What would you do if you have had $10,000? Would you spend it, pay off past debts perhaps? If you’re Robert Kiyosaki, author of the best-selling investment guide “Rich Dad Poor Dad”, you would invest it, with 25% of that investment going toward precious metals. “With gold and silver prices heading down, I would be acquiring a larger position in physical gold and silver,” says Kiyosaki. “When the stock market goes down, panic will set in, and gold and silver are likely to hit new highs.”
As a savvy investor, Kiyosaki puts his money where his mouth is. He is a strong advocate of tangible assets and regularly invests in areas such as real estate, gold, silver, and controlling stakes of companies. As a supporter of these types of investments, Kiyosaki is obviously very against less stable forms of investing, such as trading in the stock market.
“I would definitely avoid paper assets such as stocks, bonds, mutual funds, and ETFs,” says Kiyosaki. “The reason is these are paper assets, not real assets.” Kiyosaki likes to relate investing to the story of the Three Little Pigs. The first pig builds a house out of straw; the second pig builds one out of sticks; the last pig out of bricks.
The first pig is the poor, people who build their house out of paper. They work hard and save money, but in the end the “Big Bad Wolf” leaves them in shambles.
The second pig is the middle class. They build their houses out of the illusion that they’re financially safe with jobs, homes, stocks, and other means of financial security. However, the Big Bad Wolf, aka the Next Recession, can still come and take those things away from them.
Therefore, the third pig is the smart investor who builds his house out of tangible assets. These are entrepreneurs and investors that invest in real assets who, twenty years from now, will still have those “bricks” and will be richer for it.
Long story short: if you want to increase your cash flow (and possibly your capital gains), change up your strategy and invest in tangible assets. There’s not point investing your hard-earned money in something you’re at risk of losing.
If you want to take Robert Kiyosaki’s advice and invest in gold and other precious metals, be sure to call American Bullion at 1-800-326-9598 to speak to a gold IRA specialist today. They can answer any questions you have about setting up a gold IRA account and can even send you an informative Free Gold Guide. Call American Bullion today at 1-800-326-9598 to request your Free Gold Guide and begin investing in gold and other precious metals.