Insights on Robert Kiyosaki’s Guide to Investing – Chapter 24

After the qualified and accredited investors in the previous chapters of Insights I have given, a new one would be given down on the list. It is now time for “the Sophisticated Investor”.

A sophisticated investor is someone who have acquired the three E’s that stand for Education, Experience and Excess Cash but at the same time, also have the knowledge of the laws.

According to the stories of the author, when he was with rich dad, he realized the importance of having lawyers in a business. Lawyers do not only excel in terms of complaints and cases filed against your business, but they do also come in handy when it comes to reducing your tax liabilities legally.

If in the future, if someone decided to build his own business and did not consult a lawyer or any professional with expertise on tax laws, he might possibly pay less than what he could, if he only availed of those services.

The very set-up or business organization has tax implications that many business owners fail to realize and make use of. Other fines, penalties and charges could also be minimized or completely be saved if the business owner would have a regular lawyer or would consult his affairs to an experienced professional.

I am not saying that one must hire a lawyer or consider consulting entirely to become a sophisticated investor. It only requires knowledge about tax laws, business laws and compliance laws applicable to the business chosen. As long as the owner is willing to understand the laws applicable to the business, he may be able to utilize the potential of the laws in existence.

Laws now, in the information age are easily accessible through the internet. One can easily interpret and be informed of the law as long as he has the capability to interpret the law as how the lawyers or creators see it. Understanding the applicable laws and having the three E’s would qualify one to become a sophisticated investor, a type of investor who thinks differently compare to the average investor that only earns the 10% of the money.

Being a sophisticated investor increases the chances of becoming one among the 10% of the people who earns 90% of the money and it is the easiest path to riches. Investing the time in acquiring the knowledge, everyone of us could become one and attain our desired riches.

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
• Chapter 22
• Chapter 23