– Fake money, fake teachers, fake assets. In 1971, President Richard
Nixon took the U.S. dollar off the gold standard, turning the U.S. dollar into fiat money, government money, fake money. In 2008, the world economy
crashed when fake assets, fake mortgages, and fake financial experts led us down a path to ruin. Think about this. Why do schools choose not
to teach us about money? Why are 78% of all Americans
living paycheck-to-paycheck? Why are students staggering
under a trillion dollars in student loan debt? Because a fake world makes the rich richer and the poor and middle class poorer, and that’s exactly how
the government wants it. The only way to protect
yourself is to learn how to separate the real from the fake. Go to richdad.com to
get your copy of “Fake” by Robert Kiyosaki and learn how to spot the manipulation of reality
we live with every day. Don’t get fooled again. Get your copy of “Fake” by
Robert Kiyosaki at richdad.com. That’s richdad.com. – This is the Rich Dad Radio Show, the good news and bad news about money. Here’s Robert Kiyosaki. – Hello, hello, this is Robert Kiyosaki, the Rich Dad Radio Show,
the good news and bad news about money, and I’m sitting
here with my sweetheart, Kim. And we have a very important
show for you today. First, test question. What’s the number one reason in America that people declare bankruptcy? You know, is it business failure, is it losing a job? What’s the number one, I
think 80% of the people will go bust on this one subject, and that’s our subject today. What is the number one reason most Americans will go bankrupt? Declare bankruptcy,
means they may get hurt, but why do they declare bankruptcy? It’s not a business failure. What’s the answer, Kim? – Medical costs. – So just before they die,
they get you one more time. I mean, you been, you been beaten up, screwed around, and at the last minute, just before you die, they
gotta get that last bit, that last pound of flesh off of you. And you’re there, you’re working out, you’re on your diet and your health. You have some disease hit you, and then your family
looks at you and says, “Oh, no, he’s gonna
die,” or she’s gonna die, and everybody says, “Oh, my god.” And so they suck every last ounce of cash out of your estate,
wallet, friends, families, and all that. And what we’re talking today about is a very exciting subject, if you think it’s exciting. It’s pretty depressing at times. It’s called the drug industry. I’m not talking about cocaine
and the illegal drugs. Today we’re talking about
the biggest crooks of all, the biggest criminals on
Planet Earth possibly, is Big Pharma. The drug companies that control the whole industry of
health care and medicine. It’s all about drugs. So I always kinda crack
up when they get all upset about some guy smokin’ a little dope. You know, why don’t you
go after the big crooks, the guys selling the drugs? So this is a very important show because if you don’t want
to declare bankruptcy at the last few days of your
life, for the last 10 days they’re gonna charge you
another $10,000 a day just to live another 10 days. I mean, that’s ridiculous. It’s ridiculous what’s
happened in America. So today we have a very,
very important person, her name is Robin Feldman, and she is the Arthur J. Goldberg
Distinguished Professor of Law and the Director of the
Center for Innovation, at UC, University of California Hastings College of Law in San Francisco, one of the most prestigious
law schools in America, and her book is “Drugs,
Money, and Secret Handshakes: “The Unstoppable Growth of
Prescription Drug Prices.” So we think we have a bunch
of little criminal cartels like Escobars running
a little cocaine, well, we got bigger crooks
running, they’re called CEOs, they’re not called, I don’t
know what the cartel guys — (chuckles) So anyway, Robin, thank you for coming to the Rich Dad Show and
sharing what you know, but I want to warn people, you know, if like you say, get your,
if you have a bad heart, don’t listen to this program. So Robin, welcome to the program. – Welcome, Robin. – And as an attorney — – Thank you for having me today. – What the heck are you doing
investigating drug cartels? I mean, drug pharmaceutical companies. – Well, I wondered why the
price of drugs kept escalating. Economically it doesn’t make any sense, so I was determined to find out, and my book puts all the pieces together. What it explains are the
secret deals and the intrigues and strategies of the,
of the drug industry, and it is a sobering vision. As you mentioned, that
the price of medicine has skyrocketed in this country, so even after rebates, Medicare spending for brand name drugs still
rose 62% between 2011 and 2015. I don’t know about you all,
but I’m not bringing home 62% more salary than I did five years ago. – Right, ’cause you live in
California, if you made it, they’d take it anyway in taxes. – And Robin, your book is called “Drugs, Money, and Secret Handshakes.” What do you mean, secret handshakes? – Well, among the biggest
