​Rich Dad, Poor Dad Review - Lies and Deception Within

77 Replies

It's my honest opinion that "Bob" Kiyosaki is nothing but a clown in the financial porn circus. Perhaps, I gave the climactic ending of my message ahead of time. Perhaps.

After many references in the podcasts, I decided to read this "great" book. It was only thanks to my self-determination that I pushed through this horrid piece of pseudo-advice oriented to the ignorant and gullible. I felt that I needed to finish it in order to criticize it.

This is nothing but another "get quick rich scheme" with some insipid inspirational content based on lies. It reminded me of Phil Town's "The Wolf" fairy tale, where a rich man - perhaps also member of the Illuminati - gives him the secret to become wealthy. The argument based on inspiration is mute.

I could expand my message by pointing out -within my limited abilities - the many errors, omissions, and ridiculous advice contained in the book, but this has been masterfully hashed out by other great blogger and authors. However, I will highlight that inspirational advice based on lies is useless, and will caution readers against following "Bob's" advice for it may land you in jail.

Additionally, the worst part is perhaps his condescending view towards hard work and education. This is a toxic message. Au contraire, it is -partially- thanks to educated and hard working people that this world is a better place. The main cognitive dissonance contained in the book is where he refers to a "rat race", when in reality it is his message that creates the real rat race. The path to financial independence if paved with hard work, education, honesty, frugality, and commitment, not by exposing the secrets of the rich.

As noted by others, this is a self-induced apoplexy by book reading. It's nothing than a potpourri of stolen ideas sewed together with fairy tales. I'm not impressed he built an empire based on dishonesty, there are many other ones out there.

For additional information, see Mr. Reed's page.

http://www.johntreed.com/blogs/john-t-reed-s-real-estate-investment-blog/61651011-john-t-reeds-analysis-of-robert-t-kiyosakis-book-rich-dad-poor-dad-part-1

Well, this review may be a little harsh, but it's done with good intentions.

Best wishes,

F

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Updated almost 6 years ago

Addendum 1 I appreciate the comments. It's been a fun discussion. After reading some comments, the information below may help to promote discussion and orient it towards a more constructive goal. I had fun writing this book review. Each person is entitled to their own opinion, the information here is based on my limited understanding of reality. Any spelling or grammatical errors contained may be intentional. (Borrowed from a family members signature!) This discussion is not about real estate investment, it's a book review. Many comments tilt towards an erroneous assumption I'm critizing REI. Did I use doublespeak? Equities, notes, real estate, and many other investment vehicles carry systematic or unsystematic risk. Risk tolerance should be carefuly evaluated prior to adventuring in any investment. Above, are some book references. It's your responsability to measssure risk. I feel the book and the stupid game discussed ignore risk. This is just my opinion as a guy that fights inflation and pursues financial independence. Keep it clean Best, F

Wow. I've never read the book but that is one scathing review! Considering that I have a similar value system - education, hard work, frugality, etc - I will now have to read this book to see for myself. Only thing I would note is that drivel can sometimes be highly inspirational, so even if everything you say is true it may yet have some value. I think very little of Dave Ramsey and "his" system, but I will be the first to admit that it has started a lot of people down a much better financial road than they had been on previously, and if that was its only redeeming factor it would still be worthwhile for some people. 

Edit, PS: I read the review that you linked to. I think this guy is a little unhinged to spend that much energy telling other people on a website that someone they don't know is a fraud. Especially one pitching their own products. I have no idea who Kiyosaki is but whether he is or is not a fraud, I wouldn't spend 15 minutes telling that to anyone.

I loved Rich Dad, Poor Dad, because attitude is the single most important component to become a successful real estate investor. 

In my opinion, the difference between those that like the book and those that don't is whether someone is a 'big picture person' or a 'small detail person'.

The Big picture person can look beyond little details and connects with a concept, an idea - the big picture - and then works inward to create the necessary parts to put it all together. 

The detail person can't get to the big picture, until they've worked through all the little details and they will easily get hung up on things that may not be a perfect fit.

@Frank S. , you have no experience, as you admit in your profile, so, how do you think that you have the knowledge to give this kind of review? 

It looks to me as if you're a person that is very uncomfortable to get out of his comfort zone and likes to do things they way they've always been done. And anyone that suggests that you can be successful without going the traditional route is probably a scammer in your book. 

