How Real Estate is the Ultimate Tax-Free Strategy - Robert Kiyosaki

In this episode of the Rich Dad Radio Show, hosted by financial education icons Robert and Kim Kiyosaki, we explore in depth the financial strategies that allow the wealthy to legally minimize their taxes while maximizing their wealth. If you're curious about how the rich use debt, real estate, and the tax code to their advantage, this episode is a must-watch.

The Basics of Debt and Taxes

Robert Kiyosaki kicks off the episode by reminding us that the Rich Dad Radio Show is all about delivering both the good and bad news about money. This episode focuses on taxes and real estate, revealing how the wealthy strategically increase their income while reducing their tax obligations. Highlighting a memorable moment from the 2016 presidential debate, where Donald Trump famously said, "That means I'm smart" in response to not paying taxes, Kiyosaki explains that this approach is a form of financial intelligence that savvy entrepreneurs use to their benefit.

The Importance of Asset Classes

Kim Kiyosaki emphasizes the significance of choosing the right asset class, outlining the four basic types:
1. Business
2. Real Estate
3. Paper Assets (stocks, bonds, mutual funds)
4. Commodities (gold, silver, Bitcoin, oil, gas)

Understanding how taxes affect each asset class can lead to smarter investment decisions. This episode features expert insights from Tom Wheelwright and Ken McElroy, who dive into the tax benefits of real estate investments.

Expert Insights

- Ken McElroy: A seasoned real estate investor, Ken manages a vast portfolio of properties, primarily in Texas and Arizona. He illustrates how borrowing money for real estate can result in minimal tax liabilities while generating substantial returns.

- Tom Wheelwright: A tax advisor, Tom explains how the tax code incentivizes debt and depreciation, allowing real estate investors to legally offset their taxable income and defer taxes.

Real Estate: The Ultimate Tax Shelter

Robert and Kim discuss their strategy of acquiring real estate to offset their business income. By converting cash into debt and investing it in real estate, they generate tax-free income and benefit from property appreciation. Ken McElroy shares a real-life example of turning a financially distressed property into a profitable investment, emphasizing the importance of excellent property management and strategic renovation.

Misconceptions About Diversification

The Kiyosakis challenge the common advice of diversification, arguing that true diversification involves investing in tangible assets like real estate, commodities, and businesses rather than just paper assets like stocks and bonds.

The Role of Teamwork

Robert and Kim stress the importance of having a knowledgeable team. Real estate investments require skilled management, legal guidance, and strategic planning. They share their journey from managing properties themselves to partnering with experts like Ken and Tom, who have significantly amplified their investment success.-----

Disclaimer: The information provided in this video is for educational and informational purposes only. It should not be considered as financial advice or a recommendation to buy or sell any financial instrument or engage in any financial activity.

The content presented here is based on the speaker's personal opinions and research, which may not always be accurate or up-to-date. Financial markets and investments carry inherent risks, and individuals should conduct their own research and seek professional advice before making any financial decisions.

[h.a.]

Robert opened my eyes to how to see money, really appreciate it.

[GillerHeston]

The economic crisis and downturn are all the signs of 2008 market crash 2.0, so my question is do I still save in the US dollar or is it okay to move all emergency and savings to precious metals?

[justamanwithbeliefs]

I'm closing in on retirement and I'll love to move from Minnesota to a warmer climate, but home prices seems ridiculous today, do I go ahead with buying a house anyways, or look at other sectors of the market as of now?

[AshiqurRahmanjahidJahid]

Robert and Kim is like a God when it comes to debt, real estate, gold and silver. Love you both sir and mam🖤❤️

[ForNNN_vn]

The content of the channel is very useful and valuable. Thanks!

[craigbouwers]

Thanks once again for the financial information Robert Kiyosaki and Rich Dad Team.

[raymond-iv]

Back in 2007, during my time working in real estate, I witnessed people purchasing newly built homes from builders with the plan to sell them before the closing of escrow to another buyer for a profit. The crash hit hard and fast, and I vividly recall many of these units ending up foreclosed upon, with the builder's plastic still covering the carpets.

[URQ]

Thank you so much for teaching thank you for being a teacher thank you, Miss Kim Kosaki and Mr. Kosaki thank you Tom and thank you Ken

[careyamani]

Very interesting
Thanks for this valuable information 👍🏾

[andonibrunenpotenciación]

Thanks Robert, this knowledge is invaluable.

[rachitjoshi]

I can't thank you enough Robert for changing my life!

[URQ]

Thank you thank you thank you from the bottom of my heart with tears in my eyes. Thank you so much thank you Tom. Thank you Kenny. Thank you guys so much life-changing from Detroit Michigan. I know it’s not great here as far as Real Estate goes but thank you so much. We will change it.

[ivegonemad]

Do you need to have a real estate license or anything of that matter to start?

[ercumentcelikoglu]

Yıpranan bir şeyi uzun vadede, yatırım olarak görmüyorum. Emeginize saglık.

[Nachitoleon]

My only ones mentors pushing me up every day 👏👏👏

[amachisholm]

Real estate in a country like Canada?
This might be true only in some places.

[parinamid]

whats the intro music playing on background please?

[skylershistle]

This is the second time Ive heard ken and the kiyosakis refer to rickards new book. Can i get some clarity on the title please and thank you

[jamiehollamby]

You guys reckon it’s better to store metals in a vault ? Is that better overall from tax point of view ?

[Mark-ezvw]

Digital silver in a digital age, litecoin is a digital precious metal, not a security. Litecoin is the oldest coin on the market after bitcoin, since its inception in 2011. The scarcity of litecoin is the key feature of its technology. Everyone tends to flock to digital silver and digital gold, litecoin, and bitcoin, when things aren't going well. Litecoin is a decentralized digital commodity, just like bitcoin, but not even close so heavily concentrated in a few hands like bitcoin is. Both have Proof-of-Work consensus, and both have a limited supply of coins. Only that litecoin is lighter, swifter, and hugely undervalued against bitcoin. Litecoin (LTC) being a digital commodity provides a decent inflation hedge as well because there will be mined only a limited number of 84 million litecoins in total.