Robert Kiyosaki predicted the biggest stock market crash will occur between 2016 -2020. He made this prediction back in 1996 and in 2002, he published it in his book Rich Dad’s Prophecy.
“A lot of good people lost everything in the last Financial Crisis because they trusted the wrong ‘financial advisors’. I don’t want that to happen again” – Robert Kiyosaki
We could go into the reasons for why the crash WILL HAPPEN, but the most important thing is TO BE PREPARED.
So, we’ve put together a 5-POINT PLAN from Robert Kiyosaki on how to make money in any market, especially if like most people, your money is locked away in a long-term investment account.
- KNOW YOUR POSITION
The sad reality is that most people don’t even know what their retirement money is invested in. The money gets pulled out of a check, goes to a magical place called a managed investment account, and is moved around by a wizard called a financial manager.
The first step to success in any market is obvious enough, but too often ignored .Know what your money is invested in!
- KNOW HOW YOU’LL PERFORM
Once you understand what your money is invested in, you need to understand how those investments will perform in a given market. For instance, if interest rates are hiked substantially, as the US Federal Reserve seems to be prepping for, there’s a good chance that stocks and bonds will fall—and these make up most investors’ retirement accounts.
Therefore, in such a market, it may be time to invest in real estate before interest rates go higher.
- GET EDUCATED
This means that you can’t just take advice about the market, you have to educate yourself. If you don’t plan on investing in financial education, then by all means, keep your money in your retirement account and let it sit there. It’s safer than moving money without the knowledge of how or why. But if you want to be prepared to make money in any market, you need to understand how to make that money work for you.
- SLOWLY PARE BACK YOUR RISK
With the proper education, you can see better where the markets are going, how your current asset mix will perform in the coming markets, and how much risk you have.
This allows you to make the proper adjustments to minimize your risk and take positions that will perform well whether the market is going up or down. And it leads us to the final point.
- BUY IN PAIRS
Professional investors always buy in pairs. One position is for growth, and the other is for protection. So for instance, if you’re heavily invested in the stock market and paper assets, you want to take an insurance stake in precious metals or commodities. If you buy real estate, you want to also buy insurance for that real estate. The list can go on and on. This of course takes financial education, but the investment is worth it.
The only investment that will NEVER fail you is investing in your own education.
As Robert said, the rich will get richer, poor will get poorer. But if you want to be on the side of the rich, you have to get your basics right.
The best-selling author of ‘Rich Dad Poor Dad, Robert Kiyosaki will be speaking in Kuala Lumpur from 10-11 November 2015 at the Masters of Wealth 2015 Malaysia at One World Hotel, Petaling Jaya, who will be joined by a panel of seven speakers.
Get 15% discount on your ticket by going to http://www.mastersofwealthmy.com/tae