From Rich Dad’s Increase Your Financial IQ: What’s your Financial IQ?
Over the weekend, I received a copy of Robert T. Kiyosaki’s new book, Rich Dad’s Increase Your Financial IQ: Get Smarter with Your Money from Jeffery Anderson, a publicist from FSB Associate. Kiyosaki is no stranger to many people. He is the author of the popular book, Rich Dad, Poor Dad. I myself never read that book, though I did finish the first couple of chapters from an audio file two years ago and what I still remember is how Kiyosaki argued that house is really a liability, not an asset. Somehow, I kind of agree with his argument because until I pay off the mortgage, I don’t really own the house. By the time I really own the house, what I have paid for it may exceed its value. And if I decide to take profit and sell the house, the money I make from it may not be more profitable than, say, investing the money in the stock market while renting over the years.
Anyway, while I am still trying to finish up the book (too many things to do and too little time), I got the following financial IQ quiz from Jeff yesterday that I would like to share with everybody.
What’s Your Financial IQ?
1) Which of the following is not an asset?
- The Corvette you bought for your 40th birthday
- A business
2) On average, Americans save how much of their income?
- Enough to buy a new flat screen TV
- Why save when you own a house?
- They don’t save. They owe.
3) A retirement plan that is paid for by your employer is known as a:
- Defined benefit plan
- A miracle
4) What kind of income is the hardest to protect from financial predators such as taxes?
- The dividends that just got cut from the financial stocks you bought
- The $50 and rocking CD collection you inherited from your uncle Craig
- The forty hours worth of cash your company pays you for sixty hours of work
5) What is the best way to create a budget surplus?
- Cut down on expenses by buying a fuel efficient car
- Get a higher paying job to make more money
- Saving and investing before paying your bills
6) An example of leveraging your money is:
- Putting money in an interest bearing savings account
- Buying investment real estate with a bank loan
- Going to a local casino.
7) The best way to invest is in a diverse portfolio of stocks, bonds, and mutual funds. True or False?
8 ) The key to becoming wealthy is:
- Only having two scotches per night
- Buying high and selling low
- Selling the CD collection you inherited from Uncle Craig
- Increasing your financial intelligence
What are your answers?
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