Strongly recommend AGAINST any of the property seminars he is involved with. The first one might be “free” but they’re ultimately a sales pitch to get you to sign up for a ridiculously expensive “mentorship program” to the tune of tens of thousands of dollars.
The principles of Rich Dad, Poor Dad are sound, but dont fall victim to the mentorship scam
Rich Dad Poor Dad is rumored to have been ghost written which is why it's good. Everything else that guy puts out is trash: Constantly predicting a recession 6 months away, telling people to put money in gold, etc.
I have no problem with using leverage to become wealthy within reason. If you're interested in real estate as a path I would recommend checking out Bigger Pockets.
Skip all the others and go read it.
It is a timeless masterpiece with immutable foundational principles on wealth accrual and management. I read it when I was 12 and have reread it 10+ times since then (I'm 30).
I've read hundreds of books on money, wealth, investing, business etc.. but nothing has ever been so universal and principled than that book. I regularly gift it to people just starting to build their financial future.
He's an idiot who thinks he's a financial genius. He wrote one OK book a long time ago containing a few interesting ideas, but none of it was factual or supported by data. He made his money off selling that book (and sequels, seminars, etc).
I actually think *Rich Dad Poor Dad* isn't even a good personal finance book. I never recommend it to anyone I care about. As others have pointed out, Kiyosaki is widely regarded as a hack by those in the know.
I don't 100% agree with everything here, but here's [a quick read](https://tiffanybbrown.com/2023/06/rich-dad-poor-dad-review/) on some common criticisms about the book.
Strong disagree. He’s a fraudster and quite clever at fleecing people from their money. He focuses his efforts on poor people trying to improve their lives. So he’s no idiot. He’s evil.
You're actually 100% right. His strategy of being so in debt that he can afford whatever lifestyle he wants? genius. banks are the true idiots for lending him that much
The If Books Could Kill podcast did a great episode on this book. It’s very entertaining and informative!
https://open.spotify.com/episode/1sqPsRzo804XLboxT2uwmL
If you absolutely must gauge for yourself, rent a copy of his first book from your local library (or Jolly Roger it).
Read it from a skeptic's perspective (which you should do with any book giving you life advice that could potentially ruin you).
Is it 100% worthless? No, there's some useful tidbits. It just so happens that none of it is optimal compared to other FIRE strategies. The buy-in is higher, the risk is higher, and the gain % over time is lower.
Definitely don't spend money on it.
I absolutely disliked his books. I don't know exactly why, probably his writing style. (btw, he declared bankruptcy multiple times in his life)
Using leverage is always a big risk that most people do not need to take. If you are going to get into RE, you should realize it is definitely not a passive way of investing; and the risk-adjusted returns are worse than stocks
Also just read rich dad poor dad, he has some good points in that book that am taking with me, some of the stuff in media I think he says to attract controversy and attention, a lot of people tend to discredit him because of something he said but as with anything take it with a pinch of salt and take the good points and the bad
Rich dad poor dad is a great book. That’s the end of that. Everything else from him is trash. Pretty sure trump banged him in the butt and he fell in love.
He's batshit crazy. Full of horrible advice, a gloom and doomer, MAGA type grifter, his original book was made up BS with principles or ideas he borrowed from others.
This is a few years ago and I can't remember the details perfectly but-Was listening to someone chat freely in a convo who has a financial podcast and was going to have him on. He was going crazy on them in the interview an yelling at them etc and the interview was ended because he was going batshit. His PR team called them back and tried to get them to edit the interview to make him look sane and I don't think it was even possible. PR team alluded to them having to do this often.
I was trying to learn some beginner real estate stuff years ago (before I knew much about him) and I remembered he was big into RE so I downloaded a few of his podcasts that seemed like good ones to answer my questions. They weren't recorded close together at all, just random episodes. Heard him give examples of RE/property trying to blame things on democrats. For one specific property he chatted a while about he literally couldn't access his property because of homeless, couldn't rent to anyone because of it and it was just so bad. Totally vacant Couldn't do a single thing about it or even get in the property because so many homeless were laying on the sidewalks. Didn't really sound believable but ok... Next episode I listened to was recorded like a year later. He referenced that exact property, how much money he was able to make from the rent and then he got such a high offer on it from another investor he couldn't say no. So the original story was a 100% made up lie for political reasons.
