I’m not a big fan of R.K a lot of names comes to mind when I think of him

But I did not know he was most notably, nylon Velcro wallets ( interesting).

He once was on PBS talking about mutual funds are a waste of money and to invest in real estate.

Crazy Crazy.

You are right he does undervalues risk. As if it’s no big deal.

John T Reed has a similarly brutal review of RK on his site. It’ll take awhile to read, but it will definitely reinforce your opinion of the guy.

http://johntreed.com/Kiyosaki.html

John T. Reed has an excellent (and ongoing) critique of Kiyosaki at his website:

http://www.johntreed.com/Kiyosaki.html

I agree that not everyone can quit their jobs and jump head-first, but I do believe in his idea he put forth in the book. The definition of “rich” that I believe in is how long you can exist if you stopped being able to work. The only way to have this definition of rich is to have investments that yield you enough each month to cover your expenses.

It’s the goal I’m shooting for.

I also recommend John T. Reed’s review of Kiyosaki’s _Rich Dad, Poor Dad_.

I have picked up a couple of his books from used book stores, and while I do not swallow the pill whole, there are bits of advice here I have found helpful.

In “Who Took My Money”, he expresses the point that you should have a plan and a good reason for what you invest in. He tells a story where he invested in a mutual fund when he was younger, and could not answer why he did it, and could only answer asking (”is this a bad idea?”). The point he was making is that you should have an objective and solid reasons for what you choose to invest in, not just because someone tells you it is a good idea.

I also like what he has to say about acquiring assets, and not “doodads”. And I agree that getting an education is not necessarily a step in the direction of becoming wealthy. I believe education is valuable, but it may just be a path towards becoming a better paid serf (if you do not make wise decisions about spending and investing).

These are small points, though. I do not agree with some other statements he makes, like buying options instead of buying stock. Or investing in commodities. This method of investing, to me, seems more like gambling.

It’s hard to consider your write-up at all impartial, educated, or based on fact when you start it off by stating that you weren’t confident in him to begin with. So this piece is an opinion piece from someone who got a bad first impression.

Your statements are risk are juvenile. One cannot get rich without accepting risk. No matter what you invest in, risk is what you are getting paid for. When you price a stock, you evaluate the risk of the company’s future earnings. When you give a loan, the rate is based on the risk of default. Robert is simply saying that if you want to get rich faster, you have to accept more risk.

And related to starting a business, RK does indeed understand the risks and difficulty involved. He states time and again that 9 out of 10 businesses fail. He has a whole book on the subject called “Before You Quit Your Job”. Doesn’t sound like a man asking you to make a rash decision and take huge risk, blindly assuming that you will get rich.

I don’t know whether Rich Dad is real, but if not I think he deserves more credit because it is a brilliant story.

I find it curious that you think his knowledge is “highly flawed”. He is a multi-millionaire with a successful business and huge holdings in real estate after being completely broke. Exactly what qualifies you to snub his accomplishments? Oh right, you’re just a wannabe looking to get some attention by saying something controversial. Actually, I can’t see you being that smart.

I’ve read a couple of his first books, his book on cash flow, real estate, his friend’s book “Bobby” something about real estate investing. I borrowed copies of his audio series from a friend and listened to it about a couple of times.

Most of his talks are just redundant and he keeps on drilling the same concepts and common sense into your head, but overall his advice has been somewhat helpful. However, I can’t stand his accountant and his wife Kim. They sound too arrogant and stupid on the audio series.

There are so many books out there that gives advice etc. on how to do be successful. What made this guy top the charts? He’s been seen hanging out with Donald Trump lately as well…

I have a few Kiyosaki books which I get some basic ideas from. I do take them with a grain of salt and always fall back on my comfort level before entering new investments. I don’t normally “blindly” follow so-called experts like this though I do review their work for interesting perspectives and maybe even for amusement sometimes. Ultimately, I rely on my own judgment calls, intuition and own past experience — as well as stuff I’ve read — for guidance.

RK’s books have always given me the impression of being too gimmicky.

However, I have read RDPD in bookstores, and the one thing that stands out is when he explains the mindset of an employee vs. someone like him. This information alone, I feel, is worth the buck for many people.

Wow, The one thing I can say about Robert Kiyosaki and his materials is, he does too often state “9 out of 10 businesses fail…” *but* I guess you left that out. Also, he doesn’t say drop out of school *but* I guess that’s how you wish to interpret it. Also, do you really need to see the risk behind crossing the street, having anonymous sex without protection and walking off a 3 story building in print?

Wow, that’s really just amazing. For those who don’t get it and want to read a big chunk of his materials in a comment, well, here it is.

“Don’t drop out of school *but* don’t think for a moment the key to getting rich is a formal education. Don’t worry about risk because you’re going to fail 9 out of 10 times; point is, there is a 90% chance of failure before success (but please do not interpret this as no-risk). Don’t think for a moment having a 9-to-5 is going to get you rich, be aware your next step is to try and get self employed and after that if possible try to own your own business, then if possible step up to investor because every step up when done right should help multiply your income.”

heh, it’s wild, it really is (almost shocking) how some people just don’t get it…

“He is a multi-millionaire with a successful business and huge holdings in real estate after being completely broke.”

This is because he sells jillions of his crappy books, not because any of his advice works. People have tried to some of his amazing real estate deals and found no record of those transactions. The same goes for his investments in “corporations” and such.

Robert Kyosaki is not a rich man who had decided to share his secrets, he is a rich man who has been able to spin vague and dangerous advice into bestselling books.

Well, Trent,

I have a degree from a respected University and completed a few post graduate courses in my field. I also have been an investor for over 20 years.

I have purchased eight of Kiyosaki’s (RK) books. In those books, RK reveals that Rich Dad is a literary tool to explain how money works. I can accept that without throwing the baby out with the bath water (unlike you or JT Reed).

Further, RK makes it clear that he is not a very good writer. I also accept that. Further he explains in these books that he is teaching in broad concepts and not outlining a dot-to-dot scheme to get rich. I also accept that.

RK also repeatedly outlines the risks of owning a business with his own examples of failure, and suggest various places how to overcome these risks, and why it’s important to overcome our fears. I also accept that.

RK also speaks of cultivating a desire to better oneself. I also accept that.

So, he’s not a great writer; teaches in broad terms and concepts; encourages his readers to accept risk; overcome their fear of failure; and cultivate a strong desire to succeed.

In my book, that’s about all a true entrepreneur needs.

So, what’s your problem really?

And by the way, John T. (Throw the baby out with the bath water) Reed has made himself legendary in scewering RK seven ways from Sunday. Reed has only read one RK book and extrapolates the most absurd conclusions for all of RK’s work. He is a conjecture artist just like you are.

Trent: imagine to save your own life you must swim across a 1 mile stretch of the deadliest ocean waters the world has ever known. You have time so A. will you just jump in and go with the flow, OR B. will you assess the risk and then jump in?

Not just for you but if anybody answers with A and then complains to God that no one warned them about “risk assessment” they’re going straight to hell…

With regard to the title and tag line of his book, perhaps it should have been as follows:

Rich Dad, Poor Dad. What the poor make up to make themselve rich.

S

I have to agree with Jay here. I’m not saying that I idolize the guy or anything, but I think he’s got some solid ideas.

As mentioned, defining wealth as how long you can live without working was a new way of thinking of things for me. In 10 years of Money Magazine subscriptions, I’ve read a billion different mutual funds articles, but nothing about generating or even measuring passive income.

