Gentle Reminder 10 Years Later

In 1973, rich dad reminded me of that discussion we had when I was 15 years old. "Do you remember me asking you which side of the table you want to sit on?" he asked.

I nodded and said, "Who could have predicted back then that my dad, the proponent for job security and lifelong employment, would be sitting on the other side of the table again, at the age of 50? He had everything going for him at 40, and it was all over just 10 years later."

"Well, your dad is a very courageous man. Unfortunately, he did not plan for this happening to him and now he's getting into professional as well as financial trouble. It could get worse if he does not make some rapid changes. If he keeps going with his old beliefs about jobs and job security, I am afraid he will waste the last years of his life. I cannot help him right now but I can help guide you," said rich dad.

"So you're saying choose which side of the table to sit on?" I replied. "You mean choose a job as a pilot with the airlines or make my own path?"

"Not necessarily," said rich dad. "All I want to do in this lesson is point something out to you."

"And what is that?" I asked.

Rich dad again drew the CASHFLOW Quadrant:

He then said, "Too many young people focus on only one side of the Quadrant. Most people are asked as children, "What do you want to be when you grow up?" If you notice, most children will reply such things as 'a fireman,' or 'a ballerina,' or 'a doctor,' or 'a teacher.'"

"So most kids choose the E and S side of the Quadrant," I added.

"Yes," said rich dad. "And the I quadrant, the investor quadrant, is an afterthought, if any thought is given to it at all. In many families, the only thought given to the 'I' quadrant is when parents say, 'Make sure the job you have has excellent benefits and a strong retirement plan.' In other words, the idea is to let the company be responsible for your long-term investment needs. That is changing rapidly as we speak."

"Why do you say that?" I asked. "Why do you say it's changing?"

"We are entering a period of a global economy," said rich dad. "For companies to compete in the world, they need to get their costs down. And one of their major costs is employee compensation and employee retirement plan funding. You mark my words, in the next few years businesses will begin shifting the responsibility of investing for retirement to the employee."

"You mean people will have to provide for their own pension instead of relying on their employer or the government?" I asked.

"Yes. The problem will be the worst for poor people, and they are who I worry about," said rich dad. "That is why I reminded you about sitting across the table from people whose only financial support was a job. By the time you are my age, what to do with people without financial and medical support when they are older will be a massive problem. And your generation, the Baby Boomer generation, will probably be tasked with solving that problem. The severity of this problem will be very prominent sometime around 2010."

"So what should I do?" I asked.

"Make the 'I' quadrant the most important quadrant, not the others. Choose to be an investor when you're grown up. You'll want to have your money working for you so you don't have to work if you don't want to, or cannot, work. You don't want to be like your dad at 50—starting all over again, trying to figure out which quadrant he can earn the most money from, and realizing he is trapped in the E quadrant," said rich dad.

"You want to learn how to operate from all quadrants. Being able to sit on both sides of the table allows you to see both sides of the coin," rich dad said in summary, referring to his two-sided coin story.

Retirement Planning For The Golden Years

Retirement Planning For The Golden Years

If mutual funds seem boring to you, there are other higher risk investment opportunities in the form of stocks. I seriously recommend studying the market carefully and completely before making the leap into stock trading but this can be quite the short-term quick profit rush that you are looking for if you am willing to risk your retirement investment for the sake of increasing your net worth. If you do choose to invest in the stock market please take the time to learn the proper procedures, the risks, and the process before diving in. If you have a financial planner and you definitely should then he or she may prove to be an exceptional resource when it comes to the practice of 'playing' the stock market.

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