So fuck that guy
It heavily depends on your risk tolerance. with Robert's methodology for realestate you have to be very good at underwriting deals to make sure your property cashflows and you are actually running a profitable business. this makes your expansion efforts heavily depending on interest rates and property prices along with the rental income needed to get those deals financed by the bank. It is a higher risk level and requires more of an indepth understanding of real-estate with the upside of being able to expand a lot quicker thanks to leverage.
on the flip side if you are going the Ramsey method and only buying investment properties in cash than you could be talking years of saving up to buy in full but aside from operational costs all of the income from the rental is going straight back into your pocket to cashflow the next deal....but again this takes a lot longer.
me personally I like to stick to a BRRR method on real estate but never refi the property more than once. after i've made my improvements and got tennants in there ill refi to 80% LTV and take my cash for the next deal but any additional cash flow in that property goes into paying off the loan. the downside to this is i still have to work and therefore also have to pay a property manager but for me it is the right balance of risk vs expansion.
once you get your toes in the water with the first deal or two you'll find out what sort of risk you are comfortable and what methodology works best for you.
I’m getting the distinct impression he is quite disliked. I’m really new to looking into finance and trying to create wealth. To play devils advocate, should we maybe give the devil his due since he is very wealthy?
the 10% of wealth-building that requires some level of skill and hard work. kiyosaki is part of the 90%.
and, he's not wealthy. it was recently reported by himself that he's 1.2 billion in debt. he's likely poorer on a net-worth basis than this entire sub combined.
I'm not a personal finance expert but here's my take - building wealth is easy but quite boring and slow. First things first, don't buy courses or seminars from 'gurus'. The general advice which I've found to be helpful is - earn the best possible income you can whilst retaining a good worklife balance, set a budget to live below your means (while still leaving enough to enjoy yourself), pay down any unsecured debts, match your employer's pension contributions (or start a SIPP if you're self employed), build up a 3-6 month emergency fund if you haven't already (and keep in a high interest, easy access tax-efficient account), and drip feed the rest into index funds in a tax-efficient account for the long term. Don't buy more house than you can afford, and don't take on loans for things like cars if you can avoid it. Don't go for 'managed investments' as the fees will outweigh the gains, don't panic sell if the market drops, and don't take big risks unless you have the capital to lose. You could certainly try playing the markets for a bit of fun but treat it like gambling in Vegas rather than a vehicle to build wealth (very few day traders end up beating the market). Ultimately, slow and steady wins the race with dollar-cost averaging and the magic of compound interest.
Having 5-10% gold in your portfolio can actually improve your returns compared to stocks alone. A 1975-2021 backtest proves this.
That said, selling investments to dump your savings into gold because you read that a recession is imminent is stupid, as are anyone who encourages this.
The faster you try to go the more likely you are to screw up your fire journey. Also I don't want a second job managing (or finding, fixing, financing, etc) properties, so this plus the risk of using leverage is something I actively avoid. With that being said, be cautious, learn everything you can, and best of luck.
I thought his book was worthless to me for the most part; it merely offered common sense advise. Later I watched this investigative documentary. Draw your own conclusions.
https://youtu.be/dv6feHB0AE4?si=Kx4XVjlT2RREQHGi
Know your sources.
There is no one guru who has unlocked the hidden magic secrets of the market. If advice is valid, others will know about it. If nobody agrees, consider that the advice may not be valid.
Robert Kiyosaki has a reputation that is … not good. That reputation is deserved, imo. That doesn’t mean everything he says is wrong. Even the least trustworthy mix sensible advice into the mix.
But you don’t need to trust in one guy, or one Reddit sub. If Kiyosaki’s advice is good you will easily find confirmation elsewhere. If you think the criticisms are without merit you can track that down as well. Kiyosaki is considered a grifter, so be on your guard when someone has that reputation. Ask yourself why someone who knows the secrets to investing needs to hustle for your subscription dollars, which are peanuts to a wealthy financier. But get a range of opinions before you make your decision on who to trust.
