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Rich Dad's Three Plans

cynabyte

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so until I get caught up on all the Material in this forum most of my reference will be from Rich Dad Poor Dad materials

In the books he talks about creating 3 plans (Security, Comfort, Rich)

1.) Is he saying call an accountant and tell them you need to make up each type of plan? will they know what I'm talking about? has anybody done this?

My Assumptions:

I assume the items listed on the Security Plan would be mostly Slow Lane items:

College Education level - estimated Salary (My guess is this typically a Bachelors Degree around 40k-70k income)

401K
Roth IRA
CD's
Bonds
Savings Account

Insurance Policies: Life, Health/Dental/Vision/Disability, Auto, Home-owner/renters

Personal Home-ownership/ Property ownership vs Renting

Will
Prenuptial Agreement

Dependable Vehicle (Drive till the Wheels fall off Buy used and repeat)

Plan for Children

possible extras: Tough-Time-Assets (stock, Jewelry, Equipment, Coins/collectibles)
Home and Auto Security Systems


I would also assume The Comfort Plan to include most if not all of the Security Plan items Plus:

Higher Level of Education (Masters Ph D) 70-200k income
Need for more Tax right offs
Larger Home Ownership
New Car Every 80k miles
2-4wk Vacations every 6 months
More and More Expensive Comfort Doodads (Furniture, Appliances, etc)
Better Insurance Coverage with higher premiums
More/Better-Quality Tough-Time Assets

etc. This is kind of the Upper Middle Class Plan?

Rich - The Fast Lane

All items from previous two Plans without Bad Debt (or very little)

Income Generated from Passive or Portfolio income and maybe a small portion from earned income

RE Investments
Building Businesses
Investments mainly Accredited
Natural Resources/Precious Metals
 
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AroundTheWorld

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Hmm. Interesting topic.

I think it is a highly personal idea here... I don't think just telling an accountant you need a plan for each will work... unless you have an accountant that doubles as a counselor! :)

For me...

SECURE: house, health insurance, enough money for food.
COMFORT: I skip this - as all it really means is more doo-dads and doo-dads will slow down my path to #3
RICH: The excess money provides the time and ability to pursue my passions without restriction.

Some more thoughts...

Education level has nothing to do with it. Your "earning" capacity may change with your education level if you are an "e" but if you are on the path to riches - being an "e" isn't going to cut it.
 

CRBFL

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Education level has nothing to do with it. Your "earning" capacity may change with your education level if you are an "e" but if you are on the path to riches - being an "e" isn't going to cut it.

That's what I agree with. Education in the traditional and formal sense has less and less to do with becoming rich everyday.
 

AroundTheWorld

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That's what I agree with. Education in the traditional and formal sense has less and less to do with becoming rich everyday.

True... after reading your comment... I realized I used the wrong wording. "formal education" is what I'm really talking about here. Educating yourself in financial education, business, investing, etc. is clearly very important.
 
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thecoach

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Being someone from the financial industry, I've seen several twists on the "3 plans" idea. If you google search "financial pyramid" you'll get the idea.

In relating most of the concepts of the financial pyramids (which generally have 3 tiers to them, sometimes 4, splitting the 'comfort plan" in short term and long term catagories), I would interpret RK's 3 plans to this:

Secure plan, is like your defensive plan often refered to as risk management, non-controlable events, protection plan, insurance planning etc. Building up a wall to protect your finances. This is mainly insurance planning (life, health, property, liability, etc). This would also include things like a will and Power of Attorney.

Comfort plan, is like your offensive plan often refered to as savings and growth, asset building, controlable priorities, investment planning, etc. Padding the stats a little to get ahead and put a coupel points on the board. This is, as mentioned, a lot of slow lane ideas like building equity in a house, retirement savings (401Ks, RRSPs, etc), mutual funds, emergency funds, short term savings (doodad fund) and childrens education funds (RESPs, etc).

Getting rich plan is like your championship, where everyone wants to be, and you need to balance offense and defense to get here (What most FP's say, fastlane would say otherwise). Often refered to as Wealth accumulation, speculation, etc. This is fastlane stuff...real estate investment, business investment, substantial passive income, Lambo investment :D, etc

Think of it like building a house....Rich plan = Van Gough painting or 10 foot flatscreen TV on the wall. Can't hang it up without the walls (comfort plan) and in order to make sure your walls don't come crashing in, you need a solid foundation (secure plan). Before you do any of it you need a blueprint (your goals and details of your 3 plans).
 

Corrado79

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Think of it like building a house....Rich plan = Van Gough painting or 10 foot flatscreen TV on the wall. Can't hang it up without the walls (comfort plan) and in order to make sure your walls don't come crashing in, you need a solid foundation (secure plan). Before you do any of it you need a blueprint (your goals and details of your 3 plans).

I like that analogy very much. That makes a lot of sense.
 

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