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

Assets
945 PUT option
provides income
$13,292.50
BALANCE SHEET
Liabilities
Income
Expenses
INCOME STATEMENT
Reprinted with permission
Reprinted with permission
Reprinted with permission

---

Chapter Four
Unfair Advantage
161
160
To someone who is new to these types of transactions, it may seem like there’s a 
lot to learn. And there is. But with a constant commitment to their financial 
education, I believe anyone can learn it. 
I am going to now hand it back over to Robert.
Protection from Robin Hood
As a child, I loved the story of Robin Hood. As I grew up, I 
realized Robin Hood was a thief. He justified his actions by vilifying 
the royals and saying, “I steal from the rich to give to the poor.”
Today, millions of people believe it is okay to steal from the rich and 
give to themselves.
As the economy worsens and poverty increases, more people will 
turn into Robin Hoods. Some will turn into felons: breaking into 
homes, hijacking cars, kidnapping people, and robbing banks. There 
are others who will steal from you via the court system.
FAQ
 
How do you protect yourself from Robin Hoods?
Short Answer 
Use the laws of the rich.
Explanation 
There are many ways to protect your wealth, such as a house alarm, 
insurance, a gun, or a dog. 
For centuries, the wealthy have used legal entities such as corporations. 
For a better explanation of how legal entities are used to protect the 
wealth of the wealthy, my legal advisor, Garrett Sutton, will take over.
Some people mistakenly think that Warren Buffett is against the use of 
these contracts because he has referred to certain kinds of them as “financial 
weapons of mass destruction.” And, for the uneducated, they probably are. 
But Buffett actually makes billions and billions from selling them himself. 
Because there is so little control with paper assets, they carry more risk. So 
investors will pay lots of money to hedge.
In fact, we can use the money we receive for selling put options to buy puts to 
use as a hedge to control our risk, and still receive a positive cash flow.
That would look like this:
Notice on our statement from the brokerage that we get an infinite return 
on the options we sold and a 100 percent loss on the put options that we 
purchased—very similar to the money we might spend for home insurance.
Assets
945 PUT option
provides income
940 PUT option
provides hedge
$13,292.50
$12,607.50