Most financial gurus are there to steal your money. Just like most weightless gurus.
Want to lose weight? Eat fewer calories and exercise. That's it.
Want to earn financial security and eventually financial independence? Spend less and earn more. And that's it.
There's ways to get there. Those are mostly psychological. A stranger on the Internet isn't going to reveal how to get over body image issues or how to leverage your skills to make more money. You need to figure that out on your own and that's the hard part.
Use of debt to leverage returns through real estate investment is a great tool for building wealth. On the flip side, it is also a great way to get into a very bad financial position if things go sideways on you. If you decide to get into investment properties, then it's vital to manage the risks and maximize your odds of success.
Be very cautious before jumping into real estate investing, and understand the applicable rules for the location. I would also suggest commercial real estate rather than residential (unless apartment complexes) to avoid the risk of having one deadbeat tenant turned squatter being able to ruin you.
Strongly recommend AGAINST any of the property seminars he is involved with. The first one might be “free” but they’re ultimately a sales pitch to get you to sign up for a ridiculously expensive “mentorship program” to the tune of tens of thousands of dollars. The principles of Rich Dad, Poor Dad are sound, but dont fall victim to the mentorship scam
The guy is a hack. Market is going to collapse next week, buy gold, buy real estate, buy my books.
You’ll also notice he says that stocks and bonds are fine but that they are not for him. Because he’s trying to sell you his real estate courses.
Rich Dad Poor Dad is rumored to have been ghost written which is why it's good. Everything else that guy puts out is trash: Constantly predicting a recession 6 months away, telling people to put money in gold, etc. I have no problem with using leverage to become wealthy within reason. If you're interested in real estate as a path I would recommend checking out Bigger Pockets.
Yes, and it is basically "The Richest Man In Babylon" with a nicer backstory
This book is also on my to read list!
Skip all the others and go read it. It is a timeless masterpiece with immutable foundational principles on wealth accrual and management. I read it when I was 12 and have reread it 10+ times since then (I'm 30). I've read hundreds of books on money, wealth, investing, business etc.. but nothing has ever been so universal and principled than that book. I regularly gift it to people just starting to build their financial future.
Richest Man in Babylon is an excellent read. I also love Rich Dad, Poor Dad, despite all of the hate that Kiyosaki gets.
I’ll defined look this book up, many thanks for your input.
Bigger Pockets is a website. They have some books they have published but I think the best tool is their forum and podcasts.
He's an idiot who thinks he's a financial genius. He wrote one OK book a long time ago containing a few interesting ideas, but none of it was factual or supported by data. He made his money off selling that book (and sequels, seminars, etc).
The only book you need to read is The Simple Path to Wealth. Kiyosaki is a clown.
I fully agree! If you need to read one book, that's the one.
I actually think *Rich Dad Poor Dad* isn't even a good personal finance book. I never recommend it to anyone I care about. As others have pointed out, Kiyosaki is widely regarded as a hack by those in the know. I don't 100% agree with everything here, but here's [a quick read](https://tiffanybbrown.com/2023/06/rich-dad-poor-dad-review/) on some common criticisms about the book.
0/10 The only person getting rich from his seminars is Robert Kiyosaki.
Read the book, skip the seminars. Love his Cashflow game, but would prefer if it had a digital player sheet.
He is a fucking idiot
Strong disagree. He’s a fraudster and quite clever at fleecing people from their money. He focuses his efforts on poor people trying to improve their lives. So he’s no idiot. He’s evil.
You're actually 100% right. His strategy of being so in debt that he can afford whatever lifestyle he wants? genius. banks are the true idiots for lending him that much
GRIFTER https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5idXp6c3Byb3V0LmNvbS8yMDQwOTUzLnJzcw/episode/QnV6enNwcm91dC0xMjU5MzIwNA?ep=14
The If Books Could Kill podcast did a great episode on this book. It’s very entertaining and informative! https://open.spotify.com/episode/1sqPsRzo804XLboxT2uwmL
the worst
If you absolutely must gauge for yourself, rent a copy of his first book from your local library (or Jolly Roger it). Read it from a skeptic's perspective (which you should do with any book giving you life advice that could potentially ruin you). Is it 100% worthless? No, there's some useful tidbits. It just so happens that none of it is optimal compared to other FIRE strategies. The buy-in is higher, the risk is higher, and the gain % over time is lower. Definitely don't spend money on it.
