Millionaire's Secret to Tax-Free Wealth - Robert Kiyosaki

About this video

• Video Title: Millionaire's Secret to Tax-Free Wealth - Robert Kiyosaki
• Channel: The Rich Dad Channel
• Speakers: Robert Kiyosaki
• Duration: 00:03:25

Overview

Robert Kiyosaki explains a strategy for achieving tax-free wealth, primarily through real estate investment. He contrasts the high tax rates for employees and small business owners with the significantly lower or zero tax rates available to investors through leveraging and depreciation.

Key takeaways

• Financial Statements: Kiyosaki begins by referencing the income statement and balance sheet as fundamental financial tools.
• First Investment: His first investment was an $18,000 unit in Maui, for which he put $2,000 down, charged to his credit card.
• Tax Differences: Employees earning $1 million might pay 40% in taxes, while doctors, lawyers, or small business owners could pay up to 60%. In contrast, a large business might pay 20%, and a professional investor could pay 0%.
• Real Estate Leverage: Kiyosaki illustrates a method where he can make $1 million in income. By borrowing $4 million against a property, the asset's value becomes $5 million. This allows for appreciation and depreciation, leading to zero tax liability.
• Financial Education: The video emphasizes the importance of financial education to understand and utilize such strategies, recommending books on real estate investing and finance.