A story came across the news this weekend about Robert Kiyosaki, the author of Rich Dad, Poor Dad, and how his company went bankrupt last month. Basically, the company didn’t pay the proper royalties on its seminars, and when they lost in court, they didn’t have enough money to pay at all. It wasn’t a personal bankruptcy, rather, a corporate bankruptcy. However, a corporation with money should be able to pay up for a minor royalty dispute (only $23 million compared to $400+ million in revenues). And when your name is attached to a company, and your business is built around creating wealth, the word bankruptcy associated with it usually isn’t a good thing.
However minor you may consider it, I find it appalling as a personal finance writer. This guy made a living on selling “his story” and encouraging others to fork out tons of money to hear it. In the end, the story crumbles, and it just makes him a hypocrite.
Practice What You Preach
What upsets me the most is that Kiyosaki is portrayed by many as a financial guru. His Rich Dad, Poor Dad book made him famous because of the practical advice that he pretended to gain throughout his life. He talks about life lessons learned, and how that allowed him to do great things in real estate and other ventures.
The problem?
- Prior to his 1997 publication of Rich Dad, Poor Dad, Robert Kiyosaki never had any documentation of the wealth he supposedly amassed (Forbes)
- There really wasn’t a rich dad, even though his book specifically claims there was one (Smart Money Magazine, February 2003)
In the end, this “non-fiction” story is just fiction, and so it calls into doubt the advice he gives to readers and followers.
Even though his advice may sound good: be an owner, invest in cash flow investments, etc – the fact that he (or his business) didn’t maintain solid financial health is sad.
Don’t Prey on Your Followers
Another big red flag for me is preying on your followers. This is hypocrisy at its worst. If you’re selling yourself as a model for something (values, wealth creation, business, or even how you coach your kid’s soccer team), don’t use your followers and believers – empower them.
Robert Kiyosaki wrote and sold his book, which I consider to be honorable. He then tacked on a class, which was free, which is also honorable. But then he started preying on his followers –
- Class #1 – Free Advice
- Class #2 – Paid Advice, $495 (However, very little education and more marketing for class #3)
- Class #3 – Paid Advice $45,000 (Yes…that’s not a typo)
If you’re a financial planner, I think it is fair to charge for advice. However, it is important to be reasonable for your services. If you’re trying to help someone get rich, and provide value, $495 could be reasonable. But how could $45,000 be reasonable for any personal finance class? Furthermore, would you ever pay that given the credibility issues raised by the teacher?
Kiyosaki Isn’t The Only One
The sad fact is that Robert Kiyosaki isn’t the only one. There are hundreds of financial hypocrites out there. There are even more people out there that have hypocritical moments (I’m sure I have as well).
Just think:
- Suze Orman launching a prepaid credit card
- Donald Trump’s company declaring bankruptcy 4 times
- Ray Lucia, author of Buckets of Money, charged by SEC as misleading
It just really offends me when I see people almost victimized trying to get rich. I’m a firm believer that anyone can make $1,000,000 or more. Heck, read my article and it’s actually pretty easy.
Kiyosaki was just one, but there are hundreds, if not more, people doing the same exact thing!
It doesn’t take shelling out thousands of dollars for courses from potentially hypocritical speakers. Just earn, save, get out of debt, and invest. Done.
Don’t Get Me Wrong On His Book
I will add one last thought here though – don’t get me wrong on many of the financial tenants he teaches in his book. Just like many people in the media, there are some things I agree with him with, but many things I don’t.
For example, he idea of buying assets versus liabilities is spot on. He advocates spending responsibly, and really knowing what you’re spending money on. However, I completely disagree with his business tactics of large upsells to get people started investing in real estate. If you want to get invested in real estate, skip that seminars and start investing with just $500 on platforms like RealtyMogul.
So, my final thought is, don’t fall for the hype. Read his book Rich Dad, Poor Dad for yourself, and realize when people are being hypocrites or selling something you don’t need.
What do you think of this latest act of financial hypocrisy? Can you think of other financial pundit hypocrites?
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here and here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
Financial Samurai says
Wow, I’m really surprised his company declared bankruptcy!
He’s probably still a multi-multi-millionaire though.
His story is what America is all about. Anybody can pitch anything and make money. Just imagine if you really had substance + marketing!
Robert says
He is rich for sure – in the bankruptcy documents it was stated “Mr. Kiyosaki will not use any of his personal capital to cover the debts incurred”. Sad that you pitch your stuff under a shell company, don’t pay your fair share, and then stick the other party with the bill. Reminds me about your tweet the other night about splitting the tip!