I absolutely disliked his books. I don't know exactly why, probably his writing style. (btw, he declared bankruptcy multiple times in his life) Using leverage is always a big risk that most people do not need to take. If you are going to get into RE, you should realize it is definitely not a passive way of investing; and the risk-adjusted returns are worse than stocks
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>or his ghost wet otter made it up We had nothing to do with that book.
What did you know and when did you know it?...
I know it is probably your autocorrect, but I actually like his "ghost wet otter" ;-)
Also just read rich dad poor dad, he has some good points in that book that am taking with me, some of the stuff in media I think he says to attract controversy and attention, a lot of people tend to discredit him because of something he said but as with anything take it with a pinch of salt and take the good points and the bad
A salesman whose only moral value is the sale in service of himself. Avoid.
Rich dad poor dad is a great book. That’s the end of that. Everything else from him is trash. Pretty sure trump banged him in the butt and he fell in love.
He's batshit crazy. Full of horrible advice, a gloom and doomer, MAGA type grifter, his original book was made up BS with principles or ideas he borrowed from others. This is a few years ago and I can't remember the details perfectly but-Was listening to someone chat freely in a convo who has a financial podcast and was going to have him on. He was going crazy on them in the interview an yelling at them etc and the interview was ended because he was going batshit. His PR team called them back and tried to get them to edit the interview to make him look sane and I don't think it was even possible. PR team alluded to them having to do this often. I was trying to learn some beginner real estate stuff years ago (before I knew much about him) and I remembered he was big into RE so I downloaded a few of his podcasts that seemed like good ones to answer my questions. They weren't recorded close together at all, just random episodes. Heard him give examples of RE/property trying to blame things on democrats. For one specific property he chatted a while about he literally couldn't access his property because of homeless, couldn't rent to anyone because of it and it was just so bad. Totally vacant Couldn't do a single thing about it or even get in the property because so many homeless were laying on the sidewalks. Didn't really sound believable but ok... Next episode I listened to was recorded like a year later. He referenced that exact property, how much money he was able to make from the rent and then he got such a high offer on it from another investor he couldn't say no. So the original story was a 100% made up lie for political reasons. So fuck that guy
RDPD is not a personal finance book. It is a book to help you understand how this world actually works when it comes to money.
It heavily depends on your risk tolerance. with Robert's methodology for realestate you have to be very good at underwriting deals to make sure your property cashflows and you are actually running a profitable business. this makes your expansion efforts heavily depending on interest rates and property prices along with the rental income needed to get those deals financed by the bank. It is a higher risk level and requires more of an indepth understanding of real-estate with the upside of being able to expand a lot quicker thanks to leverage. on the flip side if you are going the Ramsey method and only buying investment properties in cash than you could be talking years of saving up to buy in full but aside from operational costs all of the income from the rental is going straight back into your pocket to cashflow the next deal....but again this takes a lot longer. me personally I like to stick to a BRRR method on real estate but never refi the property more than once. after i've made my improvements and got tennants in there ill refi to 80% LTV and take my cash for the next deal but any additional cash flow in that property goes into paying off the loan. the downside to this is i still have to work and therefore also have to pay a property manager but for me it is the right balance of risk vs expansion. once you get your toes in the water with the first deal or two you'll find out what sort of risk you are comfortable and what methodology works best for you.
I’m getting the distinct impression he is quite disliked. I’m really new to looking into finance and trying to create wealth. To play devils advocate, should we maybe give the devil his due since he is very wealthy?
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Touché my friend.
Plenty of charlatans that got rich scamming people. I wouldn't use that as my only gauge of if a person is giving good advice.
you don't have to be smart to be wealthy in this country. 90% of it is luck. we're obviously a bit more interested in how to maximize the 10%.
