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

77 Replies

@Frank Sanchez

You have no experience in real estate investing and came to this site to build up a network of people, who are actively investing and being able to ask questions and get support for yourself. 

Do you really think that insulting all of us who like RDPD and basically telling us that we're all just fools for getting emotinally sucked in by a fraud and obviously don't know what we're doing(and remember, we're all the ones involved in real estate and you are not) is the best way for you to get us to go out of our way in the future and answer your questions?

Originally posted by @JD Martin :
Originally posted by @Frank Sanchez:

Regardless, I agree with Bob's critics that inspiration based on deception is worthless.  I find shocking that although he does not have RE investment credentials, yet he is a self-appointed king of RE. How could that happened? It's nonsense. 

 I don't know about that. Lots of people find genuine inspiration in religion despite the fact that much of it is based on deception and make-believe. Inspiration can come in many forms, and as long as the source doesn't actively harm others, I find no fault with it. Kiyosaki might talk a lot of BS ( again, I haven't read it) but unless he actively walks someone through fraud, the ultimate responsibility lies with the consumer. I read " The Communist Manifesto ", and it didn't lead me to become a revolutionary. In fact, it inspired me to further my knowledge on other political theory. Once we start ascribing supernatural power to the idea of thought, we have created a very dangerous situation.

That said, you have done the best thing that one can do when one encounters speech that one agrees with - create a counterargument. I have no problem with logical contrarianism :)

 Nice response, I like it!

Nice point about the effect of make-believe. It sounds like an oxymoron, but placebos are real. They can motivate, inspire, provide support, and also hurt people.

Fraud: Sure, he hasn't been found guilty of it. Is it inmoral? It's an easy read. Cliff notes should suffice. 

Contrarianism: Busted! (partially) Sadly, many think this message is about real estate

@Frank S.

Hi Frank,

My issue with the book is that there is no framework that an investor can follow.  There are no strategies to follow or advice, just go get your education.  Most investors credit the book with being able to look at investing in a different light, such as your home is not an asset.  Rich Dad is notorious for upsetting into other products, and some are pretty good.  I did enjoy the book and had my oldest children read it as an introduction to basic investing principles.

Gino

Originally posted by @Michaela G. :

@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.

 Frank may not, but the link he provided in his post does. If it comes to fruition that he indeed is involved with MLM Amway, then I agree he is absolute scum. MLM is unethical and unconstitutional, and has been proven so countless times. MLM schemes are still in existence because of a loophole in a legal trial in the 70s or 80s, and because of payoffs to some authorities who are fine with looking the other way.

This just in!!! Man with no real estate experience criticizes another man with no real estate experience, but who has made a lot of money not having real estate experience.

I couldn't get through RDPD, not my style and to dry for me. BUT, spend less time having fun writing reviews and learn to have fun doing more productive, income producing activities.

At least then you'd have a frame of reference to actually debate Bob should you ever meet him.

@Frank S. , I did not read RDPD until I had been investing for over 20 years.  To be honest I was offended by it when I first read it, so I went back reread parts that offended me the first time.  I am not a genius, so it I may have it wrong, but you missed the point of the book that as I understand it.  I was offended by his references to education and hard work.  It is like a parable, the purpose of the story is not to be a true story, the purpose is to make you think in a different way.  My take was how to look at money.  I always looked at money as something you earned and a reward for hard work.  I needed to look at money as a tool, not an end unto itself.  My dad had a saying, make your money work for you.  He tried a lot of get rich quick schemes, some were OK but none ever lasted.  The parable of RDPD that I came away with was change how you think about money.  Make money make your fortune rather than trying to earn it doing a 40 hour work week.  You will never make wealth working a 40 hour work week, you need to be an entrepreneur.  Thanks for stirring the pot.

@Jerry W.

I think you are on to something.  As mentioned earlier in this thread I've tried and failed several times to read this book - I find there to be no (new) substance and the tone doesn't resonate.   Perhaps had I encountered it when I was just beginning in business and investing I may have received more from it ... or at least made it to the end.

Originally posted by @Jerry W. :

@Frank Sanchez, I did not read RDPD until I had been investing for over 20 years.  To be honest I was offended by it when I first read it, so I went back reread parts that offended me the first time.  I am not a genius, so it I may have it wrong, but you missed the point of the book that as I understand it.  I was offended by his references to education and hard work.  It is like a parable, the purpose of the story is not to be a true story, the purpose is to make you think in a different way.  My take was how to look at money.  I always looked at money as something you earned and a reward for hard work.  I needed to look at money as a tool, not an end unto itself.  My dad had a saying, make your money work for you.  He tried a lot of get rich quick schemes, some were OK but none ever lasted.  The parable of RDPD that I came away with was change how you think about money.  Make money make your fortune rather than trying to earn it doing a 40 hour work week.  You will never make wealth working a 40 hour work week, you need to be an entrepreneur.  Thanks for stirring the pot.

