Whether or not RK is telling the truth or fibs in his books, I have found it great motivation. It certaintly got me into thinking about investment, as with many other people I have talked to about the book. Like the film ‘the Matrix’ it opens possibilities within ones own thinking. I once thought get a good job work till I was 65 and retire. Now I plan to retire a lot earlier than that!
Hi Lawry,
I think you’ll find that J T Reed does write books.
Clearly RK’s books provide inspiration to those who have read them as that apprears to be the concensus of this forum and hence cannot be refuted.
JT Reed appears to be pointing out RK’s lack of detail and incorrect information and conflicting information. He appears to back up these claims with detailed analysis.
Is RK a Sinner or Saint … he is a Salesman.
Cheers,
DCheers,
DDi, thanks for pointing that out.
Looks like I should read John Treed’s book.Well anyone can claim to be right but at the end of the day, the one who is right is one who goes out there and do it and get the returns for life.
Am I right?
God what a negative article! I have come across it before – still havent read the whole thing as its too negative.
All I can say is that reading RK’s books have opened my eyes and I’ve had many Aha moments as I read something he has written that is relatively controversial (eg. your house and car are not assets, an asset is something that gives you cashflow) – but which makes perfect commonsense.
The only problem with his books are that my outlook on life is so different after reading them, I will never be happy with a ‘job’. As many of us dream about the $100,000 passive income just coming in without having to do anything, and retiring early… I want it now, and I am not getting there fast enough. Very frustrating RK you bastard!
I wonder if I had never read them how blissful life would be [8D]
Tas [
]“Your house is not an asset”
Interesting. I though buying a house goes something like this: You put up a 20% deposit and get a mortgage for the remaining 80% from a bank.
You make repayments on the loan and as a result the mortgage reduces while the *equity* in the house increases. Eventually you repay the entire loan and YOU own the house.…geez, that sounds like an asset to me.
Can somebody *please* explain to me Kiyosaki’s convoluted logic that your house is NOT an asset.
Come on Kiyosaki, who are you kidding..??
– Chris
Chris – I’m with Robert K on this one.
Robert K says ‘an asset is anything that puts money in your pocket’.
Does your own home put money in your pocket?
No. Not unless you take in lodgers.
You have to pay rates, insurance, buy furniture, etc for it. And the more expensive the house, the more expensive the costs associated with it.
If you lived in a $2m house and had no other income, you’d starve (until the council comes around to recover their unpaid rates). On the other hand, if you owned a $500k house, and had income from $1.5m of investment property, you’d be comfortably off and not have to work.
What is your own home good for, financially speaking? If you’re game enough, you can borrow against it to buy income-producing investments.
‘but I’m not paying rent if you own your home’ you might say. Yes, your expenditure may be lower, especially if you’ve paid off your mortgage and bought in a country town where houses cost under $100k.
But if you took out a mortgage on your home, you may have a house at the end of it, but still no passive income (which is RK’s aim).
The aim of financial independence is changing your income mix so that most is derived from assets rather than your job. To do this from available finance, you have to ensure your capital (and that you borrow) is working harder than you. This means not borrowing for items that do not provide income.
Though there are far worse things to do with finance than borrowing for your own home, I reckon using it on an IP or two is better, especially if you live in Sydney or Melbourne.
Peter
Hi Guys,
With this logic a negative geared property is not considered an asset? I.e. it costs you money to keep.
Am I understanding RK here?
Cheers,
DDefinition of ‘Asset’ from Merriam-Webster Dictionary:
“The entire property of a person, association, corporation, or estate applicable or subject to the payment of debts.”
– Chris
Di Cam
i can’t remember him making a comment on that one. But your logic follows.
RK would never advise buying a money loosing property.
As far as the House being an asset i’m with kiyosaki on this one. My car isn’t really an asset either but i could sell it for $$. It makes me laugh when i fill in loan applications and they have car and furniture in the assett column. And then sometimes they don’t always count small Cap stocks
westanHi,
While RK might not consider the house an asset, I do… and to me, an asset does not need to be about producing income…
Put it this way, in regards to the ppor I bought a year ago, I now have 60 acres 50 mins from Melb that I plan to grow some grapes on, keep horses, indulge in some landscaping, build whatever I want, develop my dream home etc etc… all while keeping my day job, while at the same time building an IP portfolio that should see me retire in 10 years.
For me, and I stress, FOR ME, having my own property is an asset that can’t just be measured in financial terms… it’s mental as well, in that I have my own patch that I can enjoy.
I know that I would definitely reach my retirement goal quicker if I wasn’t paying it off, but the improvements I’m doing are adding value, the c.g. of these types of properties is great at the moment (the cg on my place in particular has been outstanding)… I’m able to access the capital gains via my LOC to keep buying places, so it works for me. It’s not everyone’s choice, but I’m happy with it. I think that’s the key… I’m not obsessed with IP, but it is definitely the right path for me… however I’m not going to sacrifice EVERYTHING to get there… heck, I could get hit by a bus tomorrow…
Cheers
rI have read with interest the criticism of Kiyosaki and “gurus” in general.