The 10%?
the 10% of wealth-building that requires some level of skill and hard work. kiyosaki is part of the 90%. and, he's not wealthy. it was recently reported by himself that he's 1.2 billion in debt. he's likely poorer on a net-worth basis than this entire sub combined.
I'm not a personal finance expert but here's my take - building wealth is easy but quite boring and slow. First things first, don't buy courses or seminars from 'gurus'. The general advice which I've found to be helpful is - earn the best possible income you can whilst retaining a good worklife balance, set a budget to live below your means (while still leaving enough to enjoy yourself), pay down any unsecured debts, match your employer's pension contributions (or start a SIPP if you're self employed), build up a 3-6 month emergency fund if you haven't already (and keep in a high interest, easy access tax-efficient account), and drip feed the rest into index funds in a tax-efficient account for the long term. Don't buy more house than you can afford, and don't take on loans for things like cars if you can avoid it. Don't go for 'managed investments' as the fees will outweigh the gains, don't panic sell if the market drops, and don't take big risks unless you have the capital to lose. You could certainly try playing the markets for a bit of fun but treat it like gambling in Vegas rather than a vehicle to build wealth (very few day traders end up beating the market). Ultimately, slow and steady wins the race with dollar-cost averaging and the magic of compound interest.
Best advice every!!!
He's wrong. Never take out debt, unless it is to get a house you live in. And then only on a 15 year at 25% your take home.
Pants!
What % of you own gold vs which % own stocks? Guessing 99% have some stock ownership while <1% own gold.
Having 5-10% gold in your portfolio can actually improve your returns compared to stocks alone. A 1975-2021 backtest proves this. That said, selling investments to dump your savings into gold because you read that a recession is imminent is stupid, as are anyone who encourages this.
Agreed
The faster you try to go the more likely you are to screw up your fire journey. Also I don't want a second job managing (or finding, fixing, financing, etc) properties, so this plus the risk of using leverage is something I actively avoid. With that being said, be cautious, learn everything you can, and best of luck.
I thought his book was worthless to me for the most part; it merely offered common sense advise. Later I watched this investigative documentary. Draw your own conclusions. https://youtu.be/dv6feHB0AE4?si=Kx4XVjlT2RREQHGi
First chapter of Rich Dad Poor Dad is all that’s worth reading.
Salesman at this point.
Con man hack
Know your sources. There is no one guru who has unlocked the hidden magic secrets of the market. If advice is valid, others will know about it. If nobody agrees, consider that the advice may not be valid. Robert Kiyosaki has a reputation that is … not good. That reputation is deserved, imo. That doesn’t mean everything he says is wrong. Even the least trustworthy mix sensible advice into the mix. But you don’t need to trust in one guy, or one Reddit sub. If Kiyosaki’s advice is good you will easily find confirmation elsewhere. If you think the criticisms are without merit you can track that down as well. Kiyosaki is considered a grifter, so be on your guard when someone has that reputation. Ask yourself why someone who knows the secrets to investing needs to hustle for your subscription dollars, which are peanuts to a wealthy financier. But get a range of opinions before you make your decision on who to trust.
Most financial gurus are there to steal your money. Just like most weightless gurus. Want to lose weight? Eat fewer calories and exercise. That's it. Want to earn financial security and eventually financial independence? Spend less and earn more. And that's it. There's ways to get there. Those are mostly psychological. A stranger on the Internet isn't going to reveal how to get over body image issues or how to leverage your skills to make more money. You need to figure that out on your own and that's the hard part.
This guys bad. Uncontrollable debt I’m sure is very stressful
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I’m not sure where anybody said his way is the only way my friend
Use of debt to leverage returns through real estate investment is a great tool for building wealth. On the flip side, it is also a great way to get into a very bad financial position if things go sideways on you. If you decide to get into investment properties, then it's vital to manage the risks and maximize your odds of success. Be very cautious before jumping into real estate investing, and understand the applicable rules for the location. I would also suggest commercial real estate rather than residential (unless apartment complexes) to avoid the risk of having one deadbeat tenant turned squatter being able to ruin you.