The Need for Professional Advice

I have been blogging about what I have learned from The Cashflow Quadrant™ by Robert Kiyosaki. As I re-read the last chapter in Part two of the book I realized how much had happened since the book was written in 1998. Many of the events the author refers to are specific to the USA and I am unfamiliar with all of them. I did think I would skip over this chapter and then I realised there were some important, fundamental lessons that apply to us all. I will comment on them.

Robert advises that we seek out the best in professional and financial advice. Having worked for much of my life as a taxation accountant and later a financial planner I absolutely agree with this advice. There are good and bad advisors so it is important to learn the difference. Don’t skimp on expenditure for advice.

“Never do business of invest for tax reasons” is something I have heard Robert say many times over the years. It is good advice, but advice many people ignore. I remember vividly working as an accountant and having clients come to see me just before the end of the financial year wanting to know what they could spend money on to get a tax break! Spending a dollar to save 30 cents is not wise! (unless you need what you are spending the dollar on). Investing into property to lose money is not a good investment decision. Learn how the numbers work and make any decisions on sound investment strategies.

Robert said in this chapter “in the Information Age, quality information is our most important asset.” He then uses a quote from Erik Hoffer;

“In times of change…
Learners inherit the earth,
While the learned
find themselves beautifully equipped
to deal with a world
that no longer exists.”

How true is that saying! Just reflect on how much has changed since 1998 – for one you would not have been reading my blog. 😆

As we now move into the recommendation age the need for quality advice remains, maybe the list has just become longer. Please leave me your thoughts.

2 thoughts on “The Need for Professional Advice

  1. Adam Robinson

    This cannot be truer than today. People who invest are usually not fully informed or misinformed. The financial principles they’ve always believed in may not hold true anymore in today’s world. One has to constantly learn, find new ideas, and be up to date with the trends.

    1. Sue Post author

      Adam thanks again for your comment. I think far too often people seek advice from people who do not have accurate knowledge. Yes people have to keep learning.