causes of high drug prices are the secret deals that
pharmaceutical companies make with everybody up and down
the distribution chain to maintain their monopoly. These deals are protected
more strongly than Fort Knox, and the drug companies essentially pay everyone along the way so
that lower priced drugs lose. That’s all it is. They’re simply sharing the
Monopoly rents they’re making in exchange for agreements
to disfavor cheaper drugs, so then you and I get channeled and stuck with expensive medicine. – Yeah, can you give us an example of a secret handshake type deal? – Okay, sure, so there is
a lawsuit that was filed near the end of, about a year
ago, and in this lawsuit, what they explained in the
complaint was that a very, Shire Pharmaceuticals was
a part of this lawsuit and it was about the drug Restasis. So Shire sued Allergan, alleging that Allergan used rebate bundle
deals to protect its share in the blockbuster dry-eye
medication, Restasis. – So Restasis is for dry eyes? – It’s Restasis for dry eyes, and this should be a familiar one. This is one where the company tried to transfer its patents to Indian tribes so they couldn’t be challenged
because they were — – What? – Unbelievably weak patents? Yes. – So if an Indian tribe has a patent, they can’t ever get challenged? – That was the argument. The Supreme Court knocked
that down recently, but that’s the kind of crazy
antics that happen in this. So they had one of these
secret deals in place, and according to a health
plan administrator, given this scheme, the new, cheaper drug could give its drug away for free and the numbers still wouldn’t work. In other words, they could
make the deal so attractive that there was no way a new
generic or cheap entrant could ever get a foothold in the market. That’s troubling. – So there was a big push
to bring generic drugs on the market. Is this what killed it, or slowed it? Because you don’t hear much
about generic drugs any more. – The FDA is approving
increasing number of generics, but it’s not helping, because
the savings from generics are being swamped by
the rise in drug prices for brand name drugs. And it’s not just the fancy
new drugs coming on the market. Drug companies have raised
their prices most steeply for drugs that already exist, and for ordinary or widespread things like diabetes and
arthritis and asthma drugs. In fact, about 80% of the rise in profits for drug companies have
come not from new R&D, not from bringing new drugs on the market, not from increasing their sales, but just raising the price on the drugs that are already out there. – And that’s why you say that in theory drug prices should be coming down, ’cause once they’ve recouped their R&D, their major expense is gone and they should be passing on
the savings to the consumer, but what you write about,
you say they’ll actually, they’ll manipulate the
patent to get a new patent to keep it on the high drug price list and keep rising prices
and never passing it on to the consumer, you and me. – That is exactly what’s going on, and it’s a perversion of
the system that was created. Patents are supposed to last
for a limited period of time. We want companies to have
an incentive to go out there and innovate, to make a
nice return, but after that, the generics, competitors should be able to enter the market and
drive the prices down, but that’s not what’s happening. – And that’s true, for those listening, that’s true capitalism, that’s kinda what the Rich
Dad company stands for. We should be lowering
prices, not increasing them, if we’re a true capitalist
company, or country. But, another thing, Robin,
’cause I work in the world of money and then education,
the same thing should be true for financial education
and education, but instead, prices for education keep
going through the roof. That’s because it’s all
manipulated right now. So we’re talking, that’s
kind of my beef here. But with drugs, let me say it again, that 80% of the bankruptcies
are due to drugs. Not illegal drugs, it’s that
you can’t afford to live. Any comments, Kim? – Robin, it’s a question,
the companies know that people can’t afford
to get these drugs, yet that doesn’t seem to
have any priority at all in their thinking. – These are profit-making companies. – And that’s it. – You really can’t, we can’t expect them to act against their own self-interest. Imagine if a drug company executive or CEO came before the board and said, “I’m going to lower prices on our drugs “and reduce our profits because
it’s the right thing to do.” And that CEO would be
out the following week. We have to be able to find
ways to change the incentives and to change our own
behavior as consumers to get a better result. We can’t expect
profit-making drug companies to step up and save us here. – To do the right thing. – And everybody’s at
risk, because like I said, most of your money will
be gone before you die. They get you coming
and they get you going. They get you during your working days. So anyway, this is a big
thing, and what really bugs me, Robin, is all these guys