Terrence Forest says
He gained but the other person left holding the unpaid bills lost out! That’s not fair. I have read just about every book from the rich dad series. Reading this article is a huge disappointment. I know im late to this article but it was very informative. thank you
Vince says
The big red flag for me was where he talks about using his cat as a business partner to back out of a deal. He thinks it’s clever, but just sounds like fraud to me.
pal says
I attended a “group interview” for a job with his company. This was held in Scottsdale, Arizona at an impressive “manse”. I had to listen to an interminable presentation by two ladies before they got down to individual interviews. The presenters were full of themselves and made it seem like the “lucky chosen one” would have the wonderful opportunity and privilege of working in these beautiful surroundings. When they approached me I told them I was not interested and left. It was a bizarre experience.
Brenda says
I suppose Robert Kiyosaki figured if it’s good enough for Trump, it’s good enough for me. I listened to him in an interview yesterday (7/31/2019) explaining how he never pays taxes by the debt he has created. Interesting concept, innovative thinking of the rich, but can you imagine if all America’s could conceptually do the same? Personally, I would absolutely love it because it would then force the government to clean up their act and govern by the principle of the golden rule. I know. In my dreams…and, no, I’m not holding my breath.
JGJ says
Actually all Americans CAN do the same. I am a somewhat less than average American in terms of income but have used this exact strategy to avoid paying income taxes for several years now. Though I don’t agree with all of Kiyosaki’s methods, and I do think his company behaved irresponsibly by not paying the royalties for their seminars, he is right about one thing. It all comes down to knowledge, not total funds.
Jonathan says
Wow, I didn’t know that he wasn’t as “wealthy” as he made himself out to be when his first book was published. Shady much?
Lance@MoneyLife&More says
He did what was financially right for his business but it isn’t helping his brand. People who sell the dream know that the people buying it aren’t always going to achieve it. They must be willing to accept that and the criticisms that come with it.
Robert says
I don’t think any business owner would disagree that it was right for the business at the moment, but how did it become right to not follow through on business agreements, and then not pay up because you don’t have the money (even though your business is teaching others how to make money).
Cash Flow Mantra says
I agree that it is incredibly hypocritical to be a “financial guru” but behave in such a way. Sounds more like snake oil to me.
Marie at Family Money Values says
His work was always more salesmanship than substance. Lots of people need inspiration in regular doses.
I’ll have to check into this bankruptcy – hadn’t heard of it.
Robert says
Selling inspiration is one thing, but selling “making money in real estate” is another.
Brick By Brick Investing | Marvin says
His pitch for real estate was the worst! “Buy Real Estate as an Investment, anyone who invests in stocks is a sucker.”
Christopher Walker says
I always had a hunch that this guy was a total charlatan. I don’t know why, just a gut instinct. He seemed kind of like a toned down version of Don Lapre. Lol Now that guy was a total fraud. I say was because I haven’t seen or heard anything about him lately. Not sure if he’s still suckering gullible people out of their hard earned cash these days.
John Mullenax says
Don committed suicide while in custody and awaiting trial.
krantcents says
Time usually will always reveal the liars out there. It is amazing that he got away with it this long.
Drew says
That’s right. He only really took off in Australia when he hitched his speaking wagon to the mukti-level marketing community – they are already a soft target.
Manette @ Barbara Friedberg Personal Finance says
Somehow, it hurts to know the reason behind Kiboyashi’s bankruptcy as it may also affect us PF bloggers. Some people may have clouds of doubt in their minds how truthful the personal experiences we share and how credible we can be. “Practice what you preach.” I hope this will serve a lesson to many, whether PF blogger or not.
The Financial Blogger says
Man…. and I’ve read like 4 of his books! darn! that’s crazy!
Brick By Brick Investing | Marvin says
I always had some reservations about Robert Kiyosaki. I was invited to one of is seminars then pitched the 2nd class for an absorbent amount which I found absurd. I still believe that his book Rich Dad Poor Dad no matter how true is a great read for the novice seeking financial freedom. It doesn’t surprise me that he declared bankruptcy but what was surprising is he would let such a thing happen. I would imagine that his “brand” is crushed now. Thank you for this update, I actually had no idea.
Robert says
I would think his brand is crushed, but it would really be interesting to see in a few years if people still remember this. I think too many people have a short term memory, and he will be back pitching his seminars again in another year.
allen says
I smelt fraud years ago, when there was no truth value for his book “Rich Dad, Poor Dad”. What is extremely sad is that people are still buying into him as if he is the save all to finding financial freedom. When I see people scheduling game time to play his board game “Cash Flow” I’d love to chime in and give them a piece of my mind on this guy. However, Trump declared bankruptcy 4x and he is still relevant obviously. I’m sure Robert isn’t worried either, because most people don’t do their homework and research other’s before they get involved, scam, fraud, ripoff or not.
Tiara walls says
It’s 2018 and I wanted to write to inform you you were right. He has a siminar coming to my town. I signed up for the 1st free one. I seen the a comment of a person calling him a scumbag and got curious. I’ve never heard about this all recommendations I’ve received made it seem like he’s really out to be helpful to the people. I had to click on page 2 of Google to find this.