Think of things in terms of assets vs. liabilities was a new concept to me. I had thought that buying as much house as you can afford (some typical advice) is smart. Hey, if I can afford a million dollar home and it appreciates 5% each year, I’m “making” 50K (on paper). It sounds good, but it’s better to have (5) 200K properties all rented out (profitably hopefully) appreciating at 5%. This doesn’t require you lay out nearly as much cash as in the 1M home scenario.

As for any kind of Amway or making up the characters, it’s completely irrelevant to the story and the teachings themselves. There’s nothing wrong with using fiction to try to teach things. As to the whole Amway marketing thing, I really don’t see the problem with it. They are basically affiliates.

The reason he deals with risk (and he does talk a lot about how much risk there is) is that he is trying to show his audience how to get really rich - not just work your whole life to have enough money for retirement. Sure you can take the safe way with mutual funds (I will take that way as well), but will some mutual fund investment give up 2M dollars in the next five years? Probably not unless you are investing 1M or more today.

In the end, I think he’s just not conservative like the other experts. I’m not sure that’s a bad thing - depends on the person.

Trent you have no idea what you are talking about, and its quite obvious that you have at best only given his books a very quick flick through, if he really was the charlatan you paint him as then he would have been exposed by now.

If any one is a charlatan its people like yourself and John T Reed who have absolutely no credentials in Business Education, and are failures in comparison to RK. The only way you guys can get ahead is to flame legitimate educators.

You know what, I actually have to disagree with you on almost everything about this post.

His books are fantastic, I now own 5 different companies because I started reading his books and I just “got” it and an early age and skipped university to start my own business.

You totally forget that these are motivational books with some basic financial advise, so what if he had failure as an entrepreneur, I guess you dont know what its like to start your own business.. I have had 15 fail on me… but I keep adding to my growing 5 every year.

He is a best seller because he can motivate people… obviously you just didnt ‘get’ it.

Your opinion would have more credibiility if you didn’t run skanky ads promoting multi-level marketing scams next to your high-minded critique.

Physician heal thyself.

Setting aside the question of whether the book is good or bad, I would like to note that the Cashflow 101 game is educational and fun.

The game itself is very expensive, so just find an existing group in your area that meets to play. I found several enthusiasts using Craigslist and Yahoo! Groups.

It’s well worth the time!

3 things:
1) No matter what education you have if you don’t have the will to get something more your knowledge does not matter

2)This is a good source for a basic understanding of Assets and Liab. Most people don’t have a clue what a financial statement is today

3)If you have invested in the Mutual Fund Co. and not the mutual funds themselves you would have made a better return on your money overall. I wonder why that is?????

I too must side with RK on this one, and I’ll tell you why:

I read your article with an open mind, and I must say it sounds more like you breezed over cliff notes for a couple of the books, versus actually reading them.

He does NOT say ignore risk; one of the fundamental ideas is “to mitigate risk through education”. One reader commented essentially that more risk yields higher return, which is absolutely true, but you can REDUCE the risk by thoroughly educating yourself.

He also states that you learn through failing (since you pointed out his failures). I agree with this philosophy. Fear of failing is what paralyzes most people, and prevents them from acting. Embrace it as a learning tool; he’s not the only one espousing this.

I also read a comment “he states the same thing over and over”. I, at times, found some of the repetitiveness and simplicity annoying, but I believe this is done to hammer home the fundamental points, and its written for several different types of people with varying backgrounds.

I think many of today’s financial gurus are repackaging old information in new ways (again, not a revolutionary concept). Most of their “ideas” go right back to “The Richest Man In Babylon”. Earn money, save a portion, use it to invest, and keep following the pattern. RK makes the monopoly analogy of “4 green houses makes one red hotel”. There’s nothing wrong with the logic, and he has his own success to prove his philosophy.

Jay, I couldn’t have said it better myself.

Risk is mentioned, but emphasis is on mitigating it. Make it zero, not “there is zero risk”.

I have done half an MBA. The entire degree so far has failed to contradict major points of Kiyosaki’s philosophies (and yes, I have almost all the books, too).

Too bad, instead of spending your time pulling apart the work of others, you could have learned a thing or two from the books and made yourself rich.

I won’t need to work anymore in 3 years when I am 31. All because I read Rich Dad Poor Dad in 2000, which incidentally caused me to start my MBA. Funny isn’t it?

Daniel.

One thing about mutual funds. They are for non-financially educated investor. Not saying the people that invest in them are dumb, but they have a different set of priorities then let’s say a stock allocating professional. They spread the risk, but also spread the return.

Kiyosaki is an inspiration. People look for him for motivation and a kick start. He’s like a gateway drug… he’ll get you hooked on finance, and money, and the urge to “take care of yourself”, “Pay yourself first” etc. He believes that no one is going to take care of you, but yourself, And he makes you believe that you can do it. At least that’s what he did for me, (and a few other people I know) He’s a man with a good message, that has the power to spread the word, I think that is great.

Also he makes most of his $ from real estate and oil… at least that’s what he says- He believes Real Estate is King-

I personaly know robert and his wife kim he gave me all of five of his books for review. his plans are not for the faint of heart that is true, but he did give me a tip on silver that turned 140 percent profit in 3 months. after that he told me I had to buy real estate with that money. so I’ll take his advice… find me some other author that takes the time to make their readers money on a one on one basis ?

Look, RK acts like his principles made him money in the real world, and then he came back to earth to tell us how we can do it, too.

BUT, the truth is, RK made his money selling the books to people who want to be rich.

This is dishonesty. Nowhere in his books, or until recently, has he mentioned the Rich Dad Poor Dad paradigm is fictitious.

Again, dishonesty.

You kids reading these books and getting all bent out of shape need to consider that before you jump out of yer jobs and into some scheme, or invest all your savings.

I had to stop reading because of your negativity. You need to do more research. Network marketing isn’t a get rich thing. Its like any other business. YOu have to work at it to make it happen. He dosent ignore risk. Have you ever read his books? you should. maybe you would have more of an insight.

wow. how about buying your own publication, write motivational stories and publish them to hungry wannabes out there? There are an endless market of people wanting to be rich, just like those in the death/funeral industry. It is a depression proof business. plus it generate passive income, and whenever there is a dip in sales, just throw in a new book to the hungry ones out there.

Wow. Genius this one.

i find lots of his ‘ideas’ in his books are rhetorical. If you have an idea what you are doing, you don’t need his book. And if you don’t, the book isn’t going to help you anyway.

“What I really don’t understand is if you want self-help why would you read a book written by somebody else? That’s not self-help, that’s help! If you can do it yourself you don’t need help!” - George Carlin.

I guess most people are looking at the book as a form of silver bullet for them. It is not. My take is that what Robert Kiyosaki written in his books are his principles and learnings which had made him successful. Some of what he said has good relevant truth in them.
On a personal note, I cannot agree on the negative points raised. The reasonings are a bit weak and do not convince me.

- B. (richdadwisdom.com)

I´ve read carrefully trent ideas and I agree with most of the comments, trent did not understand what RK said or did not want to. RK opens a gate, a paradigm where risk is a variable, but is it safe to work for a company? or is it more risky to be an employee??? ask the millions of employees that lost their job in the last 10 years, would they had done the same if they would have known these ideas?
I tank Kiyosaki cos I have bussiness working for me while I´m still an employee, but in a few years time I will be able to stop working If I want and I´m still under 30 years old.

My husband and I read Rich Dad a few years ago, and I have to say…we didn’t come away from it with any real practical advice, but it DID make us think differently about money and finances. It changed in our heads from “bills and paychecks” to “income” and thinking ahead.