You got the message! Many drink the Kool-Aid  and think this is based on reality. That's just mind-boggling.   Why? Because the book content and rhetoric portrays it as such.  It may be a  productive discussion if you ask people's opinion on weather this is based on reality.

Heck, many think this thread is about real estate investment! Did I use doublespeak? 

Updated almost 6 years ago

Spelling errors are intentional, btw.

Originally posted by @Patrick Connell :

This just in!!! Man with no real estate experience criticizes another man with no real estate experience, but who has made a lot of money not having real estate experience.

I couldn't get through RDPD, not my style and to dry for me. BUT, spend less time having fun writing reviews and learn to have fun doing more productive, income producing activities.

At least then you'd have a frame of reference to actually debate Bob should you ever meet him.

It's a beautiful thing that we can think, isn't it?

I've read some of Robert's books and I can honestly say they have helped. There not so much of a how to, but it gives you concepts and makes you think. I felt Conspiracy of the Rich was a very good book.

Originally posted by @Jay Hinrichs :

@Michaela G.    Engelo turned me on to Rocket Fuel I bet you like that one..

 .Jay, I'm halfway through Rocket Fuel and like it very much. I'm definitely a V, with all the strengths and weaknesses. 

Thank you

@Frank S. I don't see how what you wrote is a review. Just saying something is bad without providing some commentary on the main concepts is just bashing. I was disappointed you didn't explain how his concepts are incorrect? Do you disagree that passive income from real estate is a better path than working 9-5 for someone else investing in the stock market? I can agree the book is a story to illustrate a concept and is not a how to. I also agree that taking a seminar for $25,000 from him is insane. Where I disagree is that higher levels of education would prevent you from making horrible decisions. Common sense is not learned in school. I think you are not grasping the concept of working smarter instead of harder. Good discussion here.

Originally posted by @Joe Splitrock :

Frank Sanchez I don't see how what you wrote is a review. Just saying something is bad without providing some commentary on the main concepts is just bashing. I was disappointed you didn't explain how his concepts are incorrect? Do you disagree that passive income from real estate is a better path than working 9-5 for someone else investing in the stock market? I can agree the book is a story to illustrate a concept and is not a how to. I also agree that taking a seminar for $25,000 from him is insane. Where I disagree is that higher levels of education would prevent you from making horrible decisions. Common sense is not learned in school. I think you are not grasping the concept of working smarter instead of harder. Good discussion here.

 Joe, thanks a lot for the response.  I hope you can see, that my goal was to promote a discussion on this topic. I find RDPD to be a work of fiction presented as actual facts that feeds on people's  hopes for a better tomorrow. That is immoral.  

There are many threads that cover why this book is a bunch of manure stapled together with false illusions.  I could attempt to rephrase, but it's kind of a waste of time. It's been done by others. I could discuss a specific topic if you please.  

For instance, you question is "Is REI better than a 9-5 job?" Well, that depends on the 9-5 income. The time and effort put into REI may not be worth it at the end. E.g., compare how many RE doors will it take to replace a $50,000 income vs. a $275,000 income. Its cleary easier to beat below average income, but high earners may only use REI for tax shelter. Yes, this discussion can go back and forth for a a while. So, yes I disagree that REI will always beat the 9-5 job.  Additionally, many go bankrupt resetting their clocks. The book glorifies people that "bust big". That's another horrendous pseudo advice provided by this clown.

Another question you put forward is "Is REI better than the stock market? Well, that depends too.

Here is a case study.  Trump vs. Index Funds

https://www.biggerpockets.com/forums/519/topics/28...

Education won't prevent you from making mistakes. We are emotional beings and emotions hinder critical thinking.  However, without education one can't make good decisions by simply relying on common sense. 

I appreciate the discussion and hope this helps other evaluate the advice of the so called "experts".  Many people like you are open to this challenge, but  others accept this book as a financial advice. That's very dangerous for this author base his lies on hype.  That'is simply my opinion on the book, nothing but that. 

Best wishes, 

Frank

I think this book still has a lot of value and can help people become a little more aware of their personal finances and where there money is going.  I don't think the "rat race" he refers to was meant to be demeaning but use to show how people will continue to live pay check to pay check if they live beyond their means regardless of how much they make. 

Thanks for putting this out there, always good to read different perspectives. 