Unless you change your mindset, real estate investing is not going to be very easy for you, because things happen and you have to have an open mind to deal with it. You need to learn to bend or you'll break.

Different strokes for different folks.

RDPD may not be the holy grail of RE books but it is what helped me change my perspective on investments. It may not be for everybody but for some, like myself, it was the kickstart that lead me eventually to BP where I've learned more than I ever though possible. 

In Jan 2015 I owned 0 (zero) rental properties, by Oct 2015 I owned 3; none of which I would have owned if my cousin had not given me RDPD a few years ago.

@Jason Clark   we all find motivation from different places.

Even those TV Guru's and bus tour Gurus who are so vilified on BP by the majority here .. Many of them provide the spark people need to succeed.  Really depends on the person.

I read maybe a chapter or two of it.. and its was a tad boring for me personally. but again whatever works to get one to take action is of value.. whether it be some book... paid for mentor, BP,, TV Guru.. does not matter what matters is what you do with the motivation inspiration and your life going forward

Originally posted by @Michaela G. :

@Frank Sanchez , you have no experience, as you admit in your profile, so, how do you think that you have the knowledge to give this kind of review? 

It looks to me as if you're a person that is very uncomfortable to get out of his comfort zone and likes to do things they way they've always been done. And anyone that suggests that you can be successful without going the traditional route is probably a scammer in your book. 

Unless you change your mindset, real estate investing is not going to be very easy for you, because things happen and you have to have an open mind to deal with it. You need to learn to bend or you'll break.

 You are entitled to your opinion. Thanks for writing. 

Reality check. The words "hard work" are used 3 times in the book. One of those times is in EPILOGUE ... How To Pay for a Child's College Education for $7000

Maybe it's time for your to reread the book, this time with a more open mind. 

Because of Robert's, or "Bob's" advice I'll be selling my first rehab and making almost as much as I make in one year at my job in this one transaction. It is true that he doesn't give the specific details, I found those out on my own. But I never heard of someone wanting to retire at the age of 35 years old until I read RDPD. Blew my mind and I've since been on a learning journey to accomplish this......and will!!!!!

Originally posted by @JD Martin :

Wow. I've never read the book but that is one scathing review! Considering that I have a similar value system - education, hard work, frugality, etc - I will now have to read this book to see for myself. Only thing I would note is that drivel can sometimes be highly inspirational, so even if everything you say is true it may yet have some value. I think very little of Dave Ramsey and "his" system, but I will be the first to admit that it has started a lot of people down a much better financial road than they had been on previously, and if that was its only redeeming factor it would still be worthwhile for some people. 

Edit, PS: I read the review that you linked to. I think this guy is a little unhinged to spend that much energy telling other people on a website that someone they don't know is a fraud. Especially one pitching their own products. I have no idea who Kiyosaki is but whether he is or is not a fraud, I wouldn't spend 15 minutes telling that to anyone.

Actually, I had fun writing that review.  It came out a pinch stronger than intended.  Reed may have something against Kiyosaki, who knows... However, he certainly spent a good amount of time dissecting him.   Bogleheads.org has interesting comments, as well.

You should read it, it's easy reading.  If so, spend 30 seconds reading reviews of Bob's "recommended books".  It's fun to read the Amazon single star ratings.

Best, 

F

Originally posted by @Chris Martin :

Reality check. The words "hard work" are used 3 times in the book. One of those times is in EPILOGUE ... How To Pay for a Child's College Education for $7000

Maybe it's time for your to reread the book, this time with a more open mind. 

 I prefer a 529. I don't think I will read it again.  Thanks for the comment. 

Originally posted by @Joshua Pope :

Because of Robert's, or "Bob's" advice I'll be selling my first rehab and making almost as much as I make in one year at my job in this one transaction. It is true that he doesn't give the specific details, I found those out on my own. But I never heard of someone wanting to retire at the age of 35 years old until I read RDPD. Blew my mind and I've since been on a learning journey to accomplish this......and will!!!!!

 This is awesome! Congrats!

@Frank S. Wow! I came across RDPD in a vacation rental we stayed at in Laguna Beach one year. Having been in the real estate and development business for a few decades, I actually was surprised at how motivational the book was, even to someone like me. I thought he had a unique perspective, and could see how newbies could be inspired by it. Obviously, many people were impressed with the book, as it was a best seller. 

