Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki

#

In This Chaotic Market, Stay Steady With These Solid Investing Tenets

~ By Anne Kates Smith ~ Kiplinger’s Personal Finance What are we supposed to make of this whiplash market? I’m certain that the only sane way to play the crazy ups and downs is to hold fast to the investing tenets we at Kiplinger have preached for years (that’s why they’re tenets). Among them: ?  Most investors are lousy market-timers. So don’t attempt it, period. Take a look at a couple of the worst months for mutual fund net redemptions on record: In October 1987, investors withdrew 3.6 percent of stock-fund assets, and in July 2002, the net outflow was 2.05 percent, according to the Leuthold Group, a research firm in Minneapolis. A year after investors bailed, the Standard & Poor’s 500-stock index was up 10.8 and 8.6 percent, respectively. The two-year gains were 35 and 21 percent, respectively. ?  Calling market bottoms is a futile exercise. The stock market typically bottoms just past the midpoint of an economic downturn. One year past the trough, the average gain — dating back to 1892 — is nearly 44 percent, says Leuthold. ?  It’s all about buying low and selling high. No need to fixate on market legends such as Joe Kennedy or Warren E. Buffett. Regular folk can ensure they are buying low and selling high by dollar-cost averaging and rebalancing their portfolios. By Definition, dollar-cost averaging (investing the same dollar amount in the market at regular intervals) gets you more shares when prices are low and fewer when prices are high. Just as important, and maybe more so, averaging forces you to keep putting money into stocks (or stock funds) when you might otherwise not do so — that is, when share prices are falling. If you are contributing to a 401(k) or other similar plan, you are dollar-cost averaging. ?  No market is a monolith, so you have to diversify. The stock market’s dismal performance this year has challenged the conventional wisdom about the desirability of diversification. Just about every sector and every foreign stock market has sunk. Most segments of the bond market have lost money, too, although it has been possible to eke out a positive return by investing in Treasury bonds. My guess is that this year will turn out to be an anomaly. So I stand by the tried-and-true formula of maintaining a diverse portfolio, which you can achieve by investing in a mutual fund that is pegged to a broad index, or by holding a mix of funds, including those that focus on small-company stocks, large-company stocks, stocks of fast-growing companies, bargain-priced shares, international stocks and so on. For a graphic illustration of...

Read More

BlogTalkRadio: US Economy Turmoil

South Asian Journalists Association (SAJA) presents a talk radio show on 24 Sep, discussing the various aspects of the turmoil in the current U.S. economy. Speakers includes: Vikas Bajaj, business reporter, The New York Times; Anirvan Banerji, co-director of research at the Economic Cycle Research Institute; John Laxmi, co-founder of a New York-based private equity firm with $4 billion under management (and SAJA treasurer); Sudeep Reddy, economics reporter and “Real Time Economics” blogger, The Wall Street Journal.   BlogTalkRadio: US Economy Turmoil Share and...

Read More

How to Boost Sales in Tough Economy

As I wrestle with a decision to move to the MAC platform I get an e-mail from a CRM company Avidian.  The e-mail is not only spot on, it can make the difference between pass and fail in a business environment.  The information James Wong offers are a few simple suggestions and he has the software to to enable the suggestions if you would like a little support. by James Wong, CEO Avidian In today’s struggling economy, maintaining strong sales growth can be a greater and greater challenge. It’s OK to sulk for a little while but now that you are done with sulking, it’s time to take action to maintain or continue your growth. One of the most efficient solutions to this problem is to focus on creating better processes and leverage the existing tools you already have while spending very little money.   Here are six tips to help grow your sales and leverage your existing resources:  Be more organized. Know who your current customers are, who your prospects are and how you became aware of them. Keep all information regarding customers and prospects up to date so that you have accurate data available when needed. If you are an Outlook user, you can be more organized by leveraging Outlook’s contact, calendar and tasks features. You can also keep an Excel spreadsheet of contact information but that can get arduous if you have many contacts. Some of you might need more sales features than what Outlook has to offer and if that is the case, please consider checking out Prophet.  Focus on the funnel. At any given time, your sales cycle will include various deals at different stages of completion. Tracking where specific clients are in this sales cycle is vital to ensuring that none of these deals fall through the cracks. To keep track of your sales pipeline, develop a list of milestones that you would like achieved by your sales team. These milestones will be different for every business, but should include three to five decision or contact points. For example some contact points might be the initial contact, a follow-up, a verbal agreement and finally a written contract. CRM programs like Prophet can help with this and it’s easy because it’s built right inside of Outlook. Again, you can create a spreadsheet listing each individual sale, where each sale is in the sales process and the estimated date of closure. However if you have many opportunities or want to share the information, getting a CRM application makes sense.  Track who your evangelists are and thank them. It is important to keep track of your customers, but...

