Robert Kioyosaki: 4 Investment Tips To Help You Keep More of Your Money in 2024
Robert Kiyosaki is a popular financial personality known as the creator of the “Rich Dad” empire of publications and broadcasts. The outspoken Kiyosaki has a strong opinion on how financial markets and the economy will perform in 2024, and he’s essentially advising investors to batten down the hatches and prepare for a rough year.
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Important to note, however, is that Kiyosaki often gives advice that runs counter to conventional wisdom, for better or worse, so you’ll have to keep that in mind. With that being said, here are some of the investment tips that Kiyosaki offers to help you keep more of your money in 2024.
Shock to the Markets
In a Dec. 10 post on X, Kiyosaki didn’t hold back in his predictions for a dire 2024. Specifically, Kiyosaki shared, “Bank credit just sold off like 2008. Get some cash out of banks as you need cash. This may be the start of the biggest crash in history. Hope I am wrong yet no time to play Russian roulette with your life.”
Kiyosaki believes, as he always has, that the U.S. financial system is unsustainable, and that the dollar will crash and drag down the stock market with it. As such, he strongly recommends that investors adopt a different mindset when it comes to the markets.
Abandon 60/40 Allocation
The traditional “balanced portfolio” model consists of an allocation of 60% stocks and 40% bonds. Kiyosaki views this traditional allocation as a recipe for disaster in the coming year.
With his prediction that the stock market may be facing a huge selloff — and that the U.S. financial system as a whole is on shaky ground — he believes that a 60/40 allocation could lead to significant losses.
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Buy Gold, Bitcoin, Real Estate and Oil
Kiyosaki’s answer to defend against his predicted carnage in the markets is to stock up on gold and bitcoin. Not only does Kiyosaki see these investments as hedges against lingering inflation, he also believes in them as defensive asset classes for when stocks, bonds and the dollar collapse.
Unlike traditional advisors, who generally suggest an allocation of no more than 5% to cryptocurrency, Kiyosaki suggests putting 25% of your portfolio into bitcoin. For the remaining 75%, Kiyosaki believes in precious metals like gold and silver, real estate, and oil/gas stocks.
Real estate and oil stocks provide income and stability in uncertain times, while bitcoin and precious metals serve as defensive assets that thrive during periods of financial stress.
Kiyosaki’s Primary Investment Philosophy
Kiyosaki has never had a lot of faith in government institutions. He believes, as many pundits do, that the path to wealth is not via a high income, but rather through leveraging investments.
Historically, Kiyosaki leaned on real estate to build his wealth — and his investment philosophy — but in more recent times he has recommended real assets, like precious metals along with bitcoin. With little faith in the U.S. dollar and financial system as a whole, he views bitcoin as a real alternative to fiat currency, at one point predicting the cryptocurrency could top $1 million per coin in the event of a true economic catastrophe.
In a nutshell, Kiyosaki says that gold is “God’s money,” Bitcoin is “the people’s money,” and the U.S. dollar is “fake money.”
Things To Consider
While Kiyosaki makes some valid points about the U.S. financial system, this isn’t the first time he has predicted a market meltdown. As numerous pundits have pointed out, going back to about 2010, Kiyosaki has been in more or less constant crash mode, predicting the next big crash right around the corner on a fairly continuous basis.
On Oct. 28, 2020, just to pick one instance, Kiyosaki tweeted that “the EVERYTHING CRASH is coming. Since 1987 world has been in EVERYTHING BUBBLE.” While the market does sell off 10%, 20%, and even 30% or more on a fairly regular basis, if you have stayed with it, you’ve been richly rewarded.
At the time Kiyosaki tweeted his Oct. 28, 2020 warning, the S&P 500 was at about 3,360. As of mid-Dec. 2023, the index is at about 4,700, or roughly 40% higher. Going back to 1987, the index has posted a gain of about 3,600%, turning a $10,000 investment into roughly $360,000.
The point is that while Kiyosaki may be right in 2024, it’s hard to time the market successfully, and those who try, even professionals, often miss out on big moves upward. While Kiyosaki makes some excellent comments about basic financial principles that have undoubtedly helped many of his followers, the timing of his specific market calls haven’t always been spot on — so take them with a grain of salt.
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