My Retirement Plan

Not so much a retirement plan, but a plan to transition from a self employed IT professional to a business owner, and investor.  In Robert Kiyosaki’s Cashflow Quadrants, he brilliantly described the 4 characteristics that make up these quadrants as E/S/B/I.

  1. E = employee (have a job)
  2. S = self employed (own a job)
  3. B = business owner (own  a system that works for you)
  4. I – Investor (money works for you)


  1. Employee – Paid vacation/time off, consistent income, tax free subsidy health insurance, free continued education / professional development, yearly salary increase, bonus, retirement plan.
  2. Self employed – Freedom to work with many companies / clients. Higher compensation vs. employee (at least for the newer consultants).
  3. Business owner – Passive income, cash out by selling the business or IPO, can leverage the system, and employees (other people’s time) to grow the business, taxes is assessed after expenses, greatly impacting customers, and employees. Freedom.
  4. Investor – Passive income, fathom income, tax advantages, asset appreciation. Freedom.


  1. Employee – Layoff, become unemployed, skills no longer marketable, your company dictate how and where you will spend your time, lack of freedom, and tax shelters.
  2. Self employed – Unemployed, skills no longer marketable, your client dictate how and where you will spend your time, lack of freedom, tax shelters, and consistent income.
  3. Business owner – It is hard! Payroll, business could go bankrupt if not managed well, or in the wrong industry, wasted time, effort, and money. You still need to eat and live, and that takes money!
  4. Investor – lose money. It is hard! You still need to eat and live, and that takes money!

Being self-employed is the worst of the 4 quadrants because you have all of the burdens of an employee, but without any benefits that an employee, business owner, and investor has.
So, don’t be self-employed. One reason someone may want to be self-employed (or an independent consultant) for a short period of time is to gain industry experience from a wide variety of clients and this experience helps to accelerate one’s career as you convert to an employee.

My Plan:

Having been self-employed for the past 15+ years, it finally dawn on me that it is the worst of all scenarios. But it has been fun, and I have no regrets. I doubled, then tripled my income ever since I converted from an employee to an independent consultant, and live the life of a hardworking consultant for the past 15 years. The point is…doesn’t matter if you are currently an employee or self-employed, we can all benefit by charting a path to owning a business, and investing.

Here are my plans:

  • Learn about multi-family real estate investing, financing, and property management to buy and own 100+ units apartment.
  • Learn about commercial medical real estate investing, financing, business management, laws, successful partnership to buy and own a cosmetic medical practice.
  • Learn about sales, HR, law, financing to grow my recruiting company to service more clients, employees, and consultants.
  • Learn about SAAS (software as a Service), cloud based technology, sales, and marketing to build, or buy an online subscription based product (service) business.
  • Learn about public and motivational speaking, organize events, and marketing to start a monthly seminar / conference business.

Do you have a retirement plan? Don’t wait, start today!


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