Be educated to invest , Think like RICH
posted in investments |
I have been writing my thoughts over investments inspired by RICH DAD and I think if a person is not an expert in judging the right opportunity or is not able to distinguish between a good investment and a bad one he always goes for an investment advice. This advice is what affects his decision to a great extent. But we should always be careful about taking advice that who are we taking it from..?
Many of Wall Street’s elite firms were being required to pay tens of millions of dollars in fines to investors, according to media reports. The penalties are for alleged bad investment advice, courtesy of New York State Attorney General Eliot Spitzer.
Warren buffet , the famed investor says” Wall Street is the only place that people ride to work in a Rolls Royce to get advice from those who take the subway.”
Kiyosaki says, I have been highly critical of the standard financial planning advice — “work hard, save money, get out of debt, invest for the long term, and diversify” — for a long time. Such guidance is often more a financial advisor’s (subway rider’s) sales pitch than a solid investment guide.
An investor should be smart and responsible enough to distinguish between a good and bad investment advice.
The Difference between Investing and Shopping
Kiyosaki says the problem is, most investors don’t know how bad the standard investment advice is. This mantra of “work hard, save money, get out of debt, invest for the long term, and diversify” is followed by millions of investors — who lost $7 trillion to $9 trillion between 2000 and 2004. Many are still following this bad advice today.
However, investors should realize it’s “buyer beware.” Investing is different from shopping. Kiyosaki gives a very thoughtful line about it that when we go shopping, we expect value for our money. But when we invest, we do so in the hopes of making more money — and knowing that we risk making losses.
What would happen to the financial industry if brokers were sued every time a client lost money? The wheels of world commerce would grind to a halt. So even those big brokers are playing on the risk, if there was no risk involved every one would jump in. Investors take up every word of those brokers but they should clearly be aware of their actions and the risk involved.
According to Rich Dad Kiyosaki , The world is filled with honest people handing out bad advice. An example of honest bad investment advice is the standard one of “work hard, save money, get out of debt, invest for the long term, and diversify”.
The world is full of biased advices; those biases can be due to hundreds of unknown reasons. There are a number of crooks and con artists as well, who intentionally promote dishonest ventures. So an investor has to be aware.
Kiyosaki says, in my opinion that means each of us needs to be responsible for our own financial education so we can tell the difference between good advice, biased advice, and crooked advice. If you can educate yourself to know the differences between those three types of advice, getting rich is easy.
It’s just the financial education that will help you find out the good advice and then make good investments out of your hard earned money.
Learn from Robert Kiyosaki and other world’s best gurus…..on your way to success and financial freedom, inspired…
Your partner in success…
Gagan.
