Author Robert Kiyosaki, known for his book 'Rich Dad Poor Dad,' is not just a writer but also recognized as an investor and financial advisor. Kiyosaki highlights four top passive income streams that investors should consider, namely real estate, dividend stocks, royalties, and businesses.
Here are the four assets that Kiyosaki suggests for generating the best passive income:
Real Estate Rental
One of Kiyosaki's primary recommendations for passive income over the decades has been property rental. He believes that the property rental business can generate relatively stable and predictable monthly cash flows. However, Kiyosaki emphasizes the importance of thorough due diligence before purchasing any property. Factors to consider include the price-to-rent ratio, expected return rates, location value, demand and growth potential, as well as property taxes.
Dividend Stocks
In addition to real estate, Kiyosaki also recommends dividend stocks as a noteworthy asset for passive income. He suggests choosing stocks from companies with proven, stable, and long-term businesses that regularly pay increasing dividends over time. The key is to identify financially sound and established companies in industries poised for growth. These stocks can then provide quarterly or annual income streams through dividends.
Royalties
Another asset frequently recommended by Kiyosaki is royalties. Royalties provide payments for work done once, which can continue to generate unlimited income. Examples include books, music, patents, franchises, and online courses or publications. Kiyosaki himself has earned substantial royalty income from various books he has written over the years, particularly following the success of his book 'Rich Dad, Poor Dad.'
Business
According to Kiyosaki, owning all or part of a business can be another intelligent cash flow asset. He favors businesses in the information, education, real estate, and direct sales sectors. Finding the right business model and partners is crucial to making this ownership role more passive. Kiyosaki emphasizes that the key is to build or buy a key business ready for long-term and measurable success.