said, “Well, you should vote. “Well, you should call
your Congressman, you know, “and get this thing changed.” You gotta be joking. You gonna call your
Congressman, who’s on the take? They’re not gonna change this. So this isn’t the most
popular guy on Earth, but Donald Trump and I have
been friends for years, and when he talks about the swamp or all these lobbyists out there who are paying off our Congressmen, Senators, Congressmen, politicians, all
over, doctors and all this. And your vote will not count,
and writing your Congressman, they’re gonna laugh at you. So that’s what Donald
Trump calls the swamp, and he says this is a
disgrace how we treat our own people with drugs. I mean, legal and illegal. Any comments on how the lobbyists work to keep the Congressmen on their side, or the doctors on their side? – We have a serious problem with lobbying in Washington right now,
and it’s playing out in all the pharmaceutical legislation. In 2017, the pharmaceutical industry spent $280 million lobbying in Congress. Forget lobbying all the federal agencies, and the White House and all of the states, $280 million just in Congress. And they had 800 lobbyists. That’s more than one-and-a-half lobbyists per member of Congress. It’s not surprising that we aren’t seeing real solutions coming out of Washington. It’s a serious problem. – So that’s some of the secret
handshakes that get done. You support our industry, the Big Pharma, and we’ll make sure you
get, you stay elected and you get your things
that you want done. Is that basically — – And I do, I do want to say that the pharma industry is ecumenical. They support both parties in Congress, the Republican and the
Democrats, and in fact, the flow of money’s been a little larger to the Republican side in recent years but that just, that just reflects the balance of power in Congress. Everybody is taking money from
the pharmaceutical industry and one has to be wary
of friends with money. – And Robin, is this
just an American problem? – The problem in this
country is so much greater than the problem in other countries for a variety of reasons. We have gotten ourselves in a position where the United States is
subsidizing the drug prices in other countries. So it’s very easy for
drug companies to yield to the pressure of governments in Europe or governments in Canada that
have coordinated negotiation. It’s easy for them to yield when they know that they’re able to make
much of their profits in the United States. – Well, once again, we’re
talking to Robin Feldman, her book is “Drugs, Money,
and Secret Handshakes.” This is a very important book because as I introduced this program, 80% of all bankruptcies
are due to medical costs. And like I say, they get
you when you’re born, they get you when you’re working, they get you just before you die. – I just want to add
to that, for the women, for the women, women
typically outlive the men, and what happens for a lot
of women is he gets ill, they go through all their
money and all their insurance, and by the time she needs it,
there’s nothing there for her. – So ladies and gentlemen,
again, this is what the Rich Dad Radio Show is about. Our job, we don’t sell drugs,
obviously, legal or illegal, neither do we sell those stocks, bonds, mutual funds and ETFs. ‘Cause they’re just as corrupt. – They’re another form of drug. – They’re just, they’re big,
big, big corporations, big C. When we come up, we’re gonna find out what you can do to protect yourselves, but please don’t say, “I’m
gonna write my Congressman,” or “I’m gonna vote,” because
it’s not gonna do you any good. And if you say, “I’m
healthy today,” sports fans, unless you die in a fiery car
wreck you’ll probably get, you’ll need drugs the older you get. So when we come back, we’ll find out what you can do to protect
yourself now, not later, because I serious, and that’s
why Donald Trump is so hated is ’cause he’s trying
to clean up the swamp which is all these
pharmaceutical companies. And not only him, the defense industries and all these guys who are
paying off your Congressmen to keep the American public in the dark. So when we come back, we’ll
find out what you can do as an individual rather than
vote or write your Congressman. Find out more how you can protect yourself from what’s going to
eventually happen to all of us. – You’re listening to
the Rich Dad Radio Show with Robert Kiyosaki. – Don’t be like Charlie. Charlie is that do-it-yourselfer
who does himself in. Do-it-yourself is good for tile and grout. It is not good for asset protection. Charlie thought he’d save a few dollars forming his LLC online. With no guidance, he did it wrong. When he sold the property, he lost thousands and thousands of dollars. He did himself in by
trying to do-it-himself. Don’t burn yourself, use Corporate Direct to set up and maintain
your LLCs and corporations. Corporate Direct is owned and operated by attorney and Rich Dad
advisor, Garrett Sutton. Garrett wrote the best-sellers
“Loopholes of Real Estate” and “Start Your Own Corporation.” He is Robert Kiyosaki’s