The Rich Dad series is very encouraging and sometimes that’s all people need to get on the right path. Since then, I’ve delved deep into learning personal finance, and getting us in shape for the years to come. And I can’t say that I would have without reading R.K.’s books.

From reading through this thread it seems as though the writer may have something against Amway to begin with. Personally I think that RK’s books are targeted at the ‘financially challenged’ minds out there and to give people something to think about and just let them know that there are other ways to achieve their goals. I’m sure that 99% of the people on this thread would use a network marketing company to distribute their product due to the fact that network marketing has made more millionaires than any other industry and the companies usually have good principals to begin with. One last thought, if anyone who reads any of his books and lands up living on the street, it’s entirely their own fault. No one is holding a gun to any of the readers heads.

Byron,

First, principles, not principals.

Second, what’s so great about Amway? I saw quite a lot of that organization during the late 90s, and I have to say that I remember it as being a shoddier product the further down the pyramid you were. I remember it being predatory, and I remember there being a lot of talk about dreaming big, but a lack of any substantive discussion. I remember friendships that weren’t.

Suffice it to say, I don’t remember it being all that great.

Thirdly, it’d be simply marvelous if you made use of citations when making statistical claims.

Lastly, your one last thought is inane. Nobody said that it wasn’t their fault, though perhaps you’ll try and forgive some of us when we feel sympathy for their — self-inflicted — plights. And, if you are feeling truly compassionate, you might even manage to stay quiet when we wonder if they maybe would have succeeded had they been given GOOD financial advice somewhere along the line.

“From reading through this thread it seems as though the writer may have something against Amway to begin with.”

Well, I should certainly hope so!

A very interesting read.
Seems to me that the people who criticise RK spend ALL thier time on the internet in forums, slagging someone, instead of getting out into the real world and actaully DOING something to become wealthy.
I bought 5 properties in 11 years, more or less as an ameteur investor, after reading RDPD in 2004 (and many more of his books) I accelerated my purchasing ability and now have 12 properties, and could have more if I had been reading his books earlier.

Also left my job and started a business, and have since looked into many new ventures, met MANY interesting people (all RDPD fans) all in different levels of wealth building , all reaching thier goals, and all have one thing in common, they read RK and changed thier mindset, and instead of working in low paid jobs, they are getting out of the ratrace and there is no holding them back.

Why waste your time slagging someone, get on with your life, create something, leave your mark , and get rid of all that negativity.
By the way, never heard of this T Read guy , who is he ???
Had this link sent to me by soemone who wanted to show me something negative written about RK, but as I have mostly read possitive comments, it is obvious where the general opinion T RK stands.
Robert, this is one fan you have’nt lost !!!

Trent, I usually read your blog daily, but have been out on vacation. Although I typically “side” with your point of view, I have to respectfully disagree with your assessment of RK.

My reading RDPD might have been similar to your reading “The Richest Man in Babylon.” To me, the two are simple stories with powerful messages for certain people. “The Richest Man in Babylon,” although well-written, really wasn’t anything new to me, coming from an immigrant Asian family where saving every penny was the norm. I had the same reaction when checking out Dave Ramsey’s show after reading your review. Nothing earth shattering, really. But to me, RDPD was eye-opening. I was taught to go to school and get a stable job. Call me stupid, but it never occurred to me that there were other ways to make money. Maybe, similarly, people in debt don’t realize that all they need to do is spend less than they earn and pay themselves first (seems pretty obvious to me).

After reading RDPD in 2001, we started learning about real estate. It took a while to learn and to take action, but we’ve done quite well. And now, we have enough positive cash flow in rental income to cover our basic monthly expenses. Coupled with our frugal saving and investing habits, I’m no longer scared of getting laid off from my day job. So, I do agree that “risk” depends on the eye of the beholder.

I don’t really like the other RK books, and truth be told, haven’t read many of the other ones. But I have to give props to RK for changing my way of thinking. Sure, you have to take any advice with a grain of salt and evaluate it to see if it fits for you.

As far as John T Reed goes, the only thing that guy knows how to do is bash on other people and promote his own courses. It’s much easier to moan and complain (as evidenced by my infrequent posting, but speaking up when I disagree). =D

At the very least, I’d ask people to read RDPD with an open mind, rather than just accept what the critics say.

This is an interesting analysis/hypothesis about how Kiyosaki developed his views. I happen to like Kiyosaki’s stuff even if a significant proportion is BS or flat wrong. But I know how to filter that out and many of his readers don’t.

I am a very very very strong believer that PK is a complete fraud and here is what cause me to have such strong views.

During my freshman year of college my room mate was in class with a friend who worked for Amway/quixtar. Of course being a student I was excited at the mention of money as my room mate’s friend broke down how the business worked.

My room mate and I put money into the company, I put in about $500, lost about $800-1000 in the end.

We went to their conferences which were more of a prep rally. Where one of the executives went on stage and basically gave a bunch of motivational speeches, which worked. We also saw PK there and were recommended this book my him while he was on stage. They kept talking about PK, and using his story and example. You pay to go to their conference, and they guilt you into buying his books and other finance books.

When we got down to it we found out we were scammed. I had to buy a certain amount of products through one of their catalogs and to recruit others. It eventually became a recruiting war, and the end result was I and my room mates got no where. We pulled out after being frustrated with how we got paid(we never got paid). My room mate lost a lot of money. Since then I will not trust/buy/believe anything anyone says that is associated with amway/quixtar. The feeling of being fooled, hurts as much as if you were being robbed.

When i read his book it was interesting. But knowing how he got rich, which was stealing my money makes me have a fit every time someone brings his name up. If you don’t believe me research amway/quixtar and read the stories.

Sorry I meant PK = RK (Robert Kiyosaki).

The point of Robert Kiyosaki’s writing is to motivate a person to invest in themselves to think differently than everyone else. Not one of his books promises anyone they will be rich. His books are not a get rich quick theme. He is a motivational speaker if you will. Regardless of his failed attempts, riches, fake real estate, whatever.. He basically exposes one thing so simple to everyone yet we are all blinded by it. We have no idea how to handle our money and when we do have money we put it towards useless things. For all the people who bash his books, are the same people who are either jealous of him, or are broke themselves and are bitter about it, and they think because hey this guy is rich because he sold books not because he made money in real estate, stocks, etc.. but hey he made MONEY regardless of how he did it, and its money you and me dont have.. So instead of sitting there bloging yourselves to stupidity, Read his books, read the next guys book, and the next guy and the guy after that.. absorb the knowledge and use to you damn advantage.. So some day some else can write about you and bitch that your a rich guy cause your a scam artist or all you did was sell books… Bottom line Money is Money.. As long as we have it then were happy. As long as you make it the legal way.. who cares how you earned it.

Amen to the Captain! We could substitute about any author’s name for RK here, and The Captain’s advice would make a lot of sense to me. :-)

I agree, not all RK are good. His later books with especially with Donald simply repeats a lot of stuff he said with his previous books. But business is business and if he milks his book nothing personal really. He’s not really holding you at gunpoint to get them.

But despite of it all, like those who posted here, RK’s message of thinking like that rich and his views on buying assets instead of doodads was a huge help in my financial life and personally helped me get out heavy personal debt.

Now after 6 years I already own 2 good rental properties generating positive cashflow. Of course, I still have a long way to go before I truly become financially independent but I’m earning an extra 1k every month (besides my job) and totally out of debt.

Why are you guys so critical about a man who is successful in his ventures. He has had his share of failures too. but he is a multi millionaire and known worldwide. He has prooved himself. What he gives in his books is the kind of basic education that everyone should know. He talks of being financially educated, which is very true. I have attended one of his seminars, and he is really good. How you interpret it n what you get out of it is entirely upto you?

