Adam Khoo on Wealth at Wealth Expo 2013

Yesterday, I attended Wealth Expo which was organized by Adam Khoo Learning Technologies Group. The 2-day event held at Singapore Expo was attended by a few thousand people.

Adam Khoo was the first speaker for the day. Given that the event was called Wealth Expo, it was probably no coincidence that one of the things that Adam talked about was on the concept of wealth and financial freedom.

Adam KhooMany people consider wealth as the amount of money or net worth that a person has.

If you have read Rich Dad Poor Dad, you will know that Robert Kiyosaki defined wealth as the number of days that a person can survive financially without working.

So if you have $100,000 in liquid assets, earn $5000 a month and spend $2,000 a month, your wealth will be defined as 50 months.

By the way, liquid assets does not include the primary property which you live in and your CPF. :)

Using this definition, a person’s wealth is not measured by how much he or she has, but by how financially secure he is once he is out of a job.

A person who earns $25,000 a month but has little or no savings and spends $20,000 a month could be less wealthy than our $5,000 a month income person who was given as an example above.

Adam Khoo goes on to elaborate that if you have passive income (the kind of income that you receive without having to work) such as share dividends and rental, you can subtract it from your expenses when you are calculating your wealth.

The wealth formula looks like this:

Wealth = Liquid Assets / (Monthly Expenses – Monthly Passive Income)

And if your passive income happens to exceed your monthly expenses, you can be considered financially free.

There are two ways that you can determine your wealth. One is to calculate it based on your current monthly expenses.

The other way is to use a projected monthly expense based on the lifestyle you want to live once you retire. This will tell you how many days you can survive should you decide to retire today.

So how wealthy are you?

Adam goes on to give some examples of how much money you need to save using different variables of time, inflation rate, rate of return, monthly expenses and savings.

The examples were done using one of his financial calculators. This calculator, as well as some other financial templates and a video, was sold to us at a price of $10. As Adam mentioned that there were only 100 limited copies available, a section of the audience rushed (they literally ran) to the payment counter to buy a copy.

For those of you who didn’t manage to buy a copy, you can consider checking out the financial calculators at CPF website.

Comments

  1. Freddie says

    I have often been impressed by Adam Khoo’s ability to rattle on ordinary financial platitudes into a series of sophisticated “strategies” and “insights”. Your observation that he managed to get duds to mad rush into buying a simple spreadsheet calculator that take less than 5 seconds to google for free is a case in point.

    I view his grasp of finance and general business acumen mediocre, but salesmanship and presentation skills as top notch. I strongly recommend any budding salesman who wish to improve his stage presence and showmanship to attend his free talks (but please don’t waste money buying for additional courses).

    • says

      Dear Freddie, I agree that his salesmanship is very polished and top notch, but in fair balance, I have to say that he delivered good value (for free) over his two sessions at this Wealth Expo.

    • Jack says

      I am not impressed by him. In his early days, he used to do the regurgitate the NLP stuff and I can see his book is basically a paraphrase of what the original authors wrote. Nowadays, I don’t see him advertise these courses for students. I think word must have gone around his courses make you feel good and that’s it.
      As for financial courses, I find him quite similar to the PHD guy who got into trouble and no longer conducts such courses. There is one more doing this with wild claims and he somehow manage to get away with it.

  2. Freddie says

    Hi Martin

    I think it depends on what you mean by good value. Like I said, one of his best skills is to spin a couple of ordinary financial platitudes into an impressive information download to bamboozle the uninitiated. It is hard to find fault with his stuff as he ain’t really saying anything out of the ordinary that a wise relative of yours wouldn’t say.

    The danger of his business as well as all others in this industry is that the free courses are mainly an appetizer to entice the uninformed folks to folk out big bucks to purchase more of the same garbage. The clearest sign of his lack of substance is the overly broad array of subjects he purports to be an expert in.

    He claims expertise in at least the following areas – NLP, child/teenage psychology, team formation, options trading, property investment, stock investment, general entrepreneurship, leadership mentoring and coaching, currencies trading, sales effectiveness, MBTI etc.

    Nobody in this world can realistically master so many different areas in life. Based on my observation, his standard modus operandi is to pick up the bare basics in each field, repackage them in an artful manner and present them in a pompous manner. It’s just showmanship and nothing else.

    • says

      Dear Freddie,

      For some of the other topics, I think he has other trainers conducting the training as well. His company is just the organiser for it. His company started off with the children program, and the history is that he attended one such program himself in the past.

      The seminar business is big in Singapore. There are tons of such investment courses around. Even SGX academy is getting into this market. Most people who are not trained in sales psychology can be easily persuaded to part with $2-3k for a 2-3 day program. Unfortunately, the majority of these participants (depending on what course they attend and their individual mindset), will end up losing money in the market.

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