Allen .T says
You are right, his brand is back and are conducting seminars in Singapore.
Thanks god That I come across your post. I was suppose to attend one of hie ‘FREE’ seminar this afternoon… guess I will not be suck into this scam..
Tonatiuh Cordero says
It’s a like TV program in Mexico called “La Historia detrás del Mito de Robert Kiyosaki” (The story behind the myth of Kiyosaki” Anyway, I like his books and they have taught me many things… And for a lot of marketers here in Latin America his books are a must. Maybe it’s a strategy to teach something new.
Helio Laguna says
I am one of those marketers who find financial freedom thanks to Mr. kiyosaki advice, so who cares about a financial setback like this, he is my hero and his financial advice is solid.
Salvador says
Man, people just don´t get the importance of being protected, Rich people apply these strategies all the time, for protection, when you buy assets and have money the wise thing that you could is protect yourself, this advise is provide by Robert from the beginning, so for me is not something weird, actually show me how smart Robert is.
Lawrence says
Salvadore, he is smart about what? Oh, teaching others how to make money using average skills, and thinking bankruptcy is excellent business ethics. Wrong. I think you were blinded by his stories. How much did you invest and earn since you wrote your comment? Where is your proof? History will not be kind to Robert K.
gost says
He plays by the rules. And the rule is – your company can declare bankruptcy and it won’t affect you personally. Is it ethical? Probably not. But it’s not against the rules. He is not abusing anything. Regarding his expensive seminars, rat games and software… You don’t have to buy them, you don’t have to attend to it. There are plenty free Robert’s videos on YT and elsewhere. I only bought his Rich dad Poor dad book. Everything else I learned from him for free… And I don’t follow every his advice or move. I learn and adopt in my business strategies what’s appropriate for my business and in my country (I’m not American). Regards…
Isela says
I couldn´t have expressed it better!
He is so shady. I know someone who actually interviewed him for a magazine in Mexico. When this person started questioning his “training business” he got really upset. Later he had to apologize because he realized they has recorded the inverview.
I really do not like him, he seems to talk about the easy thing to get easy money .
Rob @FinancialSprout says
Despite how shady or how much of a hypocrite Kiyosaki might be, he did have some good principals. Regardless if he went bankrupt, it is always a good idea to get a static cash flow that exceeds your active cash flow. If I did learn anything from him it was that saving doesn’t make you rich, cash flow does. Still, it is disappointing when you realize that you were being lead by the black sheep of the herd.
Jon @ MoneySmartGuides says
The bankruptcy was news to me. But, I always had a feeling that something just wasn’t right with his approach. I enjoyed the first book, but then the more I read about him and his writings, the more questions it raised.
Regarding the $45,000 for advice, holy cow! If I’m paying someone $45,000 for advice (I doubt I ever would) there had better be some sort of guaranteed return I earn. Otherwise, I would want my money back.
Pam says
My husband and I had been greatly influenced by reading the Rich Dad books. Although they weren’t well written, they did contain a lot of practical and useful info. It’s too bad he has turned out to be different from who he claimed to be.
Matt @ Financial Excellence says
No surprise that his business filed for bankruptcy but his personal assets were protected. The whole theme of his first few books was to take risks in real estate and other investments, but incorporate so you can protect your personal assets in case your risks don’t turn out. If I remember correctly, it’s not the first time he was involved in a bankruptcy. The lessons he learned the first time around were to shoot for the moon, knowing bk is always an option as long as you’re protected on the personal side.
So in a way he actually is practicing what he preaches. I don’t necessarily agree with it but he’s following his own advice.
Kacurtis says
Agreed
Jenny @ Frugal Guru Guide says
It’s pretty obvious that he declared bankruptcy as a financial move, not out of necessity. How much of the corporation’s money goes to him is up to him–he basically just shifted money around so he could get out of paying a debt. That doesn’t mean he’s out of money. It just makes him a scumball to cheat his creditors.
Hugh Kimura says
What you might not realize is that he IS practicing what he preaches. He tells you to start companies to not only make money but also to protect yourself. How many of us know what really happened in the dispute? Maybe he was right, maybe he wasn’t. But the bottom line is that the issue in that business couldn’t spill over into his personal wealth and other businesses. If he did businesss in his own name and they sued him, he could lose everything. Because he did it in a business, he can only lose what is in that particular business. Yes, it’s not pretty or good for his name, but it’s just business. To get rich, you do need to think differently. I would recommend you consider the other side of the story.
Robert says
You’re completely right in some regards – you create a business to protect your personal assets. However, how you conduct your business is still a reflection of you. You shouldn’t create a business and be unethical just because you have a veil around your assets. You should still act responsibly and pay your vendors and work towards making a profit, not just siphoning it all out and leaving your vendors high and dry.
