Paperback: 304 pages
Publisher: Warner Business Books; Reprint edition (January 2004)
Language: English
ISBN-10: 0446690341
ISBN-13: 978-0446690348
Robert Kiyosaki’s book links the impending US market crash to the nation’s 401(K) law. Within the next 20 years, the law encouraging the current way of preparing for retirement would be unsustainable. As the baby-boomers get older and retire, they would withdraw their investments from the stock market, causing a huge demand deficit and hence causing a crash. Kiyosaki also relates well to the changing demographics with the coming crash.
Kiyosaki urges us to start ‘building our arks’ for the future. His safest bet is on financial education. Paper-assets-diversification is for people who don’t have time to educate themselves financially. But if you are a savvy investor, the way to go is concentration. Concentration amplifies the returns due to the risk but education reduces the risk. The only diversification we should do is education and between asset classes. Kiyosaki also advises us to learn to start small and to build our own businesses.
He challenges our financial assumptions and draws our attention to the CASHFLOW Quadrant.
The trends are predicted to occur in the near future are:
- Millions will be destitute in their old age.
- Increasingly expensive medical care
- Increased terrorism
- Japan will be on the brink of collapse and depression due to demographics and culture.
- China will become the largest economy
- The world population will continue to age.
- Wall Street obsolescence
- Decline of the huge corporations
The controls over one’s Ark
- Self – know your financial status and be educated
- Emotions – the 3 levels of controlling thought
- Excuses
- Vision – lookout for emerging technologies and declining (huge, existing and replaceable) technologies
- Rules
- Advisors
- Time (ultimately self)
- Destiny
This book is a good read and is simple for any beginner who is interested in embarking on a quest for his/her own ark.
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