Why do some investments grow and make their owners wealthy, while others only increase expenses?
According to the study, the wealth of the top 1% of the richest U.S. families consists of 61% stocks, meaning the majority of their portfolio is made up of the riskiest financial market asset. This supports the idea that the wealthy people take risks.
Often, the property owned by low-income individuals—a house or an apartment—is purchased on credit, meaning it is not even an investment asset. Robert Kiyosaki, in his book Rich Dad, Poor Dad, observed that poor people acquire assets that only generate expenses. Real estate, in this case, bought on credit locks up your capital, which could have been generating income.
According to the study, the wealth of the top 1% of the richest U.S. families consists of 61% stocks, meaning the majority of their portfolio is made up of the riskiest financial market asset. This supports the idea that the wealthy people take risks.
Often, the property owned by low-income individuals—a house or an apartment—is purchased on credit, meaning it is not even an investment asset. Robert Kiyosaki, in his book Rich Dad, Poor Dad, observed that poor people acquire assets that only generate expenses. Real estate, in this case, bought on credit locks up your capital, which could have been generating income.