Robert Kiyosaki - your opinion?


Well, this isn’t really a Social Security thread, but suffice to say, unfortunately, all Ponzi schemes collapse. It’s just an unsustainable arrangement.


Rich Dad Poor Dad was one of the first books I read and I thought it was pretty good.

Recently I saw this and am no longer a fan -

“We’re on the edge of a cliff right now. We have never been here before. If you’re still saving money when interest rates are negative, you’ve got to be crazy. When you’re investing for the long-term in the stock market, where there is no connection between stock price and reality, you’re crazy.”


I’d agree “Cash flow Quadrant” was pretty good. The regurgitation does get a bit much towards the end though.


Like all other books out there, you’ve got to pick and choose the valuable messages along the way.
His books can be very repetitive and very fluffy but then again I got a lot of lessons otherwise. I’m reading the 4th book in his Rich Dad series, and will definitely stop to read more of his books. The mindset thing is what does it for me: if you change your mindset as he suggested in his Retire Young Retire Rich book definitely struck a chord with me. Increasing your context is definitely good - so if you think his books are full of fluff and you didn’t learn anything then move on. However, if you keep an open mind you may just learn a few things here and there along the way.


Despite the rhetoric, Social Security is not a “Ponzi” scheme. A lot of people like to pull that label out every so often:

Excerpt at the end explaining the differences between Social Security and Ponzi schemes:

"Mitchell Zuckoff, a Boston University journalism professor who has written a book on Ponzi, noted three critical dissimilarities between Social Security and a Ponzi scheme, which by definition is both fraudulent and unsustainable.

“First, in the case of Social Security, no one is being misled,” Zuckoff wrote in a January 2009 article in Fortune. “…Social Security is exactly what it claims to be: A mandatory transfer payment system under which current workers are taxed on their incomes to pay benefits, with no promises of huge returns.”

Second, he wrote, “A Ponzi scheme is unsustainable because the number of potential investors is eventually exhausted. That’s when the last people to participate are out of luck; the music stops and there’s nowhere to sit. It’s true that Social Security faces a huge burden — and a significant, long-term financing problem — in light of retiring Baby Boomers. … But Social Security can be, and has been, tweaked and modified to reflect changes in the size of the taxpaying workforce and the number of beneficiaries. It would take great political will, but the government could change benefit formulas or take other steps, like increasing taxes, to keep the system from failing.”

Third, Zuckoff wrote, “Social Security is morally the polar opposite of a Ponzi scheme… At the height of the Great Depression, our society (see “Social”) resolved to create a safety net (see “Security”) in the form of a social insurance policy that would pay modest benefits to retirees, the disabled and the survivors of deceased workers. By design, that means a certain amount of wealth transfer, with richer workers subsidizing poorer ones.That might rankle, but it’s not fraud… None of this is to suggest that Social Security is a perfect system or that there aren’t sizeable problems facing the incoming administration and Congress. But it’s not a Ponzi scheme. And Ponzi himself, who died in a hospital charity ward with only enough money for his burial, would never have recognized it as his own.”


The quadrant is great and it is one thing I tell others when we talk about Kiyosaki. The other primary tenet I remember from “Rich Dad Poor Dad” was that passive income should be greater than active income.

It’s the first personal finance book I ever read and I couldn’t wait to start investing to start earning passive income immediately.


Cool a Kiyosaki thread!
I didn’t read his stuff but I saw the price tag on his stuff, like the Boardgame Cashflow 101 I wanted to buy.
I lean on the SCAM side, but I’ll let you know after tonight’s session of skype-cashflow101 with 2 other European bloggers :stuck_out_tongue:


When I started getting interested in finance and decided to educate myself, I started with Robert Kiyosaki’s books. Those are the books that came up when I started to search on topics, probably because he has powerful marketers working for him.

Like others here, I thought Cashflow Quadrant had a lot of great info, but I eventually decided that building wealth through leverage was not for me personally. I also had concerns about the falling outs he had with some key team members. He has also been in the news for taking one of his corporations to bankruptcy because they failed to pay royalties. Between his personal and bankruptcy issues, I decided there was a problem with values, and I stopped following his work and career.

I am grateful to him, though, for helping me get started on my financial education journey. Rich Dad, Poor Dad explained basic financial accounting in a way that I could grasp, and that was helpful at the beginning.


Oh, and with regards to social security being a “ponzi scheme”, I think it’s dangerous for people like Kiyosaki and Rick Perry to speak about that. Last I checked, neither of those men is a trained economist who has analyzed the data.

In her book How to Retire with Enough Money, Teresa Ghilarducci says that social security is on solid footing and can easily be sustained for the next 75 years with some tweaks. She is an economist for The New School, and I trust her opinion on this, more than those who bash the system because they have an agenda or want to privatize more aspects of government. Also worth noting, I find Ghilarducci’s views to be very realistic. In other words, she is no Pollyanna who is hoping against hope that the system stays intact, and she believes that the social security system is sustainable (again, with some tweaks).


@nomad - thanks for the cogent articles.


Ive tried a couple of times to get into his stuff but I too felt it was shady… Glad it helped others but just not for me.


An update to what I just said above

I’m nearly done with Kiyosaki’s Increase Your Financial IQ and the 90% of the book was bad… really bad. Like, it was full of anecdotes about him being in the military and how it relates to business/finance. Looks like there was no proofreading/editing that went on in the latter part of the book as well! Ugh.

He has a new book coming out this year. Would I buy it? Hell no. Would I probably consider borrowing it from the library? Maybe. I would say if you guys want to read his books, don’t bother wasting your hard earned cash buying it - just borrow it for free from your local library


And the truth is, as described in one of the links posted earlier by someone else, most of his military stories are not true. He was in the military, but the stories throughout all his books and interviews are contradictory and don’t match up with his official records.


Yep - I love John T. Reed’s analysis. Very in depth.


I just did a review on this book


I’m a little too young for Robert but my generation is Ramsey crazy for better or worst. I’ve heard similar complaints about Kiyosaki.

When I was stepping into personal finance, I was told to read Kiyosaki or Dave Ramsey or Bernstein…I chose Bernstein. He’s the least know of the 3 but I think he’s the best. Ramsey’s investment advice stinks and Kiyosaki is too much “fluff” and real estate.


Ha I saw this thread come up again and almost reposted John Reeds analysis, before I realized that I already did that a long time ago. :laughing:


Ramsey makes terrible advice. He has some good basic stuff, but some of his advice is just wrong. I will write about him too. Christians love him because he puts in a gospel message, but it’s like leading a lamb to slaughter


Lol. Yeah I read his analysis too.


Here is the other person behind the rich dad poor dad books

The concepts are great. Robert is a little bit out there.