Rich Dad Radio Show: "Why I Don’t Care If the Market Crashes"
Release Date: May 21, 2025
Host: The Rich Dad Media Network (Robert Kiyosaki)
Guest: Alejandro Cardona, Financial Expert
Introduction
In the episode titled "Why I Don’t Care If the Market Crashes," Robert Kiyosaki delves into the critical topic of financial education with his esteemed guest, Alejandro Cardona. This conversation explores the shortcomings of traditional education systems, the importance of financial literacy, and strategic investment approaches amidst market volatility. The episode is structured to provide listeners with actionable insights and personal testimonials that underscore the principles of wealth-building advocated by the Rich Dad philosophy.
Critique of Traditional Education and the Importance of Financial Literacy
Timestamp: 01:14 - 04:11
Robert Kiyosaki opens the discussion by critiquing the conventional education system, labeling it as indoctrinating students with Marxist ideologies that undermine capitalist principles. He emphasizes the lack of financial education, stating:
"Most of them don't speak the language of money."
— Robert Kiyosaki [03:00]
Kiyosaki highlights the disparity between academic teachings and practical financial knowledge, arguing that schools focus on pushing students towards traditional employment and saving money without imparting skills to build and manage wealth effectively.
Alejandro Cardona’s Journey to Financial Freedom
Timestamp: 04:12 - 17:34
Alejandro Cardona shares his personal journey from a traditional educational background to achieving financial freedom. Initially studying economics and later pursuing an MBA at Tulane University, Alejandro found the stock market concepts taught by professors confusing and disconnected from real-world investing. This led him to seek alternative learning methods, including:
- Engaging with the Cash Flow 101 board game, which transformed his understanding of financial statements and asset management.
- Applying the principles from "Rich Dad Poor Dad", which sparked an obsession with financial education and proactive wealth-building.
Alejandro recounts overcoming significant financial setbacks, including accruing substantial debt early in his investment career. His resilience and adherence to Kiyosaki’s teachings enabled him to recover and thrive financially by leveraging debt and making strategic investments in real estate and other assets.
"I read your book, and it reprogrammed my mind totally. It was a new mindset from someone who went to college and tried to do MBAs and everything."
— Alejandro Cardona [12:58]
Navigating Market Crashes and Investment Strategies
Timestamp: 17:35 - 34:03
The conversation shifts to the imminent stock market crash that Kiyosaki foretold in his book "Rich Dad's Prophecy." Despite the market downturn, Alejandro remains unfazed, explaining his adeptness at making profits during volatile periods through:
- Technical Trading: Utilizing options and other financial instruments to capitalize on market fluctuations.
- Real Estate Investments: Purchasing properties at reduced prices during market lows and refinancing to leverage further investments without paying taxes on gains.
Alejandro emphasizes a dynamic approach to investing, where understanding market trends and being prepared to act swiftly are crucial. He illustrates this with his experiences during the 2008 financial crisis, where strategic real estate acquisitions led to substantial profits.
"When the market crashed, I was ready. I took advantage of cheap real estate and made significant gains."
— Alejandro Cardona [08:28]
Kiyosaki underscores the difference between investors and traders, advocating for financial education that empowers individuals to overcome fear and seize opportunities during downturns.
Real Estate and Leveraging Debt for Asset Accumulation
Timestamp: 34:03 - 35:54
Alejandro details his strategy for building wealth through real estate, which involves:
- Starting Small: Accumulating initial capital through smaller deals to finance larger investments over time.
- Leveraging Debt: Using bank loans to acquire properties, thereby increasing asset portfolios without significant upfront capital.
- Reinvesting Profits: Continuously reinvesting gains into new assets to compound wealth growth.
He reflects on how Kiyosaki’s teachings enabled him to transform his financial situation, achieving early retirement and financial independence by 37.
"I reinvest all my money in businesses, real estate, gold, silver. I am super retired and I enjoy. I'm happy, Robert."
— Alejandro Cardona [17:34]
Conclusion and Final Thoughts
Timestamp: 35:54 - End
In the closing segment, Kiyosaki reiterates the importance of starting financial education early and making informed investment choices to safeguard against economic downturns. He praises Alejandro’s success and highlights the broader implications of adopting a Rich Dad mindset for achieving financial independence.
Alejandro expresses profound gratitude towards Kiyosaki, attributing his financial success and personal happiness to the teachings and resources provided by the Rich Dad platform. He emphasizes the intergenerational impact of financial education, noting how his responsible financial practices have positively influenced his children.
"Rich dad owns both [gold and bitcoin]. But right now, rich dad believes silver might be the most overlooked opportunity of them all."
— Robert Kiyosaki [21:58]
The episode concludes with a promotion for silver investment, aligning with Rich Dad’s view on diversifying assets to maximize financial security.
Key Takeaways
- Financial Education is Crucial: Traditional education systems often neglect practical financial skills, making self-education essential for wealth-building.
- Dynamic Investment Strategies: Embracing both technical trading and real estate investments can mitigate risks and capitalize on market volatility.
- Leveraging Debt Wisely: Using debt strategically allows for asset accumulation without significant initial capital, fostering long-term financial growth.
- Resilience and Adaptability: Overcoming financial setbacks through persistence and adherence to sound financial principles is vital for achieving financial freedom.
- Intergenerational Impact: Teaching and modeling responsible financial behavior can positively influence future generations, ensuring sustained wealth.
Notable Quotes
-
"Most of them don't speak the language of money."
— Robert Kiyosaki [03:00] -
"I read your book, and it reprogrammed my mind totally."
— Alejandro Cardona [12:58] -
"When the market crashed, I was ready. I took advantage of cheap real estate and made significant gains."
— Alejandro Cardona [08:28] -
"Rich dad owns both [gold and bitcoin]. But right now, rich dad believes silver might be the most overlooked opportunity of them all."
— Robert Kiyosaki [21:58]
This episode serves as a profound resource for individuals seeking to enhance their financial literacy and adopt effective investment strategies. Through Alejandro Cardona’s testimonial and Kiyosaki’s expert guidance, listeners gain valuable insights into navigating economic challenges and building lasting wealth.