Walter Konig says
Interesting blog Robert and I think that your correct in pointing out the costs of some of these self help seminars and let me tell you that there is way worse out there then Robert’s.
Before I get to deep into the counter points there is one thing that I would like to point out from the teachings and the philosophies of Robert; wealth for him is not defined as having lots of money. Wealth is defined as the ability to go long periods of time without having to work to make money, being able to focus on doing the things you love and therefore being out of the “rat race”. This is how he supports being wealthy and not having large amounts of money and honestly it is easier to be wealthy with less then wealthy with more.
Counter Points:
Being sued for royalties is something totally different then getting sued for not paying for the hotel that you gave a class in; on top of that when suing for royalties it is easy to inflate the amount that you are owed with sad exaggerations of the value lost by using the material that you were to pay royalties on or items sold.
It is possible that Robert wasn’t aware of the royalty agreements in place on the items or information that he was providing (agreed this is no defence) as he has sold the rights to market his teaching to different people around the world. Those people are responsible to setup speaking engagements and sell tickets; they are also supposed to get Robert key information about the market in the area he is going to as well so that he can talk about the market he is in and the point about building companies around you to protect your personal wealth has already been beaten to death in counter points.
The last thing that I would like to mention is regarding hanging Robert for his company going through bankruptcy. First thing is that bankruptcy is protection for creditors and is designed so that a company cannot just throw their hands in the air and say “I have not money” and walk away and never pay a dime with the money and the assets that they have then start-up again in the next town. With a bankruptcy there is an examination of assets and company cash amounts then liquidation of anything that can be sold. Additionally any residual income coming into the company is used to pay dividends to the creditors in order to pay back the claims. Once this is completed the remaining amounts can be written off by the creditors. So if they have protected themselves correctly they will use this to pay less corporate taxes and be happy with the write-offs and continue doing business.
Anton Ivanov says
Kiyosaki’s own company may not be a model business enterprise, but I don’t think it greatly diminishes the overall message of Rich Dad Poor Dad. The books does a great job indoctrinating its readers to the millionaire mindset and the financial habits one needs to become wealthy. Kiyosaki is definitely not the most ethical businessman, but a testament that the principles in his book can in fact make you rich.
Derek @ MoneyAhoy.com says
Wow, the world really is filled with fakes and people willing to follow them. I thought much of his advice was good, but this is a pretty surprising turn of events. I guess it just goes to show that you can’t predict everything in this world.
Kostas @ Finance Blog Zone says
Tough to say whether we should take his advice and business apart from each other as a whole. I would say yes though, some of his advice is still very sound and solid!
Shobir says
This post really made me think about Robert Kiyosaki. I always recommended his books to people who wanted to find themselves financially, I even recommend him on my blog, I think there might be more to this than meets the eye, some of the ideas offered by Robert Kiyosaki really opened my eyes especially the cash flow models. His company might have become bankrupt however his ideas still seem viable. Posts like these are useful but credit should be given where it’s deserved.
Nick | Millionaires Giving Money says
Robert Kiyosaki’s book was probably a moment of brilliance and has helped me to turn my finances around. I guess Mr Kiyosaki stopped practicing and preaching what he wrote about and eventually got into a mess. Rich Dad Poor Dad will always be a best seller because the book is great, it’s a shame about how the author conducts his business. Great post, thanks for sharing.
Stanley Donovan says
His first book was really inspiring to a lot of people especially what he talks about what our school education system that do not teach us about financial. However, it is vry disappointing when you learned that you were being lead by a Hypocrite author.
Peter says
Haters! Losers! We all are hypocrites. Some on a petty scale and some on a larger scale. Hey how do you learn by not being afraid of failure. So unless you are perfect and have done way better than him I think you should keep your mouth shut. Some people just want all the praise and bragging rights and envious and greedy of others.
Chad says
In my own educated opinion this was a brilliant move. As my financial derivatives instructor states, “If you can’t beat them, give them a big middle finger and move on.” He claimed bankruptcy but that’s exactly what corporations are designed to do. If you mess up, there’s an easy off switch in claiming bankruptcy. Alongside this company, you are passing up the thousands of apartments he owns and his hundreds of other ventures. So you’re criticizing him for claiming one corporation bankrupt? How many jobs have you created recently? Oh that’s right, you right reviews.
Jim says
Hey @Chad,
I think most people are upset with this guy because of the hypocrisy. I’m not a fan of his, or anyone that tells people to invest in real-estate, as the real-estate market has too many investors as it is… but that’s me.
evans says
bankrupt or not, kiyosaki books are good for financial guidance to those smart and not braggists. bankruptcy is some sort of weapon to the rich if they mess up, its some kind of ‘last man standing stance’ if you have good lawyers.
