Financial Independence Daily FI discussion thread - October 06, 2020

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Daily FI discussion thread - October 06, 2020 Posted: 06 Oct 2020 01:08 AM PDT Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

Is it just me, or is Rich Dad Poor Dad actually an awful personal finance book? Really don't know how it became a "classic" Posted: 06 Oct 2020 04:22 PM PDT The title is a bit harsh, but hear me out. I got really into personal finance and FIRE over the past say 2 years, mostly by reading Reddit and Investopedia. After reading so much about personal finance and investing online, I figured it was time to read some of the classic personal finance books. I started with Rich Dad Poor Dad because I hear it tossed around so much. Now, I will start off with the positives about the book. I think from a mindset perspective, it's really actually quite good. Things that I think people should take more seriously are paying yourself first, knowing how to buy assets, having your money make money, optimizing assets, etc. All of this is great advice and certainly not enough people heed it. My main frustrations from the book came from the specific examples that Robert Kiyosaki chose to give. Just to name some off the top of my head, here are a few things that he suggests over the course of the book: Dropping money in penny stocks and IPOs to make a killing (he cites one example of making an absurd amount of money off one... seems like selective hindsight to me) Picking up foreclosed houses to flip. Sure I bet you can make money this way, but certainly not great advice for the regular person Everyone should join a multi-level marketing company to learn how to sell. This one made me laugh... that is awful advice Investing in 16% tax liens. This one he even brings up an example of his friend calling him dumb and he is so smug about it when defending himself. Those four were particularly bad, but I remember several others that made me scratch my head. I mean, the man acts like investing in a mutual fund is for someone who wants to live on rice and beans the rest of their life (to be fair though, I know low-cost index funds weren't as widely available / know about back when the book was written). To add to the bad advice, it also annoyed me from a stylistic perspective that he acts like poor people are all as dumb as rocks and his cunning genius is why he's rich. I can only imagine the people who read his book and went out and joined an MLM and put all their money into tax liens and wonder why they never got rich. In my opinion, this book should not be read by anyone who is planning on pursuing FIRE, there are so many better options. submitted by /u/wizwaz14 [link] [comments]

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