Deconstructing Robert Kiyosaki

This week, The Simple Dollar is deconstructing five top personal finance and investing pundits and asking the big questions about their track record and their message.

Update: Based on the strong feedback on this piece, I wrote a lengthy review of Robert Kiyosaki’s Rich Dad, Poor Dad which highlights some of the issues discussed below.

Robert KiyosakiIf you’ve been reading this series this week, you’ve probably noticed a gradual change in tone: I was quite positive about Jim Cramer and Dave Ramsey, pretty positive about Suze Orman, and then yesterday gave a middling review to David Bach. In other words, I started off with the people I had the most confidence in and moved in the direction of people I had less confidence in.

Today, I’m going to write about the one personal finance guru that I actually feel is fraudulent. Even worse, his advice has some very serious flaws to it that can lead people down a very dangerous path. Today, I’m going to discuss the author of one of the most well known personal finance books ever, Rich Dad, Poor Dad: Robert Kiyosaki. It won’t be pretty.

Kiyosaki’s Background

It is very difficult to find a clear, reliable background on Robert Kiyosaki, but here’s what’s easily verifiable about him. He was involved in several business deals (most notably, nylon Velcro wallets) in the 1970s and 1980s which fell apart, leaving him bankrupt in the mid-1980s. In this timeframe, he became heavily involved with Amway, a multi-level marketing system, and began to cultivate relationships with many of the “top” members. In 1985, Kiyosaki founded Cashflow Technologies, a company that was designed to pitch a series of books and other educational materials that eventually evolved into Rich Dad, Poor Dad.

By the mid-1990s, Kiyosaki had self-printed Rich Dad, Poor Dad and it was starting to appear in wide distribution among members of the Amway/Quixtar organization, as individuals higher in the pyramid would recommend it to people further down the chain looking to get ahead. Kiyosaki took these “sales” numbers to major publishing houses and before you know it, Rich Dad showed up on shelves everywhere and spawned an army of similarly-packaged books, board games, and so on.

Kiyosaki’s Rich Dad, Poor Dad Message

Kiyosaki’s philosophy mostly revolves around generating passive income through investments and continuing to build up these investments until their passive income can support you. In other words, you should seek out and buy investments that can generate income for you. Kiyosaki believes that financial leverage is absolutely vital, and he also eschews education, saying that formal education is primarily for those seeking to be employees or self-employed individuals, who he identifies as people who will never be “rich.”

He often diagrams his philosophy by dividing people into four groups:
Employees, who work for someone else
Self-employed, who are their own bosses
Business owners, who own a “system” of making money
Investors, who invest money to receive a larger payout

Obviously, with this philosophy, employees and the self-employed will never get ahead. Also, note that Kiyosaki refers to a business as a “system,” which I’ll refer back to in a bit.

My Take on Kiyosaki

I’m going to have to be careful here lest this devolve into a complete hatchet job, so here goes.

Robert Kiyosaki’s business ideas were formed as a result of a number of business failures and one success. The singular success came about as a result of leveraging a product through a pre-existing pyramid marketing organization. Thus, Kiyosaki’s perspective on success revolves around merely leveraging others into making money for you. If you believe that making money is merely leveraging people and things, you are going to fail.

Here’s why: Network marketing, which is how Kiyosaki found success, is basically just a form of franchising that has a very low cost of entry. The problem with it is that the only people who are rewarded are effective salesmen. People who get involved in network marketing are quite simply hoping to turn a quick buck without having to invest the time and money to grow a business and also don’t have the initial capital to start a true franchise or an independent business of their own. Are these people you would look to for financial advice?

As a result, Kiyosaki basically ignores the concept of risk. In Kiyosaki’s world, there is no risk, or at least it’s not a big enough factor to ever worry about. His books encourage people to start working for themselves, but the individuals who would be attracted to Kiyosaki’s work are individuals who generally don’t have the backbone, the salesmanship, the acumen, or the pre-existing network to make such plans work. People who start their own businesses are taking on a significant amount of risk, and to ignore that risk in your advice is simply giving terrible advice.

In no way am I saying that going into business for yourself is a bad choice, but it is a choice that merits some careful planning and analysis and realization of the risks involved. In Kiyosaki’s world, risk is for losers, yet until he came across a preexisting network that he could utilize, he failed time and time again to start his own business. In other words, Kiyosaki’s own background shows the huge flaws in the advice he gives.

Do you want to know the straw that broke the camel’s back for me? Kiyosaki changes fundamental parts of his story to fit the situation. For example, he claimed for years that Rich Dad was real in order to get Rich Dad, Poor Dad accepted as nonfiction, but in the February 2003 issue of SmartMoney magazine, Kiyosaki said “Is Harry Potter real? Why don’t you let Rich Dad be a myth, like Harry Potter?” In other words, the entire premise under which Rich Dad, Poor Dad was sold was a complete fabrication.

Kiyosaki misrepresents the facts and gives advice that directly contradicts both common sense and his own background.

The bottom line:

Robert Kiyosaki’s “knowledge” is highly flawed and his material has all of the integrity of James Frey. He completely undervalues risk, which is the trap that so many failed businesses and bankrupt individuals fall into. He’s the one financial guru whose work I don’t trust based on the author’s name alone.

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  1. moneymonk says:

    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.

  2. Drew says:

    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

  3. Adam Lowe says:

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

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

  4. 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.

  5. Jeremy says:

    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.

  6. Doug says:

    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.

  7. Eshkum says:

    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…

  8. 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.

  9. Keiyoz says:

    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.

  10. Victor B. Gonzalez says:

    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…

  11. Trent says:

    Doug: I start off with everyone on equal footing. My statement about “confidence” is how I currently feel about whatever new thing that person says, not my initial reaction to them going in.

    His knowledge is greatly flawed because he uses techniques that work in a pyramid scheme like Amway and tells readers that they work anywhere. They don’t work anywhere.

  12. Trent says:

    Victor: simply saying that 9 out of 10 businesses fail says nothing at all about risk or risk assessment. “Don’t worry about risk because you’re going to fail 9 out of 10 times”? That’s tripe, not business advice. 9 out of 10 businesses fail because people didn’t evaluate and plan for risk right out of the chute.

  13. mjh says:

    “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.

  14. Jay says:

    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.

  15. Victor B. Gonzalez says:

    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…

  16. Sean says:

    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

  17. 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.

  18. David says:

    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.

  19. Bill says:

    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.

  20. 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.

  21. Miles says:

    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!

  22. cdcins says:

    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?????

  23. Carric says:

    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.

  24. Daniel says:

    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.

  25. efipo.com says:

    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.

  26. Trent says:

    I appreciate the comments from the Kiyosaki supporters here; it’s great to have counterpoints.

    I also note that the backers of Kiyosaki are saying he’s good for the exact same reasons I’m saying he’s bad. At least we agree on what his message is, even if we disagree on whether it’s worthwhile.

    It’s unquestionable that Kiyosaki downplays risk: I see it as a very bad thing because it convinces people who shouldn’t be in business to get into business, whereas others see it as good because it gets people started on running their own businesses.

    I love the comments; keep them coming.

  27. Trent says:

    One other point: I have personal problem with Kiyosaki and I’m quite glad that he’s found a way to succeed in business. He obviously has work ethic and a get-up-and-go attitude, and good for him. My concern is that he may not be giving sound personal finance advice. I disagree with most of his message, and as a personal finance blog writer, this is exactly what I should be writing about: trying to break down personal finance issues.

  28. Quang says:

    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-

  29. jimslife says:

    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 ?

  30. todd yarling says:

    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.

  31. scott says:

    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.

  32. sianz says:

    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.

  33. Bernard says:

    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)

  34. Santiago says:

    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.

  35. Leah says:

    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.

  36. Byron says:

    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.

  37. Chris says:

    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.

  38. Jim Lippard says:

    “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!

  39. Cas says:

    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 !!!

  40. LuckyLily says:

    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.

  41. moom says:

    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.

  42. jake says:

    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.

  43. jake says:

    Sorry I meant PK = RK (Robert Kiyosaki).

  44. The Captain says:

    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.

  45. Jay says:

    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. :-)

  46. Kayle says:

    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.

  47. gagan says:

    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?

  48. DC says:

    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.

  49. Trent says:

    Again, I’ll sum up this article for people who aren’t reading it and commenting anyway: Kiyosaki is seriously flawed because his discussions are seriously flawed. The central point might be fine (be your own boss and make money!), but Rich Dad, Poor Dad is chock full of contradictions and bogus information. It’s great Kiyosaki found a way to make a lot of money – good for him. That doesn’t mean you should blindly follow bad advice when there’s much better advice out there to follow that preach the same message.

  50. Alfie says:

    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.

  51. Steve says:

    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.

  52. Jay says:

    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

  53. Steve Beach says:

    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.

  54. Stoooge says:

    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?

  55. Steve Beach says:

    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.

  56. jscottgekko says:

    [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.

  57. rhbee says:

    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.

  58. Steve says:

    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?

  59. Henning says:

    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

  60. Bob Kiyosaki says:

    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.

  61. Trent says:

    “If the advice was misleading, 5 years on the bestseller list proves people want to be lied to.” Wow. If that’s justification for the content of RDPD … wow … that’s pretty much all I have to say on that subject.

  62. gagan says:

    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.

  63. chaosakita says:

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

  64. TruthDetector says:

    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

  65. kb says:

    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.

  66. kb says:

    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?

  67. Bill says:

    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.

  68. Rebecca says:

    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.

  69. Ron says:

    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?

  70. Shaz says:

    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?

  71. Arth says:

    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”.

  72. Patrick says:

    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.

  73. Rotterdam Ton says:

    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.

  74. Robin Pang says:

    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

  75. Ron says:

    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!

  76. Ron says:

    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!

  77. Trent says:

    Ron: I welcome all comments, especially ones that disagree with me. I can’t learn – and you can’t learn – without a give-and-take exchange. The only comments I remove on this page – and on the entire Simple Dollar site – are ones that are intentionally hurtful or offensive.

  78. Peter Kleynhans says:

    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.

  79. Trent says:

    I recently wrote a detailed review of Rich Dad that addresses some of the ideas discussed in this thread.

  80. DeAnne says:

    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.

  81. Z says:

    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.

  82. prtrbd says:

    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.

  83. paul says:

    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.

  84. ET says:

    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”

  85. simone hardy says:

    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.

  86. Grace says:

    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.

  87. Rob in Madrid says:

    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

  88. chifundosam says:

    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

  89. Shannon says:

    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!

  90. Steve says:

    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.

  91. Liezel says:

    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.

  92. randi says:

    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!

  93. todd copley says:

    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.

  94. Trent says:

    Ordinarily, I delete stuff like Todd’s comment because there’s really no need for such insults, but I get comments with his tone so often that I decided to leave this one in place so that readers have an idea of the kind of attitude that many Kiyosaki supporters have.

  95. Jason says:

    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.

  96. todd copley says:

    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.

  97. Trent says:

    Todd, in your previous comment, you directly insulted my intelligence (“don’t disparage what you can’t get your mind around”) and also stated that I had a bias (“obviously had preconceived prejudices”) simply because you buy into the messages behind a fictional work. Now you say things like “If his ideas are too hard to implement or grasp for most people, that’s O.K. just say that.” Those comments don’t bring anything of worth to the table and disparage the reader. Tone down the rhetoric and you’ll invite some real discussion.

  98. Trent says:

    As a general observation, note the tone of Kiyosaki supporters in this article. Instead of contradicting the points I bring up, they merely attack me. Honestly, I wouldn’t expect anything different.

  99. todd copley says:

    I did contradict your points in my first post and you chose to ignore that! I’m not attacking you. If you think that me saying you had preconceived prejudices is an attack, then you have delicate sensibilities and I apologize.

    I read the book, followed the advice and am 1/2 way to quitting my job because of the passive income I am receiving. Should be 2 more years until I can quit my day job. That’s a fact, so if it doesn’t help you that’s O.K., but my experience invalidates people who say its a shim sham or a con or a ripoff. If you think I’m lying then you’re argument holds, if you believe I’m telling the truth, then the anti-Kiyosaki argument falls apart. N’est ce pas? (I ain’t lyin’)

  100. matt says:

    The fact that he is not forth coming about any previous investments he has made angers me. What part of it appears that he only made money selling books is hard to understand?

    He got rich selling you get rich advice.

    The other part of his books is belittling working for someone else doesn’t allow you to “get rich”. This is a significantly flawed argument on a few levels.

    All of these schemes pray on the same people. The working uneducated poor. Whether is real estate, stock trading, buying debt, or tiny advertizements in papers its the same pyramid based scheme. No money down. Make 50,000 in a single deal. Make enough to quit your job. Its one infommercial after another.

  101. Marcus says:

    He has some resonable sounding advice, but its not revoutionary by any means. He’s getting rich selling you books. Come on, can you who say its worth it really not see whats going on? Ok, so maybe he doesn’t NOT tell you not to get an education, but please look at even government statistics at how mow much people with bachelors, masters and professional degrees make vs. only having a high school diploma. Except for a small percentage, education is the key… no one said you had to be an employee forever, but no one can take your education away from you.

  102. jordan says:

    hello, if trent wants to erase this ,its ok,
    your the main target of my fire.So if its to harsh
    for u go ahead, erase it.I know u dont have the
    guts to let the little p—-s on this forum hear wut the others side has to say.

    MY name is jordan and ive come to make your day “evil grin”.
    this is the biggest bag of bull—- ive ever heard.Reading this, i wondered if u have read the books at all.I’m going to began sawing this article apart piece by piece.

    First,you said
    let me ask u a question.What the H— is failure to you.Failure is when a person says “screw it im done”its when someone stops trying and doesnt do what they set out to do because things got to tough for them.Thats what failure is.R.K. kept pushing on despite the flak he got from others around him.His one success is bigger and better that anything any of u will ever do.

    I really dont know what to say about this s— because I’m missing the part where your tell us what it ((DOES)) take to succeed.So until i find that on this site i dont have anything to say.I will let u know that if its as stupid as the rest of this, ill beat you over the head with it too.

    OOOOO this is a good one.This is the part of the article that couldnt be more wrong.In all the books ive read of R.K. ive never ever heard him say that risk was not important or that u should ignore it.Maybe i missed it,if i have PLEASE POST THE BOOK AND PAGE NUMBER.R.K. says time and time again that if u educate yourself in every business
    that you are going into and do your homework on it
    your risk will greatly reduced.He also says that when your home work is done correctly that the reward far out ways the risk.

    theres another clip full of ammo i could gun u down with but im running out of time.g2g.bye

  103. Trent says:

    Jordan’s comment is another typical of the kind I get from Kiyosaki supporters. I edited out the non-family-friendly language in that one with dashes.

  104. jordan says:

    oh my god!!!!!!!!!!!!!

    i missed this yesterday.

    its a comment that trent posted.it says.

    “as a general observation, note the tone of the kiyosaki supporters in this article.Instead of contradicting the points i bring up,they merely attack me. honestly, i wouldnt expect anything different.”

    ok ill be a good boy i promise.

    i have only one thing id like to contradict right now because i dont have much time.ill be back when i have more time.

    remember when thomas edison was ask why he
    “failed “so many times trying to make the light bulb.I dont realy know how this went but he said something like”those weren’t failures those were just ways how not to do it”

    now i know R.K. has had a lot of business “failures” but he learnd from those mistakes and kept trying.ill bet he makes more money off his investments “not counting his books” than any of us.

    remember((not all)) but many of his books are not how2 books.they are simply accounts of his life weather true or not.they are to inspire us to choose OUR OWN PATH.

    p.s.trent said we dont contradict anything we just attack.we just guess that R.K. books are contradiction enough.IF HE WAS SMART ENOUGH TO UNDERSTAND WHAT HE WAS READING HE WOULD KNOW THIS.

    but i gues we’re gonna have to do the thinking for him.

  105. rebecca pacquin says:

    I have purchased many of R.K.’s books as well as many other gurus of finance and investments and can truly conclude that in many ways they are all coming from different perspectives and life experiences. Kiyosaki is brilliant in many ways and has simplified many of what I have learned in college about real estate and the business world in so many words. For those that are put off by his style of teaching, pick up an issue of Forbes.

  106. Bob says:

    I haven’t read RK’s books, nor do I have any desire to. I can’t really comment positive or negative to the discussion, but I was left with a couple questions.

    First, does “positive cash flow” in R.E. include reserves for major repair work? Those who are “following” RK’s advice to get into R.E. (as I’m understanding it from all of the comments) don’t seem to have been doing it for a long time. Is there enough money for a new roof, hot water heaters, furnaces, etc?

    Second, how do the properties cash flow with the downturn in the R.E. market? Not being a R.E. investor I don’t know what types of loans are being used on these things, but it seems to my amateur mind that a balloon payment loan would be necessary. If you’re using other people’s money (as someone commented), you eventually have to pay that back (with interest, I assume). The mortgage problems that have hit the news are based largely on people putting little down and getting mortgages that don’t operate in the traditional 30-yr. fixed format. I look at the rental market and think that it would be a crazy investment to make, especially now. Buying just before the bubble bursts seems like a bad purchase decision.

    Third, if you are paying for all the consultants that “Bob Kiyosaki” mentions in his comment, how do you have positive cash flow?

  107. well says:

    well..

    personally I think the problem is this. The book is inspirational, NOT technical. People are saying RDPD has no value well of course! It MOSTLY brings inspiration to the average person. And THAT is valuable. If you don’t believe me go to amazon.com and read reviews for rich dad poor dad. How many best-selling technical books out there can create this kind of drive for an average person to study investing?

    Like what the other guy here said, he inspires us to choose our own path.

    He just encourages financial education. He still values professional education.

    Please respect the family’s decision not to expose the identity of Rich Dad. If I was rich dad I probably wouldn’t let anyone know me. Why would anyone want that much publicity?

    I think he does not undervalue risks. There is always risks. One is risky, the other is not risky but both still has risk. And obviously having financial education is MUCH LESS RISKY, than having none.

    He prefers to teach, which I think is more satisfying to him btw, instead of solely continuing his career. What’s wrong with that?

    Just look at the testimonies of people who gained from that book. I see a lot. I personally know living testimonies. Never mind the opinions of those who misunderstands the purpose of the book.

  108. well says:

    Additional note: Fact remains. How many did John T. Reed inspire to establish financial education? Compare it with RK.

    I believe however, that Reed’s books are great how-to books.
    How about buying his books after RK’s. =)

  109. Joe says:

    Looks like the author of this post never read the book, and is talking out of his, oh never mind.

  110. well says:

    Yeah keep telling yourself that.

  111. Serge says:

    I like very much those critics telling others “The Truth” :) The only question I always have: why everybody knows RK and nobody does Trent? ;)

    Any business is about money first, and then it’s about truth, honesty, education, helping ppl and other b/s.

    RK earns money selling his books. He’s put on positive thinking, motivation, old but good ideas, explaining simple things in a simple way (repeating many times which helps to make a proper print in your mind). They are very consumable books for an average tax payer. And looks like people just like to read them feeling that one more book like that and they’ll start building their new lives… But that moment usually never happen neither after the next book nor after another 3 books read or audio courses listened…
    Why? Because action required. Action of a reader, not author.

    The thing is, if you are already rich and successful, you’d probable read other people, and other books. If you read those kinds of books like RDPD it means you are in trouble, in trouble with yourself, with your money, debts, self-organizing, self motivation, willpower… You seek for ideas, clues, or even help, believing you just want to be rich and independent. But further reading and thinking about all reasons why you are not rich or successful yet, reveals very unpleasant issues of a personal nature, like:

    - there is nobody else to help you except yourself (those who say they want to help you – just want your money at the end); you have to take care of your problems and future, and it’s much harder than being lead by somebody else.

    - whatever books you buy, read or classes take – that all won’t help until you start changing yourself internally – you mind, your habits, your attitude to life, money, time, planning.

    - you have to be honest with yourself (at least) to admit your weaknesses, like laziness, giving up on short and long term planning, having no willpower to follow your plan once it’s set etc.

    - it turns out that you have to spend a lot of effort, time, self discipline to setup and pursue your goals. You have to learn, ask, communicate, try and fail, learn again and so on…

    All that may cause a depression and disappointment to many of us, because we were looking for an “easy” way to become rich reading those books, but suddenly it turned out that the reason is mainly in ourselves. And it’s hard to admit for many people.

    Slowly it becomes obvious that there is no “simple dollar” or “easy money” around – either you have to be consistent and go for your goals year after year, or you need a bright idea how to get cash, and again having the idea is not enough to become rich – you need to bring it to life to get your “money” and then try to keep those money… At the end you’ll understand that “becoming rich” in general is not one-day deal and you need many components to meat each other inside of you…

    All wisdom of human being is already written in the Bible and just gets reinterpreted over and over again in different forms for “general public consumption” books, guides, classes of different kinds.

    The only problem for all of us is – we need a good idea we can become fully passion about. Only passion and joy can drive you as long as needed throughout the way towards your goal, it will make you learn, ask, communicate, try and fail, and try again… Without passion it won’t last longer than a week or two :)

    Awaking the passion and motivation inside of us is the main idea of many of those books. Trying to succeed in anything (business, sports, love) without passion is just useless. (That’s why many people are good at doing what they LOVE to do. They have passion (damn it, I start repeating like RK does, LOL) and it gives them resources and points to right directions.)

    Do not look for exact advices what stock to buy, what to sell, what real estate to play with: a) nobody will give you those details because they are very specific for your particular situation, available resources, expertise, expectations, plans etc. b) even if they would give such advices then everybody would know them, if everybody knows and tries it – it does not work for everybody. At the end only YOU will know what will work in your particular satuation.

    So, please, stop blaming poor writers trying to make some profit out of you, explaining life basics in the business context. Those books all about the same:
    - learn
    - think,
    - plan
    - execute your plans
    - ask questions
    - communicate
    - create your network
    - try
    - analyze
    - try again
    - do not forget to be generous
    - etc. (you name it)

    Blaming RK or anybody else, you won’t help those who are looking for such a “happy reading”. If, after RDPD reading, they are stupid enough to jump out of their normal lives to “start own business”, then it means they would do that regardless of what they have read, they need just an impulse, they want something new in their lives and they look for any opportunity to do so.

    Any reading requires filtering and thinking.
    “Learning without thinking is useless. Thinking without learning is dangerous” (c) Confucius.
    And I’d add that taking an action without leaning is dangerous too.

    RK is clear enough in his message that: learn first, start slowly, do not quit your job right away etc. It’s both risky and dangerous to cross a street and step into real estate (or whatever) market without knowing it, its rules and laws. Many freaks are just too emotional and mentally weak, that’s why they take off right away once they’ve met a book like RDPD first time. And of course many of them fail.

    Risk comes from ignorance regardless of what you are doing.

    So, take you time, read books, filter them, learn subject of your interest, talk to real successful businessmen, think, plan and then do, and you’ll be fine. :) Just find your passion, be consistent and do not give up.

  112. well says:

    AMEN!

  113. well says:

    Go Tony Robbins!

  114. Jürgen says:

    I,ve been watching this guy RK on PBS just now and man is he long winded about nothing… I guess he got tired and brought his wife out due to self induced cotton mouth. He pretty much sounds like every get rich adviser; Most recently, D. Trump; “Get Rich Seminar”. If these guys are so rich and as helpfull as they purport. Why do they ask for remittance? Why are they not just giving this helpfull advice away? How rich do they need to be to be happy? Or maybe they”re running a little low and need to tank up… So absolutely… Go negative… Spend some of your wealth… Send them your check.

  115. well says:

    That’s prejudice.
    You may be absolutely true.
    And many will probably agree with you.
    You may hate me now.
    But there are lot’s of possibilities.
    For example: What if they just enjoy what they are currently doing blabbing about nothing though they KNOW TO THEMSELVES they are teaching. Sure they are far from perfect but what if they have good reasons:

    But what if they are charging so they can secretly give on charity? What if their accumulating wealth is just not enough that they want to get more to serve more.
    I may probably be wrong.
    It might be very unlikely.
    But there infinite possibilities.
    Many bad.
    SOME GOOD.
    But looking at only the bad is just cynical.

  116. jenny says:

    Interesting comments. After reading Rich Dad, Poor Dad, it gave me a funny feeling, because it went against so much of what I’ve found to be personally successful. But I thought what do I know, he’s a best selling real estate mogul? My problems come down to trustworthiness, you believe in it because the stories, but the stories aren’t true. You believe in his advice because it worked for him, but apparently that’s not really how he made his money. So unless you plan to write best selling books to make your money, results may vary. Second he belittles people who have made different choices than him. He forgets that education is not just an ends to a mean but also a way to pursue something intellectually stimulating, fulfilling and possibly worthwhile to the world at large. But that’s lost in his writings. If anyone reads his book and finds a way to make money it’s due to his inspiration, but anyone who fails it’s their own fault and they didn’t read the book correctly. I just wonder what percent fall into those two camps.

