If you or your clients have never read “Rich Dad Poor Dad” by Rober Kiyosaki, I recommend you do so now. This book has impacted almost every investor who has read it. It provides a good call to action for many who have been lulled into a false sense of security in the status quo.
“Rich Dad Poor Dad” is a good starting point for new investors – a motivating overview of the difference between what is taught in most schools and homes and what is actually observable in the financial arena. The presentation is simple and straightforward and has provided many with a paradigm shift that resulted in change. The book heavily advocates financial education and the accumulation of assets that pay, but does not provide a step-by-step guide to asset building. For example, this book references the use of 1031 exchanges as a way to shelter gain on the sale of investments and accelerate the growth of your investments – but it does not get into the particulars of that asset protection tool. Rather, it provides a foundation of six lessons:
Lesson 1: The rich don’t work for money
Lesson 2: Need for financial literacy
Lesson 3: Focus on the asset column
Lesson 4: Taxes & corporations
Lesson 5: The rich invent money
Lesson 6: Work to learn – don’t work for money
This book is recommended for anyone with an interest in building wealth. Despite the criticism it has received for being a work of fiction and downplaying risk, it provides a framework for thinking and acting differently regarding work, money and asset building. While it should not be considered the definitive word on any topic, it has been the catalyst for thousands of real estate investors and entrepreneurs. “Rich Dad Poor Dad” is a primer that can launch a lifetime of financial education and, hopefully, action toward wealth building. It should be on everyone’s reading list.