The 7 Levels of Investors – Part 6


Level 5: The Active/Sophisticated Investor is the sixth level of investor in John Burley’s model as featured in The Cashflow Quadrant™ by Robert Kiyosaki.

The top two levels of investor are reached by only a very small percentage of people. Level 5 investors actively participate in the management of their investments. They often buy investments at a “wholesale” price.

This level of investor uses direct investments. They may choose real estate, businesses or shares. They have set principles and rules they use and they stick to them. A major distinction they have made is that
“Rich people work hard to have their money work hard while
Poor/middle class people work hard for money.” John Burley, Money Secrets of the Rich.

Level 5 investors know that bad economic times or markets offer them the best opportunities for success. They get into markets when others are getting out.

These people study on a daily basis. They read the financial media, magazines and subscribe to investment newsletters. They attend seminars and workshops.

This level of investors is not afraid to spend money or top professional advice such as accounting and understand the need to have a “team” of top notch advisers. They know it is essential to have their affairs properly structured and often use Corporations and Trusts. They also understand the importance of taxation minimization.

Level 5 active investors become very wealthy. Their working focus is on increasing their assets and thus their Cashflow.

During my years working with great educators I witnessed thousands of people go through wealth creation seminars. These seminars covered various topics including property investment (both residential and commercial), shares, options and internet marketing.

There were people who attended all of these seminars and have done nothing with the education. I find this very sad as the education works if implemented. I also saw many people go on to become successful investors or business people in their chosen vehicle of investment. I now have many good friends who are professional full time real estate investors, share traders or online business people. My observation is people generally do only one area well and specialize in that. You must find what is comfortable for you and you enjoy doing.

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