  117. Aranda says:

    My sister gave me RK’s Rich Dad Poor Dad book about a year ago saying that I should read it as I had walked away from my job two years ago to start my own business. I did not have time to read it as I busily became an “S” worker for the first year. Very recently I sat down and read the book. In my job I knew in my own mind that I was in the “E” section and that it was not my intention to remain a worker as by the very definition a worker is being used to generate revenue for somebody else, not only did I feel upset as I generated some large personal debts but I also felt that I could achieve greater things.

    I had all these concepts laid out in the book in my own mind but the best thing that RK’s book has done is it has clarified everything into a simple set of ideas. Being literary astute I began to read the book and never assumed that “rich dad” and “poor dad” ever to be real, it is obviously a literary tool used to contrast different ideas. As for taking risks RK reinforces the point that one should be educated before taking action, in my case I took an MBA before setting out on my business venture as well as taking courses on internet design, marketing and various others that I thought would be beneficial to my new venture. So I had taken the “calculated risk” all without RK, my thinking is very much like RK’s in many aspects but reading this book has given me an advantage without a doubt as I now know about the next steps for progression in my business.

    I have also planned to invest the money that my business (internet marketing) has generated over the past 2 years not only to place systems into place so that the business works without me but also to acquire other businesses that will allow my money to “work for me” instead of me working for my money. I have without doubt begun to “mind my own business”. That is my personal story, as for false property investments etc it is completely irrelevant, what the intelligent business owner or investor should do is take this knowledge and use it! I don’t think that RK is telling everyone to go into real estate but it certainly highlights, in clear and simple manner, how his knowledge can be applied. RK’s ideas from my point of view are excellent and in the right hands an invaluable asset for those who wish to amass a large personal fortune… of course not everyone is either able or willing to open their mind and take advantage of different ideas.

    The moral of the story? It takes a special kind of person to become rich that’s why it’s a very exclusive club, no doubt RK’s books are an invaluable tool in the right hands.

  118. London says:

    Another thing that should be noted is that throughout history most of the brilliant minds have been accused of being crackpots at one stage in their lives. Really smart capitalists often do not accept what they are told literally but often use the knowledge, ideas and concepts to their own benefit.

  119. Londres says:

    Many people have stated that Kiyosakis ideas have been repeated in other books and literature, would anyone suggest a reading list on the subject?

  120. John says:

    Well first off I would like to say that RK is an excellent writer/author. I’m not sure about everyone else but I live in Australia and getting an investment property with positive cashflow is really really insanely hard here. I agree with Robert when he says that you’ll never get rich if you work for someone or self employed, but then again the richest people I know with eight digit bank balances are self employed. I myself am a millionaire but special thanks goes to Warren Buffet who is an excellent value investor and taught me which stocks to choose and which not to, before I read any of his books or books written about him I should say since his never written a book before. I lost plenty of money on that one stock that was a bargain and that also never recover. Thumbs up to Anthony Robbins who is a gentle giant with the know how to motivate anyone off their ass and wake up every morning with passion and ready to get out there and make some money, I honestly was up late at night and saw his infomercial and bought his cd’s and it was the best investment ever. Got me motivated and clear on what I wanted to do with my life, so now I’m a millionaire. Well anyways back to the subject about Mr. Kiyosaki, his ideas are almost like a fantasy because the only investment property that I have ever owned that had positive cashflow are the ones I bought outright with no mortgage. Even though return is at a tiny 4% return, it’s a safe investment which doubles in value every ten years. I agree that property is a safe bet since god isn’t making anymore land and that everybody has to live somewhere and demand is rising since the population is growing at a steady rate. All I can say is that if you want to get rich and get rich real quick is to stop paying tax, I have no idea why people are willing to spend five months of a year and to give their had earned money to the government who have shit roads and crap infrastructure. Donate to charity, purchase work related items, claim capital loss on investments but if the investment is good find another one that is bad just so that uncle sam doesn’t get your hard earn dollars and when that bad investment grows again there is not tax to be paid until you sell it. Well about RK, his a great writer/author and his books are fun to read with some valid points in them but I’m sure he got rich off his book sales being number one sellers just like Anthony Robbins got rich of his audio tapes. Warren Buffet well all that I can say is what a true american hero who made money off great investments and has never made a dollar off any books or tapes about him and a true philantropist. Too bad his retiring soon and I wonder what is going to happen to his $100,000 share price for one of his stocks.

  121. Doug says:

    I find it amusing how people seem to think that you have to be 100% in favor of Kiyosaki or 100% opposed.

    I think his views on assets, liabilities, and wealth are quite rational. Conversely, I think it’s safe to say that he under-plays the impact of education, risk, and equity markets.

    You don’t have to agree with 100% of what the guy says to get something valuable out of his writing.

    Overall, I think the key message is that we each have a limited amount of time to commit to labor but returns from assets are only constrained by how many assets we own. Thus, increasing long-term wealth is done the most efficiently by increasing assets. I’m not so sure that you can confidently say that one type of asset is the ‘best’ though . . . each asset type will vary in terms of return, volatility, risk of default, and relative liquidity.

    Most entrepreneurs build their start-up capital by working at a job first, so education is going to be an important ingredient to get started. (The alternative is to take on massive amounts of debt) As most people build-up their wealth, they will typically look to diversify it into financial markets in order to avoid complete financial ruin if a specific sector of the economy collapses.

    I think that there are some gems in Kiyosaki’s writing, but there is also some sewage. The reader just needs to reach through the sewage in order to find the gems.

  122. jim says:

    Myself and friends have read Rich Dad Poor Dad and applied the philosophy to our lives. We are now very well off.

    Assets are the foundation. It’s hard to beleive any of you can debate this. It’s also tough to think you can debate the ESBI philosophy. This can be applied to any career field.

    Examples of how to turn every day stuff into assets:

    Car = Taxi cab
    Boat = Charter Boat
    Apartment = sublet

    And here is how you apply the ESBI philosophy to anything:

    Garbage man – garbage man with some workers – Own a garbage business and finally, you invest in a garbage business.

    Appliy this to any industry. Here is the film industry:

    Work as a producer for production company – work as an indie producer – own a production company that has many producers – invest in a production company.

    Anyway, I’m done. It works for me. It works for my friends. It coudl work for you.

  123. Jimmy Dee says:

    Its refreshing and funny reading all these comments about R.K. Though, I don’t know what all the fuss is about. Bob puts out smart, and very useful material.

    His analogies, examples, brief stories…maybe that’s what the fuss is all about, the context of how he presents these ‘gems’.

    I’m impressed actually. A pacific-islander goes through the motions of developing a money making machine that continues to do well! WOW, I bet that caught many folks off-guard. And we know who they are…

    Let’s avoid the analysis paralysis. I can get that reading the business section of the daily news.

    Come on people, Kiyosaki (w/co-authors and advisers) simplified the ingredients for building wealth – SO EVERYONE ELSE CAN KNOW. A buffet table for the masses, if you will, of basic financial concepts most people simply just miss as they jockey through their illustrious careers.

    Isn’t it really up to the individual/reader on how they make your own plate!!!

    Although I don’t agree with Bob 100%, there’s never been a more pleasant AND genuine invitation to succeed till Robert Kiyosaki and his people broke it down for everyone else in plain simple pardigms and text.

    My hat’s off to their work. Per the famous words of the another popular average-student, Jack:

    “The truth, you can’t handle the truth!”

  124. Jason says:

    I have bought 5 of the Rich Dad Poor Dad books. No one really seems to know if Robert Kiyosaki was truly successful in all the areas of business, real estate and investing that he says he is. I was led to these books after many days, months and years of the 9 to 5 grind. I just want to get out of the rat race as Robert tries to teach us.If he makes some money along the way, what’s so bad about that? No other financial guru has motivated as many people to strive towards increasing financial education for the betterment of ones financial future. Even he said it took 10 years to become affluent, 5 more to become rich, and 3 more to become ultra rich. He is not selling a get rich quick scheme as in days or a few months. He stresses ongoing financial education and recommends many different other books and tapes from other financial experts as well. I am more confident now about my financial future than I have ever been in my life even though my financial education has just begun. Robert says no one is an expert at all things, you have to choose which paths work best for you and make sure you are fully educated before you take any action. Robert gets people motivated to educate themselves and eventually take action. Robert is selling a dream, an achievable dream. I know he doesn’t know everything, but he sets people on the right path, in the end it’s all up to you.

  125. ben says:

    I liked John Reeds analysis of RDPD. It motivated me to think critically about my “become rich” gurus. All the negative things people say about John Reed and his analysis of RDPD stem from jealously of a logical and thorough argument. Why do people have to be such haters, Reed’s analysis “works” for me, why do they have spend all their time criticizing it, why can’t they do something productive rather than being critical, because we shouldn’t be critical. All the haters who don’t like Reed’s webpage don’t “get” it or just read the cliff notes.

  126. Jeff says:

    I suggest all you Kiyosaki haters:

    1. Go to school
    2. Get Good grades
    3. Get a SAFE, SECURE Job with benefits
    4. 401k
    5. Invest for the long term
    6. diversify, diversify, diversify

    But don’t plan on ever being rich with this strategy.

    Jeff

  127. Jon says:

    Jeff, I have done exactly everything you have listed. Am I “rich”? Well I wouldn’t say I am rich in that I could not quite retire right now and live off my investments but I do have over $750,000 net worth at age 30. All I did was get a very good paying job, lived below my means and invested carefully the excess money.

    I am sure that there must be Kiyosaki worshippers who have done much better than I but I am equally sure there are many many Kiyosaki worshippers who quit their “safe, secure job with benefits” to invest in real estate or try to start some business who have failed miserably and are bankrupt.

    I agree that being a “mere employee” isn’t going to make you rich. But neither is being a Kiyosaki worshipper and blindly diving into real estate investment or starting a business. To me, following Kiyosaki blindly and putting down people who choose the route that I have taken is simply bad advice. This is because for every person who might have been inspired by Kiyosaki and made it big, there are probably hundreds that have done much worse than if they followed the “safe, secure” route!

  128. Jason says:

    Well Jeff you have a great story and that worked for you. I was not as fortunate to get a high paying job like you, im 30 I make 31,000 a year and im 16,000 dollars in credit card debt with a negative net worth. For me it took getting to this bad financial position to motivate me to dig myself out of it. Im in a bad spot financally right now, it’s hard paying off 16,000 in credit card debt when you only make 31000 a year and have other bills as well. On top of that trying to figure out if I should contribute whatever small amount I have left after paying my bills to my ROTH IRA or just put it all towards credit card debt. It’s from this position that I was drawn to the Rich Dad Poor Dad books so that I could attempt to take control fo my financial situation.

  129. Jason says:

    I made an error, my previous message was directed towards Jon, not Jeff.

  130. Lester says:

    For those of you who believe that RK is very wealthy, just how much wealth do you think he has? His net worth is unlikely to be more than $2 million, so he is wealthy, but not super-wealthy. Do you understand that his wealth came almost entirely from the sales of his Rich Dad books, cassettes, and games? These days, it is generally quite easy to track the principals involved in real estate deals. Searches of RK’s real estate dealings reveal only a handfuls of modest real estate deals. In summary, RK’ book sales have paid him a couple of million dollars for pretending to be a real estate authority and competent investor.

  131. David R. Chin says:

    Hi Trent,

    I am very thankful to you and your website “The Simple Dollar.” I now have the tools to help a low Joe like myself make some sense of all this. I now can go to Robert Kiyosaki for encouragement to get out of the “rat race”, and I can go to John T. Reed to be smart and where to put my life efforts.

    As Mr. Reed disclaims “Rich Dad, Poor Dad” he actually defines in detail what to do legally and most ethically to make Roberts schemes, really, really work. John T. Reed is a genius, a guiding light, but he is still shooting himself in the foot.

    Robert is good for giving everyone the choice, yes a choice, you know the take it or leave it thing, to get out of the “rat race”, thru his Zen like approach…story telling and of course giving us children a fairytale, but, nevertheless he gives us just that- the Great Hope, that we too may be rich and very great like John T. Reed himself. All we have to do is do it the John T. Reed way using Dr. Marshall Riddick’s Network.

    Listen. Joes and Joesettas … Step back and see what is really happening. As the seconds tick away, more and more everyday people like you and me, by the thousand and tens of thousands are involving themselves in real estate, and in some cases harvesting to the near limits those “great deals” the “gurus” have painted for us. We Americans are even to the point are forced out to investing in foreign real estate, ever-searching for that “great deal”. Oh no! The lottery winnings now have to be divided even more. With, the ever increasing competition, the last of that secret fishing holes, I sometimes find myself wishing that I could, slam, shut down, all the Roberts and Marshalls for opening up the flood gates to the notion that the average Joe could get rich by hard work, some luck, and fulfill that ever-persistent dream to retire early and rich. Opps, …I now find myself like the Great John T. Reed. Everyone get out of the real estate investment field! Get out! Get out! It cannot be done. It is illegal. It is impossible. It is not easy. It is too hard. I was here first! Find the “American dream” on your own. Get out of real estate! THERE CAN ONLY BE ONE!!!

  132. Rick says:

    As i read the comments and have read a few books by RK, these questions come to mind..has any one ever come to the table saying they have made them selves rich by his seminars? Is RK with any of the richest people in the world? I know Donald Trump is up there but still down the list from many. I went to a recent seminar by Donalds trumps people and found some interesting points but i would never buy into their ways. I decided to not go to RK’s semiar today because of many comments i read. Its interesting that RK and DT are putting on seminars at the same time or just after one another. hmmmm

    Rick

  133. daz says:

    “”“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.””

    EXACTLY. thats what business is . making money in legally. learn from him be smart

  134. Thom Pappas says:

    Spot on. RK is unquestionably a charlatan dangerous advise. Ok, sure there is some truths and half-truths in there and sure, not everything in there is total garbage…but that is not saying much). Nothing in that book is usuful, actionable advise.

    If you buy that book to find ways to get rich you are a fool, if you buy the book to understand finance better, you are a also a fool, but if you buy that book to get pumped up…at least RK does that.

    RK is a snake oil salesman…he is a complete fraud and total BS peddler…he has had no success other than coming up up with a sleek angle to sell books (and make some real money from that no doubt). The guy has no real business experiences or successes in his life that he could share useful experiences (even his “rich dad” was a total fabrication …which he admiteded at a Smart Money interview. There is no record on any real estate deals any where.

    I am an investment banker (I have lived in the “deal world” all my life, from private to public companies in all kinds of industries, from mergers and acquisitions to all types of financings…and can tell you that what’s in his book for the most part are either useless observations of the obvious, meaningless cliches, utterly useless advice, and patently wrong information on a number of things.

    I give him credit for one thing, he span a good story that is semi-plausible about the subject of investments and himself, found a good angle and sold many books. Not bad for a total loser.

    Reed has a good/thoughtful review of RK and RK’s RDPD book.

    I love it when people say, well he is a best selling author and people know him…therefor he must be credible!!! Ayahhh, a sucker is born every minute…and RK and his ilk know and count on that.

  135. Smarterthanyou says:

    I think you are a mindless Iddiot that spends his worthless time defacing people without trying to gain knowledge or cross-reference any of your claims. I think if you refute a technique or method of gainig anything positive you better have an alternative or a very very strong reason. Why should any sane positive thinking and empowered person believe a bitter complainer who writes on a garbage penny blog who probably lives on welfare as he did not have the balls to imporve himself or dedicate time into education and. You should analyze your own integrity before questioning others as people who bitch about everything in life are a dime a dozen as all can see on the responses to your blog.

  136. Jim Lippard says:

    I wonder how Todd Copley’s real estate investment is doing. (Is he the Nashville, TN real estate agent named Todd Copley?)

  137. azhar says:

    I am a FAN of RK.

    I am a student of engineering(cse), I am a good student, I believe RK teachings are fine, he gives inspiration for all of us, Can i ask one question, Who is rich David Rich or Trent, A mutli billionare is joining hands to write a book with RK, so he is worthfull, Dont follow this trent, whe is just a critic.

  138. azhar says:

    Sorry … I am David Trumph or You ?

  139. azhar says:

    http://www.investopedia.com/articles/basics/03/050803.asp

    Why did investopdia website, given RDPD as a book to read, Trent just change your view point, you can achieve the success RK has achieved, you are just a failure, how much money do u own ??????
    U are just a critic, dont waste time writing the posts here, just read RK’S books and learn the financial concepts

  140. Warren Howard says:

    Jim Cramer and risk?

  141. Charles says:

    t’s true he only gives motivation in most of his books, but he also has a workbook which is more useful in understanding the whole process.”You can choose to be rich workbook”

  142. anthony says:

    robert t. kiyosaki is a god. you people are haters. hate hate hate hate hate hate ! ! !

  143. Jackie says:

    Just finished reading RDPD and I think people should take from it what they understand and what they are willing to put in practice. He makes a point about those who are “chicken littles” and if you take a poll those people never make it. I have been in real estate and I am an accountant. So I can relate to what he is talking about. School is just the beginning – I have learned more from attending seminars and have gone to the same ones twice at different times and still come out with some new information. If you are not willing to put into practice what he is teaching (even a little bit) then don’t be a hater. See you in Forbes! :)

  144. Joe C. says:

    I see both sides of the issue; however, I do tend to
    agree with R.K that the majority of wealth is owned by business owners and that most people who are employed in the work force make up the poor and middle class.

  145. Craig says:

    My take on Trent’s disapproval of RDPD is that he has probably spent a sustantial amount of time, energy and money to gain the knowledge he has regarding finances. Now here you have Robert basically saying it really doesn’t matter who you are or what your education level has been to this point, but you can become more financial literate and even Rich (if you so “choose”)by basically following some common sense approaches. For a person that have tried to “seperate” themselves from the pack with formal education, that has to rub them the wrong way. I would think.

  146. Trent says:

    Craig, are you saying that because Kiyosaki says any idiot can be rich that I’m jealous of a get rich quick scheme?

  147. Craig says:

    That’s just it Trent. Who are the idiots you are referring to? It’s not a get rich quick scheme. As a matter of fact, most of his distractors talk about his “lack of brass tacts” on how to get rich. There’s much more to his work than the one RDPD book. For example, how many gurus counsel their clients on having 3-6 months of living expenses set aside? There’s nothing about “get rich quick” in that, just practical advise.

  148. Deric says:

    I do agree with some of your point Mr. Trent regarding your view on Robert Kiyosaki. But if I’m going to choose between your advice and Mr. Kiyosaki’s, Sorry dude I won’t listen to losers like you.

  149. rowell says:

    Robert kiyosakis richdad poordad is the best book i’ve ever read in my life, why? because it opens my mind, heart and soul to the things that i knew is within me …but i dont know what to do with them..until i get this opportunity to discover Roberts Kiyosakis ideas…what ever i will here or read bad things about him…he changed the way i think…and im glad i found my way to him…all things happen for a reason…a msg from my mentor RK….MIND YOUR OWN BUSINESS!!!and a msg from me to all…”THE GREATEST VALUE IN LIFE IS NOT WHAT YOU GET…NOR IS WHAT YOU BECOME”

  150. Yannis says:

    I live in Athens-Greece. Recently I came across the Kiyosaki-hype and I bought his book “Rich Dad Poor Dad” in order to study his advices about “financial freedom”.

    I couldn’t help but notice the emotional appeal his writings hold, using various motivational, logic-breaking and controversial methods. Being a professional Business and Market Analyst with working experience – among others – in a big multinational corporation, as soon as I finished his book “Rich Dad Poor Dad” I felt that something was TERRIBLY WRONG with his advices. Moreover, I felt like being emotionally manipulated towards a specific role model (that would be the Kiyosaki-style “financial free” individual) as well as a gross disregard of logic and common sense.

    One or two personal thoughts about his book (RDPD) :

    • First of all, the symbolic paternal figure he uses as the main vehicle and base towards his teaching (Rich Dad) is – as he personally stated – maybe (!) fictional. So much for the credibility of a person who wants to shape my personal financial attitude. As history and experience have told us again and again, credibility is the No 1 factor when it comes to economic advices. How can he possibly keeps on building when the base upon which he stands is probably based on a lie? How can he ever deny people a clear explanation about it? Sure, keeping the fairy tale alive makes people more happy, more eager to believe and more sentimentally attached to him, but does it makes them better entrepreneurs? I seriously doubt it.

    • People may step-up and say that it does not matter whether he lied or not, whether he is technically correct or not, whether he is right or wrong as long as he provides them the motivation they need in order to think for their financial future. That is also EXTREMELY misleading. Being a professional business analyst, I believe that there is MUCH MORE to succeed in a competitive market environment than merely the will to do it. It takes careful and detailed planning and analysis, a calculated approach to risk and deep understanding of the market in which you compete as well as a strong background in at least basic financial, marketing and sales principles before you even start thinking about entrepreneurship. This can be achieved only with YEARS of experience and related education and CANNOT be taught by any single book or seminar, surely not by the Kiyosaki-like emotional nonsense. And because I can hear the voices screaming “But how can all these entrepreneurs succeed?” my answer is that they had the skills to do it or the luck and insight, or, as it appears with the Kiyosaki case, the willingness to exploit the credibility of millions and millions. But the fact remains: the TREMENDOUS majority of starters fail and, if people go by the Kiyoasaki-principles, I fear that the failing percentage is about to climb even higher.

    • When I say that he is misleading, even fraudulent, I mean that he encourages people WITHOUT the necessary skills, background, attitude and experience to seek “financial-freedom”, based on EMOTIONAL MANIPULATION. This provides him fame and fortune no doubt, even recognition among economic and other cycles who seek his popularity in order to raise their numbers, but in the end he is just feeding the dream of the average un-educated individual: that one can become quickly rich as long as she wants to. I will not go on in more details about it, there’s always John Reed web bage for a detailed anlysis (http://www.johntreed.com/Kiyosaki.html). I will just point out this: did Kiyosaki got his success by his entrepreneurial skills and the attitude he is trying to sell you? MOST PROBABLY NOT. He succeeded by selling false hopes to you and to others, by lying, by deceiving millions in order to receive millions.

  151. josiah Mdhluli says:

    Greetings to all of you folks. My name is Josiah and I am a South African citizen. I have just completed the book and I must really say that I more than ever motivated to get rid of this cycle of getting your salary and paying your debts. Although some of the ideas offered by RK are sketchy, the book as a whole is quite an eye opener and is quite relevant to the current situation in our country. We have plenty of opportunities and I just needed a catalyst to get me moving. Thank RK

  152. stew yeomans says:

    I wasn’t going to get into this fray until i saw Yannis’ elitist slogans, only the highly-educated and well-connected deserve to be wealthy. The American educational system was turned into mass education so that children of immigrants and white-trash like myself could be taught to read and write so we could handle more than just manual labor. But if our parents couldn’t afford Hahvud or Yale or the like, we started at$20K instead of $60K; and maybe we couldn’t finish-up at Wharton. Remember the Subtitle to RDPD? What the rich tell their kids about money the poor and middle class do not. RK’s philosophy is educate yourself about business, money, and finance. no wonder this irritates the self-proclaimed financial gurus. So I’ll take RK, Trent, and John “T-Bone” Reed with a grain of salt (you wondered what the “T” stood for). Now where does it say quit your job, throw caution to the winds, and get rich quick? At the UCLA Graduate School of Management (it’s a state school, I’m not a snob) They taught me: “never mind what they say, see where the money comes in and where it goes.” RK’s point: why is this only taught at higher levels? With love, . .

  153. Yannis says:

    To Stew: I just want to get very clear about this: I have not ever-EVER in my life believed in any elistic principles and attitudes, especially when it comes to matters of equality of opportunities. My wish is for EVERYONE to get a life as comfortable as possible. Do I believe that ANYONE could get rich? OF COURSE I DO! But that’s not the point here. The point is that RK is stepping forward to build your financial attitude based on:

    - A distorted approach to financial practices (like the claims of making $190.000 with 30 hours of work and the like…)
    - An oversimplification of the task of entrepreneurship, which I believe is A LOT more difficult that he makes it sound.
    - A radical dichotomy and characterization of the opponent views (“Little Chickens”). This is a commonly used technique in the propaganda of extreme positions (close your eyes to ANYTHING ELSE except for what I’m telling you) and it works quite well especially in religious cults, bad politics and the like.
    - An approach based mainly on EMOTIONAL MANIPULATION along the logic of “If I can do it, so can you”. Well, I seriously doubt that he had achieved ANYTHING half as important as he made it sound BEFORE the success of RDPD.

    And I believe that all of the above where made on purpose, with his the main target being NOT TO EDUCATE, but to sell his books and games and achieve publicity and fortune. To that – I agree – he succeeded.

