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

Five Different Levels of Investors
Level 1: The Zero-Financial-Intelligence Level
Sadly, in America, once the richest country in the world, over 50 
percent of the U.S. population is at the bottom level of the I quadrant. 
Simply said, they have nothing to invest.
There are many people who make a lot of money who fall into this 
category. They earn a lot—and spend more than they earn.
I have a friend who looks very rich. He has a good job as a real 
estate broker, a beautiful wife, and three kids in private school. They 
live in a beautiful house overlooking the Pacific Ocean in San Diego. 
He and his wife drive expensive European cars. When his son and 
daughters were old enough, they too drove expensive cars. They looked 
rich, but what they had was debt. They looked rich, but were poorer 
than most poor people.
Now, they are homeless. When the real estate market crashed, they 
crashed. They were no longer able to pay the interest on all the debt 
they had accumulated. 
When we were younger, this same friend made a lot of money. 
Unfortunately, it was his low financial-intelligence level—zero—that 
caused him be a zero over the long run. In fact, he is so deeply in debt 
that he is really a sub-zero investor.
Like many people, everything he buys loses value or costs him 
money. Nothing he buys makes him richer.

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Five Levels of Investors
Unfair Advantage
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as governments, big and small, go bust and inflation rises, retirees are 
finding out that savers who saved money in bonds are losers.
Municipal bonds are IOUs issued by states, cities, hospitals, 
schools, and other public institutions. One advantage of municipal 
bonds is that many are tax-free income. The problem is that municipal 
bonds are not risk-free. 
Millions of municipal-bond investors are now finding out that the 
municipal bonds they invested in are in serious trouble. In the United 
States, more than $3 trillion are invested in municipal bonds. It is 
estimated that two thirds of those bonds are now at risk because these 
public institutions are broke. If more money is not pumped in, the 
United States could implode from the center as states, cities, hospitals, 
and schools begin to default, just as subprime homeowners defaulted 
and stopped paying on their home mortgages.
The bond market is the biggest market in the world, bigger than the 
stock market or the real estate market. The main reason it is the biggest 
is because most people are savers, Level 2 investors. Unfortunately,
after 1971 when the rules of money changed, savers became the biggest 
losers, even if they saved money by investing in bonds.
Remember that savers, bondholders, and most people who save 
money in a retirement plan, are people who park their money, investing 
for the long term, while professional investors move their money.
Professional investors invest their money in an asset, get their money 
back without selling the asset, and move their money on to buy more 
assets. This is why savers, who park their money, are the biggest losers.