I stumbled across this forum while looking for something else and am appalled at what I’ve read. For all of you people who are “critiquing” RK’s material:
Who exactly are you or anybody else to critique a multi-millionaire who makes in excess of $1 million per month now? If you’re not more successful than the business person you are critiquing, why should anyone listen to you? It amazes me how many of you “genius” experts are critical of someone who is VASTLY more successful than you will ever be! RK’s trophy WIFE Kim makes more than any of you reviewing his material(over $300,000/month). Bringing up a person’s failures to try and tear down their success is asinine. Nearly every “rich” person has had a string of failures before success including Billionaire Donald Trump. People with millionaire mentality are MASSIVE risk takers. They don’t fear investments. Case in point, every professional athlete in the world went through years of failure while they were learning to be the best. It takes TIME to master anything. My advice to you all: Keep looking for “what’s wrong” with every piece of advice, business opportunity, or material from successful people instead of looking at “what’s right” and see where you are in 10 years. Most of you negative genius reviewers are in exactly the same position you were in 2-5 years ago or worse! Guess where you’re going to be in another 5 years from now? Always making excuses and coming up with reasons not to get involved in opportunities will get you the same result….dead end! It’s better to get involved in an opportunity and LEARN something to help you succeed in the future.

I first read RDPD about 4 years ago while I was working as an ‘E’ in a major UK corporate. 17 years as an E can leave you with a certain fixed mindset, and the warnings in his book did leave me feeling uncomfortable about trusting the employment system etc.. 2 years later id taken the walk from my firm as they downsized and started 3 start up businesses. First was a small telco resales franchise, second a small property development business, then 3rd a manufacturing business making alloy wheel cleaner. Over the next 2 years the results werent earth shattering, but at least produced +ve cashflow - the telco now generates £600 a month without any more effort, the first property netted £30,000, and I have a single rental flat left which now washes its face and if sold in todays market would make £20k, the third business folded with £10K of debt, however was a great learning experience in getting a product from the drawing board to shops in 6 months. I also traded FX in this period after taking a tech analysis course, but I wouldnt do it again without supervision from a grown up (!) it was hard to make money here. After all this an opportunity presented itself when a friends company he worked for went into recievership - so we clubbed together and bought it out alongwith the existing customer database. Now, 2 years later it turns over 2.1 million pounds. After costs i probably currently earn 20% less than at the big corporate, but take home more. All things considered ive gained by becoming a ‘B’ and can use the system to my advantage as RK says. Sorry to go on , but I have to thank RK for mapping out that there is another way of working - his intention is not to spoonfeed but to reveal alternatives. It may be the road less travelled but in my view he has done me a favour.

I bought a couple of RK’s books hoping to find some advice on real estate investing. I thought the book contained a lot of common sense and hardly any real advice. When I started reading RK’s article’s on yahoo I found a lot of his information to be misleading or incorrect. It seemed to me that RK knows more about selling his books and board games than real estate investing. However, people continue to say things like: “why should we take advice from people who make much less than RK” or “RK has more money than you ever will.” These comments are ridiculous. Did it ever occur to these people that RK made a lot of his money sellings his “motivational” books. 26 million copies. And yet people say he must be an expert, he has all this money. Yeah he does, and it’s not from investing its from selling his books and board games to stupid people like you. Wake up. You don’t need 18 books to explain how losing is ok. Or how to decide what is an asset or liability. Just read his articles, you’ll find plenty of so called “advice” that is completely false. For instance, a bank calling in a mortgage because the value of your home has dropped due to deflation. It is unbelievable a “real estate guru” would say such a thing! Ask a “working stiff” real estate agent or loan officer and they will tell you they’ve never heard of such nonsense. But wait, RK wrote it so that might happen. There are countless other examples, but I feel like I’ve made my point. Open your eyes and do a little research on your own before you just spit out what RK has been feeding you.

I have to say that this is a pretty interesting discussion. I have just got Retire Young, Retire Rich out from the library and I think it, like anything, requires readers to sort the gems through the crap.

I would be keen to hear, however, what other ‘experts’, books etc you all think are good, perhaps better than those of RKs?

Particularly those of you who are critics of RK. You say there are those whose advice is better, could you please name some and state why you think they are better?

Cheers

A longtime friend of mine who is a physician sent me the book “Rich Dad Poor Dad”. After trying to read it and get anything useful out of it, I was very perplexed as to what my doctor friend thought was so worthwhile in that awful book. Earlier, I had sent my friend the book, “The Millionaire Next Door”, which I still highly recommend.
My friend later informed me that he was going to borrow a huge sum of money, second mortgage style, in order to buy rental properties.
He asked me what I thought about that and I tried to suggest politely that I thought it was risky, at least too risky for my blood. I guess I was too polite or he had his mind made up, because he took the plunge - and boy did he get his teeth kicked in! He decided within a year that the landlord business was not for him. Keep in mind this doctor is a guy who doesn’t even own simple carpentry tools. Between loan origination fees, property management company fees, handy man fees, and real estate agent fees, I estimate that this doctor’s ill advised foray into the landlord business cost him at least $200,000. Not to mention the waste of his time.
Like others, I smelled a rat with this Kiyosaki guy. I looked up some things on the internet and came upon the terrific John T. Reed site as well as this site.
I believe Kiyosaki is a complete charlatan, and it is unbelievable that he is featured on PBS fundraisers. I believe Kiyosaki also takes advantage of some of the positive stereotypes Americans have of Asian Americans, believing that they are somehow “wise” in an almost superhuman way! This guy is “The Emperor’s New Clothes” come to life.

If you think Kyosaki downplays risk go reread the book or rather read it for the first time. I would understand it if you just had issues with RK, but when you said cramer and orman were good commentators, it became clear you didn’t know what you were talking about. I bet you’d love that Newsweek financial commentator too - Jane Quinn is it? If you think mutual funds are the thing to be in go read some behavioral finance articles. And by all means continue putting your money in them. We’re all better off that way.

As for RK, he did not admit in his early books that Rich Dad was a rhetorical device. Rich Dad was not a device to boost comprehension - it was a device designed to give him false authority. This multimillionaire real estate investor told him how to make money. If that were true, it would be easy to see why someone would want to listen to RK. But if it was all a lie, how on earth does RK, poor student, no attempt at college, have standing to teach us what to do? Maybe it’s because he was a successful real estate investor? Where are the apartment buildings he says he owns located? It’s sad how he lied and lied.

But the ironic part of it all is the advice is still good, and thousands have benefited. There’s nothing inferior about real estate and small businesses as investment devices compared to mutual funds. And they may even not be riskier. But they require a greater amount of financial education and starting capital. RK emphasizes th need for this education, although fails to deliver in substance. He also never encourages people to quit their jobs before they make enough passive income to go without active income. And his greatest success has been coming mainstream with his advice. Do these ends justify his lies? To many they do. To me? I’m undecided. Where does he get his theories? Who’s really behind Kyosaki?

I rank as follows: 1st Suze Orman, pretty good overall 2nd Dave Ramsey but Dave is unrealistic about debt and a few other things, but BOB BRINKER is better than either of them. There is another guy, Humberto Cruz, who writes a very good column. I also recommend a book, “What Wall Street Doesn’t Want You to Know” by Larry Swedroe.
The problems with mutual funds are the fees. I am in index funds.
Real estate cannot compete with the stock market (index funds) over the long haul, unless you are your own real estate agent, banker, and handyman.
I think people kid themselves a lot about how much they make in real estate. They will just look at the buy price versus the sell price. Get real!: When you subtract real estate agent fees, loan origination fees, interest, repairs, property taxes, insurance, and your time, people make much less on real estate deals than they think.

