Wisdom of Rich Dad

10-minute audio of Kim & Robert Kiyosaki at Steve Harrison’s National Publicity Summit on how they sold 26 million copies of Rich Dad Poor Dad and have stayed on the New York Times Bestseller List for almost six years.

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By Robert Kiyosaki 

Most of us  have heard the phrase “health, wealth and happiness.” But what actually brings health, wealth and happiness? Is it success, and success alone?

My poor dad was a successful man. He had a Ph.D. and was well-respected and accomplished. But he had poor health, very little wealth and was rarely happy. He smoked two packs of cigarettes a day, eventually dying of lung cancer. He made a lot of money as a government official but never invested it. He wasn’t happy with his success. In his mind, he needed to accomplish more.

So, my thought for you this month: Are you becoming healthy, wealthy and happy? Or are you sacrificing these ideals for success?

Most of us know what to do when it comes to our health and our wealth. Health is primarily about diet and exercise, and wealth is about earning and investing. But happiness is a bit more mysterious. We know to think positively, but thinking positively instead of realistically can have tragic consequences. For example, positive thinking won’t prevent you from going bust if you’re foolish with money, and it won’t reduce your percentage of body fat.

In fact, it’s often the pursuit of happiness that causes the most problems with health and wealth. Many people are obese because they eat and drink to feel happy. And others shop to feel happy, even if it means maxing out credit cards.

Many books discuss the subject of being happy and the factors that affect happiness. One factor in particular helps entrepreneurs lead happier, healthier and wealthier lives: self-control. I’m happier if I have the self-control to do the right things even if I don’t want to do them. In business, sometimes that means studying more instead of working more.

Sometimes we make business decisions because they make us feel happy in the short run. But in the long run, we become less healthy and less happy. Sometimes doing the right thing might not make us happy temporarily, but we feel better later.

To me, doing the right things, even if I don’t want to do them, is one of the keys to being truly happy. Today, whenever I feel unhappy, I simply ask myself, “What am I not doing?” or “What am I avoiding?” Then hopefully, I have the tenacity to do what I know I need to do. That’s the only way we won’t forfeit our health, wealth or happiness in our pursuit of success.

By Terry Hurley

Investing in real estate seems like a dream investment to many people. There is the opportunity to gain equity and perhaps generate a positive cash flow. The following investment tips are important to help the prospective buyer become successful as a real estate investor.

Investment Tip #1 – Decide if your your investment goals are long term or short term.
Historically, real estate has shown a consistent growth in value. As your property goes up in value and you pay down your mortgage balance, you increase your equity in the property and add to your overall net worth. If the real estate is a rental property, your tenants are making the payments for you. There also could be tax advantages available to you when you deal in a long term Real Estate Investment. A short term real estate investment also has it’s advantages because the numbers are so large. For example: you purchase a property in need of repairs for $50,000. Repairs are 10,000, holding cost, and selling costs total $5,000. You sell the property for $85,000 and close on the sale 6 months after purchase. You have netted a nice profit of $20,000

Investment Tip #2 – A good location is essential.
Location can be the difference between a good investment or a bad one. When you look at a property that you want to buy and rent out, you have to remember that this is where someone is going to live. You can improve the property but you can’t move the location. Look for rentals where there is always a demand for housing. Choosing properties in busy towns or cities is usually better then choosing ones in the country. There are more people so your property will be more in demand.

Investment Tip #3 – Don’t be afraid to look for a bargain.
Finding a property that is selling lower then fair market value isn’t as hard as it may seem. Foreclosures, sheriff sales and HUD repossessions all offer the possibility of finding property that will yield a significant profit. Good places to look for these bargains are local papers, courthouses and websites that list these types of properties. It is very important to check out the surrounding areas to see if the neighborhood is well maintained or getting run down. If the neighborhood is run down, or there are many boarded up houses, it may not be a good bargain after all. Buy in the best location you can afford.

Investment Tip #4 – Take the time to study the property.
Regardless of whether or not you are purchasing a bargain piece of real estate, make sure that you take the time to become familiar with the property. Learn to judge real estate so that you know when to go ahead with the deal and when to say “no”.

Investment Tip #5 – Learn real estate terminology and hone your negotiating skills.
Become familiar with the terms used by real estate agents and sellers. This will ensure that you will not be caught unaware and become confused by what is being said. All real estate investments require a fair amount of negotiation which is very important for your success as an investor.

Following these investments tips when looking for a property will help you to achieve your goals of increasing your net worth and and generating a positive cash flow.

By Robert Kiyosaki

THE principles of making money are surprisingly simple.

You do not have to be intelligent or well-educated to be rich.

We need no verification of that.

Most of us know at least one wealthy person who is neither educated nor smart.

In fact, judging by the number of poor people with PhDs, higher education must actually be a hindrance to financial success.

Truly rich people – not those who do it with loans, leveraging and manipulating other people’s money – simply have different habits.

