Rich Dad's Who Took My Money?

Read the main books of rich dad then come to this one

In case you don’t have time or don’t want to pay much , here’s my keynotes summary for all the book:

> WHO TOOK MY MONEY:
(From Rich dad poor dad series)

3 types of income
Ordinary
Portfolio
Passive

Model for building wealth:
1-Earn / Create
2- manage
3- leverage
4- protect
5- Exit

Remember to have a financial statement:
(This is from a video/previous book) and not from the book
- income
- Expenses
- Assets
- Liabilities
CASH-FLOW

Financial IQ is : can you control the cash flow ?

Poor quality food affects one’s health
Poor quality information affects one’s wealth

If you suspect something is an opinion rather than a fact or principle always Remember the 4 magical words! :

WILL YOU GUARANTEE IT ?
(in writing)

Buy upon facts and principles and not on opinions.

Don’t let your money sit
Markets move, keep your money moving, move it into businesses then out of them (exist)
Velocity and safety of the money is far more important than the amount of your money.

Never forget that the object of the game is to get your money
off the table and stay in the game
That what every gambler knows and every professional investor strives for!

Amazing example for $20000 investments and how to Increase the VELOCITY of your money!

1- 5% annual rate (mutual funds)
Net equity 28 K for 7 years
2- pay 20k deposit & borrow 180 000 from a bank and property appreciate
281k
Equity $101 for 7 years
Average annual return 58%

Professional investor:
3- pay 20k deposit and borrow 180 k from the bank for a 200k property.
Instead of compounding of the equity, you borrow out the appreciation of the asset every 2 years and you invest in a new property at 10% down.
After 7 years the total value of your propreties
2 million 22 K and ur
Net equity 273 K
Average annual return on the 20k inv. 180.9%
Aaaahhh

All assuming no market fluctuations

Don’t leave your money on the table.

Newton’s Law:
For each action an equal opposite reaction.
What goes up must go down.

TRENDS TO WATCH:

1-Demographics
(Check the demography for people in a market, you will foresee the ripple)

1-price of gold

2- Debt
Like the US dollars from gold to silver to iou (money now is debt)
If prices rise Cz your dollars $ becomes worse less and less this is called inflation
When there’s inflation debtors are winners And savers are losers.

3- Interest Rates:

When the government\federal reserves lowers the interest rates
One reaction to falling stock prices & interest rates is a rise of real estate prices.
Lowers interest rates punished savers.
Savers to get out of the bank and invest into the market place.
Bankers do not like savers, bankers love borrowers.
Cz your savings are assets to you and are a liability to your bank.

Bank makes more money by lending you money more than by borrowing money.

4- precession and Lag

When a stone is dropped in hr water not only theres an equal and opposite reaction but there’s also a reaction at
90 degrees, which is the ripple we see moving across the pond
That’s an example of precession!

The delay in time from when the stone hit the water and the ripple hits the far shore is known as Lag!

Both are universal principles/ laws of nature.
The reasons that precession and lag are important is because too many investors watch only the stone’s action and not entire omni-spherical time delayed reaction.

No need to watch the market super closely, you can take longer view of the market.

Ex: trend in population
You can plan ur real investment accordingly, rather than panic when prices rise...
Or buying a piece of raw land and wait till the town grow into it...depends on the growth rate...

5- Financial intelligence:
Keep your ego and arrogance in check.
Remind yourself to be more grateful and humble

Life is a game of time and money
Financial game plan
Your working 25-65
Each 10years quarters

25-35 1st quarter
35-45: 2nd quarter
half time mid life crisis
45-55: 3rd quarter
55-65 4th quarter time

The difference is to learn to enjoy the game.
If you want to take control your money & investing yourself rather turning it to strangers:
- remember that loosing is part of wining and both are part of the game.
- The more you play the better you get, The better you get, the better your team gets, the better your team gets the more you enjoy the game, the more you enjoy the game, the better chances of improving your score.
- The game of money is not really abt money, it’s about how well you play the game.
- One of the reasons why Hard working people loose the game is because they avoid the game


Over time: can’t afford to retire
Out of time: now what?

Respect Father Time!
Some of the cycles and trends a person must pay attention are:

- Windows of opportunity (Time waits for no one)
- Life changes (life does change)
We need more than jobs!
We need more financial education.
A job is only a short term solution to the long term problem of how we survive financially. Especially when we are not working or not be able to work any longer or loose everything and have to start all again.

Our schools only focus on the E and S quadrants, and not on the B and I quadrants.
Do not expect to win every time you throw the dice

Markets move on as time marches on.

Make 2 careers
1 for you
1 for your money

Saying can’t will end there and it’s easier to say I can’t than to say I can. Saying I can’t limit your potential.

The businesses that make life the easiest are the businesses that make the most money (auto industry)


Author & Poet Marcel pruced
The only real voyage of discovery consists not in seeking new Landscapes But in having new eyes.

Power investors invest in at least 2 classes of assets. Thank

The 4 major assets classes:
1- business
2-real estates
3- paper assets
4-commodities was

Power investing plan:

1- Start a business
2- invest the cash-flow from the business into real estate
3-invest your excess cash-flow into paper asset.

The 1st business accelerator is OPM
other people’s money.

(In real estate 10k down, 90 from banks...)banker has 90% of the risk, but ou receive their share of the profits, they get nothing but the interest which will be paid by the tenants!!!
Magic money! 1/9 ratio!