[Disclaimer: I do consulting work with Kim, Robert’s wife. However, it is at a deep discount and I offered to do so because I like the over all message in the RDPD books]

It seems there are a few things in this post that are not quite right. Almost, but not quite and the not quite are the big things.

1-In Cashflow Quadrants Kiyosaki states many times to “mind your own business.” He uses an example of two fireman that KEPT their jobs while also investing money they saved.

2-He advocates MLM (which I despise btw) for a chance to learn sales skills. I don’t agree with that. I do understand the point. We just differ in philosophy on that one.

3-He has elaborated much in the audio series, “Financial Literacy” taht there are great risks and failures. That series has much detailed info on Corporations and tax strategies.

4-the written word is applicable in principle, if the principle is true for longer than specific examples are true. RE might have been great in the 80’s or it might be great now in Dallas, TX. However, it is important to take into account time of writing.

5-When dealing with the literalness of a word I often take the Bible and its readers into consideration on how some folks take all things lterally and other support an allegorical hermeneutic. How you approach a text matters.

For the record I personally do not invest in RE. (I do have a partner that does with some of our biz money.) I am not in an MLM and am not a fan. I build internet companies.

I like what I consider the premise of the book: take responsibility for your own financial literacy and then apply it.

I know not everyone has opportunity to do this (see I differ on that point with most RK fans–I am not a die hard republican) but I do. So, I do.

Criticism is always good though as long as the conversation is left open. We need more of that as human beings. Open conversation.

This is my first post to your site and I came by it by coincidence. Recently, we have begun a Cash Flow club in Encinitas, CA. We, also, set up a web site dedicated to the understanding of the way cash flows in our society. Admittedly we started this because of our liking for the message of the cash flow game and our agreement with some of the tenants of the RichDad/PoorDad books. So far the experience has been quite positive. We’ve met realtors, students, investors, teachers and amway types, too. Then I decided to google RK to discover more about his background which immediately led me to Jack Reed and his extensive review. And that fortunately led me to The Simple Dollar newsletter and the column above. Frankly, I wasn’t surprised to find that there are those who dislike RK, like Reed and his posters, but I was really gratified to find your more open minded (but still critical) view. Thanks and keep writing.

I’m nearing the end of reading Cash Flow Quadrant. I agree with one writer who suggests you may have only read the cliff notes. The best thing about all this is that its people like you that leave plenty of good investments for people like RK. Did any of the great philosophers or thinkers actually execute on there theories? NO. Yet as you read RK’s books he’s executing on you. He is offering a philosophy, a viewpoint or perspective on defining wealth, and how to acheive financial freedom. He doesn’t give instructions step by step on how to become rich. No book ever will or we’re all screwed because without the have nots there cannot be haves. If you read carefully, he does offer illustration of his principals whcih should be sufficient to any self starter that can take his principals and apply them to his own passion. RK admits his is education. He is educating with his books and getting rich doing it. Who cares if its network marketing that made him rich. I’m glad thats how he got rich because thats how he’s suggesting to get rich so the proof is in the pudding. Do you think Donald Trump would put his name on a book about the subject of money next to a fraud?

Hi Trent,

I have read through RDPD but can not recall a lot. My memory is very poor when it comes to not so logical thinking. His book did cause me to investigate how to use leverage to increase the rate at which I was generating money. It is interesting to note that from all the books, articles, comments etc no one actually verbalized the single scientific law that governs the process of generating more money now and in the future. It is a shame that people (both for and against RK) talk about things they actually know very little about – if you know the scientific law you will not make such stupid comments. For all the sharp cookies out there – “What is the scientific law (and it is not supply and demand or finding another TAX loophole) that governs the process of generating more money now and in the future?” Come on it is not that difficult – just think for a moment! Any success story will show the law and any failure will also show the law – it is like gravity! Having a soft landing with your parachute or killing yourself with a half opened parachute works on the same law of gravity. To quote Einstein: “All great achievements of science must start from intuitive knowledge, namely, in axioms, from which deductions are then made…” : Best regards Henning

First of all, You didn’t actually critic any part of my advice as wrong/incorrect/innacurate or misleading. Whis means that this borders more on a personal attack than on a critical analysis of my teaching.

The principle of passive income works fine and it’s obvious that a’rich’ man earns more from his passive income than he can spend, hence the ability to retire young.

To say I do not eschew education is pretty lame as I have recommended various levels of education and knowledge required to be in each quadrant of the cashflow quadrant.

Besides in all my books, I have emphasised the importance of advisors whether legal, financial, pr, marketing or anything else.

If I prefer real estate to mutual funds it is because I can prove empirically that it gives better returns and a far greater sense of security than mutual funds.

But then I guess the more successful you become, the more critics/enemies/haters you amass. It’s part of life and I have learnt to deal with it.
If the advice was misleading, 5 years on the bestseller list proves people want to be lied to.

people don’t buy lies. They don’t work for that long.
Kiyosaki is a successful person , believe it or not.
Rich dad poor dad has been success, there will always be people who don’t get the things the way they should be.What I believe is that Rich dad teaches some great real-world lessons in a simple and insightful way. It’s always easy to criticize and blaming others, taking things out of context.

Yeah right. Look at how Oprah dealt with the “A Million Little Pieces” scandal.

Have several Kiyosaki books, got started reading his book series from a friend (a dreamer like me). I always enjoyed Kiyosaki, but something always troubled me after completing one of his books, there was no meat and just bones.

His books were full of platitudes and anecdotes. For instance “Don’t work for money make money work for you” etc. Okay? Uh that’s good advice. “Acquire assests that generate more money than your outflow”, okay sounds good.

Your house is not an asset, well by his definition it’s not. From an accounting perspective it both an asset (equity) and a liability (mortgage, property tax, insurance). Again I was always hyped after beginning one of his books but nothing ever came of it. I would complete the book and over the course of reading the book you were directed to another book (‘Rich Dad Guide To Real Estate Investing’, ‘Rich Dad Prophecy’, ‘Rich Kid Poor Kid’, and on and on…. The goat rope continued.

Honestly if you were to ask me what I gleaned from the books, I would have to say only that it motivated me to read more Kiyosaki books. The man is a master Raconteur! His books should be on the fiction list and not non-fiction. Look within the first couple of pages of his books you will see a disclaimer something to the affect that parts of the book utilize fiction for educational purposes. Based on the numerous exchanges that Kiyosaki recounts from “Rich Dad” seem pretty odd as they were directed (supposedly) towards a 9 year old boy. Or his “Rich Dad” making him wait outside his office to prove a point to a 9 year old child. These go on an on throughout his books.

I read John T. Reed’s review (A Harvard MBA grad and graduate of West Point) and it pretty much dissected what I had felt in my heart but was too duped (and dreaming that it wasn’t true) to do anything about. It is a long review, but take time to look at it, it is very much worth it.

Read it!

http://www.johntreed.com/Kiyosaki.html

I have read a number of Robert Kiyosaki’s books and he doesn’t tell you to ignore risk. If you read “Before you quit your job” you will find that he reinforces a rather strict course one should follow before they consider pursuing their own business/investments. He does seek to make financial concepts consumable and understandable by the masses. He encourages his readers to seek education, and to build a team of advisors. His work has motivated me to pursue additional education and work with experts and mentors that have helped me achieve success.

Materially I believe that every person needs to independently seek answers from continued education. To rely upon RK or any other guru is worthless and fool-hearty if you don’t organize, plan, educate and take action against your own goals, ambitions and passions.

