Re:Ask HN: Do Anyone Have Any Opinion on “Rich Dad Poor Dad”...
by baccheion on Saturday December 29, 2018 @02:50PM
(#18785341)
Summary: invest in assets (retains value and produces a return) rather than liabilities (loses value, even if just due to inflation).
Investing into a savings/checking account, for example, is a liability, as interest doesn't usually offset inflation. A fund that produces a 4% YoY return, on the other hand, is an asset. A house can be a liability if appreciation doesn't offset maintenance, mortgage interest, property taxes and insurance, and any gain that could've been had on the 20% down payment.
Investing into a savings/checking account, for example, is a liability, as interest doesn't usually offset inflation. A fund that produces a 4% YoY return, on the other hand, is an asset. A house can be a liability if appreciation doesn't offset maintenance, mortgage interest, property taxes and insurance, and any gain that could've been had on the 20% down payment.