I always caution anyone when looking to pay for seminars, classes, internships, etc. I am big on being upfront, and people not trying to lure others in and upselling. 

As one of my pastors used to say, "take the grain and leave the chaff" 

The style and delivery doesn't work for everyone.  

@Michaela G. , I'm not convinced it's a big picture / little picture thing ... at least not that alone.  I've spent most of my {other} career as a big picture person.  I have unsuccessfully tried three times to read this book but it just doesn't resonate with me and I end-up pushing it aside for one of the many other things competing for my limited time.

The main point of the book seems to be "buy assets, not stuff". I think we can all agree with that. I also agree with your assessment about education. Education is very important, and should be a life-long pursuit, whether it is used in a profession or not. I would advise anyone to avoid paying tens of thousands for "coaching" programs. The book has some value for the uninitiated, but the rest of their offerings are a scam, in my opinion.

RDPD was meant to be a inspirational book for the entrepreneurial minded people. Of course it won't make sense to a portion of the masses. Here is what I think is priceless, this looks like a thread that would be started by "poor dad" in the book. PD never understood that way of thinking either and would have definitely hated the book.

Personally it put into words what I never could, great book.

@Frank S. thanks for posting. It's always good to hear other's points of view. Discussion/debate is never a bad thing.

Personally, I enjoyed the book. I read it a few years back and just just picked it up again to re-read it after hearing all the recommendations in the podcast. For me, it provided inspiration and a fuel for the entrepreneurial side of my mind.

@Wilson Churchill I like what you said about learning/education. Made me think of the saying, "once you stop learning, you stop growing". Even if the book doesn't provide exactly what a person wants, it can serve to expand their mind and get them thinking about other things. Always a good thing.

Just my $0.02

Well said @Jason Clark . I too credit Rich Dad Poor Dad for my start in real estate. It was my father that gave me the book, as a result my mind opened up to what financial education and real estate could really do for my family.

Those who liked RDPD will probably also like 'three feet from Gold' , by Sharon Lechter, who also co-wrote some of the RDPD books

So a guy who signs his posts with the first letter of his first name, listened to a bunch of podcasts and heard guests recommend a certain book over and over again. He then described the book as "oriented to the ignorant and gullible".

Interesting.

@Frank S. , I'm not the biggest Kiyosaki fan myself, but I have listened to enough people far more successful than I am who took life-changing risks as a result of reading his material and are in a much better place today than they would have been had they spent the next 30 years in a cubicle and contributing to their retirement plans.

For others, of course, Kiyosaki's message led to a path of ruin.  With no savings, plan, or viable product or service, they quit their jobs, thinking by doing that they would magically figure it all out and get out of the "rat race," only to find out that they had no idea what they were doing.

I personally think the best route is a middle ground, which is what I am pursuing.  Get your bachelor's, get your master's if your field requires it to progress, and kick *** at what you do in order to maximize both your active income while educating yourself on passive income sources, like real estate, and investing in it wisely.  It's a lot easier to set yourself up to fund your passive income sources making $200,000 a year, albeit at a slavish cubicle job, than making $20,000 a year at McDonald's or--worse--making $0 a year at no job.  But hey, at least you escaped the rat race!

It all depends what you make of it.  I see that you are a Boglehead.  It's the same with Bogle's work.  Some take what he said and wisely invest whatever they've committed to stocks and bonds in low-cost funds, properly-allocated, while of course being aware of market conditions and not counting on their asset allocations to save them and investing in other assets classes than low-cost index funds, such as real estate, like you are doing.

For others, it drives them to a penny-wise, pound-foolish strategy with the entirety of their investment career spent figuring out how to save a few pennies living frugally and making sure their asset allocation is perfect such that they never pursue anything that could make them truly wealthy.  Many of the newbies on bogleheads.org would be better served by learning about, say, investing in real estate notes through their retirement accounts than by figuring out the perfect asset allocation of their Vanguard funds, especially in this market.

I have a few clients who are die-hard Bogleheads.  Yes, they will all comfortably retire at the age of 62.  But their combined wealth does not hold a candle to most of my real estate investor clients who had a dream of escaping the life of waking up every morning to a 9-to-5 and contributing to their perfectly-allocated Roths and 401ks and HSAs.

Just my two cents.