Kiyosaki Interview: Financial Smarts in a Bad Economy

Mike Dillard interviewed Robert Kiyosaki this past Thursday (October 9, 2008). The focus of the interview was on the present state of the economy and what people could do to thrive rather than struggle. Robert Kiyosaki is presenting a three day workshop at the end of October and this call was a precursor to the course. The information given was worthwhile for anyone wanting to better understand their present financial situation and what it takes to thrive in difficult times like these. Kiyosaki is all about franchises, real estate and network marketing. He believes that if you truly are looking for wealth than you better be a business owner and not count on most of the advice given to people regarding how to earn and save money. I would strongly suggest reading a few of his books.

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Why Kiyosaki (Rich Dad) Endorsed Network Marketing

Robert Kiyosaki, Author of the Rich Dad, Poor Dad Books spoke on a private invitation only conference call today. As most know, the economy has taken its worst hit this week since 1929. People have lost money, world economies are struggling. The media is focusing on all the gloom and doom and people are panicking.

What Did Robert Say?

On the call tonight, Kiyosaki was interviewed by Mike Dillard (Magnetic Sponsoring Guru). Kiyosaki's main point on the call was that NOW is the time to take action. He said, "If you are not in a network marketing or other home base business today, then you are out of business." Four years ago Kiyosaki came out in strong favor of the network marketing industry as the best place for the average person to begin growing their own business. He reiterated that recommendation again tonight.

BAD ADVICE

Kiyosaki said that if you are not rich today--if you are one of the people who had lost a lot of money in the past two weeks--then somewhere in the past you were given BAD ADVICE. In today's economy, job security is a myth. No politician from either party can bring high paying jobs back. Jobs migrate to the location where workers will work for the lowest wage. If you still believe that you can go to school and get out with a degree and get a good, secure job then you are still living in the last century. You must wake up and smell the coffee.

What Should I Do?

Inflation is coming. Depression may be coming. Social Security and Medicare are in grim shape. What are YOU going to do to take control of your financial life? Now is a big opportunity period. You can take action--make a commitment--create income that is totally in your control from network marketing, franchising or other independent business owner situations. Or you can commit to being a coward and join that crowd that is panicking, hiding and praying the they (the government; the company; my parents) take care of me.

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What Happened to the Zrii Hawaii Trip?

The world of network marketing can be an interesting place. On their monthly Founder's Conference Call two days ago with Bill Farley and the Co-Founder's, Zrii made an announcement regarding their incentive trip to Hawaii. The announcement was couched as a positive and exciting turn of events, yet the words gave a different message.

Yes, those who qualify for the trip will be going sooner...January 2009 instead of September 2009. Yet the means to qualify have been changed so drastically, that essentially anyone who has not already qualified is going to have a very hard time doing so. Whereas previously you needed to reach certain ranks and maintain them for a certain amount of time to qualify, now if you reach those ranks, they are only taking the top 30 enrollers in each pin level. Previously, you also had the options to buy in to the trip if you did not achieve the 100% paid qualifying level. The new program has taken that away.

I'm wondering what happened? Why it changed and is anyone else wondering about this?

Email Marketing

Learning how to use email for your internet and network marketing efforts is crucial. It is so much harder now than it used to be. Spam filters are intense and people are more savvy. Yet those who know what they are doing are still able to contact myriads of potential customers using email marketing. I am not an email marketing pro by any stretch of the imagination. I often rely on information that I gather from people who are very skilled in this area. The key to success is not knowing everything you need to know, but rather knowing where to find experts in all the different areas you need to access. This book is one of those "experts".

Best Profile at Better Networker. Com

If you haven't discovered it on your own, BetterNetworker.com is a social networking site specifically for network marketers. There was a contest this past week for the best five profiles on the site. I humbly am here to tell you that I was one of the winners. Below is the video that talks about the winning profiles and why. It is a great instructional video for anyone who is working to develop an online presence.

Big MLM Lies

Did you know that network marketing is not a sales business? What?!! You've just spent the last 6 months trying to sell people your product and your opportunity? How is that going for you?

One of the Big MLM Lies is that success in network marketing is all about selling. And that is the number one big reason why so many people feel that they are failures in this industry. I am hear to tell you today that YOU ARE NOT A FAILURE. In fact, IT IS NOT YOUR FAULT, that you have been struggling. You have probably been told some lies that are getting in the way of your success.

Would you like to know the truth? Click here for free access to information that will turn your experience and your perception of network marketing, upside down.

