- Mass Market Paperback: 274 pages
- Publisher: Plata Publishing; 1 edition (August 16, 2011)
- Language: English
- ISBN-10: 1612680011
- ISBN-13: 978-1612680019
- Product Dimensions: 0.2 x 4.2 x 7 inches
- Shipping Weight: 2.9 ounces (View shipping rates and policies)
- Average Customer Review: 4.5 out of 5 stars See all reviews (5,974 customer reviews)
- Amazon Best Sellers Rank: #216 in Books (See Top 100 in Books)
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Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! Mass Market Paperback – August 16, 2011
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RICH DAD, POOR DAD is a starting point for anyone looking to gain control of their financial future USA TODAY Robert Kiyosaki's work in education is powerful, profound, and life changing. I salute his efforts and recommend him highly Anthony Robbins --This text refers to an out of print or unavailable edition of this title.
About the Author
A 4th-generation Japanese American, Kiyosaki was educated in New York before joining the U.S. Marines and serving in Vietnam as a helicopter gunship pilot. In 1977 he founded a company producing Nylon and Velcro 'surfer' wallets which became a multi-million dollar business. --This text refers to an out of print or unavailable edition of this title.
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Top Customer Reviews
* Probably the greatest insight is how to think about assets and liabilities. A million accountants scream in anguish, but a primary residence, with a large mortgage, high taxes and high fixed costs to top it off, is not an "asset" for Kiyosaki because it doesn't produce a positive cash flow. Instead, he lists several items, such as rental property, stocks, bonds, mutual funds, business partnerships with limited involvement, promissory notes and royalties (p. 89), that generate money and should be invested in.
* Don't get into large debt positions for non-necessities. Buy your luxury items for cash (p. 176). This is part of any sound financial planning and is taken to its logical endpoint by the authors of "The Millionaire Next Door."
* Watch out for the tax effect of your sales of real estate. In this sense, the book is out of date, since the tax laws were changed in the late 90s to permit up to $250,000 in capital gains ($500,000 for married couples) from the sale of a primary residence be exempt from federal tax, under certain circumstances. No longer must you rely on the 1031 "trading up" provision he describes, at least not exclusively.
* Fear can be utilized as a great motivator to act, as opposed to fear causing you to be a deer in the headlights of life.
However, before we all run off to leverage real estate to become gentlepeople of leisure, let's try to remember a few things.
* This book is written for one reason: to be earn the author money. Kiyosaki is even somewhat up-front about it, noting that royalties are one of the best assets for a person to have (p. 89). Therefore, you should be skeptical -- not cynical but merely skeptical -- about the advice he gives.
* For every Kiyosaki there's a multiple of people who crashed and burned in stock and real estate speculation, and the difference between the author and those people is due in some measure to chance.
* It is much easier to invest in undervalued, illiquid assets in downturns when you're already sitting on a pile of cash.
* Dropping our current jobs to do Kiyosaki's kind of analysis and investing does not make sense for most of us. After all, our jobs are, in Kiyosaki's sense, an "asset" because they generate positive cash flow.
* The principle of "paying yourself first" (p. 172) is not something to be applied inflexibly. Kiyosaki is giving everyone advice from a position that may not be applicable to everyone (p. 176). Yes, the idea of saving a portion of your income is a good idea, even an outstanding idea. But stiffing the tax man and your creditors is not, and unless you operate a business or are engaged in a profession where you can rapidly earn extra cash, it's not a good idea to try to scare yourself into coming up with a brilliant plan to pay them off. You might wind up with a solution like George Segal and Jane Fonda in "Fun With Dick and Jane."
* Beware the author's personal biases. If he truly believed that America is "on the course" to collapsing because the difference between the haves and have-nots is widening (p. 48), he'd be investing in foreign real estate, in gold and would hold a lot of money in cash. He's not. In fact, he does the exact opposite. He bets on American's long-term stability by purchasing real estate.
* The author casually talks about extremely risky investments, such as $5,000 investments returning $1,000,000, as if these were almost ordinary (p. 78). That's highly misleading. He does mention in the book that out of ten limited investments, a preponderance of his business investments "go nowhere" or completely fail, but that should be highlighted when those stratospheric returns are mentioned.
Overall, Kiyosaki has some good advice. However, do not think that you are likely to duplicate his personal experience to success. If you look at how he made his money, he essentially got rich holding real estate in the 70s, in Hawaii, as well as being one of the state's best salesmen. He was at the right place at the right time, with a particular important skill. He then had sufficient money in the 80s and 90s to be able to invest in real estate in the economic downturns. So his position does not correspond to most of ours.
I think it should be concerning to potential buyers that most of the recent 5-star reviews are overly short, vague, and look likely to have been solicited to artificially improve this book's rating. I have no proof of this, but it is suspicious.
In any event, I can see why people are drawn into this book and the Rich Dad company that Robert Kiyosaki has built for himself. I consider myself financially savvy, and even I found myself drawn into his works. The general ideas sounded great, and lined up nicely with what I have been learning over the years in teaching myself how to manage my money. Additionally, the whole book is given a great big vote of confidence by "rich dad," Kiyosaki's personal financial advisor and super-successful father to his childhood friend.
The problem is, there is no rich dad. Everything about how Kiyosaki had this childhood mentor who taught him all these great life lessons about personal wealth is a work of fantasy. Here is an exact quote from Kiyosaki himself when pressed by SmartMoney Magazine about who rich dad really was: "Is Harry Potter real? Why don’t you let Rich Dad be a myth, like Harry Potter?" He boasts of several major real estate flips of which there are no public records. He also claims to buy the majority of small companies right before their share price sky rockets, then makes big money on the proceeds. Except, anyone that owns more than 5% of any publicly traded company is required to report the sale to the SEC. Kiyosaki's name is not on any of these reports. There is also a large pile of evidence that Kiyosaki became wealthy only after this book and his subsequent line of financial-advice products became best-sellers. To be sure, that is one way to get rich, but it is notably absent from the rest of his "profound" advice.
Admittedly, he does have some good points. Ones that I personally think are worth remembering for anyone trying to build their personal wealth are: Learn how to make your money work for you through wise investments, understand your tax obligations and ways to (legally!) reduce your tax liability, failure is all part of the process, and school (and a sad number of parents) will leave you woefully unprepared to manage your personal finances so you'll have to learn about this area of your life on your own. That last sentence is pretty much all that can be gleaned from this book, and all of it you'd probably figure out on your own anyway.
Long story short, please read this website: http://www.johntreed.com/Kiyosaki.html before you buy into his empire. There are much better resources on Amazon and elsewhere that can teach you about money management from authors that actually built their wealth instead of selling you a bunch of false promises.