attorney for asset protection. He and his team will do it right. Visit them at corporatedirect.com or call 800-600-1760. Mention Rich Dad and
receive a hundred dollars off your formation fee. That’s corporatedirect.com. Corporatedirect.com. – What is your number one expense in life? Your number one expense. It’s taxes, and I wanna ask
the question is how come there’s no financial education in school but why isn’t there
education on taxes either? Now they tell you to save
money, which is stupid. They tell you invest in the
stock market, which is stupid. But what they teach you about taxes? So here I have Rich Dad
advisor, Tom Wheelright. We’re talking about his revision for his book, “Tax-Free Wealth.” Welcome, Tom. – Thanks, Robert. – So what’s the “Tax-Free Wealth” about? What’s different this time? It’s a revised edition. – Well, so, what we did was, this was the first major tax reform we’ve had in 30 years, 2017. – ’86 was the last one. – ’86 was the last one, back
when I was in Washington, D.C. – Some of the guys got wiped
out because of that tax change. – (laughs) They did, they did. It wiped out an entire
industry, savings and loans. This new tax law is just as big
but in a very different way. It affects different industries. You know, the tax law’s
always a series of incentives, and the question is
always, which incentives, and which ones apply to me? And so the key to
revising “Tax-Free Wealth” was what changed so
much in this new tax law that we can absolutely take advantage of, I mean, seriously, the amazing incentives. For example, the bonus depreciation, for example, for real
estate is unbelievable. You buy a million dollar apartment, get a $300 thousand
dollar deduction or more the very first year. – So if you want to make
more money and pay less taxes like Donald Trump and myself, get Tom’s book, “Tax-Free Wealth.” – It pays to listen. Now back to Robert Kiyosaki
and the Rich Dad Radio Show. – Welcome back, Robert Kiyosaki,
the Rich Dad Radio Show, the good news and bad news about money. Once again you can listen to
the Rich Dad radio program any time anywhere on iTunes or android, and all of our programs are
archived at richdadradio.com. We archive them because
we’re an education company. We don’t sell products or advice. We’re an education company so you listen to this program again,
you learn twice as much. And most importantly,
share with friends, family, and business associates
because, and discuss it, because that’s when your
learning will really increase. So what we’re talking
today to is Robin Feldman, “Drugs, Money, and Secret
Handshakes” is her latest book. She is Distinguished Professor of Law and Director of Center for Innovation at University of California
at Hastings College, very prestigious law school. So we’re talking about
what you, what can you do, and it just makes me
nauseous when people say, “Well, write your Congressman.” Well, they’re on the take, too. Another question we’re gonna
ask is what can you do, what about crossing the border, like this is what Americans do. We’re an international program. But I have friends who drive from Montana through Yuma, Arizona to stock up on a year supply of
drugs and then they drive all the way back to Montana,
because the price is so high. And I ask them, “Why
don’t you go to Canada?” ‘Cause Canada’s like 10 minutes away, but they must like Mexico or something, but they’re not stupid, but
that’s what they’re doing. So first question, Robin, what
about crossing the border? Why is it, why are drugs,
especially in America, why are drugs right across the border, either Canada or Mexico,
so much less expensive that my friend will drive
from Montana to Mexico? – Part of the problem is
that in other countries, in Europe, in Canada, many other countries have different types of
systems for negotiating with drug companies, for
purchasing, for approving, and those systems end
up with lower prices. Which is easy to do because,
it’s a lot easier to do when drug companies know
that they’re gonna make their major profit in the United States. We’re subsidizing all this. So people are indeed
going to other countries to look for drugs. – When you say we’re subsidizing, they’re subsidizing
pharma in other countries? – So the lower price in other
countries happens in part because drug companies can
make lots and lots of profit in the United States. So if you’re making much of your profit in the United States, you
can afford to sell a drug at a much cheaper cost somewhere else. That’s what I mean when I say subsidizing the cheaper prices. For people who are going
to other countries, they do have to be careful. The FDA is very good at monitoring safety and quality control in this country, and when you buy somewhere
else, whatever country it is, you wanna make sure that
you are actually getting the same drug from the same company and the same type of
manufacturer and distributor. – Is there a way to determine that? – So you can try to figure
