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I recently finished reading the book "Rich Dad, Poor Dad", and the author touts the benefits of tax lien certificates as a secure way to consistently get 16% returns. If you are willing to tie up your some money for a period of time, he claims that this is a more intelligent and profitable way to invest money compared to CD's or bonds. Does anyone know anything about tax lien certificates or have opinions about them?

Especially in the world of finance, there is no such thing as a free lunch. Just as you won't find $100 bills on the ground, because someone else would pick it up before you got to it, likewise you're not going to get 16% returns with complete safety. Tax liens, though legitimate investments, are not as safe as CDs or bonds, which is the whole reason why they have higher yields. has some notes on the pitfalls of tax liens. You'll have to decide for yourself whether the risks are worth the additional yield.

Regarding "Rich Dad, Poor Dad": many do not like Kiyosaki's works, as it is clear that he is willing to fabricate any tale in order to make his point. I do not believe his investment philosophy is grounded in reality at all. See for more on this.
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