Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!

I picked this up to listen to on the bus. I sometimes got annoyed with the gimmick of referring to his "rich dad". He does a lot of promoting of his other books and products.

To sum it up - start a business, invest using the business.

I did find his point of your home not being an asset. It has value which you could get when you sell, but until if in when you sell it is costing you money and bringing nothing in.

I wonder how his "poor dad" feels about being held up as what not to do? It seems like he considers his "poor dad" a failure.

A very controversial book. I believe Rich Dad is fictional. Some interesting information in it nonetheless. To become rich, one has to run a business: working a 9-5 job and a good education will not get your rich.

Bearing in mind that this book is directed at teaching your children, the first half is fairly introductory, but the second half launches into more tax-related ideas. In addition, I prefer a financial book that is a little more practical rather than heavy on the exhortation.

What I learned or what was reinforced:
* Don't quit your day job to become an investor!
* Keep learning, especially about finance and investment.
* The required financial knowledge is (1) accounting; (2) investment strategy; (3) market research; (4) law, specifically tax law.
* Paying yourself first means buying assets first and then paying your expenses, even if you miss a payment--with the admonition against piling up consumer debt, mainly credit card debt. (My thought show more is probably because it immediately accrues interest, late charges, and other fees. He could do a better job of explaining this.)
* Assets are things that generate you income without you being there. For example, royalties from books. Yay!
* Don't invest in something or buy an asset that you don't love; you won't take care of it.
* Go broke before you're 30; you'll still have time to recover.
* The US income tax was made permanent in 1913.
* Passive investments (for example, stocks, bonds, mutual funds, real estate) are generally taxed less than regular income.
* Corporations (probably LLCs too--but they are also superior to sole proprietorships) are not taxed as heavily as individuals and they can deduct many more expenses than individuals.
* Because the "rich" are more heavily invested in passive investments and corporations, they are not taxed as much as the poor or middle class.
* 1031 tax-deferred exchange = if you buy another property with the proceeds of another property sale, then you can defer taxes on that sale. Don't know if it still exists.
* Teach your kids how to invest. show less

This book helps to find out HOW to use your money to make money for you.

Where: Trivandrum, Goa, Rishikesh

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Where: Trivandrum, Goa, Rishikesh