Prosperity is very achievable, in fact there are universal laws that if followed will indeed lead to prosperity. I suggest to the serious student of the principles of prosperity that they read “Wealth of Nations” by Adam Smith. It is a classic, written in the 1700s. You can find it in your local library. What is the “invisible hand”? Who is Adam Smith? What nation became the most prosperous nation in all of human history by adhereing to Smith’s philosophy of true wealth? How might this apply to you as an individual?

It’s clear that many posters here simply don’t understand that real estate is never passive income, nor is is low-risk.

Real estate can generate high returns given the very high leverage involved (compared to other investments), but you will be working with it for many hours a day, in addition to your “regular” job, as you start out.

Plus, it has become so popular that returns are not what they used to be.

Even with 20% down, after a 5-year bull market in residential real estate your cash flow from renting will be negative.

If you only consider month-to-month expenses and not established reserves for roof replacement/other contingencies you will soon have a very nasty surprise.

Cap rates on the typical “starter” RE investment, single-family residences, are very low, often only half that of, say, an apartment complex (people still think appreciation will bail them out on SFRs)

Because of the leverage involved, these are high-risk investments for most people - most don’t have the experience or the capital reserives to weather a downturn in the RE market.

Some states allow you to walk away from your personal SFR with no deficency judgement allowed, but that’s not the case with investment property.

Worst case, should one of your tenants turn a SFR into a meth lab, you’re still on the hook for the cleanup costs, demolition (if it’s too far gone), AND the balance of the mortgage.

The book Rich Dad Poor Dad and the television show the Apprentice are the best examples of making a lot of money out of nothing special.

As Kiyosaki wrote in one of his books, he’s a “best-selling” author, and not a “best-writing” author. If there’s one new thing I got from Kiyosaki, it’s that “selling” is important. If there’s one thing he was successful at, it’s in “selling” - his books, his ideas, his other products, etc.

First… Who is that Bob Kiyosaki guy who posted a comment earlier? (sarcasm on) Do some of you really think that’s Robert Kiyosaki or any of the Rich Dad guys? (sarcasm off) I read from somewhere he doesn’t like being called “Bob” anymore, much less by himself. Anyway.. With that said, we can expect to see a post from someone who will say he is Kiyosaki himself.

One last point, and this might be FOR EVERYONE - where can we actually find success (and failure) stories of those who were, at the very least, “motivated” by one of Kiyosaki’s books or products? I would be even more willing to follow Kiyosaki’s advice (and work hard and be persistent at it) if I do hear even more of such success stories particularly in the USA - and I wouldn’t care anymore whatever happens between Kiyosaki and his critics and “mind my own business.” I’ve read some of the earlier posts here that give glimpses of some success stories. I know of one guy already from my country who’s told me of his success and of three others - specifically in making money out of nothing from real estate.

I know the Rich Dad guys have a “Success Stories” book, but I’m just not willing to pay for that. Like some of you have said, Kiyosaki (and he admits to this) tends to emphasize by repetition the same few “advice” he gives. Anyway, there must be these success stories that are freely available for reading from the Internet. Question is, where are these success stories? And failure stories?

Hi Guys. A good friend dropped off an audio cd “Financial Intelligence” by RK and insisted that I listen to it. He now wants to come for coffee to discuss the cd. Now just tell me…what do you suppose our friend’s next move will be? Is he going to try and get us to join some network? Will us joining put money in his pocket. What I’m really asking is: Is this some kind of pyramid scheme?

I can’t believe of what I am seeing from these message boxes. Some are like crabs pulling down their fellow crabs while climbing. Can’t we just “Mind your own business”. Stop critizing someone else accomplishment and rather fix our own solution. So what if his “Rich Dad” is real or not? His business is to sell and that is his “system”, like any franchise. Risk is overated. The truth is that Risk is everyone’s personal decision, period. Anymore than that is nonsense. Who are we to tell anyone that business is risky or not; that we should take left rather than right or file tax with 1040EZ or 1040A. Risk Decision is each for himself/ herself.
So let us go on with our lives and “Mind your own business”.

I had read several of Robert’s books. I would think in several regards, book seriously flawed, and may be dangerous material for certain people.

There are probably better books out there, but it is hard to find one which provokes thought, and really easy to read.

Even though I think this book is very flawed in many of it’s theories, it is thought provoking. The process of provoking my thinking itself introduced me to a list of new concepts.

Several good concepts which I pick up, which change my perception is regarding debt. Debt (good debt) is good. With debt comes leverage, and it is easier to make money with leverage.

Robert also talks about other concepts, which I believe may be useful in certain situations to certain people. Advantages of business, rat race, the 4 quadrant thing … etc.

I live in the Netherlands and read 3 years ago the RDPD. An eye-opener for me, simple E-guy without a proper financial education. The book inspired me to start my own bussines. The only thing I had to look for was a bussines that didn’t need a lot of investment. The opportunity came quickly, because I was ready for it. Refilling inkcartridges. I opened 3 shops in short time, and had to close one, because it did not brought money. My mistake, in hindside. Now I’m trying to put some kind of system in my shops, so they will give me a passsive income. At that time I will have time to look for more ways to earn a buck or two.
Kiyosaki is talking a lot about setting up a system, but is not really specific. Does anybody know were I can get some more information about this subject?

I gave my 16 year old son the translation of RDPD, and he loved it. He is doing very good at school, and we have an appointment that he will finish school, will study Bussines at an international university, and we will start our own company together during his University-years.
That is what rich people really do, make sure that their children get the best education.

And offcourse there is a lot of crap in Kiyosaki’s books, but the four or five messages he is spreading are universal.
And offcourse he lied the Rich Dad story together , but that is for me not really important. If it would be true, it is a beatiful story.

You see, reading RDPD helped me to set a few necesery steps. But I have to do it all by myself.

Has anyone here read “The Millionaire Mind” by Thomas J. Stanley?

It is a compilation of the lifestyle of the top 5% of the assest rich americans. One point which really strikes out here is “criticism”.

Millionaires are always criticised. The reason is because their own views are always opposed to the herd mentality, and that’s why the get criticised so much. In fact, Dr Stanley made an important and interesting observation, which I think is probably one of the highlights of the book, is that he rarely spotted even a slightly obesed millionaire, if at all. ALMOST ALL millionaires kept themselves in good shape by running or other competitive sports, the reason being that excercising regularly acts to help fend off the critics. Becoming a millionaire requires lotsa stamina and willpower, and hence, being physically fit is very important.
Notice that in RDPR, Robert talks about running and noticing real estates at the same time. This stuck me as consistent with one of the habits of millionaires.

Another important point Kiyosaki brought out is about why consumers always stay poor, and used the example of the supermarket to illustrate. I thought it was brilliant. When the supermarket gives a discount, people rush to buy. When the stock markets gives a discount, in the form of a crash/correction, people rush to sell!

Being contraian is another hallmark of a millionaire, according to Thomas J. Stanley.

In fact, the myth of the Rich Dad, Poor Dad kind of reminds me of the book “Everything Men Know About Women” by Cindy Cashman, a blank book. It shows us that an author of the book need not 1) use her real name 2) need not write anything the book, literally. The book was blank.

Anyway the author of this website has done a GREAT job in creating this blog. Truly, what sells better than lotsa controvesy and discussions? Keep this up, and you’ll probably be a millionaire soon. :-)

I think that what

Shaz: As to your friend, he MIGHT be involved in some pyramid scheme. Clear that up with him first; if he lies about it, he’s not a good friend.