James says
I bought a copy of Robert Kiyosaki’s Rich Dad and Poor Dad book for less than USD10 during my family holidays in Bali, Indonesia more than 10 years ago. Kiyosaki’s book had really changed my mentality toward investing in real estates and after 10 years investing in real estates with his cash flow principle. Thank you Robert Kiyosaki for your cash flow principle has helped me to enjoy 7 figure income per year.
Marilyn Jess says
Appalling lack of integrity, and not surprising in the least. So many Americans are broke when they reach retirement age, for various reasons. I am there, so I can see through that lens clearly.
Reading a book or attending a seminar doesn’t immunize you against poor or no financial planning, or haphazard life decisions. I compare it to the taking a pill approach to getting better, versus working on your lifestyle. Much harder to work toward a goal, and say no to decisions you know aren’t wise. Personally, the so called Rich Dad is a bad example.
Don Mueller says
As someone who has known Bob since the early 70’s, when he was still a USMC helicopter pilot, I can assure you there was a Rich Dad. I knew him and members of the family. Bob actually told me the story around 1983/84 when we were hanging out one day. As far as his “wealth” pre-RD/PD, he had enough passive income to live modestly in Arizona. Once Oprah featured him, books sales took off and the rest is history. His philosophy is good; specific advice mixed. The person who’s done the best following and implementing these, is his wife, Kim.
John Espo says
The whole point of his books is to turn on our heads what most folks feel is wealth. Expensive cars, large residences, expensive trips etc are what most folks feel they need to acquire to demonstrate wealth or feel represent wealth. The lesson stands regardless of his personal bad luck. It is still a hallmark book that I think should be mandatory reading. Did you dismiss all of John Lennon’s love songs when he married Yoko?
Lorre says
It is so easy to criticize someone in their absence. Why not do the honourable thing and challenge Robert Kiyosaki to an open debate (in public) and have him give his side of the story too.
One day you will learn, hopefully, although I am not too sure of that, that by criticizing others you only hurt yourself. But I do believe that you are a long, very long way from that level of thought. May you grow to realize that criticizing others, especially in their absence, is not the thing to do.
And of course, there will always be those who, like you, cannot think objectively and chorus your comments. It is sad. It is also ironical that you do not respond to most of the positive comments that support Robert, but mainly those that agree with you.
When you put your criticism of the man to him in an open forum and the outcome of that is published, then we will most probably see this whole situation in a brand new light.
Robert Kiyosaki has been and is a powerful inspiration to millions of people worldwide, and that cannot be denied, tarnished or changed.
I do hope you publish this comment although I doubt that you will, and even if you do issue a reply to this view, I will not respond to it. This world needs more compliments not more criticism.
But I wonder if you get that. If you do, it means you are growing and personal growth inside, is what you need … urgently.
Namaste!
Robert Farrington says
Thanks for sharing your thoughts. I’m actually complimentary of Robert Kiyosaki’s books and many of his ideas. What I find hypocrisy in is clearly called out: both his expensive paid programs and upsells, along with how he managed adversity in that area.
It’s funny that you stumbled upon this article today – it’s been online for over 5 years with plenty of opportunity for anyone to share their thoughts.
Mark says
Its possibly because he and another guy (Fred Lam) are selling another “5 Step System” in online webinars now
Jeanette Bachelder says
An update: I could not agree with this author more. I attended a free seminar late last year for the “learning opportunities” (read seminars here) offered under Legacy Elite Training. The free presentation was compelling enough that I chose to spend $299 to attend a 3 day training class which promised to deliver real time training for the beginning real estate investor.
I always research the things I intend to invest in (yes, even training); however, because of the “Rich Dad/Poor Dad” reputation, I didn’t research the 3 day training (I’ll definitely stick to my normal formula of research in the future!). Today I attended day 1 of 3. It was a complete waste of time and money. Almost the entire day was spent belittling attendees (when I spoke up to offer a comment, I was asked, “would you like to teach the class?”) and pushing everyone to buy a training package ranging in cost from $12.5k to $39.5k. Speaker definitely disliked me when I pointed out a discrepancy regarding deeding a home back / the loan staying in the original borrowers name. Came home, started to research. Guess what? That’s how I found your site and multiple others with unresolved complaints. I’m not certain who I’m more angry with – myself because I know better or Kiyosaki for allowing this type of scam to go on under his name. Needless to say, I will not be attending days 2 – 3 of the training and that money is lost. Lesson re-learned…
J says
Thank you. I have been to his free workshop and been interested in going to his 3 day training. I had concerns about paying $300-$500 for a 3 day training and what I would get out of it. You made everything clear for me. I’m glad I didn’t pay for it.