  154. Patrick says:

    Yannis,

    Do you know how amway/quixtar works? You do not seem to understand the whole concept because you refer to it as a pyramid. That is false information that you are providing the general public and you need to be held accountable for providing incorrect information. You need to explain how amway/quixtar is a pyramid? If you truly understand how it works you cannot refer to it as a pyramid. That is incorrect terminology. Be accurate with your statements. In a pyramid, by default you cannot make more money than the person above you. That is not accurate in describing the business system of amway/quixtar.

  155. Trent says:

    This isn’t a comment on Amway/Quixtar, but on pyramids in general – many pyramid schemes can have huge earners somewhere in the middle if they’re very effective at getting a large group of people directly below them. The idea of a pyramid is that you’re constantly trying to expand the base of people below you because the money flows upwards. What you’re describing is something like a binary tree, where you’re restricting the number of “children” an individual “parent” can have.

  156. Yannis says:

    Patrick,

    I believe that you didn’t read my comments carefully. In no place I made any reference to any Multi-Level-Marketing organization (like Amway/Quixtar and so on), or used the word “pyramid”.

  157. Patrick says:

    Yannis,

    I apologize for my inaccurate reference to you. I mixed up trent’s and your comments.

  158. Patrick says:

    Trent,

    We will have to agree to disagree on your comments in regards to amyway/ quixtar. In reading your analysis of Kiyosaki’s book (which I do agree wit to a certain extent) you unabashadly link amway/quixtar with pyramids. I understand the link you were trying to make with your argument about how some certain unethical MLM’s work. But you tied in amway/quixtar with the unethical MLM’s and that is an inaccurate statement. Amway/quixtar can take years to build up and is not a get rich quick scheme if it is done properly. Much time and effort must be used to process information and utilize that information to reach out to others that might share the same aspirations that I do. In amway/quixtar if you are willing to work harder than your upline you will be more successful. I do agree that kiyosaki makes it sound to easy and not realistic and at times people in amyway/quixtar do engage in the same acts. But many other’s such as my wife’s Grandfather have put 30+ years into building his diamond business and it was not done quickly or unethically. My point is to make sure your readers understand that just because other MLM’s might be unethical does not mean that one of the biggest and most powerful is.

  159. bogdan chelaru says:

    i’m very sorry for mr. reed but i’m afraid i have to consider him shallow. in his book, rk is not teaching you how to make money instantly, but provides the basis for financial literacy. he is not selling a recipe for success but he provides a concept, an ideea, another way to look upon own financial status. in the end i consider mr reed is exagerating. his arguments do not stand up and are extremely ambiguous. i admit i am an rk fan but i don’t see him as a guru. i am not much of a student of his. that is because he refers to the northern american economic system which is different to the country’s i live in. the failures in rk’s portfolio are natural because he is not a god. he used to say that in order to have a successful initiative you have to have ten others to fail. so mr. reed, i am sorry for your article. i sense much envy in it. i think you better consider uploading a note on the website.

  160. Matthew says:

    Mr Kiyosaki is excellent. His ideas really do work. They are common sense, and he does really spillthe beans about how to become rich, which angers alot of people, such as employees who believe in tenure and promotion.

  161. Danny says:

    Which one of the RK haters here are millionaires? Any idiot with DSL can pontificate on any subject. U obviously did not read the books. Yannis, are you a multi-millionaire?

    All the great men who built America would be billed as fools by you who cannot understand, and pull others into your miserable pools of stupidity.

    “The automobile will never replace the horse.”

  162. Horace says:

    Not only his RDPD totally rubbish described by others, his Cashflow Quadrant is another nonsense! It is over-simplistic, more based on Kiyosaki’s fortune wheel turning

    Probably the best advice regarding his books you may have bought is to use them as fuel for your furnace.

  163. Mrs. Micah says:

    The question is, Danny, are you a millionaire?

    And–more importantly…was Kiyosaki one before he wrote the book? He hasn’t been willing to show the evidence. If he wasn’t a millionaire and Rich Dad never existed, then why should I believe that what he teaches will make me one?

    Maybe if you’re one, then I can believe that his instructions would work for someone, thus I might be willing to take a chance. Otherwise it wouldn’t make sense, since it hadn’t yet worked for someone. Can I see your tax returns? :-)

    Donald Trump, Warren Buffet, Bill Gates…them I’m more likely to believe. Because they’re bona fide millionaires who only wrote books later.

    What Kiyosaki proves is that if one can write a book and promote a concept, one can become a millionaire with a cult of personality. But I knew that already. Good for him, I guess.

    I find cults–whether religious or simply of personality fascinating. Obviously, not all cults of personality are harmful, but it’s still fascinating to see how vehemently people will defend their guru. Even if that guru is a liar, a cheat, a rapist, or did horrible things to them–whatever, they’ll defend him against us idiots and infidels on the outside (note, not alleging that Kiyosaki is any of these).

  164. Danny says:

    Micah sweetie,
    ARE you a millionaire?

    As a young boy I read “Think, and grow rich,” by Napoleon Hill. It changed my view of money. I guess that makes him a cult figure, too?!??!??

    Like Hill, RK is pushing the creative process of how assets are made. THINK THINK THINK.

    Rich Dad Poor DAD was written to specifically sell the Cashflow Game. Duh. It is a marketing tool.

    No other writer has stated more clearly the tax benefits of owning a business like RK has.

    NO, I am not a millionaire. I am just inspired to finish my novel, publish my 20 plus songs and scores.

    Kiyosaki is allowed to be wrong on some points without being crucified, is he not?

    Quit hating, and start helping.

  165. Mrs. Micah says:

    I don’t hate Kiyosaki. I find him fascinating. He’s developed a vast cult of personality. He writes at the same time so inspirationally and so hatefully…the psychology of it all is fascinating! I’ve read some bits by L. Ron Hubbard in whom I’ve also seen this mixture of inspiration and venom against those who disagree. Hubbard took it a bit further, of course.

    I use cult loosely. But I tend to apply it to groups where people seem to discount facts and vehemently cling to one person’s teachings, etc. To that social dynamic. It’s sometimes different from being “in” a cult, though it has many similar characteristics. (you may not be discounting facts, but some writings I’ve seen by fans of RK certainly seem that way)

    Thanks for letting me know you’re not a millionaire. If you do run into one who specifically followed Kiyosaki’s principles (and I’m kind of doubting that any millionaires post replies on blogs, but there’s always the chance), I’d be very interested in talking to him or her.

    Or if people have discovered proof that Kiyosaki actually has holdings in companies, especially that he had holdings in companies before the books were written.

    I’m glad he’s inspired you to write. Creativity is great. Much better than losing money like the doctor mentioned above who took RK seriously. :-)

    Perhaps Trent is actually helping people, helping them realize that Kiyosaki shouldn’t be taken at face value and therefore they should take his advice with a shaker of salt.

    In fact, I think that accusing people of being “haters” who live in “miserable pools of stupidity,” (while an amusing turn of phrase) isn’t helping very much. Wouldn’t you agree? If not, would you perhaps share your definition?

  166. Danny says:

    This man, RK, watched his Phd. holding father die broke and miserable. His Dad did not have the business sense to run a small ice cream shop. I could care less if part of the story is literary devices.

    I am angry at being called a “cult” because I agree with SOME of RK’s principles.

    I have read every book by Louis L’amour. Does that make me a western cult member? That would be funny, considering I dislike country music.

    I tested college level in every subject in 4th grade. Reading comprehension is my strongest skill. My shelves are lined with books on investing and money. Have u read “The Millionaire next door” and “The Millionaire mind?” Please do. You will find that doctors make some of the worst investors and money managers.

    Let me live in your make believe world where (supposedly) the only financial guru i have is Kiyosaki……..oops, impossible!

    U see, RK is big on learning methods, formulas, from “Other People’s” seminars, books, tapes, videos, etc.,and he actively encourages his readers to do the same.

    See, reading comprehension is the REAL issue here.

    Kiyosaki is an educator telling people to educate themselves and he never said he was the only source of wisdom………

  167. Mrs. Micah says:

    I never intimated that you were in a cult. The only part of my original comment addressed to you specifically was asking if you were a millionaire. In fact, I added that while you may not be discounting facts, others do.

    I have seen a lot of online evidence (because he’s one of the gurus I look into) that a number of people essentially take him for a finance god and disregard others.

    Obviously people do this with other advisers too, but RK is the subject of this post.

    I also tested college level in the 4th grade, you’d be surprised at the number of us there are. But congrats. :-)

  168. Scott says:

    First off, you are a moron. Did you create a mult-millon dollar empire out of nothing???? No you bash other people that have firgured out and do what you can’t. I am 22 and due to the type of thinking that RK inspires, I own stocks, real estate and work for myself. I will hit my first million in liquid networth by the time I am 26.
    Where you that upset that rich dad was not a real person??? Its a metaphor….thats clear as day. Its a way to get ego filled adults to rethink the BS they are filled with so they look at money from a new angle. Dad to a child…
    I think you are just a pompus, jealous loser.
    Make a million first, then you can attck other millionares.

  169. Yannis says:

    To Danny: Am I a multi-millionaire? Nops.
    I am quite well off, but not a multi-millionaire….nor do I even share the Kiyosaki attidute of “If you are not a multi-millionaire you are a loser”…

    This was NOT my point anyway. My point was that this man is not here to educate, but to sell a set of emotional context and a grow cult of personality in order to get rich by exploiting the credibility of millions of people.

    I don’t hate RK, and I find him extremely clever. But I believe his teaching are erroneous, and are erroneous ON PURPOSE. He doesn’t care if you get rich or not (see the Casey Serin case), as long as you buy his books, go to his over-priced seminars and follow his hype. And, as I said before, in that matter, he is extremely sucessfull!

    (the mere fact of being here and talking about him so much proves it more than anything else)

  170. benp says:

    I’m amazed how long this post has lasted. I think part of the reason RK generates such emotion is that wealth is very deterministic. People know how much they make, how much they spend, and how likely they are about to change either of those. RK really sells hopes (albeit a false hope) for a dramatic improvement in the earning potential and people cling to this.

    If you look at the number of misspellings, capitalized words (indicating yelling), poor grammar and poor logic in the pro RK camp, I think its clear they come predominately from lower socio-economic classes. Bad financial advice can really hurt them.

    For example (Scott @ 11:55 am September 22nd) is really proud that he owns stocks, real estate, and works for himself. Thats great, but I just can’t see someone on a good financial path describing themselves this way. Perhaps he has a well thought out portfolio, real estate with enough equity and cash reserves that it is a good investment, and a great little business. But I would guess he has a few random stocks, little equity and a poor understanding of the cash flow of his business. Perhaps he will have a “liquid” net worth of over 1 million dollars in 4 years when he is 26, but that fact that he threw out such an astronomical figure without acknowledging how extraordinary and unusual it is, makes me think it is more of a dream.

  171. casey(financial advisor) says:

    I am a financial professional in many fields(real estate appraiser. mortgage advisor, and financial advisor I own financial service companies) and i do believe being to hasty in investments can cause a lot of pain. furthermore, i cannot understand the passion associated with hating these line of books. statistically business owners in america have earned more, especially those who will take there proceeds to invest in other businesses, real estate, and portfolio products. many members of ethnic groups own mom and pop shops in america and have become indepedently wealth with safe asset acquisition. i can say if you do nothing and continue to let your job equal your destiny then one can find themselves retiring financially embarassed. You do not have to treat the book like a bible but as an eye opener. it requires less education and more discipline to become a successful investor (dont get me wrong education is important). DISCIPLINE, SPENDING LESS THEN YOU MAKE AND FINDING WAYS TO HEDGE INFLATION, WETHER IT BE BUSINESSES, REAL ESTATE, TAX FAVORED MUTUAL FUNDS, INVESTMENT GRADE INSURANCE, ETC. DO SOMETHING AND STOP SPENDING MONEY ON CRAP!!!!!

  172. Mike says:

    Wow, RK can sure incite emotions of every kind from people! Is he extreme and biased in some ways? Is he offering advise that doesn’t fit some people? Yes. But in the end, I recommend at least reading and considering the concepts he discusses. I did it 5 years ago and went from a simple working middle class american to financially secure position using real estate and 2 business entities. I no longer work for other people and my cash flow allows me to do the things I love most. If that dream is shared by anyone out there, then I encourage you to at least read RK and make sure you aren’t missing something special. Good luck all.

  173. ShinyaWong says:

    I only can say he has good brain , alot say his bad or lier ,but to me weather his good or bad his success to become rich is not easy , if u would be him wht will u be right now or wht would u say right now ask urself in his position , I do not know y ppl wan to investigate R.K background does this make u rich ….if it does then u shld tell the world to do it …I rather spend more time on things I shld do then looking at ppl background …..

  174. T says:

    Robert K. is a great life coach. If you are distressed, depressed, having some emotions or problems which you would like not to be on any particular medications; he is definitely the way to go. Many people can relate to his calming voice and his inner spirit. I have read many of his books.
    Recently, I attended a workshop which disclaimed that Robert would be at the “free” workshop. There was a speaker there who had a great sense of humor and was personable.
    The “free” workshop was to assist people in planning for real estate training. Many people paid for a three day real estate training workshop which was discounted by 50%; $495.00-Alsip, Illinois. I thought that this was a steal in comparison to the training that other guru’s charged. I was very excited. I felt that I would learn something that would assist me further in my path as a real estate investor.
    I attended the three day training two weekends ago. The training was held at 2301 S King Drive. A lady by the name of Ann S. was the speaker for three whole days. Unbelievable! I learned more in free real estate training workshops versus the training I paid for with Robert K.
    Ann S. was very vague, no substance to any of her material, no-meat, and she rattled on and on about her life and her experiences in real estate.
    Was she trying to sell herself or us on the idea of making money? She of course was a multi-millionaire.
    Many people took notes and I keep thinking what are they writing that will actually assist them in becoming a savvy real estate investor. Overall, this training was a sad attempt to get to the big picture; “cash-cow” training sessions. Again, her focus was for people to incur various credit debts to cure their financial distress and invest in Robert’s training.
    The beginning package was discounted again at 50%-$9000; trainings ranged from $9k-$64k. Ann S. stressed that she sat where everyone else sat and that for $500 we were receiving a “high-school diploma” in the real estate industry.”
    However, she went on to say, if you want to be a savvy investor, then you should take a chance and invest in one of our $9k-$64k training classes.
    I have spent money on various things during my life and to date this training class with Ann S. was a total waste of my time.
    I learned absolutely nothing new and was very disappointed. I would encourage people to stick with the Russ Whitney, Ron LeGrand, and various other gurus. I can attest too many of their systems and they have proven strategies.
    I would not recommend anyone else participating with the current trainings. In my opinion, they would need to take the information to a million dollar level-to date they are at a five.
    PS
    I did take notes!
    Best,
    T

  175. NDK says:

    I am not going to debate the truth of the book. I will only share the story of my family- which is proof enough for me.

    My REAL father is a son of a congressman who graduated from Colombia Law School. He had 2 sons and 2 daughters- 2 which are lawyers (including my father) and 2 which are doctors. My grandfather- the former congressman, is now in extreme debt at retirement. My uncle, the lawyer, has given up practice (even though he was successful) because of his liabilities. My aunts have also had many issues with insurance, drug companies and malpractice (which RK warns of). No security with their practices. Lastly, my father, who also invested in real estate, along with being a corporate attorney- has been extremely successful. Unfortunately, he has so many liabilities, he has lost hundreds of thousands of dollars in the stock market and real estate. The more he made- the more he spent.

    Now- I will tell you the story of my mother’s side. Her parents were immigrants from Albania. They escaped communism with death warrants on them from their government. They came with 0 money- NOTHING. They lived with their “family” in the US for the first 5 years, saved money and worked hard. The opened their own businesses, hired other immigrants and within 20 years, after real estate investing in apartments, and proper asset management- they became one of the richest families in Tucson, AZ. They have invested their money over the past 50 years and will not buy anything with credit. NO CREDIT CARDS!! Very old fashioned- but now they are multi millionaires- and neither of my mother’s parents went past 2nd grade.

    I know there are always skeptics out there. I went to Business School and I see a lot of the ideas I’ve been taught in school are flawed. RK concepts may be controversial because of his personal investment strategies- but regardless, they have worked for some people. He has made money in books, real estate, oil….he has failed…LIKE EVERY INVESTOR. From those mistakes, he has learned. If you can help people and make money- more power to you! And those TRUE stories I have just briefly summarized basically are the same stories (be it true or myth) that RK wrote. You be the judge.

    Always take the good and the bad. You can learn from both. Remember that our country is orchestrated to keep the rich rich and the poor poor- otherwise we would have no workers and no growth. Why are colleges so expensive? To keep the graduates in debt. When they graduate- they will keep paying off loans to the banks- aka the federal reserve. Our country is living in image- credit makes us feel good. If we can spend fake money- we will be happy, yet stay in debt. It keeps the rich rich and the poor poor. Common sense.

    Namaste.

    NK

  176. Mana says:

    I think RK and RK’s supporters should take some “credits” for the current state of US financial and property markets.

    It’s funny to see people declaring that they will become a millionair, debt-free, free from work, etc. in X numbers of year. You guys are psychic or what ? I assume if you are a follower of RK, then you have put your $$$ to work in some kind of future. And that future is not predictable and risk-free. Yes ? No ?

  177. P says:

    Looking at NDK’s comment raises two main points.

    1) Being educated doesn’t guarantee success.
    2) Working hard, being frugal, and finding ways to grow yourself or your business can make you a success.

    Trashing formal education, like RK is wont to do and NDK apparently supports, is useless. The education isn’t the issue, it’s what you do with it. As a case in point, I’m the living counterexample to NK’s case. My parents came to this country in the 1950′s also with essentially nothing. They worked their butts off and by the time I came on the scene my father had his own business (supported behind the scenes by my mother). Through my father I ran into plumbers, electricians, etc. who owned their own businesses. In high school I ran into friends whose parents owned restaraunts, dry cleaners, etc. RK would mock all these people as “hamsters” because they never became “Caviar Wishes and Champaign Dreams” type of rich, though they provided for their families and followed lives they enjoyed. Remember that when you look at the 1 in 10 or other such statistic on successful businesses. It’s a MUCH lower number that take their business beyond caring for a family into true riches.

    Of my family I’m the only one who fought for and got a four year degree. I’m the only one currently earning more (significantly more) than 30K per year. My brothers worked the business with my father, and when he passed away, it eventually failed.

    So according to MY experience, everyone should get formal education to better themselves since I’m better off finacially than my family and the majority of the people from my old neighborhood.

    The problem is that it isn’t an either or situation. Look at the FORBES list of the richest people. Some have formal educations, some don’t. The true bottom line is that it doesn’t matter what your education is, it’s what you do with it.

    Beyond that, is the question of being frugal. It’s a lot harder to be frugal when you have the pressure to represent yourself as a Congressman’s son or daughter. Image is a key factor in screwing up wealth building ability. What is hilarious, is RK’s position to brag about his mansion, his big trips, his Rolex, etc. which are all about “Image”. Yet almost every rags to riches story, including NDK’s above, includes making sacrifices and being frugal (i.e. careful) in the risks you take with your money and how you spend it.

    Finally, I completely disagree that this country is set up to keep the rich rich and poor poor (which seems to be a common thread with those supporting RK). That is utter BS! Go to Mexico with nothing and see if you can start a successful business. How many palms you think you need to grease to get things going in Russia? How many regulatory hoops and forms do you need to fill out in Germany or Japan to even apply for a business permit? This is one of the easiest countries to start a business in, hell you can incorporate yourself!

    If you want the education for a career, there are culinary, beauty, trade, and formal schools up the butt, and the loans (oh my God, that horrible word) available to get you there. If you’re worried about the loans, work you butt off for a year or two and then during school and during the school breaks.

    The problem is, nobody deserves to be rich, you need to go and get it.

  178. Clement says:

    RK is symply one of the outstanding motivational teachers. The point is not whether the Rich Dad is real of a fiction. It’s all about learning and practise his teachings, which I can assure you, work and work to perfection.

    I can only take his critics serioully if they are able to teach something better. Untill then (with all due respect), stay poor and shut-up .

    Clement

  179. dong says:

    Being outstanding motivating teacher doesn’t make him 100% right. It just means he’s an oustanding motivational teacher. The problem with Kiyosaki is not that he’s wrong, but rather he doesn’t allow for other modes of thinking. That and he’s very demeaning in Rich Dad of anyone who chooses to work for someone else for living.

  180. Chef says:

    He was a part of Amway…nuff said…rock on Trent

  181. roger says:

    i agree with clement, do his critics have a better solution? The answer is no, they’re just a bunch of stubborn ignorant people who can’t open their eyes to something that makes sense. RK and many other people have made millions doing what makes sense and are now telling others how to do it as well. What is wrong witht that? btw this article is effing rediculus and false. :D

  182. Scott says:

    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.

    In response to this from an earlier post.Who besides him says he is so amazingly wealthy?There is very little independently verifiable proof of his claims.Since he puts himself out there as an expert he should prove that he actually got rich from investing in real estate and starting businesses(which would still make him self-employed) and not just from seling books and doing seminars telling others how to do it.Even if he is actually wealthy now and owns real estate and businesses, if he did it using money made from the books and seminars then he is lying about his expertise.He should actually be telling people how to make money hosting seminars and selling books and then using the money made from that to buy real estate, businesses, and gold, etc.

  183. Justin O. says:

    I think it funny that many of RK’s detractors approach their criticisms from the stand point of getting rich and being an a millionaire. When RK plainly states that his views of being rich is not having a million dollars or gobs of money sitting around. His view of being rich is being able to cover your monthly expenses with passive income. Living a rich life is not having to work a day job, pay check to pay check.

    He is quite different from the rest of these gurus who say save up your money, and don’t buy things you dont need. He takes it further he tells you how to take all that money you saved up and put it to good use to make more money, because really its not doing you any good just sitting around collecting a poor interest rate.

  184. Brian B. says:

    My take on RK:
    I saw RK in a panel lineup with two other pop star business types. One was a self-described, rags-to-riches multi-millionaire. The other was a top-tier university, Ivory Tower type. Each panelist was highly successful at what they do. Each had their own line of books for self-marketing.
    The moderator’s focus was on how to change yourself. The responses from each of the panelists were virtually the same: Education and association. I simply couldn’t agree more.

  185. Sebastian says:

    Well, to my mind you have to consider, who the target group of this book is! It’s not for investment bankers, hedge fund managers or real estate gurus, not even for people with an MBA or B.A. in Business. His books are written for average people with self-destructing consumer behaviour, who don’t have the slightest clue about money, saving and especially not investing!
    RK’s concepts might open their eyes; they inspire and help them to overcome the state of dreaming by starting doing anything for their personal and financial success!
    It’s some kind of business for dummies, convincing and to my mind not wrong. That’s obviously the reason, why so many people read his books.

  186. Jon says:

    I have read a few of RK’s books and found them to be insightfull. With his writing, I have a better understanding of an “asset”. It has made a big difference in my real estate investing.

    I didn’t know he made his money thru the Amway market, but who cares? Good for him.

  187. Aeris says:

    I think everyone’s perspective is constructed entirely from their own experiences. There really is no right or wrong way of accomplishing a goal. RK merely gives a piece of his own insight based on his own experiences. How people interpret his opinions and views, whether real or surreal is up to the reader.

    Whether he is lying or telling the truth, it’s the central message behind his book that I believe is worth reading and that is managing your own finance and achieving financial freedom.

    How you reach that goal and what methods you use is in your own hands. The bottom line is that his book helps MOTIVATE people to try and find ways to gain financial freedom and allow them luxury of time to do things that they would have never realize just simply working for a paycheck, i.e. travel the world, spending time with family, and taking care of your health.

    In my opinion, that message is worthwhile to read.

    Thanks.

  188. Nick says:

    I guess I’m confused as to the real point the author of this blog is trying to make. So your trying to shoot down his credibility, thats understandable. Any body who has made a level of success that is widely known has to accept criticism will follow, no matter how hard you try, someone will always try to put you down. I agree he has no impressive background, and that he may have contradicted himself as to whether Rich Dad was real. So what, I never once in reading his books found him giving any sort of specific financial advice or in any way telling the reader they should do this or that. They are just motivational books that have a broad idea that is very true. I don’t see how you think everyone is going to run out and start a risky business or start throwing money at stocks just because they read this. I think it is just a different way of looking at how things work, to those who may not have really thought about it. The idea of having money work for you is completely true, one of my biggest things that i have in my head that tons of bankers have also told me is not to have idle money in the bank… have it invested in something that will make a return in the mean time, you have to decide the level of liquidity. Thats all i got out of the book, was a motivational piece that teaches you to try and be smarter with your money. You seem as though you’d get angry with chinese restaurants because their fortune cookies are to vague, or hunt down the editor of a local newspaper because you did what your horoscope told you to do but you didn’t find love. I think your looking into this way more than anyone ever intended.

