But I have met a lot of poor people who have never lost a dime .. . investing, that is. over to buy much of LA, especially at 1995's real estate prices. My neighbor works for a major computer company. He has been there 25 years. In five more years he will leave the company with $4 million in his 401k retirement plan. It is invested mostly in high-growth mutual funds, which he will convert to bonds and government securities. He'll only be 55 when he gets out, and he will have a passive cash flow of over $300,000 a year, more than he makes from his salary. So it can be done, even if you hate losing or hate risk. But you must start early and definitely set up a retire- ment plan, and you should hire a financial planner you trust to guide you before investing in anything. But what if you don't have much time left or would like to retire early? How do you handle the fear of losing money? My poor dad did nothing. He simply avoided the issue, refusing to discuss the subject. My rich dad, on the other hand, recommended that I think like a Texan. "I like Texas and Texans," he used to say. "In Texas, everything is bigger. When Texans win, they win big. And when they lose, it's spectacular." "They like losing?" I asked. "That's not what I'm saying. Nobody likes losing. Show me a happy loser, and I'll show you a loser," said rich dad. "It's a Texan's attitude toward risk, reward and failure I'm talking about. It's how they handle life. They live it big. Not like most of the people around here, living like roaches when it comes to money. Roaches terrified that someone will shine a light on them. Whimpering when the grocery clerk shortchanges them a quarter." Rich dad went on to explain. The fear of losing money is real. Everyone has it. Even the rich. But it's not fear that is the_pioblem. It's how you handle fear. It's how you handle losing. It's how you han- dle failure that makes the difference in one's life. That goes for anythinglrTIiFe, not just money. The primary difference between a rich person and a poor person is how they han- dle that fear. It's OK to be fearful. It's OK to be a coward when it comes to money. You can still be rich. We're all heroes at something and cowards at something else. My friend's wife is an emergency room nurse. When she sees blood, she flies into action. When I mention investing, she runs away. When I see blood, I don't run. I pass out. My rich dad understood phobias about money. "Some people are terrified of snakes. Some people are terrified about losing money. Both are phobias," he would say. So his solution to the phobia of losing money was this little rhyme: "If you hate risk and worry ... start early." That's why banks recommend savings as a habit when you're young. If you start young, it's easy to be rich. I won't go into it here, but there is a large difference be- tween a person who starts saving at age 20 versus age 30. A staggering difference.