Tag Archives: Robert Kiyosaki

Start Investing with Optimum Returns

Nobody loves danger. This is the fact about us human beings that is undisputed. We like to win, but never lose. This is in no way uncommon because there is a rise in human beings. Our brains strongly resist any sort of loss. This article will show you how to start investing and get optimum returns as a risk-averse individual.

Any type of investment is risky. The only thing we can do is mitigate, not remove, the risk. This is why some degree of risk needs to be tolerated by any investor. People who do not have any tolerance for risk end up not investing at all.

It is crucial to remember that it is very risky not to invest. This is the biggest risk to your financial future that you can take. I have found that successful individuals avoid losing future returns as a financial planner and advisor for years, while average individuals avoid losing investment money.

This suggests that successful individuals work hard to get what they don’t have, while ordinary individuals work hard not to lose what they have. As they claim in sports, offence is the best form of defence. They find it easy to protect their investment, when successful individuals go after what they want.

You can not remove the risk, you can only minimise it, as I have pointed out. These five tips will help you secure returns and take minimal risks. It is feasible.

Get Information for Investment:

Investment intelligence refers to a collection of data that lets you make rational investment choices. That’s what the biggest investors have, including Warren Buffet and George Soros. From a knowledge point of view, they can judge distinct opportunities. With that, they stop making errors that might cost them billions theoretically.

As Robert Kiyosaki points out in his book, The Cashflow Quadrant of Rich Dad, investors can be put at five levels:

The “zero financial intelligence” level
The “savers are losers” level
The “I am too busy” level
The “I am a professional” level
The capitalist level

The first three stages, made up of 90% of all investors, do not have enough knowledge to make wise investment decisions. Many would choose not to spend, some would choose to put their money into a bank account, and the others would opt to assign responsibility to someone else and entrust them with the multiplication of their assets.

There is some investment awareness of the last two groups of investors. They end up being the world’s most influential citizens. As I usually say, it’s not a challenge to make money, to multiply it is.

Knowing how to start investing without much risk, therefore, begins with self-education. To learn how to decrease the risk involved while still having reasonable returns, read books and blog posts. The more that you understand, the more that you earn. Having further insight would allow you to look at the statistics and the truth as shown by the numbers.

Small Start

It is virtually inevitable that the first investment money will be wasted as a new investor. This is because to make a profit, you do not have the correct data and skills.

Even though you may have some basics, being a good investor requires practical knowledge and skills. It is wise, therefore to start small. You can increase your investment capital over time as you make returns and learn.

To make an initial investment, do not borrow millions. This is a grave mistake many individuals make. They are left deeply in bad debt when the investment goes down. Next, save your savings and test your investing concepts. You may now start risking more and more money after you have earned returns.


Diversification is typically the first response given by all financial advisors when asked how risk-averse individuals can start investing. This response is true. To spread the risk, diversification means investing in various asset classes.

Diversification of 2 types:

Diversification of inter-assets: This is where you invest in assets from distinct industries. You may invest in stocks and real estate, for instance. There are distinct groups of properties.
Intra- diversification of assets: This is where you invest in the same class of assets. Investing in stocks of various firms, for instance, falls into this group.
In minimising risk, inter-asset diversification is more successful because it cautions the finances against structural risks that impact numerous industries. Some cases, for instance, only affect the real estate market. Therefore, you would be highly impacted if all your investments are in this market. You would not suffer big losses if you have diversified your portfolio.

Do the due diligence you have

Due diligence is distinct from collecting information on investment. Having investment intelligence requires comprehension of the basic concepts of investment. In the other hand, doing your due diligence involves knowing the truth behind a certain potential for investment.

Go for the truth when someone tells you about an investment opportunity somewhere. If it is a fair chance or not the facts will tell you. When judging various investment choices, never rely on the opinions of others. The best thing is to do your homework and use the evidence to support the arguments. The truth would never lie.

Studying the past and predicting the future is the strongest strategy ie Forecasting . Similarly, you should pursue what’s called the preparation of scenarios. This is where you are trying now to grasp the future and make suitable choices.

You could predict, for instance, that electric cars will take over in the future. In this way, you will decide to invest in car companies that are focused on that sector in the long term. Due diligence is this.

Avoid making decisions on emotional investments

Logic and logic are missing in irrational decisions. The facts do not help them. Consequently, emotional choices are dangerous. If it comes to making investment choices, use logic at all times. This is rather than your heart, using your brain.

A friend you love and admire, for example, might tell you about an investment idea and ask you to invest in it. The natural inclination is to adhere to their requirements. It would be hard to resist when you put your emotions here, even if the offer does not benefit your financial future.

To protect your financial interests, though, it is easier to do what is emotionally incorrect. Demystify the alternatives and make a rational, educated decision.

Securities from the Treasury

Less volatile are government financial instruments. This is because, to repay its taxpayers, the government will print money. The risk of default is therefore considerably poor.

Nevertheless it is important to know that these securities yield below-average returns. If you are at your prime age, invest in them only as a tool for diversification and not as the key tool for generating profits. Consider your financial situation, therefore and make an educated decision.

Dividend-Paying Inventories

Compared to those that do not, dividend-paying stocks are less risky. And if the value of the stocks declines, the dividends you earn over the years will warn you against real financial losses.

Therefore, carefully examine the corporation in whose shares you intend to invest. If they don’t have a dividend strategy that suits the financial requirements, move on. Fortunately, year after year, many corporations pay dividends to their shareholders. Your due diligence only needs to be completed.

Chosen Stocks

Stocks that are favoured are given preference over ordinary stocks. After bondholders are figured out they are paid. Therefore in the event the company is pushed out of business, upon liquidation of the company’s assets, preferred stockholders will be compensated before ordinary shareholders.

Annuities Set

An insurance policy which pays the holder a guaranteed interest rate on their contribution is a fixed annuity. Variable annuities are called the opposite.

For fixed annuities, the best thing is that they are easy and predictable. As you know what to expect on the basis of your agreement, there is no need for you to learn about stock market shifts. There are guaranteed fixed annuities. As long as the firm is in a position to do so they are paid.

Accounts Money Market

These are interest-bearing accounts which are supplied by financial institutions. They pay an interest rate that is higher than regular savings accounts. These accounts have cover from insurers and are thus less costly.

Company Bonds

This is a security for financial debt that is provided by a company and sold to investors. For their investment, bondholders receive a fixed or variable interest and receive their investment capital upon maturity. These instruments are low-risk, especially if the issuer is an established business in the market.

Deposits Certificates (CDs)

This is a type of item that many deposit-taking institutions sell. As long as the client decides to keep the money untouched for a certain time, they offer premium interest rates on deposits.

Funds of Value

The value investing approach used by prominent investors such as Warren Buffet and Benjamin Graham is pursued by value funds. It includes finding undervalued shares and bringing money into them.

Price funds, since they are sold at a discount, are low risk. When the market undergoes an auto-correction, they later carry returns. It takes professional executives, however to recognise undervalued stocks.

Caution Word

We have so far looked at how to start investing without taking huge risks and the instruments in which to invest. It is also important to offer a word of warning about the same matter.

Let the Inflation Rate outdo the ROI
Inflation is a steady rise in consumer prices. It acts as an indicator of the changes over a period of time in the prices of goods and services. Inflation affects the cost of living and cuts into money’s purchasing power.[2] You have lost economic value if the return on investment (ROI) is smaller than the rate of inflation.

Find the cost of opportunities

Opportunity cost is the value of the option that has been foregone. Calculate the ROI if you have multiple investment choices, and invest in the option with the lowest opportunity cost.

Consider financial position

The sort of investment choice you select can decide where you are in terms of finance. People who are just beginning should look for both income and stability. You would have nothing left to rely on if your investment is wiped out.

People who are financially established can afford to take big risks. After all, they have plenty to fall back on when they lose investment money.

Consider your financial goals

People have numerous financial targets. Many want to be very affluent, while some only want to live a comfortable life. Based on your priorities, select your investment choices carefully. They should try to optimise ROI for people who want to be super good.

Ultimate Thoughts

As we have shown the reduction of threats is unlikely. Mitigating them is the best you can do. Tolerate a certain amount of risk, therefore to guarantee better returns. You will learn how to start investing by following the tips in this post, while substantially reducing the risks involved as you concentrate on the reward.


Invest Your Money with High Return and No Risk

There are just a few places where you can keep your money.

Fixed deposit -bank
True Property
Business on bonds
Market of Stocks
Plain Gold
Starting a New Company

All other investment strateies are risky excluding fixed deposit in bank. When your bank balance reaches 12 times your monthly salary, you can take a gamble on a few occasions. Otherwise you’re going to slip into a pit, and that’s going to be a lifetime regret for you. It’s true that the more you take risk, the more you’re going to earn. But the odds of losing are still higher than the chances of winning, since the global economy is so unpredictable that nobody can predict the future of this planet exactly.

But I’d recommend that you make an investment in yourself.

Spend your time learning how to operate your own business. As well as gaining business knowledge, this would include personal development. Articles, workshops, networking events. Learn how to set goals and accomplish them, how to more efficiently manage your time, prevent procrastination, cultivate a positive mindset, become a leader.

That being said – what business is there to go into? If this is your first business attempt, I suggest you take the advice of Robert Kiyosaki, author of Rich Dad Poor Dad, which is a great book to read, by the way.

Kiyosaki recommends that you enter a network marketing company. He remarked, Network marketing offers people the chance to create their own income-generating assets and accumulate great wealth, with very low risk and very low financial commitment.

Where to go then, from here. What is the shortest path to knowing what you need to know in order to start and succeed?

For at least six months, whatever business you are going to launch, study and learn about the company. Take a survey of more than 10 similar companies, engage in workshops, improve the skills required to operate the company alone and seek advice from experienced individuals in your profession. Marketing is another important thing. First set out the strategy where your goods or services will be distributed as there are 100s of similar companies around the world and they will compete with you. Before starting any business, devote 24 hours a day to theoretical as well as practical learning.

When you start a company, you should have a high level of clarity.