Robert Kiyosaki Says This Is What 'Losers' Do With Their Money

Robert Kiyosaki has made a career and has built wealth by challenging status quo investing and career paths which has helped him create his 'Rich Dad' empire. During a 2025 appearance on his YouTube 'The Rich Dad Channel,' he tossed out a controversial piece of advice that may have many investors questioning the traditional paths to building wealth.

Rather than taking his comments at face value, investors need to have a basic understanding of financial literacy and how money works if you were to create your own personal balance sheet rather than follow plain vanilla retirement advice.

There is no right or wrong path, its all about understanding how money flows, how it can work for you, and what an investor is comfortable with for the long haul or the short haul.

Real assets vs. liabilities: Understanding the difference

"I could tell you go to school, get a job, pay your taxes, work hard, save money, and put your money in a 401(k). That's what every loser does. Loser, loser, loser. Or they buy themselves a big house and they call it an asset when it's really a liability, or a Ferrari or a Lamborghini or a Rolls-Royce and they call it an asset. It's a liability. That's why they're losers," he said.

While this may be surprising to hear, investors need to understand his reasoning: the difference between an asset and a liability.

The official definition of liability, per Merriam-Webster's Dictionary, is "the quality or state of being liable."

For example, owning a house is the American Dream. But with homeownership as your primary residence comes fees such as taxes and home maintenance, among other likely costs. "A house is not an asset, it's a liability," Kiyosaki explained. Ditto for an automobile, which depreciates as soon as you drive it off the lot. These, according to Kiyosaki, fall into the liability column.

For Kiyosaki, assets generate cash. "An asset puts money in your pocket. I own businesses and businesses put money in my pocket every month. I own real estate, every month it puts money in my pocket," he detailed.

Assets and liabilities bring us to cash flow - controlling the money you are taking in.

Kiyosaki goes on to explain he uses the cash his assets are throwing off to buy oil, gold, and bitcoin, among others. To him, the cost is zero.

How and why 401(k)s work

Despite Kiyosaki's diss on traditional retirement savings like a 401(k), it continues to be a solid way to save and grow your money. "The 401(k) plan continues to offer workers across all income levels a disciplined way to save and invest, helping them build significant assets over time," according to the Investment Company Institute.

Coupled with a company match, which usually matches up to a percentage of what the employee puts in, helps your money grow. These investments are typically invested in mutual funds or exchange-traded funds that often mimic the S&P 500 or Nasdaq 100 Index, for example. Not to mention, they offer some tax advantages.

While the average rate of return for a 401(k) can run between 5-8%, according to your investment mix and age, in recent years returns have been higher.

According to Fidelity's latest 2025 Q4 retirement analysis, published in March 2026, account balances are growing at a faster rate. 401(k) balances rose more than 11% compared to the same period a year ago. Additionally, IRA balances jumped 7% and 403(b) plans 13%.

Home ownership vs. real estate investing

As for homeownership, he's correct about the liabilities involved; however, homes can and often do appreciate in value. According to Zillow, homes have gained 4.5% annually since 2001, based on Zillow's Home Value Index. Owning a home can also provide some tax benefits; for example, some mortgage interest can be tax-deductible.

Paying yourself via a mortgage, in some cases, is better than paying someone else rent. And you can always sell your home and lock in those gains.

For example, if you bought a home for $300,000 and it's now worth $350,000, your appreciation gain would be over 16%.

Kiyosaki describes himself as a real estate investor, investing in properties using debt and ultimately generating cash flow.

Bottom line

Slow and steady growth can still keep you on track for retirement. Those who are saving for retirement using a 401(k), which is about 6 in 10 Americans per Gallup, are anything but "losers" — they are using investment vehicles to build their retirement annually. The same goes for homeowners who are winning by investing in their own asset if they have a mortgage payment by bringing down the principal, eventually leading to outright ownership.

Kiyosaki's advice, while not an easy or practical pivot for many, serves to shake up the mindset of investors, which is never a bad thing. He is encouraging individuals to think outside the box and strive for a broader portfolio when it would make sense.