The Middle Class, Free Markets, and The Financial Crisis

This letter from Mark Goodman arrived today in my email. Having a home business, particularly a network marketing business, is a perfect of example of a free market economy working the way it's supposed to.

Dear Friends,

The fundamental principle of Barack Obama's economic policies is that sustainable, long-term economic growth requires a robust middle class and properly functioning free markets.

How is the Middle Class Doing?

We have just completed the first economic expansion on record during which middle class incomes actually declined. At the same time, energy and health care costs have soared. This middle class squeeze is occurring as globalization causes a massive transfer of manufacturing jobs to China and service and technology jobs to India and elsewhere.

IRS data shows that we are in a 30-year trend of increasing income inequality while wealth is becoming increasingly concentrated in the top 1% of households, which now own more than the bottom 90%.

The Bush tax policies have exacerbated this growing inequality by cutting taxes for the wealthiest Americans whose incomes have grown faster than any other group while their average tax rate has declined more than any other group.

Obama will correct this distorting effect of the tax code by allowing the Bush cuts to expire and providing tax relief to 95% of households. Taxes will be lower or the same for everyone making less than $250,000 per year. The tax code will revert to its 1990's rates for everyone else.

Capital gains and dividend tax rates will remain the same for people making less than $250,000, and will increase only modestly to 20% for the top 2% of earners.

Middle class relief will also come in the form of a series of tax credits—for tuition, mortgage interest, fuel efficient vehicles, etc.

Since small business are the source of 80% of new jobs in our economy, Obama proposes eliminating capital gains taxes for entrepreneurs and investors in start-ups and small businesses.

He will also reform or eliminate corporate tax loopholes, breaks, and havens in order to eliminate perverse incentives that lead corporations to move jobs overseas or maintain an office in the Cayman Islands.

But it is not enough to reform the tax code. Our economy faces enormous challenges in three key areas—energy, infrastructure, and education—and the thrust of Obama's economic plan is to address each of these areas with an ambitious plan for public and private investment. These challenges can become opportunities for enormous wealth creation and job growth.

In stark contrast to the current Republican administration and Senator McCain's economic proposals, Obama is committed to fiscal discipline. Investments will be paid for with an aggressive approach to wasteful spending and a framework of accountability and efficiency for programs worthy of being funded by the taxpayer.

The $10 billion per month expenditure in Iraq (while the Iraqi government sits on a $79 billion surplus) will come to an end with the responsible conclusion of the Iraq war.

As Justice Brandeis said, sunlight is the best disinfectant. The recently passed Coburn-Obama Bill (The Federal Funding and Accountability Act) will allow anyone to search $1 trillion in government spending. Obama also proposes that citizens be able to read on-line any bill pending the signature of the President; that meetings between lobbyists and government agencies be broadcast on-line; and that it be made public which corporations receive how much in benefits from tax bills.

How is the Free Market Doing?

A market that is subject to manipulation, that incurs excessive risk, that lacks accountability for that risk, and that lacks the transparency necessary for its proper functioning is not free. It is the role of the government through fiscal and monetary policy to ensure stable macroeconomic conditions, and through its regulatory framework to ensure stable financial conditions.

In 2006, Senator Obama introduced legislation to prevent fraud and abuse in mortgage transactions.

In 2007, he formally warned Secretary Paulson and Fed Chairman Bernanke about rising foreclosure rates and proposed a home ownership summit with all the stakeholders in order to avert a crisis.

In a speech at the NASDAQ in the fall of 2007, Obama warned that public trust in the capital markets must be restored and that pain on Main Street may trickle up to Wall Street.

In March, in a speech following the collapse of Bear Stearns, Obama traced the sub-prime crisis to lax oversight and called for a new regulatory framework adequate to new market realities.

But here we are. With respect to the proposed $700 billion bail-out (which, by the way, is only the beginning), Obama is insisting that there be no blank check and proposes the following stipulations:

1. A bi-partisan, independent Board to ensure oversight and accountability for the money that is spent.
2. That the taxpayer be treated like an investor and participate in the up-side
3. That the foreclosure problem be addressed in a separate bill
4. That Wall Street CEO's not receive bail-out money in the form of bonuses

Going forward, financial firms that can be bailed out by the government should be subject to government oversight. Capital and liquidity requirements should be strengthened. The regulatory agencies should be streamlined to address the post Glass-Steegel reality. And there must be a process to identify systemic risk to the financial system with regular reporting to the President and Congress.

Free markets facilitate prosperity. A robust middle class drives long-term economic growth. It's time for a President who understands these basic principles.

Mark Goodman