  189. john says:

    I just find it funny how trent has nothing better to do than to try and down play a man who has ACTUALLY succeeded at something. RK has motivated so many people to push past the paralizing fear and go for thier dreams! His books are MOTIVATIONAL books and that is how you should take them. What have you done to help your fellow man other than complain! If rich dad is made up than who cares? I dont! All I know is that his advise makes since and thats why he is successful. the reason you cant verify any of his info is because he doesnt want to be attacted like you are attempting to do with your article. He obviously has made millions and always says the hardest part is starting out, pushing past your fears and going for something big…because why dream small if you can dream big! That is why he has sold millions of books and all Trent does is write internet articles.

  190. Lucy says:

    Well, everyone over here made so many explanations, I’ll be more sentimental:

    I love R. K. because whether he’s a fraud or not, he gave me a goal to achieve, some objective in my life, some hope for me to get my independence.

    I agree with R. K. when he says that sometimes the persons who loves us the most are the persons who always make us feel incapable to do what we want, saying ten thousand times that what we wanna do is too risk, too dangerous, we will fail, we should not do it. But if we never try, we’ll never know how far we can go.

    And I agree with someone on top, who said that if Rich Dad just a pre-fabricated history, then R. K. just deserves more credit, because the history is brilliant.

    Anyway, I never saw a single thing or person in this world who got 100% of people approval. Not even God, Jesus, Buddha.
    R. K. is not an exception. 50% of world-wide population loves him, 50% hates him.

  191. Jonathan says:

    The only RK book I’ve read is “Cash Flow.” Given that this wasn’t the first RK book I was hoping to find more than just motivational and motherhood statements and get the finer points: concrete advice or at least real stories on how people manage to handle financial realities like taxes. Maybe I should have managed my expectations, but nonetheless I was disappointed. Again, this is already his nth book, motivational or motherhood statements should have been settled once and for all in RDPD.

    I felt there was something wrong with the book but I couldnt put a finger on it, until I read John Reed’s critique, and it just hit the spot.

    I’m really at odds with his style which borders (if not really dwelling) on the unethical.

  192. TMod says:

    Kiyosaki is a joke intended to be sold to the uninformed masses. Ever wonder why his “followers” are all simple people with little to no net worth? Ever wonder why he eschews education? Its because that is a great idea to sell. You wouldn’t sell any books if you were telling people its a good idea to try and get into top schools which vaults you into the top strata of society because by the age at which people would read his book its too late for them to do that.

    Kiyosaki is a snake oil salesman just like all the other small time salesmen who work the “self help” circuit. I’ve seen the type of people who go to his events and frankly if you put yourself amongst them you’re in very bad company.

  193. Campbell says:

    Robert Kiyosaki, implements very successful business techniques and principals that have been a proven success time and time again. There are enough resources in the world for people to assess the risk themselves. Rich Dad Poor Dad, gives a good insight to business and about goal and mind setting, that benifits the general population who have not yet been exposed to any kind of business opportunity. Where the book began or how it made its sales has no significance to success. My question to the author of this page….. Are you nearly as successful as Robert Kiyosaki, or has your business stratagies educated thousands of people world wide? If not, then you are in no place to say anything about the work of Roberty Kiyosaki. Maybe you should write a book about “The risks involved in Business and Franchising.”

  194. Christie says:

    I think this article was the biggest waste of time to read. I think you need check yourself and your financial well being. Obviously, you don’t get it nor will you be rich. Why don’t you decide to improve yourself instead of picking apart someone who knows how to get wealthy. Get a life.

  195. BillW says:

    Kiyosaki is very good at what he does. His books offer a practical financial education. I am a better person for having read many of his books. That being said I have also read dozens of other authors and the totatality of their work has helped to improve my thinking as well.

    A good book changes you for the better. Some of his real estate advice is right on the money. I say that because I am about 3 months away from my first apprasial/refinance on a 12 unit building in the midwest. Some steps I took early on in my investment were slightly influenced by Kiyosaki and a few others, but as of late a few of my management techniques have been taken directly from the advice he and his wife have given.

    I look at Kiyosaki like one good teachers I had in high school. He’s given me the gift of a different point of view that I can keep with me or lay to the side as I move on.

  196. George says:

    Mr. Kiyosaki has a lot of influence over people. Seems like his book with Donald Trump and his PBS infomercial helped raise his profile.

  197. Jason says:

    RK’s books do tend to provide a vague direction for investing and MYOB, however, I dont believe this is his key function. His goal is to make aware to the reader that to get rich, becoming an employee is not the path to financial freedom. His purpose is to show the responder the common pitfalls made by the P & M-C, so we as an audience can relate to the insatances decribed by him, and make a change through using other resources. If this book was created only to become rich, why then does he recommend other person’s books. And obviously Donald Trump is no Mug, so tell me why is it that Like many other wealthy investors, Donald Trump speaks in high regard for Robert Kiyosaki. The people who criticise R.K are the very people he talks about in his texts, those who are afraid of risk and rather take the easy option, with job security rather then financial security. People who try to change everyone else, instead of themselves. Even if the man did make his money through unethical practices (which I know he didn’t), he cannot be criticised for being brilliant, because he has made a large sum of money, so he must be intelligent, and instead of taking a stab at a successful person, maybe you should use some of his advice and “use that stuff between your ears”, and spend your time exploring ways you can be as successful. dirtydawg_66@hotmail.com add me if you want to talk more in depth.

  198. George says:

    There is no doubt that Mr. Kiyosaki has a big following. I am sure he probably is reading this blog and having people post responses. RK is a very charismatic man.

    No doubt he can sell anything. He convinced me to buy to of his books, Rich Dad Poor Dad and Why We want you to be Rich. Yeah, very vague stuff but I have no regrets.

  199. RobertAllen says:

    I’m not interested in reading any more about RDPD but I was hoping someone out there has been through one of the Rich Dad 3-day workshops and could discuss what they thought about it. Was anything helpful? Or was it a complete waste of time? I’ve never invested in Real Estate before so am considering going through the workshop to see if I can learn anything. If you do not feel the workshop would be educational then how does one learn about the business? Thanks.

  200. George says:

    Well, its a little late to get into real estate. You may have to wait to catch the next wave.

    I would not spend any $ on anyone at this time.

  201. Entrepreneur says:

    Robert Kiyosaki is a good author to begin reading as you become more experienced in business and learn about entrepreneurship and business hands on you will discover other great authors such as Napoleon Hill and his think and grow rich. RK is great place to begin though.

  202. David says:

    I have never heard of anyone saying such negative things about a wonderful rich person. I read RDPD and I am now in a network marketing company and I am doing just fine. I only have one debt left: Mortgage. After being in debt up to my elbows! I gotta keep Kiyosaki lifted up!

  203. Vince says:

    When people find someone who has inspired them or helped them in some way they can become “converts” if you will and a bit zealous in their appreciation of their new guru. I think we’ve all done this-that being said I think each person has to decide if RK’s advice works for them- if it does great but I would encourage everyone here to read as much as possible on the subjects of investing and leveraging before they make big decisions-it is in fact excessive leveraging that has contributed to the crisis/recession/whatever you want to call it that we’re currently in.

  204. George says:

    Kiyosaki will be in town in Southern California. He took out big banner ads on AOL. People who have commented about RK should attend a free seminar to see what its all about. I may just decide to attend myself.

    Location of free seminars are as follows:

    Date Location Time
    Costa Mesa
    Monday
    February 4th

    The Hilton Hotel
    3050 Bristol Street
    Costa Mesa, California 92626
    map
    12:30 PM
    06:00 PM
    Pasadena
    Tuesday
    February 5th

    The Westin Hotel
    191 North Los Robles Avenue
    Pasadena, California 91101
    map
    12:30 PM
    06:00 PM
    Ontario
    Tuesday
    February 5th

    The Doubletree Hotel
    222 North Vineyard Avenue
    Ontario, California 91764
    map
    12:30 PM
    06:00 PM
    Woodland Hills
    Wednesday
    February 6th

    The Marriott Hotel
    21850 Oxnard Street
    Woodland Hills, California 91367
    map
    12:30 PM
    06:00 PM
    Torrance
    Wednesday
    February 6th

    The Marriott Hotel
    3635 Fashion Way
    Torrance, California 90503
    map
    12:30 PM
    06:00 PM
    Los Angeles
    Thursday
    February 7th

    The Westin Hotel
    5400 West Century Boulevard
    Los Angeles, California 90045
    map
    12:30 PM
    06:00 PM
    Anaheim
    Thursday
    February 7th

    The Sheraton Park Hotel
    1855 South Harbor Boulevard
    Anaheim, California 92802
    map
    12:30 PM
    06:00 PM

  205. George says:

    Actually he won’t be at the seminar. See disclaimer.

    Disclaimer: Although the training is based on the teaching of Robert Kiyosaki, he will not be presenting.

    Don’t go.

  206. George says:

    Actually, he won’t be at the seminar.

    Disclaimer: Although the training is based on the teaching of Robert Kiyosaki, he will not be presenting.

    Don’t go.

  207. Brooklyn says:

    If you are looking for books on risk assessment pick up “Security Analysis” or any of the other books that abound on the matter. You’ll likely end up with a slow read jam packed with all the statistics you will need to evaluate away, for fall asleep on top of. And if you have reached that stage in your financial education then RK’s book is most likely going to be quite redundant and vague. But the working class people who buy these books take something from RDPD that is not offered within a book of analysis. That being a introduction to finance and how it relates to their immediate financial prospects, not provided during their education. The job of defining a field of pursuit, is the foundation for creating an investment perspective before a dime has been spent and any risk has been assumed. There is minimal risk in starting a savings account, and RK communicates with an audience at this level of financial action. Outside of real-estate, RK’s field of expertise, he mentions very little in the way of specific investment vehicles. I can understand calling on him to provide a heavy amount of risk-analysis in a book about securities, but this is not his chosen subject matter. As a financial referrence the book leaves much to be desired, but I doubt RK’s would ever refer anyone to his work who is looking for intergral market analysis. His work does, however, define a direction in which to begin the job of personal research and responsibilty, expertly. The general tendency to depend on the analysis of “experts” is what puts a great number of investors at there largest disadvantage, (80-90% of mutals funds underperform the market which they track, and for funds that do beat the market there is no assurance that your return is eaten away by turnover and expense ratios) and under current market conditions that diagonses can only get worse for the single investor. Due diligence is a personal responsibilty based on individual financial goals. The idea that the focal point of RK’s books aren’t relevant to a modern investor could be a reasonable compliant, but in this instance Trent’s complaints fail to address the subject matter to which the book directed. Furthermore while admonishing RK’s lack of specific analysis, you post fails to address any specific examples of this defeciency. Once he to assess all possible risks that exist within the realm of self-employment. That is quite an unrealistic expectation. To generally define RK’s work as fallicious due to a lack of analysis, without specificy the instances in which his risk anaysis would be useful, is quite a case of “pointing out the piece of sawdust in the eye of another, and ignoring the plank in your own”. You may not like RK’s financial perspective but now a year after this post was made a bet it doesn’t hold as much ground, seeing as he prepared himself for the housing crisis, beat the gold and silver price rises, and is wading head deep in the bear securities market which appears to have arrived. Profits speak volumes!

  208. scott o says:

    I recently read Rich Dad, Poor Dad and listened to many of the audio books. I’ve also read several of the articles criticizing him, I’m glad I did because they serve as an important reality check. RK has a strong appeal to me because I am also a Japanese American living in Hawaii. Furthermore, his books validated some half-forgotten beliefs I developed over the years then discarded with the end of my College education crunching nearer. Instead I’ve been adopting a new mindset in response to the beliefs of my parents. (Actually, they are quite savvy and are in great shape financially, but their methods of instilling their beliefs in me have been somewhat counterproductive.)

    I don’t agree with MLM as a form of business, I think its actually inferior. You are either a salesman or a trainer of salesmen, a job I would prefer steady pay and benefits to perform. As a distribution business, each person essentially gives a percentage of their commission to their manager with the promise they will get a percentage of the commission of anyone they manage. Personally, I would rather go solo and keep my entire commission or start a business and give my salesmen their commission outright since I’m not paying anyone either. I’ve considered joining up under a friend, but only if I can first arrange for several local businesses to buy their napkins/utensils/supplies through the business first. The advantage here would be the ease of setting up the distribution and automating the reordering process. As for the lectures/seminars, I would rather go to the Community College and at least get class credits for the money I would spend.

    I appreciate the basic points Rich Dad, Poor Dad and Cashflow 101 bring up, but be wary of the mental traps left lying around. Reading the books and succeeding in the game in no way prepare you to invest in real estate, the stock market, or to start your own business. It may lay out the outline of a viable strategy, but it will not teach you all the technical knowledge of local laws, taxes, and expenses that can hit you. I fear people forget that Cashflow 101 is a game, tilted in the player’s favor to teach them a basic strategy. A driving video game may teach you which pedal is which and how to steer and it is a safe way to fine tune concepts like racing lines but it is not the same as driving a real car which has its own unique set of skills.

  209. Kelly says:

    Have to jump in and back up Trent. I too am an avid amateur reader of personal finance books and Rich Dad, Poor Dad is one of the only ones I’ve read that left a bad taste in my mouth. It came off to me as phony, sales pitchy, and no real advice of substantive value to actually implement to make changes unlike most other personal finance books I’ve read. If you want an inspirational life-changing personal finance book to read with practical advice that anyone could easily implement, I would definitely agree with Trent’s recommendation of Your Money or Your Life.

  210. Anonymous says:

    The thing I find most interesting, is that most of the people who criticize Kiyosaki, are people who have little or no success in business, investing, personal finance, etc. The people who agree with Kiyosaki, have a business(or 10), a nice portfolio that reflects genius, and extra change laying around. DON’T TAKE ADVICE FROM CHER, SHE’S WEARING A WIG!. Kiyosaki doesn’t in any way/shape or form say that his way, is the right way, and that it guarantee’s you wealth, that’s not what Kiyosaki intended to do. Specifically, in Rich Dad, Poor Dad, Kiyosaki wanted to reinforce some principles that are common amongst people who are financially free, or close to it. Those principles are Educating yourself, Minding your own business, etc. It is intended to open your mind to a positive way of reasoning your financial moves.

  211. Anonymous says:

    Obviously, Trent, took the exact wrong message from the book. Well, Trent. Why don’t you try doing this. In Rich Dad, Poor Dad, Kiyosaki notes that by saying “I can’t afford etc”, your mind shuts down. However, by asking yourself a question, your mind goes to work. I totally believe in that, as it has worked for me countless times in my life, and I’m only 20 pal!. So, how about you read Rich Dad, Poor Dad, or any of his books, and ask yourself some questions, such as, does this make sense to me? It’s an inspirational book, and I would recommend it to anyone out there trying to better their condition, whether it be financially, physically, mentally, etc. Take care everyone.

  212. anonymous 2 says:

    @Anonymous What I find most interesting is the fact the Kiyosaki supporters are typically people who assume that his critics are poor, unhappy souls, rather than thoughtful people who have looked at reasonable facts and don’t like what they have found. For example:

    There has never been any evidence provided that Kiyosaki made his money by buying and selling real estate. On the contrary, from all appearences it looks like the Kiyosaki fortune is based entirely on selling books and tapes that claim to teach a method of getting rich which the author never actually used as his primary means of gaining wealth. So it’s more like Cher saying she is able to teach me sewing because she wears fancy outfits. There is no connection between the two.

    There are many contradictions, half truths, and questionable statements in the book when you look at it closely. Kiyosaki continues this with his bad math and contradictions on his Yahoo column.

    The series is very anti-education, except for the “financial” learning the series itself provides. This smacks of self promotion, funneling one to purchase more of the series of products, which frankly, tend to have the same basic message repeated, with very little new content added. (I will admit that Mr. Kiyosaki is certainly not alone in doing this, only that he seems to be doing it on a much larger scale).

    However the anti-education feel seems strained. How would his Poor Dad have done if he’d have used some reasonable financial principles (e.g. pay yourself first, live within your means)? Call me odd, but the guy was a superintendent of schools, he couldn’t have been making peanuts.

    Also as Trent has pointed out, Kiyosaki pays lip service to real risk. Most parents who are successful in business don’t want their kids going into business and instead guide them towards college educations. Why? Because most businesses fail and those that have succeed have first hand knowledge of it. The stories of people trying their hand at real estate and failing, are far more numerous should you care to really look, than those who succeed.

    Finally, to the second anonymous, Trent did read the book before writing his blog entry (see the first line after “update” in the blog). That was kind of the point if you happened to check it out. Additionally, the questioning technique is covered in any number of other personal finance, get rich quick, or self help books. That you took it away from RDPD is fine, but don’t assume that’s the only book or source covering such questions or that this alone makes RK some sort of insperational guru. Read more books and you’ll soon see how little real content he presents. Good luck.

  213. anonymous 3 says:

    Kiyosaki now has his wife doing her own marketing to the Women and is quite successful. They are going on a million dollar ad campaign trying to get people to these intro seminars taught be slick sales people. Go to youtube.com and see the video of Kiyosaki signing books. He won’t even acknowledge someone complimenting him.

    http://www.youtube.com/watch?v=4A64e9kT8vE

  214. jans says:

    it amaze me when all tread does is to find fault in what rd has written. is he trying to say that all that he sees in the RDPD book is bogus…if yes that is serious and i am sure he has to re-read the book again as RK does not pread no risk but says manage your risk.

    i personally think he is a great guy and after reading his RDPD i have a differnent conception abt money as i now avoid more liability than i use to do.

    tread if you have any better suggest preach that or tell us what you think should be right..and if you do not have anything better than shut your beak.

  215. Jo says:

    Hmm…I seriously think most people are like sheeps, they need somebody to lead them. People need “bogus gurus”, they need “light literature”. I remember reading an article once of the ammount of people Kiyosaki´s books drove to bankruptcy, because although they might work for some, their core principles are indeed flawed. Come on people! Even a complete moron with the IQ of a houseplant would spot the flaws on the “lessons” of his books.

    A couple of years ago his people came to my country promoting some seminars, they were charging 200$ US dollars (the exchange rate is 1USD @34.40 Dominican Pesos). Which means that their seminars were quite expensive, heck more than the average monthly salary. I was able to snatch the brochures and the handouts from a couple of friends, and I was flabbergasted at the fact that prior to the seminar you should´ve read his books, yet nothing new was introduced there.

    Sometimes we need to be more critical, sometimes we need to be more objective. I´ve not known the person to have read one of his books and said EUREKA! I know I didn´t, but what do I know? I´m just a 22 year old with my own business.

    If you feel attacked by Trent´s take on Kiyosaki´s advice, well then stop reading them, I don´t think anybody is pointing a gun at you. Plus, there is tons of different stuff in this site.

  216. Todd says:

    I know this article isn’t new – but wow. I cannot believe all the people defending this guy. RK is a joke. He really is. All the blogger guy is saying is that his personal finance advice is way down the ladder when it comes to sound financial advice – and that’s true. I read all the comments because I was incredulous.

    Some positives about Robert K:
    - He really is a great marketer – see all the people fighting for him above.
    - He inspires people – see all the people fighting for him above
    - He has a couple really great quotes. One I like goes something like: “My poor dad told me to climb the corporate ladder, while my rich dad asked, ‘why not own the ladder?’” That’s one I enjoyed.

    The Negatives:
    - His information is suspect at best.
    - I’m in my third year of law school and have worked in tax and real estate law for the last two years – the guy is totally full of it. His imaginary deals that he makes up are total fabrications.
    - I would love to see his net worth minus his book sales.
    - Talk to any friend you have that’s a CFP and they will tell you RK is an idiot. He’s a joke to an entire industry, and if you are one of his “followers” you’ve been duped.

    I think it’s a positive thing to be an entrepreneur (capitalism is better for all) – but you can get better advice about how to be one somewhere else.

  217. kentuckyliz says:

    I read RDPD and wasn’t impressed. RK’s sneering attitude towards other people was a real turn-off. All the truly successful and wealthy people I know like and respect people and have integrity–the exact opposite impression I got from RDPD.

    I believe he told lies about his father’s financial status. Most educators accumulate investments throughout a lifetime and do very well. Thomas Stanley’s book The Millionaire Next Door profiles such “undercover” millionaires, including the Frugal Teacher type. The book Teach and Retire Rich is a good resource guide for us.

    I’m the Frugal Teacher type under cover Millionaire Next Door…works just fine for me! Has worked throughout the generations in my family, but we’ve been investors for a long time. You’ve got to have something to invest, that usually comes from an income, and some jobs require education/training/certification/licensing to get that good income–your most powerful wealth-building resource. RK’s anti-education rants are just plain bizarre.

  218. alfred bell says:

    This is a completely misguided and erroneous critique of Kiyosaki. I’ve read ALL of his books, listened to all of his tapes, and played the games. The author obviously hasn’t. Applying Kiyosaki’s data has had a major, positive effect on my life and my net worth. Kiyosaki warns everyone over and over about the risks of starting a business, and says it is not for everyone. He addresses the subject of risk on many levels as well. He is a wealth of knowledge, especially with his RichDad Advisor group. He’s way out of the author’s league. Kiyosaki is making an impact on the world, is busy making millions, and helping hundreds of thousands of people to improve their financial situation… and the author (like most critics) is just sitting here like a spectator, writing about him. What a joke.

  219. budi_rachmat says:

    For the 1st time i ever heard “Passive Income”…
    How can get an income without speeding time for that (without working)…??

    hemmmm, interesting….

    Action….,
    in April 2002 i bought an apartment and immediately rent it out….

    now is Mar 2008…. it is already 6 years…. the apartment is still give me an income….

    i worked 3 months to find this apartment…. and the income last for almost 6 years…..

    wuolllaaaa….. fantastic…. fantastic…. it is really a Passive Income…. RK’s theory is proven…. it is working….

    this apartment is one of my Passive Income…

    Thanks Robert, i not only enjoy reading your books but also enjoy the Passive Income….

    Take care everyone…..

  220. anonymous says:

    Yeah, I agree with one of the earlier posts that a bunch of his followers are like sheep. Who pays $200.00 for a board game? How silly is that? The author of this blog wrote a very comprehensive article. Well written!

  221. Jim says:

    Truely i hope people do not take your advice nor the advice of others on here. I wonder just how many of you are truely money millionaires aposed to assest millionaires,some of you probably don’t even know what i mean by that. It’s funny 95% of us take money advice from people without any however is the smart 5% who take advice with those who have it. Also you have no concept of what multi level marketing is all about but yet i am sure you all think your experts thou. Also alot of you talk about his failure to look at risks as they where nothing did you ever think that people who decide to build these businesses have absolutely nothing to loose what so ever so for them it’s the risk of not trying is what is the true risk all of the others don’t matter. Because if you truely knwe what it was all about you realise if the dream is big enough the facts don’t matter and the risk that you are taking here is letting someone steel that dream. Also you talk about all his failures however Thomas Edison failed 2000 times before finding the right way of making the light bulb but when asked about those failures he replied ” failures know i just found 2000 ways not to make it”. You see he never focused on the failures however he kept his eye on his dream as did R.K. it dosen’t matter how many times people fail as long as they continue until they achieve there dreams. Which none of you have a concept on it. So find your dream i bet risks they seemed to big before hand become small also there was a comment made regarding most people who read his books have the backbone salesmanship or network to make a go of it. Well it from the continues readings of these books and the like aswell C.D’s and senimars along with a support team that allows to grow so you can get all of the aboved mentioned so called qualities to bulid such a business. thankyou for taking the time to read this and have a fantastic money making day.

  222. Leo Nidas says:

    i love how people criticise. just would like to know, of those people that have criticised RDPD…who has actually applied whats in the book?
    also, trent gotta say mate how good was your bottom line and all of your supporting evidence…”Robert Kiyosaki’s “knowledge” is highly flawed and his material has all of the integrity of James Frey. He completely undervalues risk, which is the trap that so many failed businesses and bankrupt individuals fall into. He’s the one financial guru whose work I don’t trust based on the author’s name alone.” what an incredible take.
    can you please let me know when you release your book on how to make money that is completely fail proof with no flawed material. im definitely looking forward to it.
    cheers mate

  223. Paul says:

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    Wow. I stumbled across this website and was very impressed with the author. Well written and interesting articles, a large variety of topics, and straight from the heart honest thoughts and feedback. I will definitely be subscribing to this feed. I’ve been thinking about creating my own blog for some time ( I believe I have alot to offer people), and I think this site is what will motivate me to do it. So for that, thank you Trent (I hope you read this)

    Just so you know, I have never posted a comment to a blog before. But after reading your dissection of Robert Kiyosaki, and the wildly different views from the other readers, I felt I had to.

    I am constantly amazed at how people can have such a fierce opinion about an author such as Robert Kiyosaki, and yet they have read only one of his books (usually Rich Dad Poor Dad), or worse yet, have never read anything other than perhaps a website like John T Reed’s.

    There were far too many comments to read through (223 as I post this message), but as I skimmed I saw mostly negative comments. I wonder… how many of those people have actually TRIED what Robert teaches? How many have read any of his other books? I doubt very many.

