Text 17969, 179 rader
Skriven 2006-02-26 14:19:00 av Jeff Binkley (1:226/600)
Ärende: What out government run schools don't teach
===================================================
From the author of the "Rich Dad Poor Dad" series...

=====================================

http://finance.yahoo.com/columnist/article/richricher/2652

Why Many Aren't Securing Their Financial Future
by By Robert Kiyosaki

Tuesday, February 21, 2006

Most people know they should invest, just as most people know they should watch
their diet and exercise. Nonetheless, millions of people -- I estimate that 80
percent to 85 percent of Americans -- don't invest at all. What I mean by this
is that these people aren't active investors.


An active investor is someone is someone who actually lives off their
investments as opposed to wages from a job. My investments deliver a stream of
cash flow every month, and I, like other professional investors, don't need a
job.


It's similar to the difference between amateur and professional golfers:
Amateurs may be very good players, but can they live off their golf game? A
professional can withstand the heat of competition and has the mental toughness
and the physical skills to create a stream of income.


At age 65, many amateur investors "turn pro" -- whether they like it or not.
And that's a frightening thought.


In this article, I take a humorous as well as a more serious look at why people
don't invest. A thank you to John S. Baen, Professor of Real Estate at the
University of North Texas, for creating this list of why people don't invest --
even though they know they should.


Why People Don't Invest: 12 Humorous Reasons


They're already paying into Social Security.

Their budget includes $20 per week for lottery tickets, which is bound to pay
off soon.

They believe that inflation means their money will grow.

Old people don't eat much anyway.

They sit at home waiting for the Publishers Clearing House van to pull up in
their driveway and deliver their check.

Their money is safely buried in the backyard.

Their rich Aunt Melba will die soon.

Little Matilda is sure to make it big in Hollywood.

They can cash in their Dallas Cowboy collector glasses when it's time to
retire.

Their dot-com stocks will come back to life.

They'll write a book and live off the royalties.

They plan on marrying a young wife/husband when they're 60 and depend on their
financial support.
Sometimes we need a break from the seriousness of why we invest and take a
moment to laugh a little...or maybe cry. Unfortunately, even though funny, this
list contains many truths.


Investing for Cash Flow


The sad thing is: Many people think they're investors when they're not. Lots of
people think their 401(k)s and IRAs, which have stock, bond, or mutual fund
holdings, are investments, but I consider them savings plans. People with such
retirement plans are what I call passive investors. They're simply "saving" for
retirement.


Similarly, if you own your home and live in it, I don't consider it an
investment. Without cash inflow monthly (and with money going out each month
for mortgage payments, utilities, property taxes, insurance, and maintenance),
your house is a liability, not an asset. It might become as asset -- if you
rent it out for income each month that exceeds your expenses on it, or when you
sel

Most professional investors invest for cash flow first and capital gains
second, and, ideally, you want both (see "Investments That Pay Today -- and
Tomorrow"). Rich dad told me many times: Investing for capital gains is
gambling, not investing.


And remember: You don't need money to make money. Many of those people who
don't invest cite that reason -- "I don't have the money to invest."


But there's OPM (Other People's Money) everywhere -- if you've trained yourself
to see opportunities around you. How do you do that? Invest in your financial
education. Learn how to spot good opportunities and how to turn a seller's
problems into your profits.


Perhaps the best example of OPM is a bank as your real estate investment
partner. They will loan you the lion's share of the money and allow you to take
100% of the tax advantages, depreciation, and capital gains.


Apart from a light-hearted look at why people don't invest, there are serious
reasons for their inaction:


1. They have an entitlement mentality.


When the word entitlement is used, many people point an accusing finger to the
poor and those on welfare. Yet, the sad truth is many people have an
entitlement mentality. Starting with the President of the United States and
working down, millions of people expect the government (or a business) to take
care of them once their working days are over. This despite the shaky financial
footing of Social Security and Medicare.


My rich dad believed we should all learn to take care of ourselves. I agree and
believe it's about time our schools teach people to take care of themselves,
rather than believe they're entitled to government support.


2. They lack vision.


Millions of people cannot see past tomorrow. It was Tolstoy who said: "The most
unexpected thing that happens to people is old age." This year, the first Baby
Boomers turn 60.


As an older Boomer, I hear many peers say, "I don't have to worry. I'll just
keep working." They don't see that the day will come when their body cannot
work anymore -- if they're lucky to live that long.


The cost of long-term care exceeds what most people earn today. For example, a
friend pays over $6,000 a month to keep his mom in a modest facility -- that's
more than most families earn monthly. What's going to happen when 75 million
Baby Boomers start needing long-term care?


Today, I also hear young people blithely saying, "I'm still young." Whenever I
have the opportunity, I remind young people that the Baby Boom problem is
really theirs to finance.


3. Our school system doesn't teach us much about money.


"Go to school to get a job" is common advice. But that idea echoes the
entitlement mentality, the idea that once you have a job, the company and the
government will take care of you. It also reflects a lack of long-range vision.
Today, we need to be educated about money beyond just "getting a job." We need
to be educated for life after a job, after our working days are over.


The entitlement mentality and myopic vision stem from one place -- our schools
and the lack of financial education in our educational system. It's time for
our educational system to enter the 21st century and prepare people for the
real world.


Author's note: Send me your top three reasons why people don't invest for
inclusion in a future Yahoo! Finance column. Send them to:
kiyosakionyahoofinance@richdad.com. Please use "Three Reasons" in your subject
line and include your name, city/state/country and e-mail address.

--- PCBoard (R) v15.3/M 10
 * Origin:  (1:226/600)