out where the drug was made, you can look at where the drug was made and what company it’s
coming from but you have to, you want to be an intelligent consumer. If you’re gonna go somewhere
outside the United States and try to buy the drug yourself, you gotta think about
do you trust the source that it’s coming from and
are you gonna take the time to make sure that what
you’re getting is the same? – The same thing happens
in the States, though, because there’s a lot of fake drugs floating around here, too. Knock-offs. – You always have to
be an informed consumer and make sure that you’re
not getting a knock-off and that what you’re getting is right because the big drug companies are selling exactly the same drugs from
exactly the same factories in other countries at a cheaper price. You just want to make sure
that’s the thing you’re getting. – Is it, is it legal to, let’s say I want to start up a business and
bring in prescription drugs from Canada and from Mexico
because they’re cheaper and I’m gonna sell them
at a cheaper price. Is that legal? – So the FDA regulates the
sale of drugs in this country, including drugs imported
from other countries, and to do that you have
to have FDA approval. The FDA has the power to
approve companies doing that and has the power to approve, for example, state governments buying from other places but so far they aren’t
exercising that power. We have a pathway that one
can apply for that permission but so far the FDA’s not granting it. – So the other question is, you know, a lot of the doctors
are also on the hand-out through rebates and stuff
like that, so doctors, now this whole thing about opioids, a lot of them are pushing
opioids into the marketplace, but they also do that for prescription drugs, too, don’t they? – Yeah, this is a problem. When you buy a drug
directly from your doctor or from your hospital, that doctor, and I’m talking about
vaccines or infusions or anything else that a doctor says, “Here, I’ll sell it to you right here,” the doctor’s charging you
the higher list price. Now sometime later in the
year, the drug company’s gonna send a nice shiny
rebate check to the doctor. You’ll be long gone, doctor
doesn’t know in advance what the rebate check is going to be, so you’re certainly not going
to get any benefit from that. So you’re paying an elevated price and that elevated price is going into the pocket of the doctor. So one of the first things an
intelligent consumer can do is don’t buy directly from
a doctor or a hospital or anywhere without
checking around in prices. And there are sites that you can do that. There’s a site called Good
RX, which will tell you what the prices are in different places. You can take time to pick up the phone and call different pharmacies
and try to figure out what it will cost you to buy the drug. Sometimes even buy it through
your insurance isn’t cheaper. Sometimes paying the cash price is cheaper than going through your insurance, ’cause your insurance
is trying to drive you into higher price drugs
sometimes, ’cause they’re indirectly getting these
shiny rebate checks and payments from the pharma companies. – So is there a site — – Don’t just — – Is there a site that lets you know you have XYZ brand name drug and then you have generic drug. Is there a website that actually evaluates that these generics are the
same as the high-priced spread? – The best site I’ve found
out there is called GoodRX.com but what you’re talking about is something that I would really love to see. I’m old enough to remember
before you picked up everything in the grocery store and it
had that nice nutrition label on it that says all the information that’s the same for everything. We should have that kind
of an information system for every drug out there. Every consumer should be
able to stand at the pharmacy or stand at the computer
or in a doctor’s office and pull up a label that says
here’s what the brand drug, here’s some other, cheaper alternatives, here’s what it’s gonna
cost you on your insurance, here’s what it’s gonna
cost you cash price, now go decide what you wanna do. – So who would do that? Is there any incentive
for someone to do that? – That’s the interesting question. So obviously the easiest
way to do it would be if the government got
around to mandating it. Kinda tough to see the
government doing that giving the lobbying pressure. Sometimes you can find non-profits, research organizations, private, private folks who are
willing to put some time into doing this, if you
can get it off the ground. – What can an individual
do, like for Kim and I do a lot of preventative
work, we’re proactive. – We do naturopath, we’re
getting our vitamin drips every week, we’re doing all
of that to stay healthy, of course none of that
is covered by insurance. – But what can another person do to, I don’t know if the
answer is to stay healthy ’cause there comes a day when the old body just kinda gives out, but is
there anything a person can do to prepare for the day when you need those high-priced drugs? – So I say three things. The first is what I
