But because they're not rich, they're not allowed to invest in the investments that could make them rich. Only if you're rich can you invest in a rich person's investments. And so the rich get richer. To me, that is ironic." "But why is it done this way?" I asked. "Is it to protect the poor and middle class from the rich?" "No, not necessarily," Mike responded. "I think it is really to protect the poor and the middle class from themselves." "Why do you say that?" I asked. "Because there are many more bad deals than good deals. If a person is not aware, all deals-good and bad-look the same. It takes a great deal of education and experience to sort 26 Rich Dad's Guide to Investing the more sophisticated investments into good and bad invest- ments. To be sophisticated means you have the ability to know what makes one investment good and the others dan- gerous. And most people simply do not have that education and experience," said rich dad. "Mike, why don't you bring out the latest deal we are considering?" Mike left the table for his office and returned with a three- ring binder that was about two inches thick filled with pages, pictures, figures, and maps. "This is an example of something we would consider in- vesting in," said Mike as he sat down. "It is known as a non- registered security. This particular investment is sometimes called a private placement memorandum." My mind went numb as Mike flipped through the pages and showed me the graphs, charts, maps, and pages of writ- ten text that described the risks and rewards of the invest- ment. I felt drowsy as Mike explained what he was looking at and why he thought it was such a great investment opportunity. Rich dad, seeing me begin to fade away with the overload of unfamiliar information, stopped Mike and said, "This is what I wanted Robert to see." Rich dad then pointed to a small paragraph at the front of the book that read "Exemptions from the Securities Act of 1933." "This is what I want you to understand," he said. I leaned forward to be better able to read the fine print his finger was pointing to. The fine print said, "This investment is for accredited investors only. An ac- credited investor is generally accepted to be someone who: • has a net worth of $1 million or more; or • has had an annual income of $200,000 or more in each of the most recent years (or $300,000 jointly with a What Should I Invest In? 27 spouse) and who has a reasonable expectation of reaching the same income level in the current year." Leaning back in my chair, I said, "This is why you say I can- not invest in what you invest in. This investment is for rich people only." "Or people with high incomes," said Mike. "Not only are these guidelines tough, but the minimum amount you can invest in this investment is $35,000. That is how much each investment 'unit,' as it is called, costs." "$35,000!" I said with a gasp. "That is a lot of money and a lot of risk.