S says
I had a similar experience at one of those “make millions in RE using OTHER people’s money” shake downs. I went to get a free 10$ gift card LOL. I saw massive holes in the salespitch like, what about vacancies with these massive mortgages we are supposed to be taking out on these properties? and many other unanswered questions they didn’t want to answer.
Finally, my favorite part, the last thing of the meeting they told us to give 10grand. I asked what the money was for (here I’m thinking, is this to go into a pot so the “team” can purchase a first property or something?). I am not kidding. He said “That’s a…kick in the butt to show that you are motivated.” I was so shocked I just sat there, mouth slightly open. AND PEOPLE STILL SIGNED UP FOR IT!!
Its like that ole gambler’s phrase: “Suckers don’t deserve their money.” I walked away shaking my head. I spent the 10$ at starbucks on my way home. Gotta say, it was the most satisfying coffee I ever had.
Akilan says
Look, when I first read his book, I thought that it was really great advice. But then, I started looking into his past and how his book really went viral. He has been circulating his book through Amway, the same multi-level marketing company that has tricked millions of people into buying into their be an Independent Business Owner crap. He is a hypocrite that disguises bad financial advice with good ones and makes millions. I think that the fact that he’s associated with Amway should in itself raise alarms in our heads.
Jim says
Bingo. I found this out a few years ago too. When I did, I put his book down and started reading real financial experts.
EDISON says
Who care if the man went through bankruptcy or not. All it really matter is his teaching make sense or not? Should we follow or not? Should we pay the asking price of 45000 or not? His teaching in the book poor dad rich dad is the best advice I ever had and he is a hero to me.
And the reason why he became bankrupted , you got to think… business is war. The investor that invest with him will suck him dry. They are not no little cute baby. Banrutcpy is his problem. Learning his teaching is our decision. We shouldn’t worry too much about his business or even how much money he have. His advice in the book= best advice ever.
John Maitrejean says
Exactly. Trump filed bankruptcy 4 times out of 500 companies. Anyone who own a business knows that’s phenomenal. The reason for having a corporation is to protect your personal assets, which is what Robert did. His financial advice is the best I’ve read, simple, basic, information that is easily applied. It’s worked great for me, and personally I owe Robert a lot for where I am today financially.
S says
Robert K was a huge inspiration for me. RDPD was the first book that taught me that, “If you can’t take the advice in this book and DIRECTLY make money with it with little risk, the book isn’t really helping you make money as claimed.” And first, I don’t buy the “its not really about making money, its about living your best life” BS. Money is freedom. Money buys freedom. Without money, you still need it, but you only get it from someone willing to give it to you (usually in exchange for effort at a job). The book built my skeptics armor. I no longer read books that “sell money.” I read stock charts. I’ve learned that most people don’t understand that THEIR bottom line in their real lives should be their primary focus; not the claims of opportunity that, by the end of the book, you can’t QUITE put your finger on what to do next. That’s the real schtick.
The books hype up what COULD be, then leave you wondering what to do about it. Robert and his type sell dreams (much like ted talks). They sell emotional highs. The secret to money is the secret to losing weight; aside from windfalls, selling your million dollar idea (I’m looking at you Mr. Musk), and luck. Save more than you spend (eventually most of what you make) and find a way to grow that saved money. For most of us, the hard way is the only way. But we don’t like hard. So fat people stay fat, poor people stay poor, and debt never gets paid off.
Poor dad’s only flaw was that he never capitalized on his earnings and moved beyond the hand to mouth mentality. That was the only valid piece of advice I took away; and it is important to learn this “grow your money” lesson, hopefully young. Now, Robert’s “revelation” was working a job sucks. WELL NO KIDDING! But I noticed he never really offered real advice on the actual mechanism of money making (something poor dad did right thank you very much), nor the limits of money making most of us normal people encounter. So, I know I should do more than make a paycheck. THANKS BRO! NOW what!?
On the money growth side, “Buy real estate.” Guess what? You need money for that. Alot of it if you don’t want debt risk. Save till you can buy a rental or capitalize on a hot sellers market. But its not EASY DUDE!! Risk management, due diligence, and patient money management/accumulation are the realities. Its not easy, its not fun (usually), and it often requires boring education into something you may not be interested in. In fact, it sucks alot of the time and it usually takes many, many years. You are putting away all that money. you aren’t having fun with it. you have goals that death may cut off from your hard work (risk). But the end usually justifies the effort: financial independence. That was not in his book. But that is the reality; for most of us. Personally, I hate sugar coating and EVERY single one of these “feel good, get excited, and GET RICH NOW!!” info-books is pure frosting.
SG says
Hey Robert. Why did you offer a FREE course to get out of college debt at the end of your article? Are you also using the same model if business to which you are condemning in your article?
