Rich Dad Poor Dad

story of and The P

ght it was a wonderful story of a romantic hero, a Kevin Costner type, who robbed from the rich

ten I still hear people say, "Why don't the rich pay for it?"

the middle class. The reason the middle class is so heavily taxed is because of the Robin Hood ideal. The real reality is

We need to look at the history of taxes. Although my highly educated dad was an expert on t

levied in order to pay for wars. The king or the president would put the word out and ask everyone to "chip in." Taxes were levied in

ndment to the Constitution. At one time, Americans were anti-tax. It had been the excessive tax on tea that led to the famous Tea Party in Boston Harbor, an inci

ned that the idea of taxes was made popular, and accepted by the majority, by telling the poor and the middle class that taxes were created only to punish the rich. This is how the masses vot

money and hire people. The more he spends and the more people he hires, the larger his organization becomes. In the government, the larger his organization, the more he is respected. On the other hand, within my organization, the fewer people I hire

erely believed that

r the Peace Corps training volunteers to go to Malaysia, Thailand and the Philippines. He always strived for additional grants and incre

would hear how the rich were greedy crooks who should be made to pay more taxes. Both sides have valid points. It was difficult to go to work fo

masses believed in the Robin Hood theory of economics, which was to take from the rich and give to everyone else. The problem was that the g

hicle to limit their risk to the assets of each voyage. The rich put their money into a corporation to finance the voyage. The corporation would then hire a crew to sail to the New World to look for treasures. If the ship was lost, the crew

Rich Pla

s reduced/dimini

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(through perso

gan to realize that the philosophy of the capitalist made more financial sense to me. It seemed to me that the socialists ultimately penalized themselves, due to their lack of financial education. No matter what the "Take from the rich" crowd

t to government workers in the form of jobs and pensions. It went to the rich via their factories receiving government contracts. The government became a large pool of money, but the problem was the fiscal management of that money

. Business people, on the other hand, are rewarded for h

reased and the "Tax the rich" idea was now being adjusted to include lower-incom

h some legal documents in it, sitting in some attorney's office registered with a state government agency. It's not a big building with the name of the corporation on it. It's not a factory or a group of people. A corporation is merely a legal document that creates a legal body without a soul. The wealth of the rich was

m is, the people who lose are the uninformed. The ones who get up every day and diligently go to work and pay taxes. If they only understood the way the rich play the game, they could play it too. Then, they would be on their way to t

eir taxes. In my opinion, that is a long time. The harder you work, the more you pay the government. T

to punish the rich,

arily pay more taxes. They search for ways to minimize their tax burden. They hire smart attorneys j and accounta

1031 of the Internal Revenue Code, which allows a seller to delay paying taxes on a piece of real estate; that is sold for a capital gain through an exchange for a more expensive piece of real estate. Real estate is one investment vehicle that allows such

y because they are afraid of the government. And I do know how frightening and intimidating a government tax agent can be. I have had friends who have had their businesses shut down and destroyed, only to find out it was a mistake on the part of the government. I re

to recognize his power and desire to have that power for myself one day. For all the years I studied J and learned from him, he always reminded me that knowledge was power. And with money comes great power that requires the right knowledge to kee

y, is really all about power. If you work for money, you give the power up t

king about, you have a fighting chance. That is why he paid so much for smart tax accountants and attorneys. It was less expensive to pay them than pay the government. His best lesson to me, which I have used most of my life, is "Be smart and you won't be pushed

ke of the virtues of "working your way up the corporate ladder." He didn't understand that, by r

r's advice, he only chuckled. "Why

idea that seemed impossible, and intimidating. Although I was excited by the idea, my youth wou

of owning my own corporation alive and kept me on a different path. By the time I was 15 or 16, I knew I was not going to continue down the path my educated dad was re

y, but every time I looked at my paycheck, I was always disappointed. The deductions were so large, and the more I worked, the greater the deductions. As I became more succe

dy a few assets in my asset column, but now I was determined to focus on making it bigger. Those paychecks with all the deducti

, amassing as much money as possible so I could begin investing in real estate. Hawaii was just set to boom, and there were 4 fortunes to be made. The more I realized we were in the beginning stages of a boom, the more Xerox machines I sold. The more I sold, the more money I made,

t column, in my own corporation, was money working for me. Not me pounding on doors selling copiers. My rich dad's advice made much more sense. Soon the cash flow from my propert

ployee, working hard to make more employees and buy the boss a new Porsche with before-tax d

ledge I had acquired through these lessons. Without this financial knowledge, which I call financial IQ, my road to financial independence would have been much more difficult. I now teach others

r, the more accuracy is required, or the house comes tumbling down. This is the left brain side, or the details. Financial literacy is t

making money. This involves strategies and formulas

on driven; the Tickle Me Elmo doll during Christmas 1996 is a case of a technical or emotion-driven market. The other market factor is the "fun

it at the top of their Christmas list. Many parents wondered if the company intentionally held the product off the market, while continuing to advertise it for Christmas. A panic set in due to high demand and lack of supply. Having no dolls to buy in the stores, scalpers saw an opportunity to make a small fortune from despera

ndividual with the knowledge of the tax advantages and protection provided by a corporation can get rich so much faster than someone who is an employee or a sm

e pay for expenses before it pays taxes. That is a whole area of expertise that is so

the rich use. They're easy to set up and are not expensive if you own investments that are producing good cash flow. For example; by owning your own corporation - vacations are board meetings in Hawai

rom creditors. When someone sues a wealthy individual they are often met with layers of legal protection, and often find that the wealthy person actually owns nothing. They control everything, but own nothing

ll say that if you own any kind of legitimate assets, I would consider finding out more about

the steps necessary to set up a corporation. One book in particular, Inc. and

he four technical skills listed above that make up basic financial intelligence. If you aspire to great wea

sum

rporations The People

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gy, we strongly recommend owning your ow