As to Kiyosaki’s stuff - there’s no pyramid scheme in there… But that’s what happens. Kiyosaki preaches a message that says to succeed, you’ll need “business partners,” and when you do succeed, teach others. So it’s like the natural consequence of Kiyosaki’s writing style - which I think was part of his strategy (or in other words, it was intentional).

But no there’s no such pyramid scheme thing; he doesn’t “require” you to sell his books to a certain number of people and you’ll get some commission if you do.

If you buy a Kiyosaki product, it’s Kiyosaki and his friends you’re making rich, not your friend. Unless he’s also a “friend” of Kiyosaki, like maybe he’s a bookseller.

The thing is, if you don’t like something, don’t patronize it. If you do like something, isn’t sharing it to your friends the natural thing you would do?

You just have to “sniff” hard enough if your “friend” has ulterior motives. Good luck with your friend!

What this site has done - is sell - using controversy! Okay, somebody just made that point a few comments earlier.

The end product of this website/webpage is a virtual forum on Kiyosaki. That John T Reed guy won’t even post everyone’s comments on his main Kiyosaki-is-Evil page. He just selectively picks comments that would support his arguments.

So before I talk about that other website (johntreed.com) again, I should say that this site or this page I guess has done something good, although I doubt that it was its primary purpose.

So now I’ll talk about another website. I like how the website looks at Kiyosaki’s books. I agree with the website owner. Like the website owner, I don’t care about Kiyosaki, or whether Rich Dad is fiction or non-fiction - the thing is, what did I get from reading his books? What could I use and not use? So visit that website and compare to the post here (thinkingaboutmoney.com).

And finally, what about those people who failed miserably after reading Kiyosaki’s advice? There are three things (I think).

First, they MAY have not understood all of Kiyosaki’s (few) points.

Second, they possibly just jumped into business without getting really prepared right after reading Kiyosaki’s book/s, and related to the first point, did not really get that part about Kiyosaki’s message.

Third, Kiyosaki says you make THAT decision to go into business, you don’t expect to (as in my second point) just throw a pair of dice and get double sixes right away. You could get lucky on the first shot, but if you don’t, you should eventually get your double sixes. The thing now is, considering the odds of getting the double-sixes, the best (or “educated” or “smart”) thing to do I think is to determine first how much money are you willing to lose, do your best within the budget you’ve set, hope for the best, and expect the worst - and manage through the worst. It’s all about management. If a business fails, it’s not the fault of the business (it doesn’t make the decisions) or external factors (duh, did you really think the world will conspire to help you out?). It’s the fault of the manager. If a car can’t bring you from point A to point B, it’s because the driver may have overlooked something, or overdid something.

Anyway, can someone really lose so much after reading Kiyosaki? He’s also told us about practically making money without using any money! I know someone who has made money - a steady monthly cashflow of close to $400 (here in my Asian country) with no money down! It just took efforts, guts, preparation, psyching up, SELLING skills, and listening to a mentor who has succeeded herself.

Well, what could you do, it is a fact of life that some people fail and they blame others for their failure. The thing is, for anything we should do, we should be prepared to do them!

So I guess I should answer the big misconception about Kiyosaki’s books: can Kiyosaki help you prepare for business? No! Kiyosaki himself professes getting more financial education, or business education, he says buy his next book or buy his game - fine you learn a few things. But really, it takes more than one book. It takes more than Rich Dad, Poor Dad. And no, the second book doesn’t have to be Cashflow Quadrant, and the third doesn’t have to be Rich Dad’s Guide to Investing. Ask a friend-slash-business-expert for advice, or ask him what books to read. Of course, experience is the number one way to learn. If you failed real bad, and got nothing left, give some thinking to what you could next to actually profit this time, and get a job (or keep your job) to keep putting food on the table.

I’ve said too much!

Hi

I think Robert Kiyosaki’s advice is great. He does not talk about diminshing risk. He talks about calculated risk. There is always risk in anything you do. You can drive out in the street and there is risk. But if you plan and increase your financail foundations through education, use leverage your investment and create exit plans you dont diminish risk you simply minimize it. I will rather take on risks and build my own foundations than having somebody tell me what todo. But thats my opinion. He does not say that Employees and Self-Employees will never get rich he only says that they need to become investors to build passive cashflow to support them. It is simple. Read his stuff with an open mind. Yhe education systems of nowadays does not teach people a lot of business. It teaches them to become workers. I like his work because it takes the facts head on. Why is 90% rich and 10% rich and a lot of those 10% started with no formal education or money. Ask yourself.

Wow! Amazing to see the varying opinions.
Like anything, what you do with the information you learn from the bookk is your end result. I liked RK’s philosophy as it was not a “HOW TO” book. Basic concepts outlined leaving it wide open for you to fit it into your own personal plan. I liked the 1st book — RDPD and I like the CashFlow game. Everytime I play it with clients and friends I learn something about myself and how I make decisions. I have had several clients learn from the game and then went out and invested (something they wouldn’t have done without the first book and game) and all so far have been successful. We all get together every 3 months and find out what each other has done to get closer to exiting the “rat race”. It works if you have a plan and an open mind that doesn’t “box” you in.

I only have a question about this.

He says that in order to recieve money, one had to give money away. That when one gave money, it came back to him manifold.

How is this¿ I see no sense into this, and I admit it is because I have no knowledge of it either.

I can’t believe the guy is a milionaire for giving the obvious advice of finding a way to have passive income. Why didn’t I make up a great story and sell it too?

I have family members who are friends with Robert and Kim and the whole thing is a shim sham. The guy has zero real estate knowledge, zero higher education, made money on a fluke from putting obvious advice in fancy language which Amway used to push his books.

I am waiting for the comment of someone who read his books, took his advice and is now retired with a healthy passive income.
When is that person going to comment? Odd that we haven’t read it yet.

Just like the people in MLM saying “In 6 months I will be able to quit my job! and Vacation every month” But you never hear from someone who actually did quit, has been making money for 4 or 5 years and living the high life. People are sold on the dream and will tell themselves whatever they can to keep believing.

Work hard. Don’t buy a new car or ipod or whatever steals your extra cash.
Research what the best return will be on your money.
Invest.
Repeat.
This is what made him rich?
Wow.

I don’t vacation every month, but I did quit my job in 2 months. I’ve been in Network Marketing for 19 months now and am living the high life.
I leverage people and their contacts and I leverage the money I make. Now I am also leveraging other peoples money and Real Estate too.
Prior to joining a “Pyramid Scheme”, I believed they were scams. Not all MLM’s are alike. The real Pyramid Scheme is your job! You’re always working for the man at the top with NO CHANCE of getting there.
I challenge anyone to seriously research MLM companies, join a good one, BE SUCCESSFUL at it, and tell me RK wasn’t right.
I don’t promote Amway at all, actually, I have a deep respect for RK for actually being successful in that one to the point of being able to sell his books.

The bottom line. If any book out there has grabbed your attention and caused you to do somthing different in a positive direction, then who cares if the story has been fabricated or if the guy really did’nt buy real estate. Does it really matter. Get over the fact that these authors are out there making money and your not - start focusing your time and energy into yourself. This is what it comes down to. Nobody cares about you. All of these guys have a few good ideas. Take what you can from them and do somthing about it. You can complain to the world all you want about who did what, who cares? You are where you are in life because of your daily choices.
“Lifes a garden, dig it”

I’ve read 8 eight of the RDPD books and I’m so happy that I did. RK constantly says don’t quit your day job until you are successful at matching your present income. What people don’t realize is that may take another few years and most people truthfully don’t want to put in the effort it would take to make that happen. I’m still on the journey and will continue until I get where I want to go. I still work a job b/c I still have to eat. I could write about this all day but I just want people to read at least one book of his (Rich Dad, Poor Dad) and decide for yourself. He doesn’t advocate quitting your job. He advocates opening your mind to learning to think differently. I’m so glad I did.