The habits you need to learn to become a millionaire are no more complex than the rules for playing Monopoly.

Up till now, education about money has been left to the individual.

The only people I see taking the time to educate the public about credit, credit cards and savings are banks and other financial institutions.

But when we look at the track records of these institutions, it becomes quite obvious that these ‘teachers’ have a lot to learn themselves before they start advising other people.

To let bankers educate the masses about credit is a little like having the fox protect the hen house.

Most of us are so enamoured of the idea of security that, even when we are unhappy with our jobs, we will stay with them, day after day and year after year.

The truth is that staying in situations which are unsatisfying only increases our sense of insecurity.

We begin to feel there is no other choice but to sell our souls in the name of security.

 

Robert Kiyosaki and Dolf De Roos revealed the 6-Steps how to invest in Properties and Real Estates

1. Decide To Be Investor
2. Find An Area
3. Identify Properties
4. Analyze, Offer and Negotiate
5. Put together the deal
6. Property Management

Regulators are warning seniors to watch out for invitations to free-meal investment seminars, cold calls from telemarketers, and radio and TV advertisements pitching investment deals. And even if you think you’re a savvy investor, that doesn’t mean you can always tell the smooth talker from the real thing.

Consider this finding: Seniors who were victims of investment fraud scored higher on financial literacy questions than nonvictims, according to a study for the NASD Investor Education Foundation. They also tended to be wealthier, more educated and married.

To help seniors to learn to protect their nest egg, Kiplinger has these advices:

Protect Yourself Against Investment Fraud
You can reduce the chances of investing in fraudulent or unsuitable products by rejecting invitations to free-meal seminars, tossing out unsolicited mail and hanging up on cold callers. But if you find yourself tantalized by a prospective investment, be sure to take steps to safeguard your nest egg.

Be skeptical of promises of above-market returns. Keep in mind the adage: If it’s too good to be true, it probably is. In March, the SEC charged two people in Allentown, Pa., with selling $3.9 million in fictitious certificates of deposit to at least 50 investors. The complaint said that the two promised rates of 7% to 9% and created fake monthly statements.

Few investments, with the possible exceptions of Treasuries and traditional bank CDs, can actually guarantee a return. The SEC warns, for instance, that many investors believe that they can’t lose money with equity-indexed annuities. But if you need to cash out early, a large surrender fee could turn the investment into a big loser.

Recognize the trouble investments. The SEC warns consumers to watch out for “prime bank” schemes, where fraudsters promise huge returns by claiming to buy and trade financial instruments in overseas elite banks; these instruments don’t exist. If you hear TV pitches for “IRA approved” investments, turn off the tube. In those ads, marketers are selling products with high fees, which will erode your returns.

Also, watch out for “sale and leaseback” contracts, which occur when a salesperson sells an investor a piece of equipment or property, such as a pay phone, ATM or a long-term lease. As part of the deal, the company agrees to pay investors a fee to lease back and service the property, which is usually fictitious.

Avoid promissory notes as well. With a promissory note, an investor lends money for a fixed period to a company, which agrees to pay a fixed return. But regulators warn that legitimate notes are marketed almost exclusively to corporate investors. Notes marketed to the general public are usually cons. If you can’t resist, make sure the securities are registered with the state or the SEC and that the seller is a registered broker.

Take your time. When you’re told that you need to act immediately, it’s likely that the salesperson is trying to hide something from you. Never sign anything without taking time to conduct research.

And don’t follow your friends’ advice. Con artists often seek out members of the same group to spread the word. Churches are a favorite target. “If your pastor tells you about an investment, you may go for it because you trust him. But he could be getting taken, too,” says Jacqueline Wiley-Sistrunk, coordinator of Seniors Against Investment Fraud, run by California’s Department of Corporations.

Insist on written information. Make sure that the fine print includes information on commissions, penalties and returns as well as the risks and assumptions underlying the plan. It’s possible, however, that even the materials are fraudulent, so check out the investment with someone you can trust and ask your state securities regulator for help.

Check out the adviser. Don’t be swayed by fancy titles. Salespeople often use designations that could include the words senior, elder, registered or certified. Advisers often attain these titles after attending a sales-related course. Bogus advisers do not have the licenses or expertise to sell you products. For instance, a “senior estate planner” is not a lawyer who is qualified to devise a living trust.

Ask for the license numbers of the person purporting to be an insurance agent, broker or investment adviser. Then check out the adviser with a government entity. Note that an insurance agent can’t sell securities. Even if a broker is registered, ask the broker’s firm if it’s authorizing the products. In the Los Alamos case, regulators say that Weis began selling products not backed by his firm. “People are freelancing without the company’s knowledge,” says Joseph Stein, regional director of the Seniors Vs. Crime Project of the Florida attorney general.

If you allow an adviser to trade in your account, review your monthly statements. Make sure you understand the investments, and watch out for high trading activity that could generate a lot of fees for your broker and low returns for you.