Robert Farrington says
Negative – our free email course is truly free and there is no further courses beyond that. We don’t offer paid courses, and we’re 100% transparent about how we earn money. You can see how we make money here: https://www.thecollegeinvestor.com/how-we-make-money/
Careful for falling for a “whataboutism” argument – you need to assess every situation independently. It’s one of the reasons we think there’s value in his book vs. a seminar. You can’t compare one to the other.
Samuel says
What about that board game he and his wife made up that’s supposed to teach people to gain wealth? I think it’s called Rat Race. What’s the price on that thing? Gee, what a sham. Lol
JB says
Heard him speak at a conference – he was very unprofessional dropping F bombs with Devera younger children in the room. Very unimpressed.
Ivan says
I’ve read every post in this thread. Here’s my 10 cents…
First of all. If anyone starts reading a book series like this or attending seminars thinking they just found the answer to their prayers. Then they are just setting themselves up for disappointment. His first priority is to make money. That will always be his first priority. That is the priority of every salesman. He’s not here to save you. He’s here to make money.
As for bankruptcy. Companies go bankrupt every day. That’s how it goes. He went bankrupt and declared it. So what! Protecting your assets is why you start companies in the first place…. because they are their own legal entity, protecting your personal assets from debt. However, if he declared bankruptcy just to avoid something ( unlikely seeing creditors and whoever else will probably investigate ) then he is a false image ( rich or not ). I’ve not yet read anything proving what went down as a fact and therefor will not speculate any further.
As for his books… I am on book number 4. And I am both interested and cautious. As any sane person should be. If you go reading these type of things without a healthy amount of doubt then you’re just gullible. He does say many things that make perfect sense. I agree with a lot of it. Bearing in mind he’s a salesman and just wants to make money ( ALWAYS KEEP THAT IN MIND WHEN YOU READ STUFF LIKE THIS ). But there are things that I just don’t agree with. First of all… Not a single person has disagreed with anything he’s said, not in his books or the youtube videos I saw of him… my first red flag. Forbes commented that there’s no documented proof proving his success from way back when as he claims to have. Interesting!!! But that doesn’t mean that his advice on understanding cash flow is bad advice. It doesn’t mean that you don’t need to understand everything you can about a particular market BEFORE you run off making investments. It doesn’t mean that the fact that there is money to me made is a lie. OF COURSE THERE IS MONEY TO BE MADE. You just have to find it. Could he be a scam… it’s very possible, but does that mean he’s wrong when he says “make failure part of success”… no it doesn’t. Does it mean quit your job and start owning companies because RD/PD said so… DO NOT QUIT YOUR JOB!!! I REPEAT!!! DO NOT QUIT YOUR JOB. But please for the love of all things holy USE YOUR COMMON SENSE.
Your house has value, but it is not an asset. It is still an investment because it has value, but it isn’t generating income. There is a difference. Know everything that you can about money. Know how taxes work. Know the laws. Know about businesses. Do your best to find ways to earn money outside of your paycheck. Learn all you can about a market and if you find a good deal based on intelligence and not emotion then take it. The biggest risk is not risking anything at all( said by many people ). Everything here is in his books and it is sound advice.
Stop caring so much about what he did. Do you want a hero to swoop you off your feet or do you want to gain knowledge using common sense and a healthy amount of questioning. Pick one… you can’t have both. Robert Kiyosaki or not… everyone has good advice. Extract the good advice and ditch the rest. Who cares if he scammed in other places. Unless of course you’re looking for someone to praise and worship then by all means go ahead… I won’t stop you. I got what I wanted from him.
Patrick says
Good point😉
Shane Osinloye says
I just think this article is hilarious. You clearly missed the entire purpose of the book. Its not just about getting money and getting rich. It’s about the ability to think outside the box, and ride the waves, both ups and downs, towards your endgame.
He also talks about people like you in the book. The Chicken Littles. The Naysayers. The people who haven’t done what others have, but will tell everyone else how to do it, and leading everyone into relative failure, even among the successful.
Have you taken the course to see what is included? Did you break it down to see if there is or is not a money back guarantee?
I’m not even challenging your assessment of him, but your critique of the accuracy of his advice. The traditional world is not working for most. Fact. People are dying broke, unable to pay for medical expenses and food, even those who are educated. Fact. Leaving little behind but debt. Fact. The government is a black hole of taxation, without doing critical analyses of how successful most of their programs are. Fact. Social security is failing. Fact. Going hundreds of thousands of dollars into debt for a college degree, and coming out of school to front line retail jobs is a sham. Fact. The American propensity to pay everyone else but themselves, and work for everyone else’s dreams but their own. All Facts. I could go on.
I would surmise that if you disagree with his assessments, then you’ll be on the same track to less than what you could have. The only problem is, you won’t just be failing yourself from conformity, you’ll also be failing your readers.
And before you challenge that with the fact that you founded this entire site, remember he details that the rich and the otherwise successful can still fall into the traps of conformity. So congratulations to your work, and this excellent site, but don’t miss the forest for the trees.
