re: Why does Kiyosaki hate the 401k

“ carry on with your ignorant false narrative”

Why the hostility?
I clearly said I obviously didn’t want to rich bad enough.As it is,I have a nice 7 figure
portfolio of liquid assets(Not as nice under Biden).No debt,own 150 acres of timberland(hasn’t paid off very well,breaking even but I have my own property to hunt on).

I know 1/2 dozen people that own rental property,the only one that doesn’t complain about it has about 100 rentals,he pays a sister and brother that take care of it all.

A long time friend has 17 as his retirement plan.He complains incessantly,he’s pretty handy and fixes most stuff himself.Iasked him why he doesn’t get a PM or at least hire out repairs.He says it would kill his profit plus the difficulty of getting tradesman in a timely manner is why he doesn’t hire out work himself.

Not everyone is cut out to do the same things in life.For example I was a nurse for 35 years,31 straight in ICU.One hell of a lot of people wouldn’t do what I did for a living and I can’t blame them.It’s like I was a masochist but it suited me.

Same way being in business,no way I would ever want to deal with employees.

So if you’re happy doing rentals good for you.

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The avg person would be far better off with a pension. 401ks, while offering many good things (lower costs/liabilities for companies, more control for investors, tax deferred time value growth, portability, etc), displaced the very important “guarantee” from the avg person, and I think hurts more than helps too many.

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I get your point that the average person does not invest enough or properly when a 401 K is available, and the pension plan requires you to forgoe larger income in exchange for security, but for the ones that do invest:
1) Your retirement security is not trapping you to a company or job for large chunks of your career to get real value,
2) Your estate and heirs will see no benefit apart from your spouse IF you chose to take a lesser amount to benefit them if you died.

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I’m not going to suggest that RE rentals is for him. Maybe he doesn’t have the personality for it.

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you may be right. i am just trying to get him to see both sides and keep an open mind.

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And you and I both know that you have to run your rental business as a business, not a sideline hobby.

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correct.

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I’m pretty much where I am today financially because of real estate.

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if a person really likes their comfort zone, well

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and speaking of that, we learned you have to get UNCOMFORTABLE to get COMFORTABLE over time. You have to push outside your comfort zone if you want to succeed at certain levels. many cannot do it.

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You have to push outside your comfort zone if you want to succeed at certain levels. many cannot do it.

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Truth.

Do you prefer homes for less than <100k for your sfh rentals?

I firmly believe that the first and most important thing a person can do to save for retirement... is to actually SAVE for retirement.

1) It has a match - free money and encouragement to save

2) It has a up front tax savings

3) It gave everyday people access to the market. 401(k) plans started becoming popular at a time before it was super easy for anyone to open an investment account online with a low minimum contribution. At a time where investing money in the market meant "call your stockbroker", people could have a few bucks taken out of their paycheck and invested for them.

A 401(k) is to retirement as Dave Ramsey is to debt. It is solid advice for 80 percent of Americans. Is it the absolute most smartest way to handle money? Maybe not.

Is it FAR better for most people to have a 401(k) than no retirement at all? Of course it is.

Kiyosaki would fit in well on the MT. He's been successful enough to take additional risks, and if something blows up, it won't kill him.

But the vast, vast majority of Americans are not in that position. For whatever reason.

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If buy something for less than market value, it can be a good investment? Wow! Shocking.

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no dumbass alter, it is many factors when it comes to buying right, and no you actually do not need things under market value. you need good RTV's and interest rates, insurnce rates, cash flow, property taxes, etc. here read this checklist and educate yourself away from your ignorance on the matter. HAve you never heard of running the numbers? holy shite man.

LINK

7-Point Checklist to Ensure Sustainability on Investment
1. Are jobs being created? Many have invested in cheap properties only to later find vacancies and stalled cash flow. Investing in markets with job growth is paramount to ensuring you have a steady stream of renters who can afford to make their rent payments.

2. Is the population growing? This, of course, goes hand in hand with job growth. If a market is creating jobs, it should also be growing its populations. When you have rental property in markets that are growing in size, this also lends to a steady stream of tenants who will want to rent from you.

3. Are homes considered affordable? This is a big one—and often overlooked. Investing for buy and hold purposes suggests you will cash flow today with an exit strategy to enjoy a nice appreciation and sell to the retail buyer. To further help your objectives, buy in affordable markets where the home cost of a median price home is no more than three times the median income. Markets where you can acquire the median home price for three times median income or less provides for affordability and ease in finding retail buyers when you prepare to liquidate. The job growth and population growth will help to raise both the income and the home prices, ensuring you sustainability in your anticipated growth.

4. Are insurance premiums and property taxes low? Managing expenses is the number one task for any business owner, and investors are no different. Insurance and taxes are those uncontrolled expenses that you want to make sure are as low as possible. Cities that are not prone to disasters like tornados, or hurricanes or winds or mudslides, etc., are able to keep the rates in these areas low. Likewise, cities that have strong and financially responsible management in place and have a strong and vibrant , growing city with multiple streams of revenue also are able to keep their taxes lower. Expenses such as insurance and taxes that are outside of our controls for expenses can indeed be minimized by investing in areas where they are organically low.

5. Is it a landlord friendly state? Coming from a tenant friendly state where I grew up in Minnesota, investing in landlord friendly states are a pre requisite of mine. Any investor who was forced to do an eviction will tell you that a state that favors a tenant can be costly. To sustain great ROI you want to invest in states that are landlord friendly and understand you need to run a business and getting paid on time is important and has consequences when this does not happen.

6. Diversification: A variety of jobs in different industries is paramount for survival. We all know what happened to Motor City (Detroit) when the auto industry left. They are still trying to recover. This city relied on this one industry. When it left, there were not enough other businesses around for the city to thrive. A city thrives, survives or dies. Where do you want your investments?

7. Are things in place to drive future growth? All of the above are important and sustaining it is something you will want to be comfortable with. Does the city have a 5, 10, 15 or even 20 year vision plan for growth? All markets are cyclical and you want to invest within the cycle for sustained growth. Check into where the city is heading and ensure growth is ahead.

There are a number of other attributes we like to look for to ensure sustainable investments. If we lived in a perfect world, we would find cities with all the shining stars shining brightly and casting light on the investments. We do not unfortunately live in a perfect world, but a darn good one though. I have found, however, that if the property you wish to invest in encompasses these seven must-have attributes, you will have an investment worth holding on to for long term buy and hold investments.

Not an alter. Trying to learn. How can you convince me that it’s easier to buy real estate RIGHT than another asset? I’m not saying you can’t.

I just get tired of people saying one asset class is better than another … IF you buy it “right.” It’s just a horribly arbitrary qualifier.