@Frank S.
I have been hoping to find people that are not ecstatic about RDPD on BP and I'm glad I found this thread. I don't believe in scathing reviews but I definitely can relate to a lot of the negative reactions to the book and the programs he sells.
After hearing so much positive feedback from the BP community I was very interested in reading the book. Happens to be, a really sweet lady I work with happened to sign up for one of the programs that were very expensive. It was hard for me to hear the disappointment she experienced paying that much money for something that apparently didn't give her much value. But I still had not read the book.
She gave me the book and I thanked her profusely because I was so excited to read it. I must say that it was very hard for me to digest. I understood the point Kiyosaki was trying to drive home, but I did not understand the lack of respect that came across through his writing. I have not finished the full book due to that.
I believe firmly in hard work. I have not met anyone in the BP community that doesn't believe in hard work. But I believe that we live in a world filled with many different people and that necessitates respect for people of all backgrounds. RDPD comes across as there is only one right way to "Financial Freedom" and those who don't get aboard the train are fools. I don't believe it is anyone's position to determine that about anyone else. We all are trying our best on this beautiful ride we call life. And if some get excited by financial freedom, then I say more power to them.
It definitely seems like RDPD has benefited many, many people. To that I say "Job well done, Kiyosaki." To the programs out there, the same seems to be true. As long as the purpose is to benefit people and not try to fleece them out of their hard-earned money.
Unfortunately for my friend, she ended up the same way as before, minus the hard-earned retirement money.
Anyways, till next time BP.
Just my two cents.
Thanks for reading!
Have a great day!

Originally posted by @Shmuel Harris :

Frank Sanchez
I have been hoping to find people that are not ecstatic about RDPD on BP and I'm glad I found this thread. I don't believe in scathing reviews but I definitely can relate to a lot of the negative reactions to the book and the programs he sells.
After hearing so much positive feedback from the BP community I was very interested in reading the book. Happens to be, a really sweet lady I work with happened to sign up for one of the programs that were very expensive. It was hard for me to hear the disappointment she experienced paying that much money for something that apparently didn't give her much value. But I still had not read the book.
She gave me the book and I thanked her profusely because I was so excited to read it. I must say that it was very hard for me to digest. I understood the point Kiyosaki was trying to drive home, but I did not understand the lack of respect that came across through his writing. I have not finished the full book due to that.
I believe firmly in hard work. I have not met anyone in the BP community that doesn't believe in hard work. But I believe that we live in a world filled with many different people and that necessitates respect for people of all backgrounds. RDPD comes across as there is only one right way to "Financial Freedom" and those who don't get aboard the train are fools. I don't believe it is anyone's position to determine that about anyone else. We all are trying our best on this beautiful ride we call life. And if some get excited by financial freedom, then I say more power to them.
It definitely seems like RDPD has benefited many, many people. To that I say "Job well done, Kiyosaki." To the programs out there, the same seems to be true. As long as the purpose is to benefit people and not try to fleece them out of their hard-earned money.
Unfortunately for my friend, she ended up the same way as before, minus the hard-earned retirement money.
Anyways, till next time BP.
Just my two cents.
Thanks for reading!
Have a great day!

One can catch more flies with honey than with vinegar.  I couldn't follow that approach with this review.  As I said above, I had fun writing it. 

You won't see those old ladies bragging at the REI meetings on how the "went out big". My heart goes out to those that trusted this showman and failed.

Gladly, BP exists to fight hype with knowledge 

Thanks,  

Frank

Rich Dad Poor Dad book got me out of the rat race at age 30.  The people that are usually offended by the book are middle age and earn mostly w-2 income.


Frank

Originally posted by @Frank S. :

There are many threads that cover why this book is a bunch of manure stapled together with false illusions.  I could attempt to rephrase, but it's kind of a waste of time. It's been done by others. I could discuss a specific topic if you please.  

For instance, you question is "Is REI better than a 9-5 job?" Well, that depends on the 9-5 income. The time and effort put into REI may not be worth it at the end. E.g., compare how many RE doors will it take to replace a $50,000 income vs. a $275,000 income. Its cleary easier to beat below average income, but high earners may only use REI for tax shelter. Yes, this discussion can go back and forth for a a while. So, yes I disagree that REI will always beat the 9-5 job.  Additionally, many go bankrupt resetting their clocks. The book glorifies people that "bust big". That's another horrendous pseudo advice provided by this clown.

My only point was your original post just said the book was a pile of crap and lies rather than offering an argument against the main concept. I am saying set aside whether the story is true or fiction, which personally I don't think matters. I have read some great business books that used a fictitious story to illustrate a business point. Some people learn better with a story rather than a straight text book facts.

