Rich Dad experts needed
 

What amount of assets should one have before one brings on a $50,000 liability??

No need to be a Kiyosaki junkie for that one.

But by one line of information that you gave one would have to be psychic.

Liability for what? What sort of collateral is required? What are you buying? Will it produce income? Is it for investment? etc etc

With what you gave as it stands I would say you need $50k.

Unless you are buying 4 keys of Coke, then you need muscle, lookouts, a distribution channel, OH, and a VERY good lawyer.

So $2 million in assets to cover that $50k before "Crazy Alonzo" (and they don't call him crazy for nothing has your guts for garters AND to keep your ass out of jail should cover it.

Let's see Robert K explain that any better.

:1orglaugh :helpme :glugglug

:1orglaugh

Ok well that was entertaining. I don't want to get more specific, I just wanted to see if there might be an easy answer to that. It would basically be a non-income producing liability, that's purely for fun.

I'm trying to figure out how much I'd need to have in assests to comfortably not give a shit about spending that kind of money.

If you've read the book, and or gone to his classes, you would know he wouldnt was you to take on liabilities.

What kind of cashflow are you getting from your assets?

What exactly are you spending 50k on?

You'd be better off buying some real estate or some other asset, that has some cashflow, and after a few years, you'll have that asset and your 50k back , and still have a nice cash flow.

True, I should probably just focus on acquiring some property first, and not worry about the other stuff until I build some equity. It's hard not to give into temptation...

Yeah it was fun, I started serious and then sort of got the impulse as the post developed :)

Seriously....

If it's purely for fun, and makes you no money and has no real value, I would say you need no assets if you have that kind of money to PLAY with (to me fun = play).

Again it's hard without specifics, but I would SURELY find a way to at least get tax hahahahaha off benefit, that way your 50k would only cost you the 50K less your savings on your tax rate.

There are also many ways for cross-loans, underhahahahahas and so forth so you could actually have someone else provide the 50k, you get the tax benefit, and then hahahahaha the item relating to the loan off, pay off the balance, so in actual fact after the tax benefit you would actually get BEFORE you pay the loan, you would risk losing lots less than 50k anyway.

If that sounds complex, well, get an accountant.

But without specifics it's just not much more than guess work and speculation.

:2 cents:

I would say - have enough of an self-perpetuating income stream to pay for all your expenses and this $50,000 liability.

Yeah, what he said as well!

Wise words :thumbsup

agreed

or just find some other way to fund it.

rememeber: dont say "i cant afford it"

say, "how can I afford it?"

Now I never said I can't afford it... but I'm just curious what the general rull of thumb is regarding what one's assets should be before laying down that kind of cash...

lease it :-)

when you can pay for leasing of it from the income generated JUST from your assets... :2 cents: