Million Dollar Journey

For me it was the first one. I thought gold and wheat were commodities and anything you owned was an asset.

To me it was number 3. I guess I haven’t had enough job experience to know that not many employers pay retirement funds (hence the miracle I guess).

I agree with #4, knowing his stance on assets. A car is still an asset though, since you can sell it for some amount. Just because an asset isn’t a good investment nor does it generate cash flow, doesn’t mean it isn’t an asset. (Yes, having read his books, I know he doesn’t agree. But anything you own that has market value is an asset…)

7…. true and false always mess me up. I like #1 though, I figured lots of people would get that wrong.

#4 is C since there are the fewest opportunities for a salaried employee to shelter anything from the tax man.

I was tripped up by number 8 because selling uncle Craig’s CD collection would probably buy about a bottle of scotch so that almost seemed like a win-win.

#2 was trickiest for me.

#7. I think the reason is, we are constantly being told to invest and diversify our investments. Almost any financial literature I have read emphasizes heavily on diversification and that too in vehicles such as stocks bonds and mutual funds. However, we seldom realize there are *other* ways to invest, such as owning real estate, rental properties or a low start-up cost Small Business. But all of these require more work on our part, i.e., get up and look for a property, get a mortgage, etc. and are not as easy (perhaps even overwhelming) for starters, not to mention, far more risky.

There were some other odd-ball (and humorous) questions in the list like: 1, 4, 8. But having read Mr. Kiyosaki’s RDPD before I got them right.

wNumber 7. So warren buffet did it wrong?

If you do any financial reading most of these answers should come to you fairly easy. However I’d have to go with number 7, because when you think investing these are terms you come across frequently…so an uneducated personal would assume this as diversity.

Dan

#8… I sold the CDs high to buy a bottle of Scotch low and drank the Scotch. It did little to increase my financial intelligence.

For me it was #1 and #4. I figured the corvette was an asset as you can sell it but I guess the depreciation on vehicles may factor into this one and #4 I’m not sure about as I figured the only way you get caught on this if you don’t report it is through an audit which still doesn’t guaruntee it will be found.

#1.
The first option I ruled out was the Corvette, since you actually hold it and can sell it.
Since gold and wheat are similar in nature (commodities), I decided on a business (although THAT didn’t make much sense).
By the end of my guessing process, I was confused and in need of a peek at the answers!!!

It was #7 that did me in. Then after thinking about it, it made total sense. It makes sense that to some this quiz would be difficult, however it does not reflect a persons intelligence or intellect. Kudos to everyone for taking the time to increase their financial IQ. I still have a long way to go myself, but it’s sites like this that make the journey that much better and fun. Keep up the great work!

Trickiest: #1. Your heart tells that corvette is an asset, but unfortunately it isn’t.

#1 definately the trickiest.

Gold, Wheat and Corvettes are all appreciating or depreciating assets, but a business is usually an assortment of assets and liabilities with a dash of goodwill thrown in!

I’m not buying this clown’s book. He’s got 3 of his own 8 questions wrong after all.

As pointed out by Richard, John, etc, all of the options in question 1 are assets.

The answer for 3 is incorrect. Pensions are becoming rare, but they are hardly a miracle. If The Almighty cares to disagree, then I will defer.

Answer 5 is way off. If you save first and fail to pay your bills, the penalties will kill you.

His answer for 7 is touch and go too. Diversified portfolios can include a lot more than stocks and bonds so I’ll agree with his false answer.

They were all tricky, starting with number 1 through the end. I need some financial advice.

I didn’t think Gold was an asset. that was a lil tricky.

7 for sure.

Note : All the things in #1 are assets IMO. If you own it, and can sell it for money, it’s an asset.

I think #5 is the trickiest. The answers sound different from what a person should do, according to “the norm”.

I got numbers 1 and 7 wrong. Seems like I need a refresher of some of the basics! #1 is definitely the trickiest by far.

All Questions were Tricky as my financial IQ is compared to the missing link, ie. caveman intelligence.

I found #6 the one I had to think about twice.

Again, I don’t like RK either. I’m surprised he still has a book deal, since his whole “factual” backstory is a fraud.

#1 got me. Made me really think, the others seemed kinda easy.

Number 7 was the trickiest.

This was pretty easy having read Kiyosaki’s other books but #1 I think gives most people trouble. I love cars but all they really do is depreciate for the most part. A collector’s car could be considered an asset as it could be worth more than you paid for it but likely it is taking money out of your pocket instead of bringing money in while you own it. Maintenance, storage, etc. unless you do something creative and charge admission to see the car or something. :)

#7 was the trickiest.

Warren Buffet is the most quoted, widely followed, yet most misunderstood person in the financial spotlight. You’ll note that he doesn’t “diworseify” his portfolio for the sake of simply balancing things out, but instead builds a bank that increases shareholder equity and thus shareholder value.

It’s the structure of the company that gets it to the senior exchange and properly funded to make an attempt to reach their goals. It’s not that the idea is bad, or the plan was flawed necessarily, although I’m not writing these out altogether. Without the proper setup in the beginning, and the proper mindset - diversification is doomed to fail if the foundations are built incorrectly regardless of the plan, the product, operations, or people.

I work with a boutique investment bank, and you’d be surprised how many people who try to play in the higher levels still get this question wrong - and these people are millionaire CEO’s nearing the higher end of the food chain.

Not sure if I agree with #7, I would like to read more on why this is false

The first question was tricky for me, because only answer C was defined as an “asset” in Rich Dad Poor Dad Book.
I disagree with the “false” answer on number 7. Just ask Bear Stearns employees who own a large chunk of the company what they think of diversification now :-)

I just finished reading rich dad, poor dad so i didn’t find any of the questions all that difficult. I was going to buy the new book but if I can win it for free, well that will save me some money and isn’t that what this is all about?

Oh and a business IS an asset even if it is not generating income… As long as it has people (or even just you), that is an asset. Unless you classify yourself as a liability. :)

Robert.

RE: Rich Dad’s Increase Your Financial IQ Quiz

I liked your review -and think this book might be a good idea for the novice that I am to learn more about all types of investing.

I want to move away from mutual funds through a dealer and want to self-invest.

I found #6 to be the trickiest.

Thanks,

Amina
amina@tigerlilly.ca

#7 for me, too

I got #4 wrong but not realized the employee should be paying the taxes at the end of the year since the company paid him/her cash.