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TPH
| | Posted on Monday, October 14, 2002 - 07:59 am: | 
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Rich Dad-Poor Dad, any thoughts on this book and his investing ideas? I always thought of my house as an appreciating asset yet he claims it's not. His explanation makes sense but so does mine that it's a money maker, especially lately. I generally take all ideas on investing and then go with my gut but I have been inpressed by this fellow. I am far from a big investor or being rich but I am interested in everyone's thoughts on this. Hope you don't mind such a non-Rover related subject. Of course since investing and Rover ownership are both risky I guess there is a common ground with the two! |
TPH (Tph)
| | Posted on Monday, October 14, 2002 - 08:25 am: |
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Sorry I messed up my sub-topic. I had originally stated it was not Rover related. TPH |
muskyman
| | Posted on Monday, October 14, 2002 - 10:27 am: |
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that aol flash banner caught you !
I think this guy is pretty sharp he teaches something really good that big money needs to be learned it doesent happen.
I grew up in a family with 7 kids and my parents allthough they did a very good job ,taught us very little about money and investing. when I was in college the guy in the dorm room next to me was a jewish guy that grew up getting all kinds of investing info and money managment strategies. allthough I had way more fun in life he had allready amassed a couple hundred grand on his own.
I think the board game that Robert Kiyosaki developed to teach money management is a graet thing for kids kinda like "the game of life" from MIlton bradley was. hell in the game of life if you didnt land on doctor or lawyer you were screwed! yet my older sister would always convince me to "take the short cut you'l be ahead" |
Ken Tipton (Irish_Nv)
| | Posted on Monday, October 14, 2002 - 10:48 am: |
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I read the book twice. I was takin back a first buy the thought that my house might be a liabilty as opposed to an asset. But in the long term he shows you how carrying the loan over thirty years and investing the rest you make out ahead. If you think bout it in the simplest terms if you won say $200,000 and bought a 150,000 house cash where would you be. Now finace that house and you still have 150,000 (assuming you put 50,000 down) to invest and work for you. After reading this post I'll prob. pick it up for another read. |
TPH
| | Posted on Monday, October 14, 2002 - 11:12 am: |
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I have watched his talks on our PBS station twice. I admit I found him quite "real", in a good way. I am a very distrustful person by nature but will pick up his book soon. I presently have a ton of cash in my house so naturally I was interested in many of his comments on this. Many of my habits I learned from my Grandfather who struggled through the depression and a failed small business. But he eventually scored reasonably big with real estate and enjoyed a nice comfortable retirement, god I miss him! However his mid-western "commom sense" virtues don't seem to apply to the new world economy. In ending I sure wish I did not mess up my "subtopic" because I would like to hear many more views on this. Any way of changing that? |
KJ
| | Posted on Monday, October 14, 2002 - 12:01 pm: |
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TPH, do you ever read anything by the Motley Fool guys? You can read a lot for free on fool.com. and it will serve to turn tradition notions on their head.
I've missed some very good opportunities by NOT abandoning tradition investing notions. The one that REALLY hurt was when ebay was doing it's IPO and I KNEW it would be a winning stock. The initial investment was not less than 100 shares, and they were slated to open at $14.00, with the real cost to be more like $18.00 per. I didn't have $1800.00 ready cash on hand, but I did have loads of personal credit at a low interest rate I could have tapped. Falling back on, "You don't borrow to invest", I painfully passed. That initial investment, after the stock splits and wild upward ride ebay took would have yielded MANY tens of thousands of dollars on that small investment alone.
The only person I know to have read the book you refer to was very impressed. He also did nothing to change his investing habits. As humans we are slow to change the first things we learn in life, even in the face of all evidence that there's another way. Do always be certain you factor in all sides of the equation. For instance, though a case can be made that your home is not the best investment, you have to factor in tax advantages, as well as the fact that everyone needs a place to live. Other intangibles of home ownership that could influence every other facet of your perspective on life are fundamentals like feelings of security and well-being. Also, there's no better way to get a low interest loan or line of credit that liening your real estate. I don't know this fellow's point of view and arguments to the contrary, but nearly every notion can be turned on it's head, which doesn't make it more right or more wrong. As with everything else, each person needs to seek their own level of risk tolerance, etc.
Karen, horse trainer, NOT investment counselor, LOL! |
muskyman
| | Posted on Monday, October 14, 2002 - 12:35 pm: |
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Karen you have just made one of his points.
he says buy the house keep refinancing it so that you are paying in mostly intrest that can be written off and invest the money that would have been left as equity in some other higher paying leverage.
it worked for me for years till my company started to not do as well and the "equity" that I would like to have is not so tangible.
its one of those things its its easy to justify what you are doing if it working ,the ones that can change course based on the current situation is the one that always does the best.
and as you said we are human and its hard to change |
TPH
| | Posted on Monday, October 14, 2002 - 03:34 pm: |
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Karen-
Thanks for the "horse sense". My neighbor is a farrier, best neighbor you could ever get. Bummer about your investment, I had a similiar thing happen about 2 years ago. I got a tip from a relative (yeah I know bad idea) but did not act quickly enough. I thought about it over the weekend with intentions of doing a transaction on tuesday or weds., but I waited too long. I would have made a 30k profit within 2 weeks. My father-in-law went with a $100.00 investment and he was happy as heck to make $300.00 profit! |
KJ
| | Posted on Tuesday, October 15, 2002 - 11:10 am: |
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TPH,
One last thing: Though it's the new obvious, I know *I* have to remind myself about this, too. What are we supposed to do about all the lies and misinformation that are handed out as "research" materials for stock buying? How can we make any kind of good decision when the info we are given is fraudulant? I say real estate is where it's at. That we can know about as a layperson, and especially when you're buying and holding for a while, it will rarely let you down. YMMV, FWIW, etc., etc.
Karen, who adores her farrier, but is glad he's not my neighbor. As it is, he never wants to go home, LOL! |
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