suggested, shop around. The second is do remember
that the drug companies don’t make any money if
you’re not using their drugs, so it’s worth spending some
time figuring out those things that can keep you healthy
and that don’t require you to use expensive pharmaceuticals. Very often those pharmaceutical
products, those drugs, don’t have a huge effect. Think about whether
it’s something you need and that really helps you. When it does, you need it, go get it. If it doesn’t, think
about the alternatives. And finally, don’t fall for advertising, particularly advertising that says, “Tell your doctor dispense as written” or “Tell your doctor
to write no generics.” – That you need this. – Yeah, yeah, yeah, you’re
an intelligent consumer. Protect your own health and
protect your own pocketbook. – If I go to a doctor and he
prescribes or she prescribes a certain commercial drug, can
I ask, if I ask the question, “Well, is there a generic drug
that will do as good a job?” are they gonna give me
the straight answer? – You can ask your doctor that question. In many cases, you can ask
your pharmacist that question. In particularly small
independent pharmacists have an incentive to, you know, much more likely to give you an answer. – To educate the customer. – The doctor, up until now
doctors haven’t had to think about this pricing. They responded to the advertising and they gave you the
latest, the greatest, the shiniest that was out there, but I think they’re becoming sensitized. Ask the question. – And we have a friend
who’s a cardiologist and he’s, he’s just so upset because now the insurance companies have gotten into Big Pharma and they’re all in collusion, and he can’t even prescribe the drugs that he knows would work best because they’re not covered
under the insurance. So even, so is Big Pharma now dictating to insurance companies what
they can and cannot cover? – Yes, and a lot of that
to the middle players who are setting the reimbursement rates for the insurance companies
who are their clients on the one hand and then they’re pocketing a lot of money from the
drug companies on the other. – Who are the middle, who
are the middle players? – So the middle players are
these folks called PBMs, pharmacy benefit managers. They’re supposed to work
for the insurance companies. So the health plans are supposed to be working on behalf of you and me but actually they have
lots and lots of deals with the pharmaceutical companies that are kept completely secret and they pocket a lot of
money from the drug companies and surprise, surprise,
they channel people into more expensive drugs
and block the cheaper drugs from getting much reimbursement and getting onto the formulary. – Robin, again, Robin
Feldman’s book, F-E-L-D-M-A-N, “Drugs, Money, and Secret Handshakes.” Her other books are “Drug Wars:
How Big Pharma Raises Prices “and Keeps Generics Off the Market” and “Re-thinking Patent Law” which is, our readership market is pretty
narrow on that one, Robin. – Well, thank you for having me here. – We have a couple of patents,
but, you know, it’s not, it’s not, it’s not a big
subject for many people. And your website is
innovation.uchastings.edu, so I really thank you
for your contribution in waking people up. – Yeah, thank you, Robin. Thank you. – Thank you for inviting me. – Really appreciate this. Thanks for all your
research and your work, brilliant, looking forward to, kind of looking forward
to reading the book but I know it’s gonna disturb me, so… – Thank you very much. – Thank you. – Thanks, Robin, great work. – And we come back, we’ll
go to the most popular part of our program, which is “Ask Robert.” – You’re listening to
the Rich Dad Radio Show, with Robert Kiyosaki. – Don’t be like Charlie. Charlie is that do-it-yourselfer
who does himself in. Do-it-yourself is good for tile and grout. It is not good for asset protection. Charlie thought he’d save a few dollars forming his LLC online. With no guidance, he did it wrong. When he sold the property, he lost thousands and thousands of dollars. He did himself in by
trying to do it himself. Don’t burn yourself, use Corporate Direct to set up and maintain
your LLCs and corporations. Corporate Direct is owned and operated by attorney and Rich Dad
advisor Garrett Sutton. Garrett wrote the bestsellers
“Loopholes of Real Estate” and “Start Your Own Corporation.” He is Robert Kiyosaki’s
attorney for asset protection. He and his team will do it right. Visit them at corporatedirect.com or call 800-600-1760. Mention Rich Dad and
receive a hundred dollars off your formation fee. That’s corporatedirect.com. Corporatedirect.com. – Financial freedom begins
with financial education. Now back to Robert Kiyosaki
and the Rich Dad Radio Show. – Welcome back, Robert Kiyosaki,
the Rich Dad Radio Show, the good news and bad news about money. And once again, you can
listen to the Rich Dad program any time anywhere on iTunes or android, and all of our programs are
archived at richdadradio.com. We archive them for one reason. We’re an education company with