    Just to give you some background, many years back, I read Rich Dad Poor Dad. That book was honestly a turning point in my life. It helped me think about money in a way I had never imagined before.

    Robert talks about the 3 things that the rich invest in (not sure if it’s in RDPD or his other books, but that’s essentially what he says): paper investments (stocks, bonds, etc.), businesses, and of course real estate. Funny thing is, back in my early 20s, I did my own research on what rich people invest in (or how they make their money). And I discovered the same 3 things. That was well before reading RDPD. So when I read the book, it rang true for me.

    Because of my research, I already had it in my head that I wanted to get into real estate. And for over 10 years I did… absolutely NOTHING. Yes, nothing. Finally in my 30s, I bought my first piece of real estate with a partner. It was a long, difficult road I travelled. Real estate was hard! Dealing with tenants, banks, municipal governments, and a whole lot more. But I stuck with it and bought another. And another. And another.

    Over 7 years later, my net worth is almost half a million dollars. And that was doing it PART TIME. Most of that has been during the last few years because it’s been getting easier to do deals. As a result, I left my job about 1.5 years ago to invest full time, and I’ve never looked back.

    Most recently, I have branched out into an education business which, although only in it’s 2nd year, is very successful so far (by my standards thank you very much). I’ve also begun looking into paper investments, which is the third area of investing that Robert teaches about.

    Now the point of all this is not to impress you with my success. What I’m trying to show you is that compared to many of the other people who posted comments, I’ve actually DONE IT and still am DOING what Robert teaches. So for all you people who’ve actually read through 223 comments, you may consider listening to my comments over some of the others.

    I’ve read almost every one of Robert’s books, and I can attest to the fact that he is not a great writer. And according to John T Reed and a few others who’ve dug up some historical facts about him, there may be some questionable things in his past. However, that does NOT invalidate everything he writes about!

    In fact, I challenge you to examine the past of almost any famous person, even someone who is held in the highest of regard, and I’ll bet $1000 that you’ll find SOMETHING that will make you question the honesty or integrity of that person. Guaranteed! Nobody is perfect, and the facts almost never line up 100%.

    That’s why I don’t lend much credence to people like John T Reed, who simply read a book or two and then proceed to pick apart the person’s background to ‘discredit’ everything that they have to say. It’s pure baloney in my mind, even if some of those facts may be true.

    And that’s why, although I really like this blog and will likely subscribe to it, I don’t lend much credence to this review. Sorry, Trent, but you just don’t have the full picture and you’re letting a few negative or misleading facts blind you to what’s possible.

    Now back to Robert’s books…

    Yes, he’s a bad writer. But who cares? Every single books I’ve read has many many GOLD NUGGETs of information in them. And I’m not talking about minor bits of information, some of these are earth-shattering ‘WOW’ nuggets.

    Rich Dad Poor Dad talks about passive income. Truly a ground-breaking concept. And for those of you who think ‘passive’ means ‘no work’, forget it. It just means you don’t have to ACTIVELY trade your time for money. You still have to work to manage your investment or business.

    Cash Flow Quadrant – it’s been years since I read it, but also an awesome book. Stop being an employee or self-employed, and start building a true business or, for most people, become a true investor.

    Guide To Investing – I love reading, but I had trouble getting through this one. Tooks me a few tries, but I finally see what a good book this is. This is not for the faint of heart, so I recommend you skip it and come back later. You’ll be glad you did.

    Rich Kid Smart Kid – read this even if you don’t have kids. I heard many of these concepts years ago from reading Anthony Robbins books, but there are definitely some good new bits of information in here.

    Who took my money?
    Retire Young Retire Rich

    It’s been awhile, and I get these two mixed up sometimes. I believe Who Took My Money? basically covers how handing your money over to a financial advisor is bad. One of the key nuggets in here is the ‘velocity of money’ – very powerful concept.

    RYRR I believe explains how he got out of the ‘Rat Race’. My favorite section is on options – he basically says he is never worried about not having a job or business because he knows he can go into the financial markets and make money instantly.

    Prophecy is Robert’s personal explanation about why he believes a stock market crash is coming. I stayed away from this book for a long time because I don’t like ‘doom and gloom’ books. But it wasn’t that type of book at all. Read it and you’ll see…

    Before You Quit Your Job – coincidentally, I bought this before I left my job. I didn’t really like it, mainly because it jumped around too much with multiple guest authors’ points of view.

    So there you have it. A positive spin on Robert Kiyosaki in a sea of negative comments. Take from it what you will.

    But in the end know that it’s because of his books that I am successful financially and will continue to be successful in the future. In fact, I am going back and re-reading many of his books and each time I do, I learn more.

    Do yourself a favour. Read them all.

    Thank you for reading

    Paul

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  224. Steve Double says:

    The interesting thing that I am noticing here is the forward trend on these comments towards Ry’s way of thinking or the fact that over the time the comments seem to be turning in his favour. Is this coincidence? Is he doing a favourable marketing job on his books? I have only read his co-authored book with Donald Trump… so far. My conclusion is this, yes it was almost completely uniformative if you read it for the wrong reasons. Read the title ..why we want you to be rich not how. So as I say I can’t make an informative opinion on the rest yet, but one statement to make is to wonder if any of these experts are wrong or right in one way or form. It would be dependant on the level of involvement that you want to have. Some people seem to be tooting having a job and investing on the side as the “safest way”, this is only if you want something to fall back on, its like putting one foot in the water to check the temp first. You only get out what you put in. I have a mid level business now(not real estate related), it can be very difficult at times. The main thing I am still learning is how to manage people effectively. That does not mean not being completely informed yourself, but then using that info to best mould the peoples actions that you are in control of. In a way this is “leveraging people” it sounds nasty but really you are just taking advantage of the most that they have to offer and using it to better yourself. If these people are sufficiently compensated by way of employee salary, compensation for consulting etc then I don’t see the problem. My conclusion is this, all of these investment guru’s have a stake in what they are saying because they want to be compensated for saying it. It is up to you as the consumer and ultimately the future investor to decide what information is pertanent to you, what you are comfortable with in terms of risk, and what fundamental approaches keep recurring in all of their ideas combined. You certainly don’t win by thinking inside the box or else everyone would win and then eventually everyone would lose. If you are serious about investment, then read them all and decide for yourself which points are right for you. At the very least you can right a book about the right way to do it and make money from that. Of course then we will have a comment string about your books as well.

  225. Katie- Ann says:

    I know I’m a “bit” late in commenting (more than a year) but I’m a new reader to your blog. I must commend you on your work and say that I love it and the advice you give. I read Rich Dad Poor Dad awhile back and I must say that I agree with you. His character does seem a bit “shady”. His advice really isn’t anything new. As J. T. Reed has written he has taken some old cliches and expounded on them. I must admit that I did find some of his teachings interesting. About that whole investing and so forth and for somebody like me who is not familiar with that sort of thing, it gave me an eye opener. But his idea of risk is a bit far fetched.

    Everybody has their own opinions and at the end of the day you have to do what is right for you. I wish though that he would have come clean from the beginning.

  226. George says:

    With the economy in such bad shape, Robert Kiyosaki has become a very sought out person for TV interviews by reporters. I saw him on the news tonight asking his opinion on why gas is $4.00 a gallon. The TV camera showed him getting off his private small jet then standing in front of a gas station giving his opinion on why oil is so expensive.

  227. Jane Higgins says:

    Having read just about every Kiyosaki book published, I can only heap praise on the guy. His books should be required reading in every school on the planet. I sure wish I would have had a chance to read them before my thirties… it would have allowed me to leave the rat race much earlier than I did. Still, better late than never!

    It’s so easy to be a critic… but it’s important to only take advice from those qualified to provide it.

  228. Rob says:

    To me, RDPD carried a quiet but insistent and uncomfortable message: “Poor Dad is a chump”. Given what little we’re told about him- that he works hard, raises his family, and doesn’t make a lot of money- it was hard for me to walk away from the book doing much more then wonder about the authors daddy issues.

  229. Nay says:

    RK is a fraud getting rich by scamming people with his BS story. I can tell from experience since he scammed me out of $25K which he has been refusing to reimburse per his promise. It’s no wonder he’s rich; he’s cheating people out of their hard-earned money. At least his poor dad had integrity which RK seems to have lost on his way to stardom. Shame on you Bobby! you’re “poor dad” wouldn’t be proud of your doings!!

  230. Cheryl says:

    Kiyosaki is a scam artist and a bad son. Plus his book is a piece of awful.

  231. getagrip says:

    @Jane Higgens

    You claim you want advise from someone qualified to provide it.

    Okay, please provide proof that RK is qualified to discuss getting rich through real estate rather than from selling books on how to get rich.

    It seems such a simple request, but it’s never been shown that he made any money at all, much less a fortune, in real estate prior to his book sales.

    Hence you are taking it as a matter of faith that his expertise in real estate investing even exists. Now if RK were to write a book on getting rich selling books telling people how to get rich, there I would certainly bow to his expertise.

  232. Jane Higgins says:

    getagripe

    You ask for proof….generally the only ‘proof’ of the pudding is in the eating. I fail to see how anyone would not benefit by taking RK’s suggestions onboard. Sure, he doesn’t give definitive and specific ‘advice’ but then his books are more than simplistic ‘how-to’ books… they are intended to make you think and, hopefully, learn.

    I guess one either gets it…or doesn’t.

  233. moha says:

    i have read rk’s book rich dad poor dad, and i think its wonderful. yes many of the stuff he talked about in the book is common sense, but i believe that the book contains some fine ideas. naturally an entreprenuer is a risk taker, and for every investment you have to make there is risk involved, i thought you should have known that if its common sense! looking forward to reading your superior book to robert’s!

  234. Hibryd says:

    Wow, the comments are still going strong on this one. It’s amazing how people want to give him a pass because he “got them motivated” – really, any other book out there could have motivated you, and it could have done it without giving you a fake backstory, handing out bad advice, or sneering at such tactics as saving or budgeting. (I’m amazed at the venom RK has for people who live beneath their means – he says “I’d rather expand my means!” As if you don’t *really* get ahead by doing both.)

    I decided to Google this guy again after listening to an audio of program where he hauls out this guy named De Roos who goes off on real estate investing like it’s a magic money machine; he mentions how great it is that when the value of your property goes up, you can take out an equity loan and “put that money right into your pocket.” (I wonder how many people facing foreclosure these days did just that.)

    Kiyosaki motivated you? Fine. But he’s selling a lot of crap advice wrapped up in repetitive books and expensive board games. Don’t be surprised when people call him on that.

  235. ARGEL says:

    OBVIOUSLY, THERE WERE NO STATUES CREATED FOR CRITIQUES. For people reading this board, to whom do you want to side on? To those critiques appearing smart but who don’t have results? Or to Robert Kiyosaki, Donald Trump, Bill Gates who can show you their results? Remember: you will end up the person you choose to listen to. So goodluck :)

  236. getagrip says:

    @Argel Once again an appeal to “gee, RK is rich, so he’s just like these other rich people and you should follow him.” No, you shouldn’t unless you want to be a salesman. RK is a salesman and that is how he made whatever money he has. However it’s laughable that you claim RK can show you his results. The point of over half the thread is that RK cannot and will not show you that he made himself wealthy using the very system his supporters rely on rather than being a salesman and selling books, boardgames, and seminars! Every time he says something, it’s such a broad statement it can’t be verified. You know what deals Trump and Gates have made. You know no such thing with RK and it is not fair to Trump and Gates to lump them with him.

    @ Jane Higgens Nice try at deflection. You recall that *you* said in a previous post “…it’s important to only take advice from those qualified to provide it.” All I’m asking for is proof he’s qualified. Such proof would be that RK made himself rich using the techniques he promotes prior to his book sales, otherwise you have to admit, per your own statement, that you are taking his statements on faith and that you *don’t know* if he’s qualified to be providing the advice or not.
    So yes, I don’t get it. I don’t get how you can demand someone be qualified to give advice, but then get upset when someone asks to see those qualifications.

  237. marty says:

    I have read the first four or five books Kiyosaki wrote. I got a bad taste from the total lack of ethics that the man has, quite willing to rip off the destitute or the old to get ahead. And to lie about the Rich Dad (no, don’t come up with the common bit of “oh, he’s a literary device” — I’ve read them before. Kiyosaki used to say he was a real person). Definite father issues there. His first book was about how you don’t need education — and his father was in the education department of Hawaii!!

  238. Alec G. says:

    I read John T. Reed’s article about Kiyosaki and his books and quit reading after about twenty paragraphs. Just like Trent, he misses several points from RDPD books and writes outright BS.

    As I am listening to some of Mr. Kiyosaki’s audio books right now I could even make some quotes, but just say that I cannot understand such a negative attitude from someone towards a person he hasn’t even met. Even though the facts would be forced in their heads they probably wouldn’t change their views. I know that when you take a stance, admitting that you were wrong is more than hard. Hardheadedness on the other hand is worse.

    Trent: How would your view change about Mr. Kiyosaki if some of the people who postet contradicting comments here were right?

  239. Dimitri says:

    Wow, this is very heated debate here!

    two cents from me:

    1. Amway is not a pyramid skim, it’s a legitimate business and even US government agrees with it. No I am not Amway distributor, but fact is fact.

    2. I can see that you did not study RK materials very well, it’s just a biased opinion and half truths at best. Good thing that we can have our opinions in a free country, I did not have that privilage from where I came from. Thanks anyway…

  240. Trent,

    I think you’re right on with this Kiyosaki critique.

    You said, “In no way am I saying that going into business for yourself is a bad choice, but it is a choice that merits some careful planning and analysis and realization of the risks involved.”

    Kiyosaki, in my opinion, encourages people to ignore those risks, set up a “system” to generate money for themselves, and be lazy by leveraging things (real estate) and people (pyramid).

    Not only is it immoral to treat people as mere pawns, but his philosophy tricks entrepreneurs into thinking that “to make money you’ve got to spend money.”

    In reality, business is about presenting a unique value to a customer (an individual, business, or organization), in exchange for which they pay you $. It’s one of the hardest things in this world to do, (besides marriage and family), and Kiyosaki belittles the companies that are successful when he implies otherwise.

    The average company takes 10 years to get big, 10 years!! 10 years of grueling, difficult, work. There’s no way around this. And I believe if one finds a way around this that he has found something that is not worth doing because “if it’s easy it’s sleazy.”

    PF Wilson, Managing Editor, http://TheInvestorReport.com

  241. rick says:

    I think Trent makes too much of the book. If someone is looking to Get Rich Quick, this isnt the book.

    What attracted me to the book was that RK had the same attitude toward wealth that I do. If I make $100k per year and spend $90k per year and you make $50k per year and spend $30k per year, who has the most wealth? I view wealth by what you have left over at the end of the month.

    RK uses real estate because its an easy example, but its true.

    I pointed out to my oldest son (21) that if he had a rental house that netted him $500 per month over the note and expenses. Now if he did that three more times he would have an asset income of $2000 per month. He is still in college, but right now he has two of them and netting $800 per month and a relationship with a mortgage company. I admit I helped on the first one and had to be on both notes, but he has a tremendous head start. This is basic RK stuff. The idea is if he wants a raise, he needs to get another revenue producing asset, maybe another rental house would do that.
    He is going to finish college and work in orthotics and prosthetics, but if he continues on his path, the O & P will be his secondary income.

    RDPD is written for the elementary of the mind. I almost put it down because it seemed childish, but continued through it. Understand it wasnt written to be a sophisticated investment guide, at least I viewed as a book to help people think outside the box. I gave both my boys $100 to read the book and discuss it with me.

    I never saw in the book (I havent read it in a while) where RK indicated to ignore risk. If memory serves me, any time he speaks of risk he speak of controlling risk actually through education, but maybe not the formal kind. It would be a good idea if you determined to build assets in rental income to get your real estate license. Wouldnt that be a form of education? And wouldnt that not also help control risk?
    If I were going to put money in a resturant for an investment, I should know something about the food service business or there is much risk and very little control.

    Mr Wilson above, a lot of what you say is true, but again I think you miss the point of the book. Going into business is tough, very tough and you are never completely prepared for it. RK tends to invest INTO companies, not start them. I think in RDPD he makes the statement that if you own a business and cannot leave it for a year to come back and find it continuing at least as well as it was when you left, you truly only have a job!
    Wealth isnt made in a 9 to 5 job.

    It appears alot of people take the book out of perspective.

  242. natmaxwell says:

    I BET YOU THE PERSON WHO WROTE IS IS POOR. dont waste time on “LOSERS!” AND YOU ALWAYS WILL BE. when your mature enough to understand Robert is giving everyone a chance to view life a little differently you will then maybe look at your own life rather the rip on someone who has more then 100fold of what you have.

  243. Jon says:

    After reading the article and the majority of these postings I’ve realized that if you write a book some people will love you, some people will hate you, and the rest just won’t care.
    I have also realized that no matter what book or author you read, no matter the subject,you will get out of the book exactly what you are looking for. If you are looking for negative you will find negative and if you are looking for positive I believe you will find positive.
    As for the message Robert repeats in all of his books (and yes he does tell you in his books why he repeats himself so often) I thought it was pretty clear his goal was to show you that to become wealthy like Trump or Gates, you have to think different from the crowd and use strategies that those wealthy people have used. Hence real estate and business ownership, the two ingredients that make up over 90% of the millionaires in this country. Again it comes down to what you are looking for strategies for a comfortable retirement and fat 401K (Suze Orman)or strategies to help you have the financial means to quit your job (Robert). All financial strategies have risk and it is pretty obvious there is no one correct way to achieve wealth. You have to decide how much risk you want to take and what strategies play best to your strengths and weaknesses. I hope you all truly find what you are looking for!

    p.s

    My best friend has purchased 11 cash-flow positive properties in the last three years using no money down or other peoples money and started a successful coffee business all using strategies we learned about in Roberts books. We are now forming an LLC amongst a small group of us to leverage his experience in acquisition and management. We have developed a solid and very conservative business plan that should allow us all to retire very comfortably in the next 15 – 20 years and we are only 25 years old. Again using ideas we got from reading Roberts books. Not everyone can become wealthy like Gates or Trump but Id rather fail trying than spend the rest of my life wondering if I could have had I just taken a little risk and stepped out a little beyond my comfort zone. Thats my choice to make. I’m sure you have made yours.

    “Why do we fall? So we can learn to pick ourselves back up.”

  244. PhatNat says:

    Nice ending, Jon.

    Once again, I don’t care if his Rich Dad is true or just a character in a comic, but what I do care about is how he uses the story to pull people out of the ordinary world of “wanting to be rich” but never reaching their goal.

    The thing about “reading books and articles” is to use your judgement, not follow everything word-by-word (and in this case, following just a selective set of words. The details might be troubling, but please dig deep into the concept of RK’s books and his boardgames.

    I’ve open-mindedly read his books and looked into the world and agreed to almost all of his concepts on money. Have a look at the history of ALL of the financially rich people, and you will see that RK’s concepts are practicle. Did Bill Gates get rich for simply working for a company? You know the answer.

    I’m a heir of a family business and I know about the wages. Why would a company pay to an employee more than what it earns from him/her? It’s typical, isn’t it?

    Please go and carefully read the book again. Open your mind and find out what RK really wants to tell us.

    P.S. – for those who still don’t get it. That’s alright, because the world still needs employees that work for money from people in the B and I side anyways. ^_^”

  245. Jim Lippard says:

    Comment 244: “I have also realized that no matter what book or author you read, no matter the subject,you will get out of the book exactly what you are looking for.”

    Nonsense. That would imply that there’s no merit in having more than one book, there’s no merit in seeking out new information, there’s no merit in vetting sources, there’s no merit in engaging in critical thinking.

    Some people who read Kiyosaki’s material will be successful, but that will be more due to luck than to the quality of his material. Likewise, some people who read books about bogus gambling systems will make money in casinos. But it’s a better strategy to read carefully, scrutinize, reject bogus claims, and adopt methods which are actually supported by empirical data. Those who follow Trent’s recommendations on personal finance, reducing expenses, saving money, and taking *sensible* risks will, on average, do vastly better than anyone who follows Kiyosaki’s material.

  246. Jim Lippard says:

    Comment #240: “Amway is not a pyramid skim, it’s a legitimate business and even US government agrees with it. No I am not Amway distributor, but fact is fact.”

    Amway is not, strictly speaking, a pyramid scheme, at least when practiced as its supposed to be. Some distributors in the past have, however, made most of their money from “tools” and training rather than Amway products sold, which is a pyramid scheme.

    Amway does tend to misrepresent facts about itself, however. I recommend “Amway: The Untold Story” for details.

  247. Bob says:

    Funny how Donald Trump wrote a book with this guy???? He must be talking BS…

  248. jeffrey says:

    RK is a smart businessman, and there is nothing wrong to fabricate his business. I believe there will be no one will tell their customers how much is their company’s debts. It’s the rule in business, that’s why products need packaging. To read and understand his books, you need to listen to him carefully… “it depends on how good you are”.

  249. Kiyosaki does not teach entrepreneurs to ignore risks but rather to manage them instead. In Cash Flow Quadrant, he gives several examples of different levels of investors based on their willingness to assume risk. He also gives examples of people who obtain wealth while maintaining their primary jobs.

    For context only… Dave Ramsey, who has very little risk-tolerence (at least with respect to debt), strongly endorses RDPD. Personally, I agree with Ramsey’s public opinion of Kiyosaki: Kiyosaki has a “different” way to build wealth.

    All of Kiyosaki’s advice will NOT work for everyone, but for some people it is great. The sheer number of comments is a testament of the impact his teachings are still having. BTW, Donald Trump also says that building tremendous wealth in real estate with their teachings is not for everyone. Although this could be perceived as a cop-out if you happen to fail, I will assume him to be sincere.

    This site is great, and I sincerely hope that no part of this comment is deemed offensive or insulting. That’s definitely not my intention. I respectfully wonder if could this review be a tad too harsh or at least a little unbalanced?

  250. John says:

    I think until someone reads the Rich Dad series with an open min,d until there is a mindset shift, if one is biased towards a “Safe Secure” life, they will probably criticize his teachings. On the other hand, if, one leans more towards adventure and wants to make the biggest impact in life, wants to be richer than rich, is not afraid to fail and learn, refuses to give up at all cost,and allows this mindset shift, one would tend to preach the Rich Dad
    Gospel. :-)

  251. DR FRANK MORGAN says:

    I am a private investor based in UK . I focus on seed capital, early-stage
    ,start-up, ventures, LLC and all round for completion and expansion of
    investment projects that need funding. I am interested to invest in your
    company for a long-term business relationship. If this is alright with you
    kindly get back to me with more details about your company. Thank you.
    Dr.Frank Morgan,
    (Individual/Angel investor)
    Tel: +447031901860
    Email: drfmorgan4@yahoo.co.uk

  252. Dr. Hibbert says:

    Sounds like lot’s of people have been drinking the Kool-Aid.

  253. i like RKs advise and i thnk all he talks about is just upon the one reading to make a personal decision.

  254. RK great I am an Austrian living in beautiful Malaysia the last 20 years read his book bought an apartment sold it very good profit bought another one sold it again good profit,bought another one now paid cash so when selling enough money to retire thanks RK btw NETWORK Marketing the best business in the world found a great company called AGEL financial freedom can only come from NW especially when you are on Randy Gage’s team (I am thanks god)
    cheers
    for good measures I read the other day in an article why people fail in network marketing
    1. Not handling rejection from close family members and immediate market.
    2. False expectations for too early results with too little effort.
    3. Lack of focus.
    4. Failure to work an easy to duplicate recruiting plan.
    5. Baby-sitting of down line members.

    Well you work with Randy Gage you get the right training
    My name is Franz and I am Agel no matter what

  255. if you want to know more about AGEL come to
    http://www.globalagelonline.com/franz

  256. Rickey says:

    I see RK as a motivational speaker similar to any MLM speaker. He’s obviously good at what he does, and some people on this thread were motivated to look at their finances, so he is providing some value I guess, though I do think it is kind of sad. I read RDPD only, and it didn’t help me too much, but I don’t have a problem with books like this being out there. If people don’t know themselves well enough to figure out what works for them – whether it’s from RK or elsewhere – I don’t feel too bad for them.

  257. Bavaria Bob says:

    Bob:
    If you listen to RK, then you are also listening to Jim Sinclair, Monty Guild, Dan Norcini, Jay Taylor, Doug Casey, Dave Morgan, Peter Schiff, Schoon, Bob Moriarty, Al Korelin, Clyde Harrison, Dr. Berry, Chuck Puplava, Bob Chapman, who are just a fraction of those that trash the dollar, and recommend the tangibles of oil, gas, silver, gold, agricultural investments, and water.
    I have been reading these men since 1999, and became aware of what was going on in 1994. RK is correct to recommend the direction he is pointing out. And the K winter does exist, and is cycling into existence again now.
    Just read jsmineset.com every day and watch it all happen. 1.14 quadrillion dollars of derivative hedge fund debt is frightening. And the credit default swaps to cover those derivative debts do not exist.

