What Schools Will Never Teach You About Money By Robert T. Kiyosaki

1.
TIME magazine is on my side. 
TIME magazine has run a 
number of articles over the years, questioning the wisdom of
putting so many people’s retirement at risk. TIME has been

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Five Levels of Investors
Unfair Advantage
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predicting that millions will not have enough money to retire
after a lifetime of turning their money over to strangers. 
A typical 401(k) plan takes 80 percent of the profits. The
investor may receive 20 percent of the profits, if they are lucky.
The investor puts up 100 percent of the money and takes 100 
percent of the risk. The 401(k) plan puts up 0 percent of the 
money and takes 0 percent of the risk. The fund makes money, 
even if you lose money.
2. Taxes work against you with a 401(k). 
Long-term capital
gains are taxed at a lower rate of around 15%. But the 401(k)
treats any gains as ordinary income. Ordinary income is taxed 
at the highest rate, sometimes as high as 35%. And if you 
want to take the money out early, you’ll have to pay an
additional 10% penalty tax.
3. You have no insurance if there is a stock-market crash. 
To
drive a car, I must have insurance in case there is a crash. When
I invest in real estate, I have insurance in case of fire or other
losses. Yet the 401(k) investor has no insurance to prevent losses
from market crashes.
4. The 401(k) is for people who are planning to be poor
 
when they retire. 
That is why financial planners often say, 
“When you retire, you’ll be taxed at a lower tax rate.” They
assume your income will go down in retirement into a lower
tax bracket. If, on the other hand, you are rich when you retire
and you have a 401(k), you could pay even higher taxes at
retirement. Smart investors understand taxes before investing.