nothing to sell or promote. Listen to this program again, you’ll pick up even twice
as much as you just did. This is a very important
subject of what happens, what’s gonna happen to most people who declare bankruptcy,
it’s health, not wealth. So that, health just sucks,
they get you when you, just before you die, they get everything. So that’s why go to the
Rich Dad Radio Show, have your friends, family,
and business partners listen to it, because health, but more the cost of health
is gonna keep going up the older you get. So that’s why, kind of,
Obamacare didn’t work in America, because they wanted to tax the healthy to pay for the unhealthy, and
the young, the healthy said, “Hell, no, it’s not gonna work.” But the unhealthy got happy about it, with all this other stuff. It’s a very big subject. Any comments, Kim? – It’s just a very big
problem, and you know, what’s the solution? I don’t know what the solution is. You gotta stay healthy. And as you said, at some point, you’re gonna need, probably, drugs. So I don’t know, you just, you gotta be proactive in some regards, you just gotta take care of you. I don’t know how you do
that with this problem. – It’s one of the reasons
we live close to Mexico, we can get ’em cheaper across the border. Why my friend drives from Montana. I can see Canada from his house but he’ll drive to
Mexico to get his drugs. I don’t know why, I should’ve asked him. I’ll see him in a few months. But it’s such a big problem cause it’s a huge part of your
budget the older you get. So once again I want to thank
Robin Feldman, F-E-L-D-M-A-N, and it’s Professor of Law of
UC Hastings, San Francisco, and her book, her latest
book is “Drugs, Money, “and Secret Handshakes:
The Unstoppable Growth “of Prescription Drug Prices.” Submit your questions to
[email protected] So what’s the first question, Melissa? – Our first question
today comes from Jessica in Scottsdale, Arizona,
favorite book, “Rich Woman.” – Oh, Jessica, what a wonderful woman. – She lives in Scottsdale,
she’s very smart. – I gotta go check her out. – That’s right. She says, “Robert and Kim, “I agree with you when you say your wealth “is nothing without your health. “I practice yoga and meditation
in my morning routine. “My question is what other
things do the two of you do “in order to stay healthy?” – Well, one thing is make more money, because it costs a lot of
money to go outside the, outside the system. And then after you make that money, don’t go and piss it away shopping. I mean, you know, Kim and
I spend our money a lot on preventative health care, right? – Lot of preventative health care. We’ve got naturopath, when
we’re in town every week we’re at the naturopath,
we’re getting vitamin drips, we’re getting ozone, we’re doing all sorts of things to make — – Exercise. – Exercise is huge. – Diet. – All of it. – So it’s what we do every
single day but it costs money. Like this afternoon, this
woman, she’s a doctor, is coming over and she’s
doing this special, she hates the term massage
but she has a special process to help move body fluids inside
my body around, you know, I mean keep it moving,
but it’s $250 an hour, and I choke at that price. But if I don’t pay it, what am I saying about my health’s not, my
health’s not worth $250 an hour? And some of these drips are
$150 just for 30 minute drips. So, and I’m also, I don’t
do pop diets, pop diets, keto diet now, they had the
other diet now and all that. Is our, our doctor is Dr. Radha Gopalan, he wrote the book called,
what do you call it? – “Second Opinion.” – “Second Opinion,” by Dr. Radha Gopalan, and he’s a heart transplant specialist, and his fiance is Nicole, and I go to see her once a week and she prescribes the vitamins
for me, and supplements. So it’s not just this pop,
I’m doing this keto diet, I’m losing a couple of weights. It’s not just diet and
exercise, it is more health. Meditation is a big part of
it, and reading, you know, more spiritually enriching books helps ’cause you keep the stress down. – Yeah, I was gonna add to
that the spiritual books, you know, like “The Power
of Now,” Eckhart, totally. – “Miracle Morning.” – “Untethered Soul.” It’s because it gets me more present, it does relieve the
stress because I figure, I’m watching my mind a lot, and the ego, and how the ego plays into it, so all of that is part
of our health process. – And one of my best
friends is a health fanatic, he says, “I just don’t watch TV,” cause it just stirs him up. – I don’t watch the news,
I do not watch the news. – So I took that one to heart, because I like to watch TV, but I don’t watch the news. I watch really good
educational programs on TV, like “Jerry Springer.” So I watch those programs, but hey, laughter is a very, very — – Laughter’s good, laughter’s good. – Very, very important part of health, because if you don’t laugh,
you’re gonna die anyway. So you may as well keep
laughing, you know, because the human
condition or like all this that Robin Feldman’s writing about “Drugs, Money,