  258. AC: says:

    Well, just the fact that RK does not say anything about this critique is a solid proof that those whose trying to ruin his name…. try harder..

  259. Trent,

    I don’t know how you stand these guys. It was a great thing to take on these people who have such a cult following of this guy.

    It looks like he really hooked them, hook line and sinker. It reminds me of people who read Dr. Phil books. There’s nothing really new under the sun, but they are so in awe of the man behind the books they will kill anyone who says differently.

    Keep on fighting the good fight Trent.

  260. Trent,

    I don’t know how you stand these guys. It was a brave thing to take on these people who have such a cult following of this guy. (I don’t read books that get sold in Fed Ex stores and on grocery store racks, so I can’t say that I have actually read any of his stuff)

    It looks like he really hooked them, hook line and sinker. It reminds me of people who read Dr. Phil books. There’s nothing really new under the sun, but they are so in awe of the man behind the books they will kill anyone who says differently.

    Keep on fighting the good fight Trent.

  261. Andrea says:

    I’ve read his books and find that most concepts in their are very sound.

    I love his idea on risk. I’ve been in business for 3 years so far and it was the best decision I’ve ever made, however it was the most riskiest.

    I think what Robert was talking about was to take more risk.

    You don’t need to listen to Robert about his views on risk but you have mentioned David Bach. I’ve already read his books and listened to his audio books and one story that have always stuck with me was the story of his dying grandmother… her deathbed gift to David Bach was “Take More Risk”.

    Remember, where you are today is the result of what you have done in the past. If you’re not making the kind of money you want to, you better change your paradigm and make use of new ideas.

    Each to their own. Find out what works for you and do it.

    Andrea

  262. jon says:

    I think i should just listen to all of you, because you all seem to be much smarter than Robert Kiyosaki. why dont you all write a book together??

  263. campersand says:

    I’ve read some pretty bad things about RK and I think some people have gotten a much different message from him than I did. I listened to Rich Dad/Poor Dad and You Can Choose to be Rich on cd format and found both to be very motivational. In fact, they were the reasons I started looking into PF at all and why my thinking about $ now is totally different from how it was a year or so ago.
    In “choose to be rich”, he goes out of his way several times to say things like, “don’t quit your day job and start a business tomorrow” and, “don’t go around running up your credit cards and buying real estate without educating yourself first”. So I’m surprised whenever I read someone talking about all the reckless advice he gives.
    He’s not really a nuts and bolts guy, he’s motivational. His books prompted me to get a financial education and I’m much better off now because of it.

  264. Derek says:

    It never ceases to amaze me how much garbage you can find on the internet. A man is either Savior or Satan, depending on how your Google search turns him up.

    I just read Rich Dad/Poor Dad again after finding it tucked away in a box. The book is full of brilliant & practical advice about buying assets and not liabilities, what those things are to begin with, and for heaven’s sake stay out of debt.

    Do I agree with everything he might say about mutual funds or the stock market……no. Real Estate………no. What I do agree with is the practical advice on assets and liabilities, and the need for SELF EDUCATION, which continues well beyond any formal education that one can ever complete. I read about a book a week, and put good advice into practice now more than ever, and for that I am grateful.

    To the author of the article (above), you give me hope. No matter what you can do, good or bad, there will always be someone out there to give you a good hatchet job in cyberspace.

  265. TO THE EDITOR says:

    Let me ask the person who wrote this seemingly convincing article a question. Robert Kiyosaki teamed up with Donald Trump to write a book called “Why we want you to be rich”. I have even seen and touched that book. HONESTLY, DO YOU THINK THAT DONALD TRUMP WHO IS A MULTI BILLIONAIRE, WOULD HE TEAM UP WITH AN IDIOT NAMED ROBERT KIYOSAKI TO WRITE A BOOK THAT IS OF CRUCIAL IMPORTANCE? I DON’T THINK SO. FOR THE MATTER, DONALAD TRUMP WOULD NOT TEAM UP WITH KIYOSAKI EVEN FOR A CHILDREN’S BOOK IF KIYOSAKI WERE INDEED AN IDIOT. YOU ARE NOTHING BUT ANOTHER INTERNET BULLSHIT CRITIC!

  266. JCHAN says:

    You are another critic may be a pretty boy sitting somewhere in a basement giving ur opinion. Why don’t you do something worthwhile so I can listen to you. The only people who is not criticised are the ones who has no fruit in the tree.

  267. Russ says:

    This review seems a bit harsh as I think you really have to take a look at RK’s target audience. His books aren’t manuals for successful financial planning. Rather, RK’s books are designed to open up the general public to a different way of thinking. Some valuable lessons that he teaches: employment is not the only option, bad-debt vs. good-debt, good-asset vs depreciating asset. I’ve read about 4 of his books and ultimately found that he gives very little direct information as to exactly what steps you would need to make to go into business for yourself, or purchase a piece of real estate. Rather, the books provide a spark to pursue further knowledge. Of course, RK wants to sell more of his book series – which you can’t fault him for – but having stopped after reading 4 of his books, I doubt give much more information than the previous. You can fault him for regurgitation, but you can’t say he’s being irresponsible.

  268. joe friday says:

    NIGERIAN FRAUD ALERT!
    Dr Frank Morgan (comment 252 above) is a known Nigerian 419 loan scammer. He is not an investor, and he is not in the UK as he claims. The telephone number given is a ‘follow-me’ number, forwarded to his cell phone in Lagos, Nigeria.
    Be careful dealing with stranger on the internet, as they are not always who they claim to be.
    He will also steal your ID, as he probably did to the real Dr Frank Morgan.

  269. Sean M says:

    I would love to see this critic write a book that would give the advice that would actually work for us instead of sitting on the sidelines crtiizing people that are actually rich. I have read all of RKs books and I recommend all heer to read his book called PROPHECY it predicted the current stock market crash in so much detail is scary!(I was on the treadmill and spotted it in my libary and decide to read it again). I have made a few million dollars using his advice and of course hes not going to give details, he gives an overview and we have to fill in the blanks by trial & error.

  270. L Tigre says:

    I jumped on the RK bandwagon about 8 years ago as a 19 year old. I have read most every book he’s published. It’s my humble opinion that people really buy into his message because he’s such a good salesperson and he does a very effective job of selling the idea that anyone can be rich. In short, he makes people feel good and gives them a hope for a better future. Many commenter made mention of taking bit and pieces of his work and adding them to their personal stash of business ideals/beliefs. There’s nothing wrong with that. With that being said, you can only expect people to become unreasonable when they feel a source of their hope is being attacked. This lashing out is disguised as business acumen, but really it’s a natural reaction to getting your feelings hurt.

    I leapt off the bandwagon when I found out his “rich dad” was nothing more than a vehicle to sell his idea. He marketed the book as his own personal experience. It was deceptive.

    @TO THE EDITOR: I think you really over estimate Donald Trump’s standard of doing business with someone. You think he only works on projects with the best and brightest in business? Hardly. He is a risk taker. Read his books. He took a chance on the USFL, the whole Apprentice idea, not to mention taking the Taj Mahal into bankruptcy. RK is a good salesperson. That’s really all the reason Trump would need to do a project with him.

  271. phony? poeple are stupid says:

    If you don’t get rich,then you die poor, but that’s just you…. RK makes sense… and you are not..
    you can read his book and get rich or you can read his book and say his a phony and still be poor!..
    but im going to be rich because of I stumble on the book.. AND i THank RK…

  272. Eric says:

    I have read and own a number of RK’s books as well as some of his “advisor” series. Those were the first “finance” books I read. I found them genuinly inspiring to the beginner. I was also somewhat displeased with his tendency to: 1) oversimplify; 2) repeat ad nauseam; 3) provide no details on how it is actually done, and 4)especially, when his advice is good, and when it is bad (there is no universally-applicable advice). Since then, I have read more in-depth books on various topics, and I can attest – it is a lot harder getting rich, the risks and especially the knowledge you need to posses to start your own business are much greater than those books would inspire you to believe (like trade 4 red houses for the green hotel – or was it the other colour around)

    One statistic he likes to tell you how “9 out of 10 business fail” Well, it is more like: “9 out of 10 businesses fail within the first 5 years of their existence, but 9 out of 10 businesses started by a team that has specific, minimmum 5-7 yr industry experience succeed”. The devil is always in the details, and no inspirational stories will ever change that.

    I think Reed’s assessment is basically correct. My opinion is that RK is above all a salesman (that is what he says about himself: he is a best-selling author not a best-writing one), and sure enough he knows what he is doing – he did sell me a few books. No matter, most of them only cost less than 20 dollars (paperbacks), and you get what you pay for. Whether he is a fraud or not, I am not qualified to decide. But then, the line between marketing and lie is getting thinner and thinner in every aspect of the economic life, why should his books be any different?

    I find the advice to be more inspirational than practical, not very helpful and I would only take it when corroborated by other, more technically-accomplished books. I will not buy his later books nor the more expensive products (games, tapes, seminars, etc) because from the tone of the ones I have I perceive they will not add anything of further value hence not worth the money. I do agree with the assessment that some of the tricks described in his books would work only under very special situations, situations that sometimes would not be described as “ethical”.

    Whereas the “advisor” series books were more detailed, I still perceived the lack of true expertise being offered. Particularly the one about Intellectual Property – an area I am quite familiar with being employed as a research scientist hence my job description includes generating new knowledge and packaging it as IP – I found only what a person that is lesser salesman but better writer would offer in mere 3-4 pages. I also write original peer-reviewed research articles (including reviews and book chapters) often under hard space limits imposed by editors, so I know something about achieving brevity.

    Even though RK warns us against mutual fund managers who feed on fees, he fails to warn about self-help authors who repackage the same stuff time and time again charging you for it 20 dollars everytime. I hardly see the difference. I think I paid RK enough for the quality and quantitiy of his advice. I think he is better qualified to teach salesmanship than financial education.

    If it helps people, I will say – buy “rich dad poor dad” and “cash flow quadrant” in paper back (pocket size versions), then save your cash for purchases with better (for you, not for the salesman) cost/benefit ratio.

  273. Ryan Vaught says:

    I have read this book many times, and almost all of his other books (along with nearly every financial book I have found). This book is meant to be drastic, painting a certain picture. It isn’t a practical book but more a theoretical book. It’s meant to open your eyes, not fine tune your reality.

    All get rich books I have read have a few good ideas, and a bunch of bogus ones. I would say this book in general had more great ideas and paradigm shifts then any other set of books I have read. When I read books I look for the good ideas, not focus on the bad. It makes reading a lot more enjoyable.

    I would also say this book is more for the beginner. Someone who reads this blog a lot may not have as much to gain, since they already see the value in financial freedom. As kid right out of college, this book was perfect to point me in the direction of a business, rather then to a job. I would say this book is a must read for most people not already seeking the way of financial independence.

  274. greenfamily says:

    Ok, so I have never seen this post before but I am really quite shocked just to see this comment:

    “People who get involved in network marketing are quite simply hoping to turn a quick buck without having to invest the time and money to grow a business and also don’t have the initial capital to start a true franchise or an independent business of their own. Are these people you would look to for financial advice?”

    I mean, WOW. Way to stereotype millions of people wwho are currently attemping to create financial independence and economic stability for themselves and their families. I am — almost– speechless.

    I joined a direct sales company last year in order to have my own business and stay at home with my young children. The company, Shaklee Corporation, has a 53 year track record of excellence and has been recognized by numerous other organizations for its social responsibility and environmental ethics. People have worked with Shaklee for 40+ and made millions of dollars. Shaklee paid over 3 billion dollars to its distributors. Honestly– what is so unethical about starting your own business with $300 and working part-time (or full-time, if you prefer)…working your way up to being a millionare? I am not a good salesman. I’m not a salesman at all. I share a message of health and wellness with people who need what I have to offer. What is so horribly wrong with that? And by the way, why would I spend hundreds of thousands of dollars on a traditional franchise where you have to work 70-80 hours a week and still can’t turn a profit? Isn’t the whole point to work smarter, not harder?

    It sounds to me, quite honestly, like you have some internal issues with people who make a lot of money without “working hard.” Perhaps your internal dialogue is that you shouldn’t get a paycheck unless you work a traditional 9-5, 40 hour week, whether you are your own boss or you’re answering to a boss. Heck, no. I fully intend on creating a business that will allow me to create residual income and spend as much time as possible with my family.

    Very disappointed in this post for the very fact tthat you make sweeping generalizations about several million people in network marketing.

  275. Jenny says:

    Way to go greenfamily, well stated, I couldn’t have said it better myself!

  276. Melody says:

    Let me first state that my hubby and I did read RDPD and I think it’s still on my shelf. We also read the Quadrant book and even joined the monthly Rich Dad online service. (For one year, then stopped paying into it)We never did attend any of the University things, even when in our area. This was over four-five years ago.
    Like many others have said before me, this was an eye-opener in terms of starting on the journey of changing our relationship to money.
    However, of late I do find that many of these ‘geniuses’ have been screwing us, it seems. For example, how many people who bought houses under the ‘get into real estate’ RK push still have them? If they do, they certainly aren’t making great money. RK himself has gotten out of the housing market, and now he does interviews about how it’s not the place to be. I know he wrote a book about the collapse of the stock market, but many other financial pioneers have been predicting that previous to him jumping on this ‘doom and gloom’ bandwagon. Granted, all those who are devoted buyers of his material will read it, but trust me – he’s definately repackaged on that one!
    And now what is he sharing? If real estate is no longer the greatest way to make money, what is? I hear holding things like gold/silver, etc. But how do I know?
    Overall, it seems to me that keeping up with the latest ‘hot’ money-maker is too much work for me. Currently I am self-employed with all the non-joy that implies. But we hope to take our home business to the level where we can be the bosses and not the employees.
    For anyone wanting to go into business for themselves, I would definately recommend “The E-Myth Revisited” by Michael Gerber over RK. Better, more practical advice. Of course, if you want to chase the lastest hot thing I’m not stopping you!

  277. Lance says:

    Hi, found this review via @GoodVibeCoach. Good, informative perspective, but I think you’re missing the fact that the book has excellent value despite it’s flaws (just like the Frey book). The audience he’s gunning for aren’t personal finance gurus or entrepreneurs that are really on their way, but rather newbies who need a kick in the pants to break away from the drudgery of deadend jobs and start acquiring assets. I’d file this one under “inspiration” and he does a darn good job of inspiring. That’s value.

    Is it entirely true? Does he miss out on risk? Sure, but there’s a million other books out there that cover that stuff. Rich Dad, Poor Dad is the book I’d give to the college graduate who has the talent to start his own business but doesn’t know it yet.

  278. Are you serious? Because he failed so many times before he succeeded? That’s one of your reasons?

    Have you never studied successful people? Do you know Abe Lincolns story? He failed 5 times, and a few times, and a few times more, and a few times more, before ever finding success.

  279. Fred says:

    Trent wrote:
    [Quote]Kiyosaki is seriously flawed because his discussions are seriously flawed. (…) Rich Dad, Poor Dad is chock full of contradictions and bogus information.[/quote]

    I think this post is hilarious! Arguing with Trent is a waste of time; obviously he missed the lessons from RK. Mr. Trent, maybe you could re-read the books and if you’ll allow me, I would suggest that you also went to a 3 days seminar (don’t “deny” yourself, you can afford it, and if not, what are you going to do about it?)…

    RK may be full of contradictions, but it certainly beats the eternal ‘save and invest in mutual funds for the long term, get a safe and secure job in a soon to be bankrupt industrial age company and get social security financed by the Chinese and retirement benefits…’ don’t you think?

    In today’s financial environment, the mortgage IS THE ASSET and the house is just an excuse to get one (I wonder how fast Suze Orman would dismiss that one!), to be repaid later with devalued inflated dollars…

  280. Fred says:

    And, oops, I forgot…

    M E R R Y X M A S

    TO ALL, RICH AND SOON TO BE RICH!

  281. Simon says:

    Trent – you need to take a look at what you wrote above and re-read RK RDPD. You missed the bounty of positive lessons within this book (call it fiction or non-fiction…who cares!!) and have the hide to mis-represent his teachings.

  282. Iris says:

    Yeah, something is not right about him. I don’t know why people gobble him up, hook, line and sinker.

  283. Tony says:

    I didn’t see the author of the article discuss R.K.’s financial statements, or his own for that matter! Everything I read of R.K.’s always includes his position that he is not saying that what works for him will work for you….but is simply offering ideas for expanding your thoughts on the subject. I would like to see the author’s plan!

  284. Keith says:

    RK is somewhat redundant, but has been very helpful in my investing goals. I’ve lost tens of thousands of dollars investing into things I don’t know about like stocks and mutual funds. If you read carefully and understand what he is writing, he just tells you to know what you are investing in. To do your homework and do your own investing (and stop complaining when other people lose your money). I’ve made some great real estate deals over the past couple of years and now have a little bit of residual income. More then I would have if I put it back into stocks!

  285. Brian Beeby says:

    Robert Kiyosaki is a pure 100% fraud. His measured financial success is largely, if not totally, attributed to essentially shilling for Amway/Quixtar and eventually Multilevel Marketing/Network Marketing in general. His fluffy, poorly written, and dangerously misleading books, namely “Rich Dad Poor Dad,” are his primary vehicles for his success.

    Of course, his seminar promotions like his current “Rich Dad’s Education” are icing on the cake. These come-ons (often touted as “free” yet designed to pressure-sell ridiculously overpriced subsequent seminars, so-called “consulting,” etc) attract the gullible, ignorant, and uneducated hordes Kiyosaki and his ilk so eagerly crave. Is it any wonder Kiyosaki bashes traditional educational venues, like graduating High School and going to (and graduating from) college, so strongly? Not to mention getting good grades along the way?

    I am not rich. Nor am I particularly well-off. I am a would-be entrepreneur that was one of the gullible, ignorant, and uneducated masses that was duped by digesting “Rich Dad Poor Dad” and subsequent Kiyosaki books and materials (including the gimmicky PC version of his “Cashflow” game). “Rich Dad Poor Dad” and “The Cashflow Quadrant” were the selling points for myself getting suckered into Amway/Quixtar for a couple of years.
    To say that was a low point in my life would be an understatement.

    You wanna learn how to become “financially free” and maybe even “rich?” You wanna seek the “education” in order to learn the “secrets” to attaining “financial freedom?”

    Then do exactly the opposite of Robert Kiyosaki’s implied mantra and:

    -Go to school (High School and College),

    -Get good grades (not to mention graduate),

    -Get a reasonably compensating job or business in your chosen career field.

    Wanna learn how to “invest” and plan for your “financial future?” Same deal; go to an accredited college or university and take courses taught by equally credentialed and credible professors.

    In the meantime, objective research on so-called financial gurus and pyramid schemes is recommended. For Robert Kiyosaki, a great place to start online is http://johntreed.com/Kiyosaki.html. Wikipedia has a great article on him, with a link to John Reed’s Kiyosaki page.

    Wikipedia is also terrific for initiating research on Amway/Quixtar, multilevel marketing/network marketing, and pyramid schemes in general.

    I have opted for the smart approach to going back to school and obtaining my degree and not being prey to BS financial gurus and pyramid scheme hustlers any longer.

    BS gurus tell you exactly what you want to hear. You don’t have to go to school and study hard to succeed in business. You don’t have to diet and exercise to lose weight and maintain a healthy body. You don’t have to work hard, or be focused or disciplined, to achieve anything of merit in life. They really are snake-oil salesman and often move from pitching one scam to another.

  286. Wiley Roberts says:

    “Kiyosaki advocates risk-taking and often stresses the importance that one “have guts” to take risk. He says risk is necessary to yielding high gains on investments. Some argue that it is a result of this thinking that he has in the past gone bankrupt, losing millions of dollars. Kiyosaki comments on his prior bankruptcy by saying “it was worth it.”
    On the other hand, Kiyosaki points out that risk may be calculated, so as to minimize the danger of failure. Much of his advice is reflective of this statement. For example, his frequent advice on investing in assets which produce cash flow, rather than investing for capital gains, is given in part for the sake of protecting oneself from unforeseen failure. That is to say that if one were to invest for capital gains, while disregarding cash flow, they may end up losing money when unforeseen complications causes the value of their investment to drop.”
    (Source: http://en.wikipedia.org/wiki/User:Sloth_monkey/Robert_Kiyosaki's_Teachings)

    And yet you are telling us that Kiyosaki “ignores” the concept of risk. Should we take anything you say seriously?

  287. Ed says:

    I would be interested in how well Mr. Kiyosaki’s real estate investments are doing right now (1/29/09) in terms of debt to equity ratio, cash reserves, and available credit lines. . .

  288. Bill says:

    R.K. does not validate his so called experience or successful investments. Why would someone who claims he is so successful not share some data? Because he is clearly hiding something maybe everything. I have read four of his books and one where he collaborates with Trump. I just find R.K. too secretive and vague to be believable.
    Sorry for all those supporters of R.K.

  289. AE says:

    Wow. Thanks to the author of this blog! By illustrating Kiyosaki’s overall history, I now have increased respect for the man.

    - He started several business that tanked. Great! That gives me hope!

    - He convinced other MLM salespeople to sell his book for him, then took the numbers to publishers to impress them. Brilliant!

    - He’s been criticized by well known, respected experts. Love the guy!

    Thanks again for the blog!

    AE

  290. Mav says:

    donald trup’s net worth in 2007 was 5 billion his net worth in 2008 2.8 billion. i didn’t lose half my net worth in 1 year. i tell you everyone here has read all these books in hope for a true way to get rich. there are many writers out there that will teach you in different ways. not one of them have the time or want to explain to anyone how to get rich or how they did it. i agree robert talk a lot of B.S. with his stories. but the mind set of what he’s telling is correct. and is no different from any other rich person. i have read hundreds of books, and they all have the same advise. read between the lines when you read books like these. they will never tell you any concrete way to get rich. simple understanding money and people. robert belives in real estate. so does Ray Crock chairman of McDonalds when he was alive. so does Bill Gates. How? McDonalds is always located in the right spot. think about it. they make the worst burgers in the world yet we still go there. Ray Crock said it himself. same with Bill, micro soft sells in the right place for the right price. business is about 2 things, financial accounting and sales(know how to deal with people). and a busness owner does not need to know these things, as long as he knows how to hire the people who do. like Hnry Ford or where all this started from Andrew Carnegie. the Carnegie theory. remember you can learn 2 ways. what to do and what not to do. like Warren Buffet said do not invest in anything you do not understand. so if you don’t enderstand real estate or Robert. don’t invest. people do things differently. some people like rock, other rap. some like horror films others drama. do whats in your heart that you believe. i learned a lot from Robert and the guys who critisized him too.

  291. phortizo says:

    R.K is an entreprenuer of its own class. Having read some of his books, he is not just inspiring but tells a whole lot of truth. I doubt the mindset of some commentators especially as it regards to risks and information on figures.
    He is always of the opinion that you make up your mind to fail and learn from your attempts. I will refer your attention to his stories on the ugly ducking and a child learning to ride a bike.
    For anyone who is an employee or salary earner, he beats about the bush but for any business owner, he is too real to issues.
    Go through his book CASHFLOW QUADRANT and BEFORE YOU QUIT YOUR JOB, his angle of reasons are meant for good.

  292. Ian says:

    I have read ad-nausem John T. Reed’s “Analysis
    of Robert Kiyosaki”. But the venom and bile that the man spews forth is far from balanced or well researched. It doesn’t take much to get the opinion that the man is not trying to inform but rather assassinate Mr. Kiyosaki.

    AS for this column I think the writer misses many points that are solid, that Kiyosaki brings out..
    There is a completely different vocabulary with the wealthy, that the wealthy approach risk differently, and that their is a lot to be said for the midset of someone who is worried about money constantly. I have seen many of these things again in again in my life and the life of those around me. This is the only book that I’ve been able to get people to read that were about to hijack themselves with buying more that they didn’t need.

    Yes it may not be written by a nobel laurate, and he may have made up the concept of Rich dad. But I still think that this book is a good one and one that gets people to talk about fiances in a whole new way. Kiyosaki freely admits he prefers real estate because he knows it in greater detail than he does stocks and bonds. And there are many instances in the book where he cautions the reader. What does he have to do put a warning label on the cover? And he states that his method may not be the method of the readers. Wow pretty damning stuff..

  293. Brad says:

    Sorry Trent but I see you as part of the problem and not the solution. People need help and folks like RK provide it while other like yourself keep folks in poverty or MC. To the ones claiming that Robert makes money on his books – DUH ! it’s not where he made his fortune however it does provide a great income for him and you decide to begrudge him for that. I suppose he should give his knowledge for free right? It’s a losers mentality and that’s for life so good luck. No thanks.