RK’s books served to reinforce what my husband and I are already doing to make ourselves rich. We have been called crazy repeatedly by friends and family for not following the generally accepted path to success, yet already we live a happier, more secure, life than most of them. No one will ever be able to write a book that gives you step by step instructions for becoming rich - how you do it is up to you. There are truths in RK’s books. Whether or not you can see them and apply them to your own circumstance is your blessing or misfortune.

Wow!

I read the book along time ago and I personally didn’t find any usefull advice in it. Retire Young Retire Rich, really really bad advice, for example how to make easy money, sell naked options (risk unlimited)

In general there are much better books out there

Having read the book and heard the distinguished gentle and his wife on one of the world celebrated talk shows.

I fear to say that those of us who will not benefit from the wisedom shared are looking for fish to eat.

Anyway the writer is teaching how to fish and if you enjoy what results from continous use of these brilliant ideas then you are unstoppably joining the class I am about to join, Blessed givers and Rich civilised societies

Hey all! I just wanted to add my 2 cents in here. I am a new listener to the RK podcasts, but only because I heard he has some insightful thought into investing. I, for one, like what he has to say. I am tired of making someone else rich. I’m young, intelligent, and ambitious. There is no reason I can’t own property, charge people to live in it, and make a profit. It’s really not rocket science… is it?

It is also not rocket science to know that if you work for someone else, you’re making them money? I mean, if someone was working for you, wouldn’t they be making money for you?? I mean, come on.

Sidebar: Anyone know an investor who would like to help a young woman get into the real estate business? Maybe I can call Robert, huh? He says to use OPM! :) Thanks!

I find there are usually two camps of people whenit comes to RK - those who love him, and those who hate/villify him. Personally, I have only read ONE of his books: “Retire Young, Retire Rich”, so I can’t comment on his “Rich Dad, Poor Dad” book.

His underlying ideology in “Retire Young, Retire Rich” was leveraging different resources in order to become wealthy. Most of it was very beneifical, too. It definately isn’t a “Step 1, Step 2, …” type of book on how to get rich, but more about changing your mindset from what we have been taditionally been taught in school and from our parents.

The one thing many critics seem to harp on is his portrayal of “Rich Dad”. To be honest, I could care less if there ever WAS a real “Rich Dad” - that’s not the issue at all. What they are missing is the MESSAGE this supposed “Rich Dad” gave/gives in the book. Personally, I think it it’s a fictitious character used to add some gimmickiness to the whole series, but it doesn’t detract from the whole purpose: to give insightful information on how to become wealthy.

A friend actually recommended I read “Retire Young, Retire Rich” years back, and I’m glad I did. It opened my eyes to the world of real estate investing, which I have been actively doing now for over two years.

I’ve only just started reading RDPD, and if I only take two things away from it, it is to stop buying “doodads” (I’ve bought so much crap since I’ve started earning a decent salary) and start increasing your income-generating assets. I don’t really care if Rich Dad is real or not, the book (or at least the half that I’ve read already) has motivated me to get off my butt and educate myself financially. Although I am one of those highly educated well-paid employees he refers to in his book (I’m a tax consultant working for a financial services company), I know very little about investing. However, I am starting to think differently about money and learning about investing, not being so scared anymore. That’s what I’ve taken from the book. Use your mind, don’t follow blindly.

when I read RDPD I realized a number of things 1) in the book personal finances for dummies, he makes the point of never beleiving a book on getting rich, because if the guy’s idea was true, he would be dojng it and not waste his time selling books, and 2) his premise is fundmentaly flawed, because if EVERYONE followed his advice, it would not work (like some one mentioned earlier, there has to be the have-nots in order to make the “have’s” 3) lie a could friend of mine once told me “if you want to get rich, then the first rule is that you have to really want to be (explitive) Rich, some people really do have altruistic motives, and willingly enter proffesions where they KNOW that they will never make it (like teaching, millitary or the clergy, for example)
nevertheless, I absolutly loved RDPD. I must say that i suspected that the whole story was a fabrication (how could he remember when a begger walked by in the middle of a conversation) but he is a brilliant teacher: by telling the stroy from the point of view of a child, he let’s the reader enter the innocent mind of a child and opens his mind to a totaly new way of thinking about finances.
the premise of the whole book is that YOU are responsible for your self, I am a die hard republican, and therefore enjoyed his book for political reasons. I absolutly abhore the “Blame game” victimhood promoted by socialists (who in my cynycal view actually want to prepetuate poverty so that they can remain the elite “enlightend” calss)
like trent mentioned, you already agree with RK or dis-agree with hinm before you ever open the book, you either subscribe to the Go-Getter (RE, Own Buisness, Take care of myself) mentality, or you subscribe to the victim (it’s the state-big oil- corporations fault) those who read RDPD looking for a quick fix are by definition of the second catagory because they think the solution to there problems are “out-there”. one blogger asked “what does he mean when he says that “when you give you getback tenfold” i would suggest to that writer to try it! there was a study this year “that was understandably under-reported in the regular media (it was on drudgereport.com) that said that republicans were more likly to donate to charity ACROSS ALL INCOME BRACKETS, it’s the attitude of “Plenty” verse the “Rat-race”
sorry for going on a political diatribe here, but as they say that “mony makes the world go round” and i beilive that politics and finaces are strongly interwoven (in more ways then one…)
the points he makes are common sense, but somtimes it’s good to hear it again - laid out in such clear language.
I never really paid attention to Asset/Liablities before I read it, and now, I am closer to being out of debt. my mother allways said “take everythign with a grain of salt, and use you common sense DUH!

You obviously had preconceived prejudices before reading the book and writhing this article. RDPD changed my life and I have purchased 5 apartment buildings over the last 4 years as a direct result of RDPD. (All are cash flow positive)

A few points:

If the book was pitched through a “scam” and is a fraud, how come its been on the NY Times bestseller list for so long.

Kiyosaki never says don’t get an education.

Kiyosaki says to manage risk and not avoid it. If you think mutual funds aren’t risky, you’re not paying attention.

If you don’t like his stuff, that’s fine, but don’t disparage what you can’t get your mind around.

This guy changed my life for the better. Ignore it at your risk.

It’s quite obvious, based on the writings of ALL of the people who have slammed Kiyosaki lately that they are the same hate-minded people who slam all of network marketing. I wouldn’t put it past them to try to dig up this kind of dirt just to try to give an underhanded slap at MLMs.

I don’t know if Rich Dad was a real person or not, but his books are well-written and the information in them is good. There are quite a few other books out there that support the same ideas.

You delete stuff like mine because you can’t refute it, not because it is insulting. There was nothing insulting in my message. Kiyosaki goes after some sacred cows (house=asset, and mutual funds are good) so he draws negative criticism. If his ideas are too hard to implement or grasp for most people, that’s O.K. just say that. If you don’t want to do what he espouses that’s O.K. too. I just don’t understand why you would go out of your way to trash on him. The guy has opened my eyes and changed my life for the better.
If I could pass on one thing that would help you and your readers it would be this:

“There are 2 sets of tax laws in this country, one for the informed, and one for the uninformed”

Judge Learned Hand, Supreme Court Justice

The biggest expense in any woman or man’s life is taxes. You have to do what you can to legally reduce your taxes, the rich do. Just check his stuff out again there is real gold in there if you will try to be open minded. I promise. (I paid very little tax this past year as a DIRECT result of RDPD. No offense intended.