Why Investing Isn't Risky -Robert Kiyosaki

Most financial experts want you to believe that investing is risky. Well, the Rich Dad company says, "Investing is not risky." What is risky is not improving your financial intelligence or your financial IQ, having no financial education. So let me give you a few examples. There's two basic types of investors. One is fundamental. I would say Warren Buffett is a fundamental investor. That's income, expense, assets, liabilities. Most people, since they can't read a financial statement, really don't understand the fundamentals. That's what the CASHFLOW game teaches people, is how to be fundamentals.

We all know markets go up and markets go down. Markets go up and markets go down. So the reason the average person thinks investing is risky is because prices go up and then they lose everything. The reason investing is risky is that to be a professional investor, whether it's fundamental or technical, is you have to use insurance. Look, Ladies and Gentlemen, you do not have a car without insurance. You don't buy a house without insurance. Yet the average person putting their money in a stock or a mutual fund or a bond, they don't have insurance. That's what's risky. If you're going to be a professional investor, you have to understand markets up and down. That's not news. But when markets are up, you buy an insurance policy here in case it goes down. For some people, that's called a put. Or you can put a stop. In real estate, my banker requires me to have disaster insurance.

So a point here, Ladies and Gentlemen, is this: is that investing is not risky. It's taking advice from people who don't know what they're talking about a lot of the time, or people who don't sell you the insurance. That's risky. To put yourself in a stock or a mutual fund without insurance is absolutely risky. It's no more sense than buying a car and not having insurance. So Ladies and Gentlemen, investing is not risky. Being financially not sophisticated, not educated, and taking advice from people who also believe investing is risky is the riskiest part of investing. And that's what makes the Rich Dad company different.

Best known as the author of Rich Dad Poor Dad—the #1 personal finance book of all time—Robert Kiyosaki has challenged and changed the way tens of millions of people around the world think about money. He is an entrepreneur, educator, and investor who believes that each of us has the power to makes changes in our lives, take control of our financial future, and live the rich life we deserve.

With perspectives on money and investing that often contradict conventional wisdom, Robert has earned an international reputation for straight talk, irreverence, and courage and has become a passionate and outspoken advocate for financial education.

Robert’s most recent books—Why the Rich Are Getting Richer and More Important Than Money—were published in the spring of this year to mark the 20th Anniversary of the 1997 release of Rich Dad Poor Dad. That book and its messages, viewed around the world as a classic in the personal finance arena, have stood the test of time. Why the Rich Are Getting Richer, released two decades after the international blockbuster bestseller Rich Dad Poor Dad, is positioned as Rich Dad Graduate School. Robert has also co-authored two books with Donald Trump, prior to his successful bid for the White House and election as President of the United States.

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