Read More
Meet Neel Kashkari: The Man With the $700 Billion Wallet
Oct20

Meet Neel Kashkari: The Man With the $700 Billion Wallet

– Wall Street Journal | Oct 6, 2008  – – Posted by Heidi N. Moore  – A Goldman Sachs Group alumnus in charge of the nation’s economic rescue? How unusual. Except, of course, it isn’t. As The Wall Street Journal’s Deborah Solomon reported today, Treasury Secretary Hank Paulson is promoting Neel Kashkari, the Treasury’s assistant secretary for international affairs, to be the point man overseeing the $700 billion financial bailout as the interim head of Paulson’s Office of Financial Stability. The full appointment would need Senate confirmation, which is unlikely to come given the short remaining tenure in this Administration. The move essentially puts a new title on what Kashkari he has been doing since he joined Treasury in 2006–examining the consequences of an economic housing fallout. Kashkari was one of three Treasury staffers–including general counsel Robert Hoyt and head of legislative affairs Kevin Fromer–who stayed up until 4 a.m. last Sunday putting together the $700 billion bailout bill that was shot down by House Republicans the next day. Kashkari is an Indian-American who has a few things in common with Paulson . Both are former Goldman Sachs bankers, though Kashkari, at 35 years old, is much younger and was just a vice president-level banker in Goldman’s San Francisco technology banking effort when Paulson tapped him to join Treasury. Both also are Midwesterners. Kashkari grew up in Stow, Ohio, and earned a bachelor’s and master’s degree in engineering from the University of Illinois at Urbana-Champaign. Paulson was raised in Barrington Hills, Ill. And both sport similar hairstyles– or lack thereof. Kashkari didn’t take a conventional route into banking. He started out as an aerospace engineer at TRW, developing technology for NASA projects like the James Webb Space Telescope, the replacement to Hubble, which is scheduled to launch in 2013. He earned an M.B.A. at the University of Pennsylvania’s Wharton School of Business. While there, one of his professors was Michael Useem, who liked to put students through grueling, Outward Bound-type strengths of endurance and strategy. Kashkari participated in one Army simulation in 2002 at Fort Dix, where he was quoted in this 2002 Philadelphia Inquirer article in a comment just as applicable to today’s financial crisis as the project he was working on: “We were all taught to play nice,” Kashkari said. “So who’s going to fight in the sandbox?” After Wharton, Kashkari joined Goldman and worked in San Francisco, where he advised companies that create computer security programs like antivirus software. He and his wife, Minal, still keep a house in California. Paulson likes to surround himself with people he’s comfortable with: people, mostly, from Goldman Sachs. Paulson’s inner...

Read More
4 Kinds of Money
Oct18

4 Kinds of Money

Excerpted from:4 Kinds of Money Share and...