and Secret Handshakes.” If you can’t trust your own doctor because your doctor’s on the take, we’re in serious trouble right now. And now they’re only
spending 11 minutes with you, ’cause they don’t have
time ’cause they gotta be churning and burning
you in the 11 minutes. That’s what they got. – And I think, you know, one
of the best pieces of advice I think Robin gave to
how you can take control is your pharmacist, because we just assume that when the doctor
writes this prescription, then that’s what we gotta take, but if you go to the pharmacist, he or she could possibly say, “Well, instead you could
do a less expensive, “less expensive drug or a generic drug “and it’s just as good,” so
you really do have to be aware and take control of your own health. – So health is more important than wealth, but if you don’t have wealth, you can’t care for your health. It’s expensive, it is expensive. And once you have a
pre-condition, you know, all that stuff they talk
about, you know, like, I have multiple risks. My mother had cancer,
no, my father had cancer, my mother had heart failure. So I’m a two-time loser sitting out there. So certain things diet and
exercise cannot take care of, so financially, just be prepared. I think that’s the biggest question, biggest, proactive thing you can do. Next question, Melissa. – The next question comes
from Gavin in San Diego. Favorite book “Rich Dad Poor Dad.” Says, “What to you see as
a way to protect ourselves “or shore up a way to prevent
being wiped out financially “through a medical event? “Having insurance only gets you so far “and I don’t want to face financial ruin “should something unexpected happen.” – That’s a very important
question, and Kim and I, the way we handle it is
just make more money. I hate to be so flippant
about it, but we have more, every year we increase our
cash flow, not our income. We increase our cash flow,
so we’re always either starting a new companies, or buying more income-producing property so our cash flow whether we
work or not keeps increasing. And then we have insurance, right? – That’s right. – So if something hits us, our
cash flow will keep coming, ’cause we have these apartment houses, we have other properties, and that income just keeps coming in, whether,
’cause a house gets sick, you can call a contractor. But you get sick, you gotta call doctors and pharmaceutical companies and all this. So that’s why we have
the Rich Dad Radio Show and we have our cash flow
games and we write our books and we keep encouraging people
to take your money seriously because most people don’t. They don’t worry about
money until it’s too late. – You know, and along the same lines, when we talk about cash
flow, a lot of people don’t even know there’s
other options out there other than working hard, you know, getting a job and working
hard, investing in a 401K. They don’t know there’s other options. Same thing with health
care, is a lot of people don’t know there’s other options. They go to a doctor and the doctor says, “This is what you need,
this is the drug you need,” well, there’s other options out there and we always are looking for alternatives to the chemical drugs and Big Pharma. So that’s why we seek out experts and we seek out kinda magicians, medical magicians I
call them, who can do — – Our doctor, Radha Gopalan, his book is called “A Second Opinion,” he is also an accupuncturist so he’s more into the health side, and he says medicine has become wealth
care, not health care. So if you understand, it’s the same as your 401K and IRAs and all that. In my book “Fake,” I write
about those are fake assets. The money you ship to Wall
Street has only one purpose, to make Wall Street richer, not you. So that’s why we have the
Rich Dad company, you think, we’re expecting a major,
major, major correction. How do I know? ‘Cause there’s major corrections
every 10 or so years. It’s no big deal. And if you get wiped out, you
think the big wealth companies are going to get wiped out? No, they just make more
money because you’re going to be selling enough to send them more money next year, too. So that’s really why we
have Rich Dad company. Your house is not an
asset, savers are losers, don’t work for money
because money is toxic. So that’s my latest book, “Fake Money, Fake Teachers, Fake Assets,” and we have fake doctors and we have fake teachers right now. So it’s just a matter of being aware and make your own decisions, not blindly. My friend John McGregor
is a financial planner, it makes him sick, these people walk into these financial planning houses and they’re like a doctor, they’re saying, “I recommend this mutual
fund and that ETF, “but send your money to me.” And those financial planners,
they’re just as criminal as the doctors because
it’s all self-interest. It’s what’s in it for moi,
not what’s in it for you. So once again, thank you for listening to Rich Dad
Radio Show, and Ask Robert, you can send your questions
to [email protected]radio.com. Thank you Robin Feldman, and
thank you all for listening.