Robert Kiyosaki, author of the uber-successful Rich Dad, Poor Dad series, learned valuable lessons about money from both his real father (Poor Dad) and a wealthy family friend (Rich Dad).
Most of us have only one dad in our lives (let's call him "Real Dad"). Real Dad is often a great role model, provider, and teacher. But there are limits to what Real Dad knows. It would be nice to have a Rich Dad in your life, right? It would be great to have someone who can teach you about investing and saving for retirement.
Well, now you do. Meet your new Fool Dad, Robert Brokamp. Retirement-obsessed Robert heads up the Motley Fool Rule Your Retirement newsletter service, which is designed to give lost souls advice. And he's not just giving advice on saving money -- he has ideas on how to make money, too.
Let's be clear here: Fool Dad is not going to fix things around the house or coach soccer teams. That's Real Dad's job. But Fool Dad will help you meet your retirement goals so that you can live in comfort (without needing any handouts from any of your dads).
Now, we all know your Real Dad gives financial advice with the best of intentions. But new Fool Dad Robert may know a few things that Real Dad doesn't. When it comes to advice, let's see how the two compare.
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Real Dad says ... |
Fool Dad says ... |
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Plan for retirement. |
Open up and max out an IRA.
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Save as much as you can. |
Open up a high-yielding savings account.
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Diversify your portfolio. |
It's all about asset allocation among different industries, investment vehicles, and regions.
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Invest in quality stocks. |
Hold a few individual stocks so you can beat the market.
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Real estate is a good investment. |
Real estate investment trusts (REITs) are a necessary component to any diversified portfolio.
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Real Dad is a smart guy. He does have some good advice here. But with specific recommendations from Fool Dad, you can take that advice further and make the most of your money.
Over time, these tips can add up to big bucks. If Fool Dad helps you annually earn just 1% more on a minimal $1,000 investment for 30 years, that adds up to 33% more when you retire (assuming you retire in 30 years). Now just think how much more it could be if you start with more -- or if you contribute more annually!
Fool Dad also brings in experts (such as value guru Philip Durell, who highlighted Mylan) to give you the know-how to dig up great returns from well-known companies. He talks to analysts from other newsletters to bring you ideas from the small-cap and mutual fund worlds. Fool Dad knows what works, and he makes sure to share it with his subscribers.
The Foolish bottom line
Robert Kiyosaki was fortunate to have a Rich Dad and Poor Dad guide him through life (assuming, that is, that Rich Dad wasn't a fictional character, as some Internet critics have claimed). If you think you might need some Foolish retirement advice, give your Fool Dad a chance. Take a free one-month trial to Rule Your Retirement. It could be the beginning of a beautiful relationship.
This article was originally published Feb. 16, 2006. It has been updated.
Fool financial editors Joseph Khattab and Shruti Basavaraj are Motley Fool research analysts. Neither Joseph nor Shruti owns shares of any company mentioned. GlaxoSmithKline is an Income Investor recommendation. We tell you this because of the Fool's disclosure policy.
