “Tell me what to do.” “Let me tell you what to do.” So you listen to these fake people. And what they tell you to
do is invest in fake assets. You know, your 401(k), your ETFs, private equity and hedge funds. Well, dammit, start thinking for yourself. If you don’t want to think for yourself, just leave it in that 401(k). The big point of view is a book that, if you haven’t read
it, you should read it, and read it again, it’s
called the Cashflow Quadrant. Our school system is pumping out people who think like employees. They wanna be told what to do. “Tell me what to do.” And where Rich Dad stands, and then if you become an entrepreneur and become an S, small
business, which is fine, but you pay the highest taxes. “Well, tell me what to do.
How do I not pay taxes?” Well, you gotta stop being an S. And the next thing is the big B quadrant. That’s with 500 employees or more. “Well, how do I become a B?” Well, you better study and take some time. And then how do you become
an I, an inside investor? That’s what it stands for. Outside investors are
stocks, bonds, mutual funds, private equity, and hedge funds. I invest with make their own deals. So when I talk to Sal, he and I are I investors, I create my own deal. I don’t need anybody
to tell me what to do. But that takes time, it takes
practice, it takes study. So if you don’t know what to do, I would just leave it in that 401(k) until you figure out what you wanna do. But I would get the Cashflow Quadrant and figure out, when you grow up, you wanna be an employee
for the rest of your life? You wanna be small
business, self-employed? Knock yourself out. You wanna be big business,
500 employees or more? That’s a whole different mindset, a whole different educational process. And to be an I, an insider, to be like somebody on Shark Tank, you got a lot of study ahead. So just know I’m investing
from the I quadrant. That’s the only place, when I was a kid, I wanted to make it to the I quadrant. It took a long time; it was painful. It was very expensive. Not in, just in mistakes I made, but that’s how you
learn, you make mistakes. Most schoolteachers are
terrified of making mistakes. So that’s why they don’t
go to S, small business. That’s why they don’t
go to B, big business. And that’s why they’re not
professional investors. They buy things like
stocks, bonds, mutual funds, ETFs, hedge funds, and private equity. And that’s why we’re gonna collapse, because we have a bunch of
highly educated poor people, like my poor dad running
the pension plans, and the rich guys who run Wall Street are sending them dancing girls and free trips around the world. So I hope that answers your question. You can submit your
questions to Ask Robert at richdadradio.com. But I think it’s time you
start thinking for yourself. And if your thought is, “I think I’ll leave it in my 401(k)”, thank you, you thought for yourself.