Monday, September 26, 2016

Dont chase the buck or a paycheck

Lesson No. 1 in ‘Rich Dad Poor Dad’ is the rich do not work for money. That opens your brain up, well, what the heck do they work for then? If you act like a mule, chasing the carrot -- the buck, the bonus, the paycheck, the commission, whatever you guys chase, you’re never going to ask the question: what are the rich working for? I work for assets.

Thursday, September 22, 2016

I avoid investing in Hawaii, California, New York due to high taxes

Real estate is a long-term hold. It’s not liquid. I don’t care if the market is up or down. What I’m looking for is a bargain. I make most of my money when the markets crash. I made most of my money in 2007. I made even more money in the subprime crash. I don’t care about the overall economy or the markets. I’m looking for an opportunity that no one else sees. I like residential real estate. I don’t invest in REITs or anything paper.

I do not invest in Hawaii, California and New York because of the taxes. Real estate is really not about real estate. It’s about debt, taxes and laws. I go to the areas that are favorable to investors, to capitalists. I stay out of areas that are more socialist-inclined, like California.

Monday, September 19, 2016

Learn about numbers and accounting to get good financial education

I flunked out of school three times, because I can’t write, and I couldn’t type. 

I flunked out of accounting. What do I write all day about? And type all day about? Accounting. Accounting is the subject. If you’re going to do anything, start with a bookkeeping course. You’ve got to know your numbers. Numbers tell you a story. After you get through a basic bookkeeping course…then you can take basic business accounting. 

That’s how you learn, it’s in the numbers. If you can’t read the numbers, you don’t know what’s going on. It’s not that hard to get ahead quickly because most people highly educated, with good grades, have no financial education.

Wednesday, September 14, 2016

You can learn things from others even if you are very smart

Choose your teachers wisely. In Sunday school, in the story of Christ, there are the Three Wise Men. They went in search of a teacher. That is the key to life. No matter how wise you are, you can always learn from someone else.

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Monday, September 12, 2016

What job should young people go for

Don’t just look for money and a high-paying job. That’s selling yourself like a whore. The question I ask young people is, ‘What would you do for free? If you could do anything, what problems do you want to solve?’ Go find a way to solve it.

Everybody is born an entrepreneur. I never met a child not interested in money, but the system beats it out of you. Take a job for what you want to learn.

What life skills do I want to accomplish? How am I going to get those life skills? If you’re going to be dangled by a paycheck, you’re a whore. That’s really what you are.

There are fewer jobs today. We need more entrepreneurs to create jobs. Our schools create employees. That’s the crisis right now.”

Wednesday, September 7, 2016

The Fed is stuck

The Fed is in a precarious position. They've propped up the economy for so long with artificially low interest rates that they have to time the increase of those rates nearly perfectly or risk an economic crash.

As San Francisco Federal Reserve Bank President John Williams said, "If we wait until we see the whites of inflation's eyes, we don't just risk having to slam on the monetary policy brakes, we risk having to throw the economy into reverse to undo the damage of overshooting the mark."

What could this damage look like?

Spencer Jakab, blogging for The Wall Street Journal provides one example. Jakab points out that years of "ultra-low interest rates" led to lots of average Joes and Janes investing in "into funds owning stocks or bonds offering at least a little bit of yield."

Jakab writes, "…a recent paper co-authored by a Fed economist warned of the possibility of 'run-like behavior' in such funds when rates eventually rise."

If you know anything about bubbles, the term "run-like behavior" should raise your eyebrows.

For years, the Fed has pushed people into investments through low interest rates that will start to underperform at best or crash at worst once those rates are raised.

The average investor always gets hurt

For the professional investor who knows how to read the signs of the times, and for big banks on Wall Street who get a heads up well ahead of the time, this is not an issue. But as Jakab rightly points out, the average investor is usually left in the dust.

This is the problem with investing in funds. They are designed for those with low intelligence-those who don't actively manage their investments. When markets drastically change, however, these passive investors lose-often big.

Increase your paper asset IQ

Personally, I'm not a big fan of investing in paper assets like stocks, bonds, and mutual funds. I prefer real estate, commodities, and my business. But paper is a legitimate asset class where your can do well-provided you know how to play the game.

Today might be a good time to take a look at your portfolio, and to take back control of your investing. If you don't know how to invest like a pro, it might be time to start your education.

Monday, September 5, 2016

Neither Donald Trump or Hillary Clinton can fix our economy

I hate to say this but I don’t think it makes a difference who wins the election. It’s the bankers, the Fed, that control the whole world economy, not a president. Donald Trump is my friend. I’m going to vote for him. I think he is a great man. But unfortunately I don’t think it makes any difference at this time. The problem is too big.”