The 2nd business accelerator
Entity selection
Which to hold your
Review the various requirements and benefits of a C corporation
S corporation
LLC limited liability company
LP limites partnership

In real estate
Entity selection is so important/critical
Often you need to have separate Entities for each property so if one property is put at risk the others are NOT!
(Choose maybe based on state Laws!)

With your attorney and tax advisor to see which entity will provide the best protection for your business AND RESULT IN THE BEST TAX ADVANTAGES
This maximizing your cash-flow

The 3rd accelerator is OPT
Other people & systems time (doing your work)

Most people work for businesses rather than working for building a business.

The 4th accelerator TAX LAWS
The tax man is on ur side as business owner.

In real estate (check phantom
Cash-flow from depreciation)


The 5th Accelerator CHARITY
the more people you serve the richer you become.

The 11th accelerator OPTIONS (for stocks)

Invest for cash-flow and not for capital gain.

If you invest for Capital gains you invest in hope.
The biggest thief of all is hope.
Gamblers think they are investors.
An investment needs to make sense today And tomorrow!

Invest for :
1-cash-flow (steady stream of cash-flow so thentax advantages won’t be limited
2-tax advantages
3-capital gains (3rd order of priorities)

Be fearful when others are greedy
Be greedy when others are fearful.
You can’t buy what’s popular and do well
I only go to the market to see if someone is about to do something silly.
Warren buffet.

The worse time to invest is when the market is good.
Tales of success bring suckers to the market.

Read financial statement
Understand trends
Have good advisers
To not invest in what’s popular
Find a great investments that others people miss

7 ways to find good in vestments in good or bad market:

1-Remember that people are lemmings (amateurs)
2-become an expert on certain mistakes and you will be rich.
(Opportunities repeat themselves)
3- buy during a recession
4- buy when a unfortunate event or tragedy (but use your conscience)
5-learn slowly and learn forever.
Desire takes places where logic can not.

6-Learn the 20-10-5 cycle as a reminder.
20 years equity year cycle
10 years commodities
5 years disaster
7- pay your brokers and advisors well (or a bit more

Or summary of finding better investments.
1- know ur numbers don’t be a guessing number
2- know the mistakes that lemmings do
3- be generous
4- be creative
(Find

Give your money for strangers and your money will work for strangers before you! So be smart find a profession for your money and your money will work hard for you to read it as your employee and find work for your employee and it will take care of you. That is what all investment is all about.

A good investor before investing in Anything!
does 5 things or runs a
Due diligence Checklist
1- EARN/CREATE
Ex. When u buy a property it should create passing and phantom which are the less taxed!
2-MANAGE
Ex.work to reduce your expense, increase your income, choose when you want to pay your taxes, reduce your taxable income.
If they are loses, use those loses to your advantage!
3-LEVERAGE
Real estate is the easiest of all investments to leverage!
80 to 90% is not uncommon!
The tax department offers additional leverage through tax incentives which are numerous!
4-PROTECT
protect your property with different insurances!
Also with Different corporate entities , and with Non recourse financing if you feel the need to be extra cautious.
Add an xtra layer of protection by creating a Sinking fund which accumulate xtra cash for emergencies.
5-EXIST
Rather than selling your property which will trigger a taxable event, often
Exchange your property without paying taxes!
Or u can borrow out the equity tax free and invest your tax free borrowed money with for example a new investment property or a Boat!

Regardless in which class you invest your money,
Treat those assets the same as you would treat your self (with respect).

11 of 11 people found this review helpful

The best add on to the First Rich Dad Book

This is an Excellent book. I have listened to it 3 times and will buy the paperback as well. I have just about ever Rich Dad book. This one will help you with understanding the velocity of your assets.

4 of 4 people found this review helpful

Librado2021

amazing book, strong education , for new learners or educated people, I strongly recommended, no fear.

2 of 2 people found this review helpful

Loved it

this book is amazing and extremely helpful for anyone with basic knowledge of financial terms, a little bit repetitive but it my case, it helped me reinforce the information and grasp the concepts better.

1 of 1 people found this review helpful

Again an eyeopener

I panicked when I recognized I made a mistake that was described in this book but then came the advice to sit out the storm and think of better ways and act on it. Well , I will loose money, but I learned my lesson and now I know what questions to ask even it gets me kicked out of the advisers office
Thank you Mr Kiyosaki!

1 of 1 people found this review helpful

an investor must read

very interesting and informative take on various investment strategies. Kiyosaki does a great job of broadening people's perspective on how to generate income.

1 of 1 people found this review helpful

Thank you Robert

Thank you Robert for explaining more in debth several things that you have not in the past. Thanks to you i have spent many months looking for that perfect property to provide me with passive income so that i may hopefully be able to leverage that to aquire more properties and eventualy be financialy free and be able to spend my days helping the less fortunate kids of this world especialy in Honduras. That is my goal for the next 10 years and I am 29 now. Once again thank you from the bottom of my heart you have started me on a path that will hopefully change the loves of millions of children in a war torn a poverty stricken country.

sincerely,
Nate
Kansas City, MO

1 of 1 people found this review helpful

Amazing intro book in investing.

The concepts in this book were clear an concise advice on investing practices. I highly recommend this book for anyone wanting to invest.

Great follow up to Rich Dad Poor Dad

Not repetitive as some say, and if it was it was necessary. Highly recommend, financial literacy 102.

I just love him!

Robert Kiyoskai has completely changed my life with his knowledge and insight into a world I didn't even know was there. Each of his books are so well written and preformed. Listening to them gives me new inspiration everyday!