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

FAQ 
What other tax-advantaged investments do you participate in?
Short Answer 
Oil and gas wells.
Explanation 
In 1966, at the age of 19, I was a junior officer on board Standard Oil 
tankers sailing up and down the California coast. It was then that I 
became interested in oil. In the 1970s, I worked for an independent 
investment banker packaging and selling oil and gas tax shelters to wealthy 
clients. Today, Kim and I continue to invest in oil and gas projects. 
We do not invest in stocks or mutual funds of oil companies such 
as BP or Exxon. We invest in oil exploration and development 
partnerships, which means we partner with oil entrepreneurs in 
specific projects, primarily in Texas, Oklahoma, and Louisiana, 
coincidently where many of our apartment houses are located. If 
successful, we receive a percentage of income from the sale of oil and 
natural gas, aka cash flow with tax advantages.
Oil and natural gas are essential for transportation, food, heating, 
plastics, and fertilizers. If you look around your kitchen, oil is in use 
everywhere, even in the foods you eat. The reason the government 
offers huge tax incentives is because drilling for oil is very risky and oil 
is essential for life, our economy, and our standard of living.
Real-Life Investment
FAQ
What did you do with the $100,000 you got back from your
400-unit condominium-conversion project in Scottsdale, Arizona?
Short Answer
We invested in an oil-and-gas project in Texas.
Assets
BALANCE SHEET
Liabilities
Income
Taxes
$28,000
$100,000
Expenses
INCOME STATEMENT
Government

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Chapter Two
Unfair Advantage
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2. We move our money into another investment.
3. We want cash flow for life. Wells can last from one year to
60 years. That is why choosing the well and the developer is
important before investing.
4. We want additional wells. When we strike oil, there are often
more opportunities for oil in the same area. Knowing where 
to drill reduces our risk of drilling dry holes, which does
happen. Drilling a dry hole means we lose our money, but we
still get that 28 percent tax write-off. So once an area is proven
to be successful, we keep drilling there.
5. We want more income every year. Every year, our cash flow
increases at a lower tax rate, whether we work or not.