Dear Reader,
I’ve been saying it for 25 years.
People called me crazy. They laughed at me. They said, “Robert, you’re nuts. My house is my biggest asset.”
They’re not laughing anymore.
Discover the shocking truth about why the McMansion, once the ultimate status symbol, has become a massive financial liability
The definition of “luxury” has completely changed—why things like energy efficiency and pickleball courts are more valuable than granite countertops and mahogany floors.
Learn the critical Rich Dad lesson for today’s market: how to tell the difference between a true asset and a money-sucking liability disguised as your “dream home.”
The media calls it a scandal. Robert Kiyosaki calls it smart. The truth is, the outrage over the wealthy paying $0 in taxes is a distraction. It keeps you from learning how the rich legally avoid the IRS, and how you can use the very same strategies to protect your own wealth. Find Out How.
The McMansion is dead. The dream of the giant, oversized house is officially a nightmare.
And the people who bought into that dream are now trapped in a financial prison of their own making.
It’s a simple lesson. A lesson my rich dad taught me when I was a boy. He said, “Your house is not an asset. It’s a liability.”
An asset puts money in your pocket. A liability takes money out of your pocket.
It’s that simple.
And for decades, people ignored that simple truth. They bought the biggest house they could afford.
They filled it with granite countertops and mahogany floors. They thought they were rich. They thought they were smart.
They were wrong. They were fools. And now the bill is coming due.
The End of Wasted Scale
There’s a new report out from Zillow.
It confirms everything I’ve been saying. The market has finally woken up.
Buyers are rejecting what the report calls “wasted scale.”
I love that phrase. Wasted scale. It’s the perfect description of the McMansion.
A giant, empty box designed to impress people you don’t like. A monument to financial stupidity.
What are buyers looking for now? They’re looking for smart homes. Efficient homes. Homes designed for a lifestyle, not just for show.
They want pickleball courts and golf simulators.
They want whole-home batteries and zero-energy-ready construction.
They want resilience. They want sustainability.
Why? Because they’re finally starting to do the math.
They’re realizing that a 7,000-square-foot house built in 2006 is a money pit.
The insurance costs are soaring. The property taxes are brutal. The maintenance is a killer.
That big, beautiful house? It’s a vampire, sucking the financial life out of you, month after month.
One real estate expert in the article put it perfectly. He said a big home without modern, efficient systems “can absolutely feel like financial exposure.”
Financial exposure. That’s a polite way of saying it’s a dumb investment. It’s a liability.
The New American Dream
My poor dad, the PhD, was obsessed with status.
He wanted the big house in the nice neighborhood. He wanted to look successful. He was a slave to the opinion of others.
He died with nothing.
My rich dad didn’t care about status. He cared about cash flow.
He lived in a modest house. But he owned hundreds of rental properties.
Those properties were his assets. They put money in his pocket every single month.
His house was a liability. He knew that. He kept it small. He kept his expenses low. He focused on acquiring assets, not liabilities.
The good news is that the market is finally starting to think like my rich dad.
The new generation of buyers, the millennials and Gen Xers, they’re smarter. They’re more educated about operating costs.
They’re not falling for the old lies.
They understand that the American Dream isn’t about having the biggest house on the block.
It’s about having financial freedom. It’s about having choices. It’s about owning assets that work for you, so you don’t have to work for the rest of your life.
The article says the new dream is “more intentional.” That’s exactly right. It’s about intentionally designing your life for freedom, not for status.
So what does this mean for you? If you’re sitting in a big, old McMansion, you need to wake up.
You are sitting in a depreciating liability. The market is moving away from you. Your buyer pool is shrinking every single day.
You need to modernize. You need to improve your energy efficiency.
You need to update your systems. Or you need to sell. Cut your losses and get out.
And if you’re thinking about buying a house? Stop thinking like my poor dad. Stop thinking about what the neighbors will say. Start thinking like my rich dad.
Buy a house you can afford. A modest house. A liability you can easily manage. Then, take all the money you saved and start buying assets. Real assets.
Assets that produce cash flow. Rental properties. Businesses. Gold. Silver. Bitcoin.
Stop buying the lie. The McMansion is dead. The old American Dream is a trap.
The new American Dream is about one thing, and one thing only: freedom.
Robert Kiyosaki
Editor, Money Power and Profit
P.S. For 30 years, there was a simple rule on Wall Street: Regular Americans stay out.
The ultra-wealthy had access to investments that could turn modest stakes into fortunes. You didn't.
That was the deal. And nobody was going to change it.
He just signed an executive order that opened these investments to everyone.
And now his own financial disclosures reveal where he's putting his money:
Up to $25 million in a single fund — one that pays him as much as $250,000 a month.
My colleague Alexander Green from The Oxford Club says the timing couldn't be better.
He believes we're at the start of something historic.