Read More
Real Estate Investment for Retirement
Oct16

Real Estate Investment for Retirement

Many Americans aren’t going to end up with money to retire on. These days, it’s a sad fact. Instead of complaining about that reality (and the injustice of it all) the best action someone who wants to retire can do is simply make sure they aren’t the average American. They need to take steps to make sure they will have the income to enjoy their retirement and be able to pay their bills, including their ever-increasing medical-bills. The most effective way to avoid being one of these Americans who wind up working at some remedial job through their retirement, based on the opinion of Robert Kiyosoki, author of the “Rich Dad Poor Dad” book series, is to invest in real estate. Buying investment property is an excellent way for people to prepare for our retirement because it supplies a great benefit called “passive income”. After someone has done the preliminary work, passive income keeps coming in without a lot of effort. A typical worker gets paid only for the time he puts in. A real estate investor, after developing her system, makes money for keeping it running. And keeping it running, if she been very clever about it, will involve paying his employees to do the job of checking up on them every now and then. A best thing about passive income (such as from investment properties) is, the more time the investor keeps them, the more ROI they should make for him/her, with less and less effort on the investor’s part. It’s the nearest thing to magic we will ever find in the world of finances. It sounds attractive, but one should never simply take the plunge without looking first. Although it is all very learnable, there’s quite a bit to learn when you are thinking about real estate investing – things like comprehending economics and the laws related to real estate. The most important concept to understand, however, is one’s own personal limitations. The person who knows where to locate the information she wants is much better off than the person who remembers tons of facts and formulas around in his/her memory. In the book “Cash Flow Quadrant,” Robert Kiyosaki teaches newbie investors to raise their income as well as their knowledge. Mr. Kiyosaki writes of creating a business system that will set up and left alone, freeing up the owner to move on to the next deal instead of spending all his/her time babysitting his/her business. The next step is to continue that real estate education and start to look around for specialists to employ and property to acquire. Robert Kiyosaki also refers to this change...

Read More

Saving’s not enough, invest your money

When we hear the word money, what comes to mind — savings in banks, investment in mutual funds, investment in equity, investment in real estate, investment in antiques? In my opinion, it is a combination of all. Investment gurus call it the ‘diversification of portfolio’. We learn the discipline to manage money effectively outside the classrooms. It reminds me of an old incident. Once, almost 20 years ago, I visited my friend and we were busy talking when her young son entered happily, showing his mom a $100 note gifted by his granny. All he wanted to do with it is buy chocolate. His mother explained to him that chocolates are unhealthy and he should do something else with the note, preferably put it in his piggy bank. Reluctantly, he agreed. A few months later, I happened to visit her again. That day she was busy with her son, helping him open his piggy bank, overloaded with coins and notes. They both counted them and were delighted that the total was beyond their expectations. Again this time as a responsible mother, she advised him to put this fund into a savings account. She taught him to fill up the deposit slip. The boy tried, but could not. So his mom filled the slip and he left for the bank along with an office help. Years rolled by, and his mom is now proud of his saving habits. However, the amount is earning interest only in the bank. “To save must be a habit of childhood, but to invest must be the habit of adulthood.” My friend, as a responsible mother, could reach only her son’s childhood and not beyond. What is the count of your investment portfolios? Are you working for money or is money working for you? “The poor and the middle-class work for money. The rich get the money to work for them”- Robert Kiyosaki, the author of Rich dad poor dad said in the book. It’s generally seen that many people have the habit of switching off their minds when it comes to money matters. People in the other category have a habit of exercising their minds when it comes to money. The difference depends on many criteria. It doesn’t matter if the child doesn’t listen to you, or doesn’t obey you. The child always observes you. Since childhood, we listen to and observe many things in our parents, teachers, friends and others. This plays a vital role in developing our thinking patterns. I will explain two different thinking patterns by picking up some of the effective sentences from Rich dad poor dad. Generally, we veer...