Are we not taught on this site to do our own due diligence and sort things out for ourselves rather than take for granted what other people say?
Who cares about Robert Kiyosaki’s credentials? I know credibility is important in his game, but I also believe there are plenty of people willing to knock you down when you are at the top or when you speak out like him, it happens in politics every day.
I am sure that you could probably find similar types of critiques of John Burley, Jan Sommers, even our own Steve McKnight (sorry Steve) if you look hard enough.
I also know that I found his books to be thought provoking and it was his books that encouraged me to research further and as a matter of fact find this site.
So long as we take his ideas for what they are – one man’s opinions – should we get that caught up with minor details or should we concentrate more on our own journey and use people like Kiyosaki to encourage us to think outside the square and help us to strive that much harder to achieve our goals.
We should draw experiences from all these peoples, gleen the pieces of information from each of them into the major puzzle that is our own financial journey.
Robert Kiyosaki may not be all he claims to be, but he has encouraged a lot of people to think about their future and take action. Those that suceed will be those that take such ideas, do their own due diligence and use snippets of his ideas and others in their own financial plans.
Cheeers
Dnanz [
][]The point is this: If you are not impeccably honest and ethical you might make a lot of money and be regarded as a ‘success’, but your dishonesty and unethical behaviour will one day bite you in the ass.
There will always be someone who is more than willing to use your dishonesty and unethical behaviour against you and tarnish your reputation.
– Chris
“KNOW the difference between education and advice”
Some of these books and seminars overstep the line..
jb007
I agree with you on that score, I notice Henry Kaye has come onto the radar of some of the consumer protection bodies – about time – Ive read some amazing stories about his practices.
Ben
I couldn’t make myself read the whole John Reed analysis, as I saw myself otherwise wasting as much time as he has.
Perhaps John Reed would be better off if he spent as much time sourcing a few more positively geared properties as the time he has taken to put forward his conspiracy theory?
If Rich Dad is not a real person, then more the clever Robert Kiyosaki, to break the paradigm of investment thinking with an analogy that he was clever enough to come up with, so the ordinary person can learn new ideas that have helped so many.
This website and hence forum may well not exist if not for Kiyosaki,as in Steve’s book he states it was going to the Kiyosaki seminar where he forced his partner, Dave to go as well, that was a turning point for them.(page 11)
Later in Steve’s book two testimonials credit Kiyosaki as a part of the process for them too. pp. 316 and 325.
So it MIGHT be a story and Robert is not telling? Get real and take the MESSAGE as it was intended.
But do not focus on someone who has made a lot of money doing what we could do ourselves.
If you help enough other people get what they want, then you can have anything that you want. That is Robert Kiyosaki and Steve McKnight have done. You can do it.
Best regards,
TonyAs an accountant, I totally disagree with RK’s definitions for assets and liabilities. I’m surprised that his co-author Sharon Lechter, a CPA, would go along with him. If RK prepares his company accounts based on said definitions, I’m sure they would be qualified. However, I do agree with what he said in his book titled The Business School For People Who Like Helping People on the eight hidden values of a network marketing business and I like his Cashflow Quadrant concept.
That all seems ok to me if thats real,
remember its what u get out from the book thats valuable. The rest is just that – stories, examples, analogies.
In the 1960s, Carlos Castaneda wrote the Don Juan series, its said to be one of the most insightful wisdom books ever written, as so many people were influenced by it, people like Richard Bandler (co creator of NLP), Anthony Robbins, Wayne Dwyer, etc. His wisdom in his stories is very very valuable, eventhough many people question whether Castaneda really spent those days with don juan.
leowson,
I respectfully think that you may be confusing what RK is saying about assets and liabilities. Early in his book(s), he acknowledges that his view of what constitutes and asset and liability is different from the accounting, or generally accepted, view. I don’t think that he’s saying you should prepare your accounts on that basis. He’s saying that you (personally) need to think in a different way about what constitutes an asset and a liability.
I like his teaching on this point, because it reminds me to evaluate whether a potential “asset” is going to put money into my pocket or take money out of it.
Then again, you are entitled to your own view, which is, of course, the generally accepted view, and the correct accounting meaning of those two terms.
Cheers
Mquick question
if on this forum i was to pretend i had 40 investment properties all around australia and new zealand and subsequently other forumites came to me for advise etc etc and my supposed success was incentive for them to follow this advise and then you found out i am some smart alec 22 year old with no properties and just a business degree
would you not feel cheated??
or would you just be happy that i got you of your bums to do something??
its got to be based on full disclosure so people can make informed decisions. if you need to be decieved to get motivated then get a hobby
[
]Hi aussie
is this a confession
“or would you just be happy that i got you of your bums to do something??”
personaly i’m always honest with people and assume they are the same with me. I get disappointed if people lie to me, in future they lack credibility. There is another book that i hold in very high regard and it’s principles work fantastically for me, but if it was all a fraud i’d be disappointed (understatement)
westan
]
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