  294. Paul says:

    NOTICE! RK says 9/10 fails but notice he says “if you follow my advice you will get it 100%.
    You guys have to listen to everything he says not just 9/10!
    I agree with RK he helps me alot he is a smart man.
    If you get itnto it and by his game and stop making mistakes youl get it 100%!!
    He failed to but now he knows and sharing his ideas with us.
    John is not right.

  295. Monica says:

    Unless you are successful business person, who started from nothing, you have not respect from me in putting down RK
    I find all this malicious criticism ridiculous. The road for a person to succeeds is frequently complicated and hard. Unless there is a case of fraud or unethical behaviour, I do not see the basis for those putdowns.
    Kiyosaki books and presentations , his investment philosophy resonate with me.He gives me another perspective.
    In the end, we are taking in, the information from various sources and making our own decisions. So YOU should take responsibility, rather than blame RK.

  296. lynelle paulick says:

    Trent,

    You are obviously unaware of lot of what indicates business savvy. I won’t go into details, because I believe that you know you’re full of it and in this for yourself, like so many, so it hardly matters even what his name is, but first of all, he was only in Amway a short time, and that was not in the 80s as you say, it was in the late 90s (because I was in it the whole time he was a speaker at the conventions and selling his book). True, his book Rich Dad Poor Dad got a lot of votes because it was marketed and sold to many, MANY of the people trying to work Amway. Unfortunately, most did not read, nor understand, it. Next, you seem not to know anything about him past his so-called “Amway days.”…such a small part of what he has tried to impart all these years. He is now in real estate and his income comes primarily from passive flow of cash from residential properties. People like you, and boy you KNOW who you are, make me want to puke. DO YOUR HOMEWORK, BUDDY–read ALL of his books, CONTACT the guy and get inside his head–if you know how to do that. And Lighten Up, for God’s sake. His books, myth or not, are to help people put on their thinking caps and realize some fundamental, practical aspects of the world around them. By the way, you never did come back to the concept of “system” like you said you were going to.

  297. Nancy says:

    Just out of curiosity, have any of you folks who follow Robert Kiyosaki’s advice become rich yet?

  298. denny says:

    Hi Trent – 2 yrs running and you still get comments. Hot subject here. I have no problem with the advice Kiyosaki gives in his earlier books. Growing up Jewish, his concepts made sense. He had a unique way of expressing these concepts which is good. The issue I have with him, which his defenders seem to be in denial towards, is the core question – was Rich Dad real or was he not? If so, then yes, the book which made his career as a “guru” and his career as a “guru” is legitimate. If RD is fiction, then the guy is a liar and anything he says, much as they help people, is subject to scrutinty. It’s kinda like Christianity. Either the Bible is true and the correlation is that the faith is true. Or, if you cannot accept the Bible as “the Word of God and infallable” it, the faith is buit on sand. Notwithstanding any comfort it has provided to beleivers, the basis of the “help” is nothing more than what witch doctors and palm readers can not also provide. Thanks again, the arrows shot at you for “dare” questioning RK worship shows you are asking the right questions.

  299. Matthew says:

    Robert made his money on his own and he learned how to do it in part by learning from his previous mistakes. Network marketing obviously worked from a good low-risk management strategy. And I think if you look at his failed business history, he obviously took risks just like everyone else. I don’t believe you quite understand the phrase and I also think it’s much easier for you to sit there and criticize him than it is for you to actually make sacrifices yourself in order to become wealthy.

    If you have a better way to become rich. Please write a book, if it truly works, I’m sure you’ll sell millions of copies. And the reason so many people buy the book and then don’t actually become rich is because they weren’t dedicated and passionate enough to really do it in the first place. Show me a truly determined person and I’ll show you a truly wealthy individual.

  300. Damon says:

    It constantly amazes me to hear people harping on the fact that RK makes his money by selling books. There is no product in the world with better markup than knowledge. If I had special knowledge, you better believe I’d package it and sell it. As far as I’m concerned, the knowledge has been helpful and the purchase(s) have been worth it.

  301. Mick says:

    another “limousine liberal” who got lucky selling
    books on how you can be rich. Answer, sell books
    on how to get rich like this clown.

  302. StevenAlan says:

    I take great pride in looking at things from all angles, the more choices the better right? As for RK and his books, I don’t care if Rich Dad was real or not. RDPD books changed my way and my wifes way of thinking about money, real estate, and fear. I don’t agree with everything what he says, especially about school, but if a series of books can change the thought process, the internal belief, the way one handles money, for a person and his wife, wow what a powerful concept.
    Is anyone talking about his prediciton of the collaspe of the economy and buying silver? I would like to hear from people and their views.

  303. Carlo says:

    First of all, Trent has some serious reading/understanding issues.

    When i read this critic about RDPD i immediately noticed he missed major points of RK, about risk, about leverage, about education, it is completely different on what is stated in RDPD or what RK is wants to say in his series.

    This critic is completely BS.

    Trent, try to go back to elementary.

  304. Erstine says:

    In this article, Jim Cramer writes “His books encourage people to start working for themselves, but the individuals who would be attracted to Kiyosaki’s work are individuals who generally don’t have the backbone, the salesmanship, the acumen, or the pre-existing network to make such plans work.”

    Jim must be a mind reader! How does he know the “type” of people/individuals who would be attracted to Robert’s work. And he describes them so finely! He is simply stereotyping!

    In a way, Jim really doesn’t convince us about why
    we should stop consider reading or thinking about
    someone who is rather positively “making us see differently” how money works and how it can be earned! HE is not asking you fund terrorist nations!

    Maybe Jim Cramer is of the opinion that if he hasn’t become “rich” or hasn’t discovered yet “how to” Others too should be stopped or simply do not deserve to get there by either means!!

    Are you, Jim, advocating then that one should be convinced by the media financial gurus who use “technical” financial mumbo-jumbo and equations
    to predict your investements and that one has to always be at their mercy. Don’t you know if they really knew how to get “rich” they would get there first. Why should you Jim?

    Jim – you can be part of the many people who think that only a “few” deserve to get rich and this moment forth we all know you owe it your own mental programming. Others who think freely will contribute much to this society in this context.

    I request atleast don’t be part of a group of people who always tend to try and wipe off the exceptions to a system/society. For they contribute a lot as they dare to think differently .
    And because they dare,they create business and wealth. Why are you pulling them down then Jim?
    Where do you stand in the eyes of generations that follow you..it appears to me you seem to be standing in the way of their groth and evolution.

    Erstine

  305. Laura says:

    I also disagree with the article Disconstructing of RK. First of all, one must use common sense and be educated before making huge financial decisions, obviously, and RK encourages his readers to do so. What one must do with EVERYTHING he or she hears or reads is to eat the fish and spit out the bones, so to speak. After reading Rich Dad, Poor Dad, I felt more informed and did NOT get the impression that I should NOT go back to school, nor that becoming rich would happen overnight. Robert Kiyosaki has done his homework and has been learning how money works since his childhood. He decided to put into practice what he learned and has found success that way and then share his knowledge. His story is inspiring, and I learned some valuable things by reading it. But I also know that I need to read LOTS of books in order to have a well-rounded financial education. There was a lot of “fish” I was able to “eat” from having read the book, and I plan to put some of the concepts into practice (not all of the concepts are going to be helpful to me, but I am able to figure out which ones are and which are not). So I cannot go along with the negative comments about RK or his book. Respectfully, Laura, Silverton, OR

  306. Sarah says:

    Trent – if you’re still out there. You’re not at peace, man, too much tension, that probably has nothing to do with RK and more to do with yourself. Why focus on what you don’t support? Just nuts. Breathe – Jesus loves you.

  307. Sarah says:

    Denny, note that Rich Dad was lead by his Christian faith, which Robert refers to having shaped and influenced him to this day. Christian faith is far more fundamental than ‘help.’ It’s a deeper, but practical, level of being. Not to be compared with witch doctors and palm readers. Just picking up on your points. I’d expect some comeback on this post, which is cool. After all, if RK generates so much comment from his books, how much more comment would the world’s best selling Book generate…
    Blessings.

  308. Richard says:

    I have come to believe that those people who tear Kiyosaki apart just don’t get it. Or, they have found someone they can make the target of their own websites or blogs simply to get others to read their writings. I find little in their commentaries that justifies what they are saying about Kiyosaki. I suspect that all of you are a bit envious of his wealth and his philosophies which fly in the face of the standard stuff we are taught (mostly, NOT taught) in high school and college. We can send people to the moon but we don’t seem to be able to teach people how to manage money, one of life’s top 2 survival techniques. Watch for his soon-to-be-published new book, “Conspiracy of the Rich, which lays bare the realiity of all this and why 10% of the world’s population controls 90% of the money. You might learn something that could change your life.

  309. wayne says:

    Guys, leave trent alone. He merely voiced his opinion about something he’s passionate about. If you want more analysis as to why/how Robert Kiyosaki Operates, I suggest you look up an economist by the name of John T. Reed.
    http://www.johntreed.com/Kiyosaki.html
    At his site, Mr. Reed offers an analysis that is far more lucid and intelligent than I could offer.

  310. E.Genius says:

    What this author seems to be taking as “Fradulent” is really business genius. People from the start have always despised those who could make a lot of money. It has been said that morality is simply what we impose upon people we don’t like. That seems to be the case here. Here is an underdog, Outside of the hegemonic group mind you – a minority – who had to do what it took to get into the big leagues against a system that by default, by human nature, doesn’t want anything different than it to succeed (Social Dominance Theory – which seems blatantly true to any person being honest). Whomever wrote this page seems terrified of risk, as most people are, which is why Kiyosaki downplays it so much. Any person who succeeded in business the hard way will tell you that perseverance is key. Yes, we need knowledge and to follow a wise procedure to win. Risk is minimized as knowledge increases, but most people fall into what some call ‘Analysis Paralysis’, they’ll scapegoat themselves out of executing their plan on the fear that they don’t know enough. There’s a level of understanding and knowledge that comes with EXECUTING THE COURSE OF ACTION which is why anyone can bounce back from bankruptcy, anyone who is willing to succeed and is dead set on it with demise as the only other option, will succeed – full stop. The sorts of people in GENERAL who uptake “how to get rich” material are often times get-rich-quickers – OF COURSE – Once again, human nature. That isn’t Kiyosaki’s fault. Obviously there’s some reason why the author doesn’t like Mr. Kiyosaki and I think it subconsciously has something to do with how he perceives Robert Kiyosaki via his looks. There are many a shadier author than Mr. Kiyosaki yet somehow he’s the only one – as the writer of this page himself wrote – that he doesn’t like. I consider the book publishing ‘sale maneouvre’ to be business genius. A sale is a sale, whether it came from one’s following or not. As a matter a fact, stating it that way makes it sound perfectly normal. Which tells me that he’s simply using adjectives to demonize in the eye of the reader Mr. Kiyosaki. Some people I find simply have to demonize other things in order to make themselves feel a part of something. And what better to demonize than someone more successful than we are. In African American Vernacular there’s a term for that. They call it being a “hater”. If there wasn’t an undertone of malice to this review I might’ve been able to accept it as a valid point of view. Now all I see is Hitlerian demagoguery. What a shame that some in society cannot be civil. Good natured. Wholesome. I can only hope the blogger behind this page reads my commentary and contemplates what I’m expatiating. As long as the reader can see that we don’t particularly have a stake in it one way or the other, and that we’re just making blatant observation (aka using less bias, less opinion-based adjectives) not only the more civil we are, but the more people can get along with us without seeing us as an enemy to their stance in any debate.

  311. J. Pule says:

    I read R.K’s book a while back and to be honest, it was really enlightening for me. Not in the sense that I’ve made lots of money but mentality wise. His insights into how the “rich” function vs the “poor” really got me thinking a lot more about how, maybe, I should rethink what I do with my finances. So the “Harry Potter” thing was a little upsetting for me, as I read his book back then believing his whole experience in Hawaii was real along with his “Rich Dad”. Even so, it doesn’t change the fact that some of what he wrote ultimately put into perspective that I really will get old, my money will run out and I don’t want to work for Uncle Sam my whole life having nothing to show for it, or my remaining family rather, in the end.

  312. Darron says:

    I agree with Sarah, why not spend your time teaching “true” financial principles instead of wasting your with something you disagree with. I think RK teaches basic principles that will, if used properly, help readers step aside from mediocrity and have true financial freedom.

  313. paolo says:

    Reading criticism about RK works, I have realized one thing in common, they all pointed out about his background. I just don’t get it???
    I only read one of his book, RICH DAD POOR DAD. Honestly, it changes everything, my perception in life. I don’t care if rich dad really exist or not or if he failed in his business before. I think most of his critics is trying so hard to miss the message of the book..
    RICH dad may be a fiction or he may have failed in business, but it does not lessen the idea that the book is GREAT! AMAZING!
    RICH DAD POOR DAD is not a step-by-step tool in getting rich (go to your nearest Do-It-Yourself store if you want one) but, more on as an eye-opener, motivational book in order to be rich(I didn’t choose the word SUCCESSFUL because their different, RICH pertains to money, while SUCCESS pertains to one’s goal).
    The main idea of the book is “FINANCIAL INTELLIGENCE”, learning the tools/skills you’ll need to be financially FREE! The book didn’t say invest in real estate or do this and do that. He said he loved real estate and stocks that is why he chose that as his vehicles, but he advised that it is for you to decide what you want, in order for you to Love what you are doing. If you went broke, at least you learned something from the things you loved doing, and hopefully having that experienced to strengthen your foundation.

    I have been in restaurant before but it didn’t succeed, but, I am glad I tried it not because I lose money but because I learned new things that I may/may not use in my future investment. There are tools we will be needing to be financially free, just like in school. We studied everything that we think will help us finding a job after we left college, but in reality only few of those what we study will be used. This is the same thing in business, we tried to learn everything in order for us to be equip in challenges that we might encounter. I knew the risk involved in dwelling into a restaurant, but i will never learned the things I’ve learned experiencing it firsthand, just by reading books..

    The risk will always be there, everything we do there is a risk. Even just being an employee, there is a risk of being fired or being lay-off. Same with the business, it is just the worth the risk if you want to be rich and you love the game. Money will come and go, but, it is how you handle your money that will matter at the end..

    The guides in the book are great, I used most of it but not everything. I also do something in my own that I think will help me strengthen my financial intelligence. In the book, GUIDES ARE GUIDES, it is for you if you follow, it is your chose how you think will help you strengthen the foundation of your intellectual..

    These are just my opinions, I would be glad to hear yours, if any..godbless to all

  314. ballerina says:

    trent – leave the man alone. What works for him works. If you’ve never actually tried it, how would you know.

    Anyone can write a book — if it’s worthless it won’t sell. The fact that it sells means that it works. may not work all the time for all people, but whoever said it had to. he’s just telling us what works for him, take it or leave it.

  315. Christofle says:

    Folks we need to get a little logical balance here. RK has no system/philosophy/whatever. There is nothing you can actually use. That’s fine. If he makes you feel and/or think in a new and different way which you find useful, o.k. But, he sells himself as much more. There is no there there to “try”. So, you can’t see if it works. But, then again, anyone who does a modicum of research will see that. These are first step feel good think you learned something books, classes, seminars. They are designed for the lazy mind, beginner mind. To actually start a company or become an investor, you will need much much more. My only issue with RK is that he can be extremely misleading and potentially costly to those who think there is an actual “system” to follow. Just because a books sells does not mean that it works. He does not use the book, except to get royalties from it. His only investment strategy is to sell himself and his words. That’s it.

  316. Yongky says:

    paolo – you are right, I’d just visited this website to find out what the critics have to say about RK. I’ve just finished RDPD and am now reading Why We Want You to be Rich. Before that I read Tony Robbin’s books. And from what I read from the reviews and comments in this book is that they don’t like the author’s background. Why does that matter so much?

    RK critics – Most of you have read the Bible, most of you believe most of what’s written in it. But how come none of you have ever questioned who wrote those books which are now included and compiled into the Bible we know today, why some books are left out, the background story of the authors, etc.? What matters is the message. Same thing about RK’s books. He never said that he’d teach you “how” to be rich, he never said that RDPD is about a step-by-step guide to being wealthy. He said quiet the opposite. He frequently said in the books, that he wants people to understand the reason why most people are not rich. And he and Donal Trump genuinely want you to be rich, because your being wealthy helps the nation.

    Also, some people ask why RK and Donald give seminars and ask people who wants to attend those seminars to pay money if making people rich is their intention. Some of you say, because they want more money. Some say, because they give those money for charity or something. Well, here in Indonesia, a personal motivator once told me the reason: they ask people to pay, because when people pay, that is an action. An action that tells Donald and RK that these people want to change their lifes and that they have taken steps to achieve what they see as “better” life. And yes, those money are given for charity.

    Instead of seeing RK as your personal financial adviser, see him as what he declares himself to be, a mentor / teacher. Consider reading RDPD as reading a book by Tony Robbins. The book is meant to open your eyes and motivates you to be more financially aware. In fact, Tony and RK have a lot in common. They are both motivators, they are both mentors, and they both don’t see wealth as something that makes them happy, instead they see wealth as something that gives them liberty. Liberty to choose, liberty to live. And they give examples and use metaphors because they work better for the general readers as opposed to telling the readers what to do specifically. Because when they ask you to do something specifically, they know that it will only work for a certain group of people, not everyone.

    I’m a 3D artist who worked in television commercial industry. I quit my job just to test how RDPD works. And it works beautifully. Without a steady income, I was and still am encouraged to find other ways to get money and figure out ways to make my money work for me. If this book can help me, I’m sure it can help millions others. And if it didn’t work for you critics, is because you have yourself an idea of how to get rich with your own knowledge and experience. But that still doesn’t mean that this book is b/s. Just because you disagree doesn’t mean it’s wrong, and it goes both ways. You can agree to wrong ideas as well now, can’t you?

  317. stbarks says:

    Terrible review. Sounds like you did some quick google searching. “Robert Kiyosaki Pyramid Scheme.” Good Research.

    He’s making millions, has an advisor in each area of investment, and is buddies with Trump. RK does not write books on HOW-TO. He writes books to change your mind-set. Motivational books, if you will. He’s trying to get you to understand that you can’t rely on everyone and everything else in today’s world. YOU have to become your own financial advisor if you want to be financially free. He has a team in place that he can call any time of day to get an answer. This is not the life for everyone. If everyone owned a business, there would be no employees. If everyone owned rental houses, no one would be renting.

    There are pyramind schemes, and then there are network marketing businesses. There is a difference, most people just automatically tune out when a direct selling idea comes to the table because they are so influenced by what society thinks…aka pyramid scheme. There are many different ways to becoming financially free, but each path has its own characteristics that each person has to look at to decide if they want that path or not.

  318. Greg says:

    His strategies work and his philosophies for business are sound. this is evidenced by his acceptance from other successful people, but also by his significant profile in business & social circles. People who criticize must not have considered these basic issues. Aside from that, I’ve made milllions following his teachings from the first 3 books in the Rich Dad series. If you dont want to get ahead in life, that’s easy! Just keep dumping on people.

  319. Jason says:

    45 The Captain @ 1:58 pm February 7th, 2007

    Everyone should read “The Captain” reply… # 45 and # 319 Greg’s reply.
    100% Right!

  320. Andrew says:

    Rich Dad, Poor Dad was worth reading and then some. I’ve read it three times and got a little more out of it each time. Many of the ideas in that book supported things I’d already figured out about money and cash flow, and filled in the blanks on a few things I was still figuring out.

    I’m noticing that his critics make several key mistakes. For example, he’s a salesman. He admits this openly and yet he draws criticism as though he’s been trying to hide that fact. His critics often seem bent on implying that because he uses sales and marketing tactics he must be evil somehow.

    Another example: he didn’t say education is bad. He says the school systems don’t teach proper money management, and he’s right. They don’t. They teach you to find a good college and learn how to punch a clock. That’s fine for some people, but it’s not for everyone. His critics make it sound like he teaches that you’re stupid if you seek higher education. Funny, I don’t recall reading that anywhere in RDPD.

    As for John T. Reed’s criticism’s, I found those earlier today. He made some very interesting points, many speculative. He also made some mistakes and misrepresented some things said in that book. Given the fact that he’s trying to peddle his own books on the same pages that he’s ripping into Kiyosaki, whom he obviously considers to be a competitor, I’d take those criticisms with a huge spoonful of salt.

    Just some food for thought…

  321. JustinJamm says:

    First of all, thank you Trent!

    Clearly your work is helping people, as evidenced by several consecutive YEARS of people posting responses just to this post of yours alone!

    It seems a lot of people’s take on Kiyosaki hinges on the “risk” issue. Some people think he downplays it, others that he ignores it, etc. But what Kiyosaki really does is REDEFINE risk. He believes people think of risk as a kind of “absolute,” when risk is really relative to the person. (e.g. driving a car is riskiER for a child than an adult, and riskiER for someone learning to drive than for a veteran).

    Some examples:

    Which of these sound riskier, assuming inflation is 3%:
    (1) An index fund that averages 12% per year over time, but during a particular year or two might be down as badly as 40%;
    OR
    (2) A bank account making 1% interest and guaranteed by FDIC?

    If you need to access the money IMMEDIATELY, then #1 is riskier. But you are GUARANTEED TO LOSE 2% of your money on #2, after inflation. So over time, #2 is not only risky, but guaranteed to lose you money.

    Also, which seems riskier:
    (1) Starting a business in a context that has 80% of people failing;
    (2) Starting a job in a context such that your lower seniority gives you an 80% chance of being laid off?

    Answer: #2 sounds safer, AND IT IS…if you don’t know how to run a business. But the 80% chance of job loss is something you have no control over, whereas if you work hard and educate yourself, you actually have the ability to reduce the risk involved in #1. So again, the risk is relative.

    Kiyosaki is definitely too attached to the idea of real estate, which is highly volatile (compare a few years ago to now!) and requires far too much work to be considered a “passive” source of income. (A healthy balanced portfolio of appropriate bonds, stocks, precious metals, and high-yielding money accounts is a far “safer” source of revenue than simply using a bank account OR investing in real estate.)

    I do have to say Kiyosaki’s crowning achievement is the Cashflow Quadrant (ESBI). His goal is NOT to argue that E and S (Employee/Self-employed) are “wrong,” but rather to show that too many people believe being an Employee is simply “the obvious path to take in life.” His goal is to deconstruct that myth.

    He argues that all societies need many of all four types (ESBI), but that too much modern culture is WAAAAAY too dominated by a “just shut up and become a good employee” assumption. People can by one type of a combination.

    I myself make most of my income as an E (I’m a teacher), but also some as an S (I write, edit, and proofread) and some as an I (I actively manage a portfolio of assets). My goal is to increase the S and I over time, so that I am *less* dependent on my teacher’s salary with every year that passes. That is not “risky.” That is SAFER than leaning entirely on my salary.

    In closing, yes, trying to invest or start a business is risky — and if you mess up badly enough, IT WILL ABSOLUTELY RUIN THE REST OF YOUR LIFE.

    Know what else will?Trying to drive a car when you’re a child. You crash and are paralyzed. Ruins your whole life permanently.

    So we should never learn to drive…right? Too risky. =)

    (I’ll let everybody figure the implications out on their own.)

  322. Dimitri says:

    For all you critics out there who are too dumb to understand the message: L

    The reason why John T. Reed is acting that way is because he is a loser himself and the way for him to give himself a profile is picking on Robert.

    Let me explain:

    Many times when peoples are saying “you can’t do it” or “he will not make it” they are actually saying that THEY cannot do it. Let me give some examples:

    1) When I was 13 years old, I talked about becoming an engineer studying at the university Leuven (hardest uni here in Belgium). Teachers said I was too stupid and lazy and would not make it. Next year I will finish my second and last master year in mathematical engineering.

    2) Thanks to robert kiyosaki I became a very succesfull options trader (realizing I had to be in the top 10%), starting with a small acount I am now starting to live my dreams because I convert my capital gains by trading calls/puts into passive income by writing covered calls on anheuscher busch inbev.

    (off course I am insured, I hedged myself at 16 euro the first time I bought shares and now the hedge expires I am going to hedge at 26 euro for another half year: 2-3% cashflow per month from covered calls AND +50% capital gains !!!). So if someone tells you 8% is a good ROI, that’s just crap.

    Before I started trading a lot off peoples told me that I would not make it, parents from friends etc., peoples who lost tons off money by using the buy-hold-pray method. (no covered calls, unhedged, buying at P/E = +20, buying technology i.o. inbev, colruyt (food-beer), etc).

    THE POINT I AM MAKING IS THIS:

    Those parents and teachers were projecting that part off their lifes onto mine. So that’s why you must always make up your own mind.

    Robert K. just tries to tell peoples that there is another way for peoples than just working 60 hours a week to pay the bills in the rat race and getting ripped off by mutual funds. He never said anyone can get out.

