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

Professional Answer from Tom Wheelwright 
A traditional retirement plan gives you a deduction for savings today and 
then taxes you when you retire on everything you pull out of your retirement 
plan. Sounds good, right? Wrong! For three reasons: First, if you plan to live 
as well when you retire as you do when you are working, meaning you will 
actually receive as much income then as you do now, then you will probably 
be in a higher tax bracket when you retire. This is because you won’t have 
your business deductions, your home mortgage deduction, and deductions 
for your dependents (hopefully they will be grown and gone). 
Second, you could actually be converting passive or portfolio income 
to ordinary income. Consider that if you invest in stocks outside of a 

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Chapter Two
Unfair Advantage
81
80
Explanation 
Again, our objective is cash flow and tax advantages.
The beauty of some oil and gas partnerships is the ROI, return on 
investment. The moment Kim and I invested our $100,000 in the 
Texas project, we received a 70 percent tax deduction. At my ordinary-
income tax rate of 40 percent, that is $28,000 cash back. That is a 
guaranteed 28 percent ROI in the first year, money the government 
technically gives back to me because they want me to invest in oil.
I mention this $28,000 return on my $100,000 investment because 
I receive so many calls, especially from stockbrokers saying, “I can get 
you a 10 percent return.” Why in the world would I want a 10 percent 
capital-gains return with so much market risk? I’d rather have a 28 
percent guaranteed return from the government in real cash flow, and 
not have to gamble on fictitious possible returns on capital gains.
This is what the transaction looks like in a financial statement: