Wisdom of Rich Dad

Is accounting a burden for you? Or your accounting department is a mess? Well! Then this could be the most appropriate time to settle your accounts with quality accounting services.

However, it is quite understandable that getting a good accounting department is not as easy it seems. First of all, finding qualified accountants is one demanding job and even if you manage to get the assistance of competent accountants, your expenses will soar excessively high with the high demands of these accountants.

This kind of scenarios compelled the business industry to come up with a profitable alternative of accounting outsourcing. This provision has not served as an option but has actually taken the position of the most preferred accounting solution in the business fraternity.

Nowadays, almost every small, medium or big business organization is affiliated with some or the other accounting outsourcing firm.

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Congratulations on your recent graduation. You have no doubt worked diligently over the years and should be proud of your successes. I am not quite sure if you will be moving on to college, the military or other envious endeavors. Nevertheless, you should be advised of how the real world works.

The real world is a lot like gardening. If you combine your God given talents (the soil), with knowledge and hard work, then you will reap a wonderful harvest. Take away just one of these items, and your success will be disproportionately reduced. Remove knowledge, and you will likely yield no harvest. Increase your education and knowledge and your harvest will be wildly abundant.

While I am proud of your recent graduation, the education that you have just received is woefully inadequate. Much of the public school curriculum was developed in the 19th century. My grandmother took much the same course work in the 1930’s that I did in the 1980’s and now you have continued the tradition to the 21st century.

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As an investor, you should always know what your objectives are. One of the biggest traps investors fall into is buying a gold position that has little or no relationship to his or her objectives. Gold is not for everyone. Buying gold is usually used as an insurance policy in case other investments such as stocks go down.

Gold is in a bull market right now because its core fundamentals are so outstanding. It is also doing well because the stock market is tanking. You see, that is the “insurance” part of gold. When stocks go down, gold often goes up. A position in gold will often offset your losses in the stock market in troubled times.

The price of gold may jump up to thousands of dollars per ounce in the current rally or it may struggle and fall lower. No one knows for sure even if they pretend to. One thing is for sure: if the stock market continues to fall, things will look good for the gold investor. Gold is the ultimate alternative investment because it is tangible.

Many people, including the die hard stock investors, often still see gold as the most undervalued asset group in a standard portfolio mix. In general, gold becomes more desirable in times of banking failures and tough economic times. Also, like all investments, gold becomes more attractive to more people the higher it goes. People don’t seem to want to miss out and that is why both gold and stocks tend to go up too high before they fall back.

Before you invest in gold, you should carefully consider what percentage of your overall portfolio you wish to risk in gold-related investments. If you are thinking about investing in gold, it is worth giving the same consideration to your purchase as you would to any other investment. When you buy gold investments, you lower risk in your investment portfolio.

As more investors realize that gold is a great way to profit in today’s uncertain climate, more fund-makers have been happy to supply the means with which to buy gold. There is a whole world of excellent alternatives out there for investors who wish to invest in gold. Just be sure you understand what your gold objectives are before you allocate too much of your portfolio towards it. Gold can be a great addition to any portfolio but only in the right amounts. Putting too much of your net worth into gold would be the same as gambling.

There are many factors that indicate the success or failure of a business. Experience, cash flow, dedication, planning, and commitment are just a few. If you feel that you are lacking in even one of these areas, and you want to take your business to new heights, you may want to consider finding a private investor, also known as a business angel.

As long as you have strong business idea and are committed to succeeding, you should have no problem matching up with an investor. They are everywhere, no matter what part of the world you live in.

A private investor can help in many ways. The most important way is by providing start up capital. This can mean the difference between your business being a thought or idea, and actually having a business that operates.

Another way an investor helps is by teaching you everything they have learned in business. All their skills and knowledge are yours for the taking. Remember that private investors are successful entrepreneurs themselves. They started where you are now, and have spent years perfecting their craft. Now they are ready to teach others all that they have learned. This can be more valuable than a university business degree!

An investor will give you access to his/her business contacts that they’ve built through the years. These relationships are priceless and should be treated with respect. Get to know these people, network with them, and reciprocate business you receive from them.

Business contacts and referrals are one of the most valued pieces to a business.

Why would a private investor want to do all this for your new business? For one thing, there are investors! They invest in businesses that they see as having great growth potential and profit. They want a return on their initial investment (the start up capital), so it makes sense that they will do whatever they can to help that investment succeed. It’s a win-win for both parties: you get your business off the ground and producing profit much quicker than if you did it on your own; your investor gets a nice return on their money by helping build your business. Think of what you can learn in the process!

So, if you have an idea for a business, or are just starting out, you may want to seek a private investor, or business angel, to help you along the way. It may be the difference between success and failure.

On Tax Day, April 15th, I picked up the Wall Street Journal and was amazed to see an editorial titled “A Message from HENRY” by a California financial advisor. The author, Mike Donahue, condemned the big and growing tax burden shouldered by high-earners like himself, a group he identified as “the HENRYs,” in words so scorching that steam practically rose from the page. “We may be only a small percentage of the population, but we pay a large portion of the taxes and employ many,” Donahue concluded. “If you take the incentives away, you will lose the HENRYs.”

For this writer, it was a proud moment. I invented the name “HENRYs.” I wasn’t steamed that Mike Donahue didn’t credit Fortune for creating the term. On the contrary, just seeing a headline about the HENRYs showed that my brainchild may be entering the culture as a catchy pop label for our times. It may even achieve the same currency as a Fortune invention from the 1980s, “Trophy Wives.”

The Journal story inspired me to revisit the folks behind the acronym.

I first wrote extensively about the HENRYs in a November, 2008, cover story called “Look Who Pays for the Bailout.” It described the plight of a strata of affluent Americans I called “High Earners, Not Rich Yet,” or the HENRYs for short. They’re the doctors, attorneys, accountants, owners of real estate agencies and security firms, who earn — or used to earn — between $250,000 and $500,000 a year.

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I was surprised to hear over the weekend on a major radio program a so-called expert on the economy explain how investors spooked by the recent crisis in Greece are “scrambling for safety” into the dollar and into gold. What surprised me was not that people were dumping the Euro for the dollar and gold. I was surprised that gold and the dollar were grouped together as safe assets in times of crisis.

I was even more surprised to hear the analyst quote my good friend, Richard Duncan, saying, “Because governments around the world have run up such large budget deficits, and the central banks have been creating so much paper money, gold very likely will continue to appreciate very substantially over time.”

I couldn’t understand how anyone could consider the dollar a safe asset given this quote by Richard. Yet, in the same radio spot featuring this quote, the dollar was touted as a safe investment in times of crisis.

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