Don’t be a Johnny Come Lately
Earlier this week, on my drive to one of our properties, I listened to an episode of Robert Kiyosaki’s Rich Dad Radio Show titled “Your Retirement in 2021” (I shared the link if you would like to listen).
In this episode, Rich dad advisor Andy Tanner tells the audience to “not be a Johnny-come-lately”. What he means is that you shouldn’t start learning about your finances after shit hits the fan.
We started this Quest4Cashflow website just before covid hit. Things were going smoothly and business was slow and steady. When March hit and the stock market crashed and people lost their jobs, interest in what we had to say skyrocketed.
More people downloaded our book, more people opened our emails, and ultimately, more people because Canadian Cashflownaire members. They feared for their financial security, and they were looking everywhere for some advice. And why not look here? Cashflownaires don’t fear crashes, they embrace them.
Then, as governments announced stimulus and the stock market rallied back, the activity went back to normal.
Our conclusion: people are no longer afraid and fine with the status quo. The government has taken care of them for now. They were just Johnny-come-latelies!
In other words, they came for information only after shit hit the fan.
Does it make sense to put your seatbelt on after a car crash? Looking for information after a stock market crash or after losing your job is the same thing.
And this post is not a knock on stocks or jobs for that matter. We own stocks and we even have a system on buying dividend stocks that we share with our members. We also have jobs.
Where we differ from most people is that we have other alternative investments. These investments provide us with cashflow. These investments make us less dependent on our jobs and the stock market.
It’s funny, I am a life insurance and benefits advisor. I actually got into this racket with a plan to become a financial advisor (because my dad seemed to respect the financial advisor more than the insurance guy).
I worked for Freedom 55 for 2 years. And I remember sitting in meetings, and the freedom guys were telling us advisors that people investing on their own with things like Questtrade are crazy. They need to own a well-diversified mutual fund offered by Quadrus (Freedom 55’s investment company). Then they are fully diversified.
Not being sold on mutual funds, and being a real estate investor, I asked about diversifying further by owning income-producing investment properties. They brushed it off saying there was too much risk in real estate.
So then I asked, what about private loans? Again, too much risk.
What about ETFs? Not managed by someone who knows what they’re doing, too much risk.
I got my answers, I stopped asking…
Basically, if it wasn’t through them, it was too risky.
If they were being honest, they would have said, a mutual fund is for the lazy investor. Everything else is for the active investor. That would have made more sense to me.
But from experience, active investing always brings greater return. Simply because most people aren’t willing to put in the time to get those returns.
Long story short, I never sold a financial product. Everybody with a family needs life insurance, and every company needs benefits if they want to attract and retain employees. So I figured, why not purchase those products from me? And it is so much easier selling something that you believe people need. Also why I got into real estate. Everyone needs a place to live.
Vince has similar stories from his experiences working at the bank, I’m sure he can share another time.
Now, after spending the last 6 years or so building up my business and my assets, Vince and I decided to share our knowledge through this website.
If there is one thing we can’t stress enough, it is that now is the time to sharpen your financial education knowledge. Now is the time to look at investments that increase your cashflow. Don’t be a Johnny-come-lately. Be a Cashflownaire instead!
Vince & Mike
P.S. We always share little tid bits on where we see the economy going and how to invest your money in other ways. But it is up to you to take action. You are your greatest asset. Educate yourself and don’t get caught up in the status quo.
P.P.S. Robert Kiyosaki is calling for another stock market crash. Right or wrong, only Johnny-come-latelies stocks and bonds exclusively. It’s near impossible to become a Cashflownaire owning only stocks and bonds. Let this be your wake up call.