I am the first generation in my family that ever made any money. I
have come to the realization that putting 10-15% per year in a
diversified mutual fund is NOT the way to create real wealth. I
have always made good money and have always saved 10-20%. I have a
nice litte nest egg, but certainly not anything approaching FckU-
money (where if you want to you can go into your boss and say FckU-I-
QUIT). I want to pass on some advise to my kids and would
appreciate any thoughts on the subject.
Here is what I have observed
- Real Estate - I never made any money in real estate (I moved around too much). One path to riches seems to be real estate; or
- Start your own business; or
- Make large bets on a small group of undervalued stocks (rather than holding a diversified portfolio).
- I read Rich Dad/Poor Dad. The guy had some good ideas, but he seemed like some what of a flim-flam man to me. He did emphasize the "tax trap" of working for someone else. I almost think I should invest in some small business (car washes or something), just to have some company that I can pass onto my kids so they can make
other investments from it.