Read More
Cashflow at La Tazza
Oct13

Cashflow at La Tazza

We had a great game of Cashflow 202 Saturday night, October 11th at La Tazza, in downtown Leominster. James, Dan, Marria and myself played. Anita McHugh dropped by for a while before she had to take off. Lee got out of the Rat Race first, about an hour into playing, followed a few turns later by James, then Dan and Marria. James won first thanks to striking oil with the Russian oil deal. These things happen in life; you have to be willing to take a risk. In real life, this sort of thing would be open to qualified investors (anyone in the Fast Track is) because of risk and in James’ case, it would not have negatively impacted him if it had not succeeded. We continued playing and I was able to buy another business on the next turn or two which put me over the $50K per month increase in cash flow and I already had two dreams. We called the game at this point because it was still early and Dan had a long ride home. We didn’t actually start until 7PM or so and we were done by 9:30PM. Now that was a fast, focused game and we ate dinner while we played. In this game, we all played the business manager but started with different starting portfolios. I started with a small amount of cash and a smallish stock portfolio. Initially, I had not been able to buy any real estate on my own (not enough money and I didn’t go heavily into debt) but I was able to partner profitably. I also was able short and option stock and sold my initial portfolio after a while without the companies failing. That allowed me to progess slowly in passive income and generate over $500K. I wasn’t negatively affected by a bad economic outlook and diminished rents. Then, with lots of cash on hand, I was able to buy a lot of junk bonds with a conservative yield that but me out of the Rat Race and on to the fast track. I never was able to lend privately to the Rat Race as all had sufficient cash. I stayed and talked with Stephanie, the owner, and patrons of La Tazza until just after midnight. I like the place and really enjoyed the political discussion. It also was good for another reason because I was given a strong lead for a potential deal. I’m not saying this to brag but. I’m saying this to share what this experience shows: if you are in the market for (insert item here), TELL PEOPLE! I don’t care if...

Read More
He’s #1!
Oct13

He’s #1!

Warren Buffett has has once again become the wealthiest individual because of market volatility and shrewd buys. Would you believe his networth INCREASED by $8B last month? Click and learn more. Wow! Forwarded by Danielle. Read more: He’s #1! Share and...

Read More

As Capitalism Crumbles, U.S. Taxpayers Pick Up the Pieces

~ Robert Kiyosaki As we all know, the world changed drastically on Sept. 11, 2001, when the twin towers of the World Trade Center fell. This year, on the eve of Sept. 11, the twin towers of Fannie Mae and Freddie Mac crumbled. Then, on Sept. 15, Lehman Brothers and Merrill Lynch disappeared. Actually, that was a triple-tower collapse if you count AIG. In a few years, the biggest pair of towers will collapse: Social Security and Medicare. Even today, they’re looking shaky. How many ground zeros can we as people, a nation, and a world withstand before we admit something is very wrong with our global financial systems? What will it take to wake us up? Government Can’t Fix It Personally, I believe the biggest it’s a problem that so many Americans are looking to this year’s presidential candidates, Barack Obama and John McCain, to save our financial system. How did we become so financially weak that we surrender our economic independence to politicians? Where does it say in the Constitution that the government should solve our financial problems? And why have so many people throughout the world come to expect financial life-support from their political leaders? It seems most people will vote for anyone who promises a chicken in every pot and a guaranteed mortgage payment. We’re in the midst of a problem neither candidate can solve: A lack of comprehensive financial education in our school systems. What else explains the economic blunders committed by our political and financial leaders? Or why so many consumers are in debt up to their eyeballs? Or why millions of people expect a quick government fix of some kind? Under Water A few months ago, a friend of mine from Hawaii asked me if I wanted to buy his new powerboat with twin motors. Apparently, in late 2007, he purchased it brand new for approximately $85,000. His plan was to refinance his house when it appreciated in value and use the difference to pay for the boat. Failing to obtain new financing, he called to ask me if I would buy the boat from him — just take over the payments and it was mine. I passed, and the bank eventually repossessed his boat. Later, his wife called to tell me he’s now having problems making his mortgage payments. Apparently, my friend planned to pay for his house the same way he planned on paying for the boat, by refinancing his debt. I mention this story because it illustrates the problem Obama or McCain face: Limited financial education and diminished financial common sense. Apparently, my and the nation’s business leaders all...

Read More
Page 39 of 58« First...1020...383940...50...Last »