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Unfair Advantage

Why Are Investors Losing? FAQ Why are uneducated investors losing so much? Short Answer They invest without insurance. Explanation You do not drive a car without insurance. You do not buy a house without insurance. Yet when most investors invest, they invest without insurance. When the stock market crashed, they lost because they had no insurance. When I invest in real estate I have insurance. If the building burns down, my losses are covered. Even my loss of income is insured. The biggest losers in the last crash were investors who had their money, uninsured, in retirement plans, plans like the 401(k) in the United States. That is beyond risky. That is foolish. We all know the markets will crash again, yet most investors invest without insurance. FAQ How long did the Great Depression last? Short Answer 25 years. Explanation In 1929 the Dow hit an all-time high of 381. It took till 1954— 25 years—for it to reach 381 again. This is the problem for those investing for capital gains. This is why gold investors who rushed in late in 1980 to buy gold at $850 an ounce have not yet recovered. This is why baby boomers who were counting on their retirement plans filled with a diversified portfolio of paper assets and their home’s appreciation (capital gains) for their retirement are in trouble today. 135

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Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

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