Type #1 The Accredited Investor

This is an investor who must meet certain requirements of making at least $200,000/year for the last 2 years and expect to earn the same amount this year.  The requirement for a couple is $300,000.

You may also qualify with a Net Worth of a million dollars.

Various opportunities such as investments in private companies, real estate developments and so on are available to accredited investors, that are not available to the average investor.

You must be intelligent or you could lose a lot of money investing as an accredited investor.

However, if you know what you are doing, you can get much richer much faster.

Robert Kiyosaki’s Rich Dad was an accredited investor, and told Robert that this is why the Rich get Richer.

Type #2 The Qualified Investor

“A qualified investor is usually an accredited investor who has also invested in financial education.  As it relates to the stock market, for example, he said qualified investors would include most professional stock traders.” (p. 193)

Warren Buffet is an example of a very successful Fundamental Investor.

Technical Investors are well trained investors who understand when to buy and sell securities, hedge and take advantage of market emotions.

Charles Dow of Dow-Jones was a famous technical investor.  So is George Soros.

Type #3 The Sophisticated Investor

“The sophisticated investor knows as much as the qualified investor but has also studied the advantages available in the legal system.” (p. 207)

They understand how to structure investments to reduce liability, taxes and increase benefits.

Corporate structures include S-corps, sole proprietorships, C-corps, Limited Liability Corporations, Limited Liability Partnerships, etc.

Type #4 The Inside Investor

Rich Dad recommended Robert start here when he was young and had no money.

Build your own business.

Learn to do that and you will understand how to read the financial statements of your business and other businesses.

Learn how to generate enough money to become an accredited investor.

You will also have a higher probability of becoming one of becoming an ultimate investor.

Type #5 The Ultimate Investor

The qualified investor builds a successful company and so many people find it valuable, that they take it public and it makes everyone billions of dollars to millions of people.

Examples are Warren Buffet with Berkshire Hathaway, Bill Gates with Microsoft, Elon Musk with Tesla, etc.

Conclusion

What investor are you?

Which do you choose to be?

When I first read Rich Dad Poor Dad I had no idea how to begin, but I decided I would start a business.

I went the route of the Inside Investor.

Now we have 2 businesses, one is a real estate business and one is an internet based education business.

I am also learning how to be a Qualified investor in the stock market.  If you are interested in being a qualified fundamental investor, then CLICK HERE and join our free Security Analysis mastermind.

Leave a comment below and let us know your thoughts and experiences!