Conspiracy of The Rich blog : Learn with Rich Dad Robert Kiyosaki how to Survive and thrive in today's economy, how to build assets, how to save money and increase your financial success, how to invest wisely and how to plan your path to financial achievement

Wednesday, May 25, 2011

The 4 Asset Classes

An asset is something that puts money in your pocket whether you work or not,there are primarily 4 asset classes the first is business sometimes it is the toughest especially if it is a business that you own and operate it could also be somebody's business that you have invested in , the second is real estate , primarily rental real estate because it brings cash flow , you would like your property to give you a profit every month , the third asset class is paper stocks bonds mutual funds this is where 95% of the people are invested in because it is the easiest investment to do , it is easy to buy and sell stocks it is also very liquid the negatice side of it is that you have no control when you buy stocks , you have no control over the operation of that business , the fourth asset class are commodities , Gold Silver Oil Gas things like that , the right way to diversify is to diversify in all 4 asset classes and not in just one

Rich Dad Poor Dad is the story of Robert Kiyosaki's financial education. He had two 'dads' - one his real dad, who was poor, and the other, his best friend's dad, who was on his way to becoming a very rich man.