    It’s a book to tell you that you must think rich, and that REALLY is true. People suspect to get a hot stock tip or something when they read a book about becoming rich, but it is more doing what you like doing and you have a gift for and becoming the best in it. Some like to build businesses, some like to play tennis, I like to trade options.

    MY CONCLUSION:

    - there are many peoples who cannot stand that other peoples are more succesfull than them, so they pick on them (John T. Reed or those parents or my teachers in high school)

    - do what you like doing and are good at and become the best in it (you need to be in the top 10% to make 90% o.t. money)

    - always keep an open mind, and sometimes try to see things different

    WHO AGREES ????

    Greetz from Belgium,

    Robert, you rule man !!!!

  323. jmanhie says:

    Wait, he got his early success by kissing to Amway’s kingpins, so RDPD can be pushed and sold to Amway members. He was a speaker at Amway’s functions with fees of course. He is an avid supporter of multi-level marketing of networks. Do you see a pattern here. He had indirectly said that RDPD, Where rich dad is like Harry Potter. So where can I find RDPD in a book store, fiction or nonfiction section. How honest is this guy. With the collapse of the real estate market which is his favorite market and he inspire others to leverage, if you are i the real estate market, are you better off now or before taking his advice.

  324. Nena says:

    i am aware everyone has their right to an opinion. i respect that. before moving to texas i just knew there was more than working 3 jobs. as a single mom, i did what it took to survive. in 2003, after a horrible experience and being involved in an internet scam, a friend since 7th. grade gave me RDPD.

    this book changed my life. my thinking changed. i began reading not only RK, but other investment books as well. the key words was that i began reading. i “mentored” with many millionaires through their books when before i just listened to employees like myself that just “survived”. i knew i had to leave the left quadrant. i just didn’t know how. their “mentorship” gave me the map out of the minefield.

    i moved to texas in 2004 in direct obedience to God. I became a business partner in TEAM in 2006. we not only use RK in our biz presentations, but believe his common sense strategies work if applied. i have become a 5% thinker, practice delayed gratification, long term vision and have become debt free. i am a mentor to many and now help single parents get out of the rat race.

    there is nothing wrong with RDPD being used in an organization. RK was very smart in doing this.
    we have a “book of the month” as a part of our training system and many authors benefit from their books being chosen. when over 200 thousand books are sent out monthly, they are happy!
    our top 1% earners that read over 40 books to determine which 1 book will be sent down. (their names are listed in the recent forbes survey on MLM’s. our org had 40 of the top 100 listed)
    since they have the fruit on the tree and the results i want, i read the books. i also contact the authors and let them know how much their books have impacted my life. i have used many of them in sunday school sharing with others that may never get the opportunity to read that particular book. the ripple effect is amazing.

    using a system works…..look at mcdonalds org. they are brilliant and if not mistaken, one of the most successful franchises in the world still to this day. their “system” is not how to make burgers, shakes, and fries…..it is how to be a “b” biz owner. of course you can read…behind the arches and find that out.

    there will always be controversy, heresay and popular opinions. critics are your best cheerleaders because if you succeed, it gives them hope. i follow the people that have the results that i want. i surround myself with winners.

    while i am not a real estate investor-yet-it is a buyers market. i support RK. after playing CFQ i am convinced i need to learn more about stocks.

    whether RK’s RD was real or not….there are millions of bookshelves of fictitious characters that are most loved. look at many of our movies in the last few years…..they have touched our hearts and lives deeply because a man or woman chose to put pen to paper and write.

    i am not an author…yet. i am inspired to become one because of the books i have read. i think charlie “tremendous” jones said it best. my life in 5 years will be determined by the people i meet and the books i read.
    i associate with winners. or even as les brown says…winners that have not discovered how to win yet. this is my passion and assignment. to sow into their lives what has been sown into mine. direction from men like RK. instead of getting a job, after losing everything he had, slept in the back seat of his car and then in a basement of a friend refusing to succumb to what he believed was 95% thinking. he proved himself.

    thanks for listening.

  325. Marcus Maclean says:

    Roberty Kiyosaki sucks.

    The only true “how to get rich” guru I’ve ever come across who actually practices what he preaches is Art Hamel, who teaches people step-by-step how to buy multi-million dollar companies (good companies that are successful, not turnarounds) with none of your own money.

    I would highly recommend anyone looking for concrete advice to get rich should check out Art Hamel. You can buy his complete, step-by-step business buying system at Michael Senoff’s hardtofindseminars.com (and no, I am not an affiliate of the site).

    Marcus

  326. Drew says:

    I love it how millions of millions of people have read kiyosaki’s book and loved it and a few hundred are bashing it because they feel as though its dangerous or a scam. I love this thread, so exciting.

    What makes this book different that others? There are thousands of books that teach you how to get rich. What makes RD/PD different? He teaches you to let go of fears put in place though society. He doesn’t tell you to stupidly take a bold risk.

    I am a PUA (if you know what this means kudos to you!) and what I learned is that there are readers and that their are do’ers. Both are the same, but the difference in both is FEAR. One becomes good while the other just reads and questions because the do’er controls his fear and succeeds. Sure failure is a big part of it, but he succeeds in the long run. The core values in his book are control your fears and trust in “real” education.

    I am a by product of a second generation home, and like all second generation families we were taught to goto school and get a good education. But the whole time I went through traditional schooling I didn’t learn about money. My friends who knew about money didn’t learn in school, they learned through their parents. Well what about the people who can’t learn from their parents? This book was catered to those who let “society” teach them about money, thus instilling their FEARS.

  327. Rob West says:

    Wow, I read your comments of R.K. and I wonder if you read the same books -or rather I question if you read them with an open mind. Not once in RK’s books did I ever read nor feel that he was speaking Gospel; rather he expressed “His” passion, his experience and asked the reader to use their own judgement. I recall many paragraphs while reading his books devoted to reminding the reader to read, learn and exercise his/her “own financial genius within.” Views expressed which I took to be motivating. Hence I have woken up and searched around me for any and all methods to make me more knowledgeable dealing with money.(Job done well)
    I ask you this – how is that bad or wrong?
    Perhaps you know more about Robert Kiyosaki than I, but you sound very jaded and angry(somrthing I’m sure did not begin with RK and will not end with him either)
    Maybe you are accurate on some accounts, though I believe in his mission! If we decide to examine and look for faults in others, we will surely find something we dislike. I prefer to listen to the lesson being taught and apply myself to that equation.
    Pete Rose screwed up big! But should we discount entirely his contribution, his talents because he erred?
    RK should not be dismissed or damned in such a fashion as you have done. Everyone is entitled to his/her opinion and think it is our obligation to others and ourselves to search for the good in others. I did not hear that in your comments!
    There is always more than what you see.
    Even a broken clock is right twice a day!
    Focus on yourself instead of using precious energy finding fault in others.

    Rob West

  328. HH24 says:

    Hi.
    I value ideas which have practical application to me. so – for AMWAY, at one of the rallies I attended years back I had an epiphany when a woman(successful)said “why should she let the decision of 17 year old girl rule rest of her life”. She was referring to the fact that she had difficulty letting go of decision made at 17 to be a nurse. I found it very liberating and used it often when it was difficult to let go off old ideas holding me back.
    I also decided at some point that multilevel marketing was not for me. But I don’t bag it.

    RDPD – I was obsessed with wanting to know “the truth” about the RD, was he real? How important it is really? Please do not discredit a book just because it’s a best-seller.
    I found a lot of good ideas in his writing and I believe in saying “when a student is ready a teacher will appear” and “take what you like and leave the rest”. Too many clichés? all for free.
    Yes I invested in RE and yes I had to learn a lot of lessons along the way. Of course, that’s why I read what I can about money, including this blog, because I am willing to learn and learn to discriminate.

  329. MMMMM3 says:

    #83 prtrbd @ 5:43 pm April 30th, 2007

    “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 especially recommend: “Work hard. Don’t buy a new car or ipod or whatever steals your extra cash.” Especially new cars, the amount of money burnt everytime someone buys a new car… Then again I’ve bought 3 new cars since 1994, and two ipods (that I never even use). Do as I say, not as I do.

  330. Yung Chia says:

    I was a huge fan of RK once. It does perturb me that there are inconsistencies in his stories — being a Marine and all and the truth. Does he plant some seeds and gets one thinking? Sure. Can’t discount everything he says but by the same token, if he can lie or color the truth about one thing, surely he can do it with everything else. Someone once said to me: the Devil tells 99% truth and 1% lie and THAT is enough to get them off course. RK is a lot of hype, some truth, some garbage. I have read and have owned (no longer a part of my collection) many of his books. Trent make a helluva lot more sense and more level headed than RK. I’ve seen RK speak at AMWAY/QUIXTAR conferences. Like MLMs, a lot of flair and a ton of hype. I truly feel that RK may be talking to 2% of the population. Trent’s thoughts and ideas relate to the MAJORITY of the population.

    All in all, be judicious with what you read. The point is are you reading from a wide variety of sources. Are you spending the time to educate yourself and find out what works for you.

  331. Adam says:

    Disclaimer: I did not read this article in entirety, nor did I read the previous articles. However, after reading the first paragraph I did stop reading. Anytime I read that a person recommends Jim Cramer and has positive comments about Suze Orman I lose all interest. Jim Cramer, who recommended Wachovia weeks before it had an arranged sale to Bank of America, is as guilty as cronyism as anyone. By recommending BOA without doing the due diligence it just shows that he is only doing the show for the financial gain and if he’s not careful it will fail like his hedge fund. I don’t know much about Robert Kiyosaki, but I’ve met multiple people who have read Rich Dad/Poor Dad and they say it’s an interesting read. They do say he’s not specific with advice and that his books are meant to motivate for the financially illiterate. I think that’s a great thing, but it should only be dumbed down so much. I’d have to read more to speak more intelligently on this, but please do more research on Jim Kramer before recommending him to others. By the way, great suggestion with Dave Ramsey, but always be careful when they recommend specific companies for any kind of service.

  332. Rich says:

    I did appreciate his message of not allowing yourself to be immobilized by fear, BUT after reading Rich Dad Poor Dad and The Cash Flow Quadrant, I think they were ultimately a waste of money. They predominantly repeated the same hope-based platitudes over and over without giving any concrete advice on how to start a business or anything else. I would not recommend them to anyone unless that person’s only desire was to feel good……..We can always go to church for that and listen to lies.

  333. JC says:

    I think this review on R.K is very stupid. Not everything someone advises is going to fit with everyone. Throughout Robert’s teachings he actually does explain risk, so this review is BS. I recently saw R.K at an event and he preached exit stratergy, which if this Trent guy who wrote this article was actually “rich”, he would know an exit stratergy in any investment is considering risk.

    The point I am trying to get across really is, with these educational books you can not take everything you read and just become “rich”. It takes action and your own business research and experience to create your own business and successful destiny, which essentially makes you “rich”. Again if you read Rich Dad, Poor Dad it doesn’t mean rich is being a millionaire. Read it! and learn what R.K is actually preaching

    Also, I must mention that the Rich Dad company will actually teach specific ways they make money in the ways they explain within their books. If you attend their courses and pay up. You can not learn how to be a millionaire by reading books for goodness sake! Nevertheless, if a book inspires you, readit! If it opens you mind and gets you to take action, read it! These people that write these books are not Saddam Hussein guys, they are just trying to make moeny like the rest of the world, and why not? I say let them! We are the ones buying the books and being sold to, so who is the fool???

    p.s. Trent should research more on successful business people as Richard Branson (Virgin) almost went bust twice and even flashy P. Diddy had his time to lose money. It take loses and lessons to become successful and “rich”

  334. SYu says:

    There are some fundamental flaws with RK’s concepts:

    1. He says he retired at 47. He is probably working harder now than ever. His income is not passive it’s active. He has to work to improve cash flow.

    2. He builds his real estate portfolio purely through leveraging. This is highly risky as long as the banks don’t call in the loans or reset the interest rate at a higher rate.

    3. He says he focuses on cash flow. Yet the term “rich” by its nature is a concept of stock as measured by net worth. Theoretically, there could be a day when he has cash flow, but not worth much.

    4. From a macro-perspective, there has to be a balance of E, S, B and I for society to function. If many people wants to be a B, they’ll need more S and E working for them. Then there will be a shortage of S and E, bidding up the wages of S and E and reducing the cash flow of B.

  335. Mike says:

    I would be curious to know what fraction of RK’s wealth comes from the investment vehicles he pimps and the schemes he’s involved in (books, seminars, etc).

    If you’re selling investment advice based on your own success, I want to know that the advice you’re selling me is what made you successful.

    It’s like the models selling the new exercise equipment on TV. They didn’t use that new, wonder-tool to build up their physique, they did that with steroids and free weights.

  336. Scott Hedrick says:

    I recently attended a Rich Dad seminar. The free seminar was a bit over an hour long, and actually had some interesting stuff in it besides the pitch to buy stuff or pay for more advice. I’ve listened to the audio book version of Rich Dad, Poor Dad, and other than some lack of respect for education found it tolerable.

    As it happens, my dad has been successful at making money at the things talked about at the seminar I attended, notably, buying real estate at tax auctions in New Mexico. I wrote a book myself about our experiences, good and bad, which I will sell a copy of if someone asks, but I *don’t* have some “system* and I most assuredly do not suggest not being educated. So, you need to carefully listen to what is being said, and not use only one source for information. The more time you spend doing your homework, the less money you are likely to spend. A key thing to look at about people selling “systems” is how they make the majority of their money since they started selling a system- does it come from following their own advice, or does it come from selling the system?

  337. Ali Manning says:

    I’m a long time reader, but first time commenter – I’m a quiet kind of person. But I’m forced out from the shadows to respond to this post. A friend of mine loaned me a copy of Rich Dad, Poor Dad a few months ago, saying it really inspired him. I just about had a heart attack when I read the advice Kiyosaki gives. Especially the way he dismisses education! I totally agree with your analysis that this guy is a fraud. When I returned the book to my friend, I gave him a copy of The Simple Dollar to read to give him a more balanced view of personal finance.

  338. Giuseppe says:

    I can’t believe I wasted so many hours, and I had to take Friday Off, and cancel a Labor Day weekend trip. Just hear this jerks.
    My wife, decided that since she had read the “Rich Dad, Poor Dad” (what a wrong selection of order for the title of a book where it suppose to teach you how to be rich. If you really think it means my Dad was rich but end up POOR, I don’t know you but I don’t want this neither for my Dad, or my or my sons), and she thought it will be good assist to one of their seminars, so she went to the few hours introductory motivational class, and with out telling me she decided to enroll us for this week to go and listen this bunch of Scammers, quakers, snake oil sellers.
    Well Friday morning we got there, to a talk that suppose to start at 9:00 am, and it wasn’t until 9:20 when a tall woman dress to kill she goes in front and started to present our speaker, and telling us that he has been 5 years since he is in the program, that he is one of the multiple cases that he was broke and after the program he became financially free. So there it comes this Baldy guy ad he present himself with the name “LEE ESCOBAR”, and there they stared with the good morning bullshit, that is nothing else that the routine to engage you in a state of being a follower, with the excuse of energize you. So here he comes telling us about fear and the voice that keeps saying o no you can’t do this and so on, up this point it wasn’t that bad. I actually started to like and enjoy, in a moment he mention that we loose so many opportunities because we don’t take action; and it resounded in me since I am an over-thinker, and sometimes I waste opportunities just for over thinking, and there he goes and telling us the story of his life, a very sobbing story, on this guys that from a struggling single Mom with two kids from Puerto Rico, he became the owner of a restaurant doing clean 10K at month, and he still being broke (come on buddy if I was making clean 10K on 2005 I wouldn’t be broke, after the first few month of probably having a good life I will be starting to think on how to invest and I will be looking for a Money manager, or a Financial Advisor), and one day he saw the add on TV of Rich Dad, and he went to the three day seminar and since them he is so successful, that he can afford a Bentley, and other BS.
    And there he went saying that Real Estate is the only secure investment that can give you financial freedom, and so on (well I don’t know but a guy that went to school and graduated with honors, and then went to the Military Academy, and so on. He has no idea about Bonds, Metals, Forex, and other mechanism of inversion, specially if you are doing 10K at month and you live in Chatanuga?). So after that he started to mouth trash historical millionaires, I went I raised my voice and to say well it didn’t change that much, still today bad guys with money, and with out allowing me to finish the guys started to chew my ass, then after that he goes, no question, no commentaries, until we allow you, and by the way no networking, no sharing information with anybody (WTF, are we in a prison, or a military boot camp?).
    So the guy was only starting to talk about the first way on how to invest on real state with no money what so ever (ding ding ding, my mental alarm went off, this is dangerous, or a scam), then he goes to explain in less than 10 minutes how to wholesale a house that you consider an opportunity, and you don’t want. So OK, it sounded interesting and I decided to do some extra research on this latter on. So the afternoon, went between this and explaining other tricks here and there, when he went on rental, he says oh if you have a single rental property you will be going broke soon (well i am not sure bout that, but hey maybe him), and there a old guy challenge him about this statement, and i reaction was trying to fight him and telling him that he will be broke, and the old guy argument started to make sense to me, so when he realized he was close to loose the argument he called for a break, after that he went on how to be creative and find the money to do all of this, and they guy started to trash mutual funds 401K, stock markets, and so one and telling people take your money from there and start to invest on REAL ESTATE, and then he goes on the Credit Cards, that how they are a big Scam, and how we are being all our life sleep being amused by the movies and TV. And there he comes with bunch of things that didn’t sound right to me, and telling that Rockefeller this, and that; hey if you are gone say something you better have your facts right, and I know and you can look too, that Rockfeller wasn’t from a rich wealthy family when he started (ass well, Bill Gates, Steve Jobs, and Richard Branson, OK Bill Gates family had some connections, and they where a upper middle class, but not wealthy), so this struck on my head. I went home and decided to check this facts since something on me was saying this facts are wrong, and yes they where, after that I look for “LEE ESCOBAR” and Mr. Kiyosaki. And when I started to find more and more reliable sources of information on how this guy’s behave, an how Mr. Kiyosaki has been changing his story over and over again, and other things that you could find here and and sources like New York Times, Wall Street Journal, and so on. Put me in state of alert. So I started to check on his method of Investment, and I find out information leading that some are just ways of scam, and some could drive you in to jail, there I wasn’t so in love with them. So Saturday morning I recall that a Friend did it and he went even to the advanced classes, so I give him a call to ask what does he think and how has being going for him after he did it, and surprise he told me I wasted and I have on my credit cards 24K debt, and he told me be careful, don’t allow your wife to fall in love with them. So here we went to the second day of Bull Shit (OK, let’s say 20% of interesting things that you better confirm with your lawyer, accountant, or do some extra research on the Internet. Like a 30% of common sense, and knowledge that if you re a little bit financially educated, 50% real Bull Shit), he started to use a Rich Dad Software that does a lot of thing that really could be useful, but most of it you can do it with excel, few Internet websites, and that’s all, but it’s nice having everything in one box. So the end of the day, he went and they started to show the prices, They where so Outrageous, that I was almost loosing my breath, their technique show the highest numbers first, and then start to go lower and lower, but even there they where ridiculous outrageous (No wonder Mr. Kiyosaki is rich), and I started to see the audience almost taking their’s check-book, and credit cards and go and get n trouble (lucky at this point I told to my wife, about our friend, and I told her about my research, and all my doubts). There it went the thing that really went o far, when he showed us an average on how much it cost some good Colleges, and Universities, and he says, they don’t teach this, they don’t teach you on how to be Financially Free, tell me how is in here Financially free, and got so outraged that I had to tell him listen I am OK financially, I wen to school and I can provide for me and my family, and most of this things you can get it in school, if you go to the right school, and you don’t waste your time in Parties. So the guy came out el we can talk latter, and my wife stop me to really get in to a fight with them. right after that the guy goes with their warranty of allowing to who ever sign to be able to repeat the classes and so on. And Then he went in to a sobbing story, on how he saved his little brother life from being a drug addict and alcoholic, to be wealthy, and Financially free (and the Oscar goes to Lee Escobar), and they allow to everyone to go and talk to see how to enroll. At that moment my wife told me we are not coming to this BS. I aw few others getting out, almost intermediately (no idea why or their reasons).
    So today Sunday i feel so Happy and Free of having to waste such nice Sunday, with those Snake Oil Sellers, Scammers and Number Quakers. Shame on You Lee Escobar, shame on Rich Dad Education, and Shame on Robert Kiyosaki.

  339. Sky says:

    Trent is an idiot and The Simple Dollar is the stupid.

  340. tc says:

    Only result is the final judge. Show me your financial achievement and we’ll see which side stands.

    p.s. judging someone from his path of life is bias.

  341. judith says:

    I have read quite a lot of the comments and its interesting how every one has their own conclusions about RK’s books.I read RDPD at a time when i had already heard about direct selling or net work marketing.to me I think its amazing. I am an employee, a decent monthly. two weeks down the month, I am always broke. this is what happens to many of my friends too and I guess to most employees.I read RDPD two years ago and it changed my way of thinking and doing things. I took on to network marketing and I have never looked back. i am more sure of what my future is and I can confidently say that i wouldnt get stuck if I lost my job. this is because I am able to get a weekly cheque of a minimum of 250 dollars. who wouldn’t be happy with this? I still do my job full time and give my networking business close to 2 hours a day and am happy. at least I have some extra regular money that makes me live comfortably.I am only 25years old but I believe I made the best
    decision ever at such an early age. RK opened my mind and made me see things in a new perspective. I think there are lots of materials out there that we tend to read everyday but if we do not have an open mind, then we do not see their relevancy in our lives.Am happy because I read that book and used ideas therin to make a decision that has been life changing. Lets not be so negative, many atimes close mindedness and frustrations barr us from seeing the positive side of things and we end up being bitter and judgemental individuals. The different ideas are good though, the beauty of life is that people are different. Good luck as we look towards achieving financial freedom. Cheers.

  342. Roy says:

    Criticisms about RDPD tend to be invalid…not because the book is infallible, but because of the nature of the criticisms themselves; such as “what he’s saying just can’t be true!” or “he says corporation, but you could do the same thing with a sole proprietorship!” And my favorite, “what he’s saying is way too risky!” They are far too anecdotal to be useful, and completely disacknowledge the purpose of the book.

    The book does a good job for what it’s meant for: providing a life philosophy in a simple, nontechnical manner. The point is to take your own time and career into your own hands, not getting stuck in a rut where your life consists of making money just to pay off expenses (i.e. no savings), and investing your money. Clearly the point is not quit your day job today, and go invest in real estate; or present a hypertechnical account of specific investment or asset protection strategies.

    I think many of you think he is advocating giving up your current life right this minute, and starting again down his path. Clearly, the intent is to begin thinking in terms of the presented philosophy, and take reasonable steps (given your current situation) to change your habits and actions.

  343. Ch ip says:

    I’m a fan of Rich Dad and Kiyosaki. I think it doesn’t matter whether the story is true or false. The point is that there is some sound financial advice in his books.

    Be smart about taxes
    Diversification is not limited to cash assets
    Cash flow is more important than capital gains

    and many more. Just because some retarded people jump in head first and go broke doesn’t mean he’s a cheat. As your sole source of information, you’re bound to run into trouble, as with any advice. As part of a your game plan to manage your own finances, I see nothing wrong with it.

  344. Steve says:

    I realize I am talking to myself here, seeing as this six year old article is 60 in internet years. Nevertheless, this lousy “deconstruction” of Robert Kiyosaki has incurred my ire sufficiently, so that a rebuttal read by no one will still bring me satisfaction. I understand that lampooning famous people is good business for bloggers, but Trent’s article here is a hatchet job in a way which he did not intend.

    First, if Kiyosaki doesn’t acknowledge risk, then why does he share the stories of his multiple personal business failures? Does he not make it quite clear that if you are unwilling to live in your car, as he did, then you are not cut out to be an entrepreneur? You poke fun at his failures and then discredit him for his success. Bad form.

    Second, making money IS leveraging people and things. I would challenge you to name a single fortune which did not depend on the sweat and equity of many. This is not a warrant to abuse others, but advice to cherish and grow your relationships with friends and business partners.

    Third, although it may be obvious to you that Kiyosaki intends to belittle the financial prospects of the employed and self-employed, it isn’t to me. He uses professional athletes and doctors as examples of people who can be very successful as employees.

    Fourth, why you would insult a large portion of your readership, I am not sure, but I am one of those spineless individuals attracted to Kiyosaki’s work. Although I may be as miserable as you described me, I know other Kiyosaki fans who are certainly not.

    Fifth, your storyline has more holes than Swiss cheese. Although I am just a brain-dead Kiyosaki-reader, which I guess is akin to saying I eat paint chips, I don’t recall any forcible compulsion to buy his book. Perhaps it;s a best seller because of the content. You also failed to mention that he owned real estate from his mid-20s onwards, and his initial, albeit smaller, fortune came from managing apartments in Phoenix.

    Ever upward.

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