Sorry if I left you the impression I believe that everyone should quit their 9-5 and go into REI. There are no absolutes. The truth is the majority of people fail in REI and most people should never get into it. There are numerous mistakes they make, usually due to being careless and making bad decisions. The people who do succeed in REI can replace a job with $50K or even $275K worth of income. Most people entering real estate self manage and do all the maintenance and repairs themselves. For them, it becomes a second job and yes I am sure those people think to earn more, they would need to work more. The flaw in this logic is that you are stuck in the DIY mentality. If you owned an apartment complex, you would not be doing the renting and repairs. The point is you hire people and that is the concept of passive versus 9-5. This is what I mean by working smarter and not harder. By comparison, look at someone making $275K in a job. This is a well paying job that is either specialization or management. I see managers at my company making this type of money and they work long hours (more than 9-5), travel away from their family and live in fear of being downsized. Is money worth missing your kids growing up?

The book RDPD got me into investing. It is not a how too book. I never thought about whether it was true of fiction (doesn't matter in my opinion). After reading the book, I noticed real life examples of the story. My friends mother owned a software company that she sold to retire. She also owned the building and kept that as a rental. She shared with him that she made way more money with the building than she did with selling the business. She pointed out in the business she worked 60 hour weeks for years and the stress was horrible. The building was just a check every month with little effort. At the time my company was renting office space in a small building. I talked to the owner who had inherited the building from his father. The gross rents on the building were $100K and the guy had no job beyond the building. He self managed it and only spent time on renting spaces a couple times a year. Even look at big corporations like K-Mart. They are a disaster but they have had some profitable years in which they sold real estate. The only reason K-Mart/Sears is in business is because of the real estate they own. Eventually they will sell through it and be out of business. The point is just that the time value of real estate is powerful.

Once I read RDPD, my eyes opened to a different way of thinking. It was in 2004 and it was a duplex that I got 100% financing on. I self managed it and cash flow was around $400 per month. How would you compare that return to an index fund? It was a $0 investment producing $4800 per year. We were able to pay off the property in around 5 years. Second investment was a SFH that we paid $104K with $10K down. Cash flow in the beginning was only around $100 per month, probably break even after vacancy. It sound like a bad investment, but that was 12 years ago. Today the property is paid off, rents are $1100 and property retail value in the neighborhood is $160K-$170K. The property has grossed around $120K ($15K after paying off) and has a value of at least $160K. Is there an index fund that you could put $10K into in 2004 and have $185K today?

I do have money in the stock market, but I personally invest in only individual stocks. I started out years ago in mutual funds, then index funds, then decided the only way to beat the market is to hand pick stocks. Everyone says it is risky, but I like to be in control of my decisions.

We need educated people working 9-5 jobs and we need hard working people in blue collar jobs. That is the foundation of our economy. The reason REI is so good is partly because most people cannot or will not get into it. If everyone owned rental property, it would make it a bad investment. Almost every 9-5 earner puts their money in the stock market, which is why the returns are limited.

Just to summarize, RDPD is not a how to book. The author clearly profits from selling programs that would make him one of those dreaded gurus. I don't agree with that. I will argue that the foundational lesson taught in RDPD can be life changing. REI is one of the only forms of passive income and is a way to build generational wealth.

Just my thoughts. I do plan to read the books you referenced, because I am open to all forms of investment. Both for diversification and I am always looking for better returns with less effort.

@Frank S.
Before reading this book I didn't really understand the difference between working a job and owning a business. Does he over-simplify and gloss over important details? Absolutely he does. And yes, it reads like a sales pitch and comes off a bit slippery, but it changed everything for me and possibly saved my life. I read his books, played his game, and left most dangerous profession in the US to become an appraiser and learn the market.

I'll always be grateful for this book because it identified the different approaches to creating wealth, and left me with more questions than it answered. It enlightened while sparking curiosity.

I appreciate your post. I read his book in 2003 and watched a lot of people lose their shirts by immediately implementing without developing an applicable knowledge base. It's always important to read with a filter, and be mindful of logical fallacies.

I just read the book and it's the reason I am here! Right book at the right time. I have been a stay at home home school mom for years (after career in sales and management) and the kids are finally getting old enough to be on their own, so I have been researching and thinking about what I wanted to do. Before "Rich Dad, Poor Dad", it was always who do I want to work for.... Now it's myself and real estate investing. I am in the "building your foundation" and my financial IQ stage. Reading ad much as I can get my hands on and listening to audiobooks. Not jumping in to fast but cant wait to finally make the jump!

Originally posted by @Shmuel Harris :

 
I believe firmly in hard work. I have not met anyone in the BP community that doesn't believe in hard work.

"Hello! Here! (Raising hand) 

I don't believe in working hard, but in working smart and I'll gladly employ those who work hard ;-)