I believe in you though… Maybe you’ve already done articles about the predatory nature of everything else in life, like taxes which affect the poor more than the rich, the re-circulation of contracts to private companies, the rising cost of education, the inefficiency of the school system, and even the predatory nature of the home equity market, etc, etc, etc, which are each completely unavoidable, unlike selecting Kiyosaki’s $45,000 classes. Let supply and demand do its job.
Suniti Rao says
I couldn’t agree more having attended a $205 seminar on 27/8 in Melbourne. It promised big things but all that I got was a list of more programs all the speakers were planning to conduct. Robert was a big disappointment repeating himself all over again In a space of three hours…it was as if he didn’t remember thst he said all all that earlier. In a free seminar 20 years ago in Sydney he imparted more information. Please be careful of such scammers. JT Foxx was such a fraud that it was a pain to sit through listening to his BS. Absolute waste of money and a leave taken from work.
Bob Wolf says
So many negative Kool-aid drinkers, drunk on each others negativity. So many crabs in the bucket and won’t let each other out of the bucket. Go do what Robert teaches, and instead of negatively gossiping about it, and you too might make time to thank him for teaching your lazy ass how to achieve success. Robert tells it like it is whether you like it or not. Straight up guy who has hit highs and lows in life but keeps on winning and sharing to help others. You negative Nancies need to do something thing instead of blogging negativities to make yourselves feel good. Go do something good for yourselves and society.
My wife and I and many friends are grateful for what Robert taught us over the past 20 years. His success principles and our actions provided us the path to financial freedom! No job for over 20 years, and a net worth I could only dreamed of twenty years ago. All a credit to what Robert taught us and motivated us to act and get it done. Let him deal with his financial challenges and you deal with yours. We are so thankful to Robert and Kim for teaching us success.
We invested $45,000 into Roberts courses and because we took action, we made it back in our first deal. We listened to many who complained that all they did was take the classes and then complain about spending so much money without and did absolutely nothing (took no ACTION) to try to achieve success. Just like college graduates who live in their parents basements. Get off your ass and take action, go do something for yourself and others.
Please stop the negative piling on and go do something positive for yourself and society. Make the world a better place.
Scott says
Excuse me? You paid a man $45,000 to be taught to live below your means, pay off your debts and invest a little at a time in the stock market and perhaps real estate. I would have been happy to tell you that for free. That is just mind-blowing to me!
Todd says
For someone claiming to give financial advice, I would say your pretty ignorant about the reasons for bankruptcy law and how it protects both the business owner and the creditors. Any money that can be recovered is, anything else becomes a write-off. Without it, the creditors simply lose everything.
Bankruptcy is a business tool to help you reset after a mistake and protect your creditors from total losses. We all make mistakes unless of course, you are mistake free?
Robert has put out a series of books and educational materials that have been sighted by hundreds of millionaire real estate and stock investors as their inspiration to start investing. To say he’s a fraud because of this is just ignorant. Yes, he’s expensive if you want to hire him or go to his lectures. He’s less than many others out there, and frankly, I would bet his net worth is way higher than yours.
Scott says
Todd, you are absolutely missing the point. Does the hyptoscracy of making millions off of people and then filing bankruptcy even set off any alarms in your ethics filters. You seem to understand bankruptcy law, but you seem to be lack and understanding of ethics. He is just using bankruptcy to further his own wealth…brilliant investment strategy!
Bill says
I read his book a few years ago. His big secret which he revealed was to buy low and sell high – not really a secret. He also said he got a tip from a company employee to buy stock, then was told when to sell stock which is illegal for insider trading. Bob never got charged with that because… it never happened. Just another fictional story. After reading the book, I found an analysis of his book by John T. Reed which pointed out lots of errors, falsehoods, and bad teachings in his book. I am glad I read the Rich Dad book because I saw many of the fraudulent teachings in one book. So read the book (from the library so you don’t need to pay for it) with an open mind looking for the bad teachings. Then read John T Reeds comments which you can find on the web for free. Don’t get sucked into his hype.
Ron says
I listen to his podcast. He’s an ass; arrogant, pompous and the worst interviewer I’ve ever heard. He loves to hear himself speak. He’s now into conspiracy type stuff. He gets good guests and doesn’t let them talk.
Btw, just discovered your blog…I like it.
Jimmy says
He’s not a hypocrite because he taught how to become rich and his company went bankrupt. He actually taught about learning from mistakes and recovering. He is also richer than most people. Having a bankrupt company doesn’t mean you don’t have money, but your company doesn’t. You can still rebuild it.
Roger Blaise Fournier says
There is such more, and more free information online, and books. I’ve attended many seminars like Robert’s, and at the end of the seminars are “set-up” to spend a lot of money.