Insights on Robert Kiyosaki’s Guide to Investing – Chapter 22

After introducing in Chapter 21 the 5 categories of an investor, the author has dedicated a chapter for each of them starting with “The Qualified Investor” on Chapter 22.

A qualified investor is someone who is qualified to invest on high earning investments as well as someone who can shoulder the risks associated with those investments. The SEC does not permit anybody to invest through investments instantaneously because not all can handle the loss in case the expected return on investment did not meet its targets.

It is called a qualified investor for the very reason that not all are qualified to become one because it requires a hefty annual income requirement that only a few can satisfy. The catch though is that, not all persons categorized as a qualified investor are well aware of these privileges because they are not looking to invest their money.

Most people who have succeed in sports, music, acting and high paying professions can be easily called a qualified investor because the only requirement is high amount of earnings as well as a relative amount of net worth. It does not require one to know a lot when it comes to investing but it is advisable that whenever one becomes qualified, he/she should hire someone to manage the earnings.

A lot of successful people who once qualified on the category have declared bankruptcy because they are living beyond their means or simply because they did not hire a professional who can manage their earnings while they focus on what they love to do. They simply fail to plan for their future thinking that they had a lot of money.

Being qualified to belong in this category opens up a lot of investment opportunities. I myself wish that I belong to this category because the earnings are high and I think I can make use of what I know to earn more.

Sadly though, I don’t belong on this one but I wish, that in the future, I may belong to this category for me to have access on what the rich are capable to invest in and as for the risks, I think I can easily assess the investment opportunities that knock on my doorsteps and identify if it’s worth it. This is a big x-mark for now, I am now looking forward to the other categories. Do you belong on this category of investor? If not, then let’s read on and check on the other categories where we might belong.

NOTE: IF YOU MISSED THE EARLIER CHAPTERS HERE ARE THE LINKS:

• Introduction
• Chapter 1
• Chapter 2
• Chapter 3
• Chapter 4
• Chapter 5
• Chapter 6
• Chapter 7
• Chapter 8
• Chapter 9
• Chapter 10
• Chapter 11
• Chapter 12
• Chapter 13
• Chapter 14
• Chapter 15
• Chapter 16
• Chapter 17
• Chapter 18
• Chapter 19
• Chapter 20
• Chapter 21