Unfair Advantage I did not want to climb a corporate ladder in the E quadrant either, nor did I want to be a very special specialist in the S quadrant. So I took the path less traveled and decided to become an entrepreneur and professional investor. I wanted the freedom to travel the world, do business, and invest. It was my choice. I do not recommend that path to everyone. But I do recommend that a person choose. That is what freedom is: the power to choose. I encourage you to look at the five levels of investors and make your choice. Each level has its pros and cons, its advantages and disadvantages. Each level has a price greater than money. If you choose Level 1, 2, or 3, there are many other people and organizations qualified to support your investment life at those levels. In 1997, Kim and I created The Rich Dad Company to provide educational games, programs, and coaches for those individuals who seek to be Level-4 and Level-5 investors.
A Final Word on Investing In the world of money, you’ll often see the term ROI, Return On Investment. Depending upon whom you talk to, ROI will vary. For example, if you talk to a banker, he or she may say, “We pay 3 percent interest on your money.” For many people, this may sound good. If you talk to a financial planner, they may say, “You can expect a return on your investment of 10 percent per year.” To many people, a 10 percent return is exciting. To most people, especially those on the E and S side of the quadrant, the higher your return, the greater the risk. So the person accepting a 10 percent return already assumes there is more risk in that investment than the 3 percent return from the bank. And there is. Ironically, both the 3 percent return from the bank and the 10 percent return from the stock market are extremely high-risk. The money in the bank is at risk due to inflation and higher taxes caused by banks printing money. The 10 percent in the stock market is at risk due to volatility caused by HFT (high-frequency trading) and due to the novice investor investing without insurance. 227
by Rich Dad, Robert Kiyosaki