Investment is a plan, not a product or process (1)

Some people often ask me, "I have $10 thousand for investment. What do you suggest me to invest ?"

My standard answer is: "Do you have any plans ?"

A few months ago, I made a program on a radio station in San Francisco. The program was invested by a popular local securities broker. An audience member who wanted investment advice called and said, "I am 42 years old and have a good job, but I have no money. My mother has some property rights for a house, and the suite is worth about $0.8 million. Now she pays only $0.1 million. She said she was willing to lend me some property rights so that I could start investing. What projects do you think I should invest in? securities or real estate ?"

My answer is still: "Do you have a plan ?"

"I don't need to plan," he replied. "I just want you to tell me what to invest in. I want to know if you think the real estate market is better than the securities market ."

"I know that's what you want to know, but do you have a plan ?" I asked again politely.

"I told you I don't need to plan ." The other party said, "I told you that my mother gave me a sum of money, so I have money now, so I don't need to plan. I plan to start investing. I just want to know which one of the securities market and real estate market is better. I also want to know how much I should spend on my mother to buy my own house. Real estate prices in the Gulf region have risen fast, and I don't want to wait any longer ."

I decided to take the next step. I asked her, "Since you are 42 years old and have a good job, why do you have no money? If you lose the money your mother has given you, is she still able to pay off the debt? Can she still afford the house? If you are unemployed or the market slump, and you cannot sell a house at a price, are you still capable of providing a house ?"

In front of an audience of about 0.4 million, he replied, "these are none of your business. I think you are an investor, you don't have to ask about my private life to offer me advice on investment. Don't always mention my mother. What I want is investment advice, not personal life advice ."

Investment recommendations are personal recommendations

The most important lesson I learned from my rich dad is: "investment is a plan, not a product or a program ." "Investment is a very personal plan," he added ."

When a rich father gave me an investment lesson, he asked, "Do you know why there are so many different types of cars and trucks in society ?"

I thought for a while and then replied, "I think there are various people in the world who have different needs. A bachelor may not need a passenger car with a length of 9, but families with five children may need it. The farmer would rather have a freight car than a racing car with two seats ."

"Completely correct ." "That is why investment projects are often referred to as 'Investment transport '," Fu said ."

"Is an investment project called" investment transportation ?" I asked, "Why is it a 'Investment vehicle ?"

"Because investment is like this," said rich dad. "There are different investment products or investment tools in the world, because there are people with different needs in society, just as a family with five children has a very different needs from that of a bachelor or farmer."

"But why does it use the word" transportation ?" I asked again.

"Because transport can carry you from one place to another ." Rich Dad said, "investment projects or investment tools allow you to achieve any desired financial situation from the current situation at a certain time in the future ."

"That's why investment is a plan ." I nodded. At this point, I have gradually begun to understand the profound meaning of this sentence.

"Investing is like planning a trip, for example, traveling from Hawaii to New York. Obviously, you know there is nothing you can do about this trip by bike or car, that is, you have to take a boat or fly across the ocean ." Rich dad said.

"Once you arrive at the land, you can walk, ride, take a passenger car, train, bus, or fly to New York ." I added, "All these are different kinds of transportation ."