2 Reasons Robert Kiyosaki’s Advice Won’t Work for Gen Z — and 2 Reasons It Will

Contents

Won’t Work: Buying Stocks and ETFs Will Work: Buying Precious Metals (or Bitcoin) as a Hedge Investment Won’t Work: Buying Real Estate as an Investment Will Work: Financial Education Is Key

Investor and entrepreneur Robert Kiyosaki may have initially made his claim to fame authoring the much-talked-about “Rich Dad Poor Dad” in the 1990s, but he has continually offered financial advice in the intervening years, taking on topics related to investment, starting a business, getting cash flow rolling and avoiding bad debt.

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Much of his advice is reflective of his personal position, and while many of his fiscal philosophies might be relevant to younger Americans, others miss the mark. Which pieces of Kiyosaki’s advice should members of Gen Z take to heart — and conversely, which tips might be best left undisturbed?

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Won’t Work: Buying Stocks and ETFs

Kiyosaki frequently refers to stock market crash events as incentive to hold physical assets instead. In a March 9 post shared to X, he referred to gold and silver ETFs as fake — and Wall Street as a whole reliant on “stupid” investors. While zoomers may not have years of experience in stock trading to bolster their Wall Street bets, it’s still largely considered a wise move to buy blue-chip ETFs, particularly if you are young and have time to allow those investments to grow.

Yet, investors holding the benchmark SPDR S&P 500 ETF Trust would have nearly doubled their money if they’d bought in five years ago, with the ETF comprised of a portfolio attached to all 500 companies on the index. That ETF has returned 96.25% profit over the course of the past five years.

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Will Work: Buying Precious Metals (or Bitcoin) as a Hedge Investment

Kiyosaki frequently muses about the strategic value of holding bullion, whether physical silver or gold. In a June 5 post shared to X, the financial guru advised his audience to stock up on silver more particularly.

“For years I have been recommending buying gold, silver, Bitcoin. Silver hit $35 an ounce. I believe silver is the best bargain today. I believe silver will 2X…possibly $70 this year,” he wrote.

Silver is an affordable metal to buy, with a current spot price of just over $36 per troy ounce as of June 23. In June of 2024, that figure rested at about $30, reflecting a 20% gain. As Curvo noted, silver has produced an average return of 16% over the past five years, or a more modest 6.9% return over the last decade.

With silver being easy to attain, difficult to spend on an impulse buy, and a reliable hedge against inflation, it could make sense for zoomers to buy in. Bitcoin is also a fractional buying opportunity, but innately riskier.

Won’t Work: Buying Real Estate as an Investment

In a May 30 post shared on Instagram, Kiyosaki made it clear that playing it safe by saving money was a fool’s errand. He advised, among other things, purchasing real estate as an investment to generate cash flow.

The issue with this: As per a 2024 CNBC report, nearly a third (31%) of Gen Zers still live with their parents, as they can’t afford rent — let alone a down payment and a mortgage in an overheated housing market.

Will Work: Financial Education Is Key

However, less than two weeks earlier, on May 20, Kiyosaki shared a post to Instagram which dispensed some sage advice for younger would-be wealth creators.

“While most kids are told to ‘get a good job,’ the rich teach their kids to build cash-flowing assets, understand debt and taxes, and create income that doesn’t depend on a boss,” he wrote.

“Wealth isn’t just earned — it’s taught. And if you want to build generational wealth, you have to start early — and start thinking differently,” he added.

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