Wow,
just read a lengthy critique of Rich Dad Poor Dad. The reviewer tears into it. What do you all think?
http://www.johntreed.com/Kiyosaki.html
Thank god its Friday,
Brent
oh man!! Not this again!!!
Have you noticed that whenever someone disses a competitor …..um, oh well, I just beat myself to the punchline.
some recent examples…
‘A’ property investing mag disses ‘B’ property investing mag
‘A’ web-site offering properties for a finder’s fee disses ‘B’ website offering properties for a finder’s fee
‘A’ disses all non ‘A’ approved RE agents (kickbacks involved)
and finally,
Not famous wanna-be guru ‘A’ disses guru ‘B’, leveraging off mass interest in ‘B’ in the process
this topic was debated vociferously once before and is probably in the treasure chest.
I found it very interesting, especially as I felt that a lot of Kiyoaski’s books are style over substance.
While they are a good introduction to thinking differently, I think there is a lot of info lacking, which I suspect is so that people go to his expensive seminars.OK guys, I know it’s been said before, I just read all the posts.
I read through as much of John T Reed’s article as I could – I skimmed through it and read bits as I went – it was soooo long.
My two cents worth
Rich Dad is a combination of 7 different people – outlined in the third edition of the (Australian) Wealth Creator magazine – can’t remember which month.
Looking through the rest of Reed’s website, he bags Dolf De Roos because of his assocation with Kiyosaki, John Burley (same reason, although I don’t believe there is any association at all now). He bags Robert Allen quite substantially. In fact, I didn’t see too many that this guy did ‘recommend’, but there were many references to his books. One title How to Buy Real Estate with Little or No Money Down. This sounds very very similar to a Robert Allen book.
In the posts and on the website it is mentioned that Kiyosaki owns nothing. Well, I can understand that. Kiyosaki teaches a lot about a thing called a Nevada corporation. NO ONE knows who the shareholders are!!! This is where he owns his property and other ‘stuff’. Of course you won’t be able to see anything he owns.
Rich Dad Poor Dad was actually written as a brochure to sell Cashflow 101. He developed the board game and his book while he was taking his year off on the ranch he bought in Wyatt Earp’s battleground. In one of the books he talks about wanting 20 acres or so. He bought 100 (guessing the number, can’t remember offhand), and sold off 80, getting more for this than his purchase price, and effectively getting his acreage for free. He sold the smaller parcel for so much more because the cottage/shack on the land was once stayed in by Wyatt Earp and his boys/men, and he advertised it as such. This is the same shack/cottage he developed the book and board game. There was enough in the ‘brochure’ to become a book, and so that’s what they did, and it became the flagship of the company rather than the boardgame.
One final point on all the military stuff. I worked in Navy Officers Records for 4 years. During the vietnam war time, the records were being converted from handwritten cards to computer (very ooooold computer) records. Even with our much smaller numbers fighing, I would defy anyone to find the same sort of info that this guy is searching for. Especially for those who did not stay in the military post war.
OK, I’m done now.[:X]
Cheers
MelThanks for your reply,
What do you make of all the stuff that RK wrote in his book which is either illegal ( ie INSIDER TRADING) or just plain wrong. You may have seen the points where the author quoted RK in the book, and then gave specific IRC? clauses that showed that no he couldnt do that, or yes there would be taxes on it, when Rk said it would be tax free.
If you can understand that I applaud you
Regards,
Brent
In the books when Kiyosaki talks about ‘insider trading’ he clearly defines what he means. There is the insider trading that Rene Rivkin was convicted of – that is illegal. The insider trading that Kiyosaki talks about is where he or his friends CREATE the company, and then take it public. They are the ‘insiders’ that have basically created the money. So it’s not illegal, as the company is not yet public.
It’s been a while since I read the book(s), I am not even sure which book(s) it’s mentioned in, but in my opinion he clearly delineated between what was legal and what was illegal.
Cheers
MelHey all,
The book was Rich Dad’s Guide to Investing where he was talking about the 5 different kinds of investors…
“The inside investor creates the investment”
Cheers,
Jay
**********************************
You must stay pOsitive
…then the cAsHfl0w will come!
**********************************I think one of the problems is the definition of insider trading. It is very hard to prove in the courts and most of it doesn’t even get detected.
When should you be charged with insider trading. I mean are you charged with it if you got a hot tip and invested in a company and lost money?
If someone from inside a company rings a mate that’s a share broker and the broker recommends you buy the shares, you do and make a heap of money could you be charged with insider trading?
I think John T Reed has a touch of jealousy about Kiyosaki’s success. Maybe rather than rip into Kiyosaki he should figure out what Robert did to get his books on the bestseller lists. Robert does say he is a best selling author not best writing author.
Hi all,
There are two books in existence that have fundamentally changed my life in regards to money and wealth. Rich Dad Poor Dad and The Richest Man in Babylon.
Rich Dad Poor Dad showed me that you can become rich if you stop and think about where your existing advice and knowledge comes from when dealing with money. The Richest Man in Babylon showed me how.
Best Regards
One other thing that we all forget here is that, sure maybe RK simplified things for the average Joe out there to understand…
I have no issue with that….. it’s the message, not the messenger we are interested in…..
I have read through the citique, and, to be honest it sounded very much like sour grapes, and, by the way “buy my book if you really want to learn how to do it…”
Sounds like a guy who knows nothing about marketing, as evidenced by his website setup, trying to get out there and make some $$$..
Like others here, Rich Dad Poor Dad was a wakeup call for me…. A few other authors out there, including Steve’s book, either gave me direction, or validation of what I do…..
BTW Steve – GREAT BOOK…..
[8D]
Hi to all[
],I agree with everyone here. I’ve read all of RK’s books. At first I was looking for a lot of “how to” but realised that the journey is different for each of us. Eventually, I saw it as a way of thinking differently and that I would have to develop my own “how to”. Still doing this but a couple of years on am further along the road.
Cheers,
David
Hi to all[],I agree with everyone here. I’ve read all of RK’s books. At first I was looking for a lot of “how to” but realised that the journey is different for each of us. Eventually, I saw it as a way of thinking differently and that I would have to develop my own “how to”. Still doing this but a couple of years on am further along the road.
Cheers,
David
Hi there,
There is no doubt that the book changed a lot of peoples line of thinking, mine included. I have read them all, and I liked them. I was going through the phase of looking for something else besides the 9-5.
However, I WAS introduced to the book by the MLM people who were trying to get me in at the time.
The author of the critique does shoot down a lot of his theories in flames. Now I dont mean to upset you people who love him, but I simply asked for your opinions, and all of you seem to just think that the guys is just looking through the green glasses. Do you see any merit in his review at all?Thanks again,
brent1
John T Reed’s critique may have some merit but what RK’s books has done for people is open up their minds.
BTW there is a long thread in the treasure chest on this as it came up some months ago! Use the search function and Im sure you will find lots on it.
Cheers
Wilko
Agree with everyone that Kiyosaki’s strength is developing the right mindset. His major contribution (through books & Cashflow) is to impress on us the importance of shifting your income to passive sources and away from your job.
But some of the detail is a bit dodgy. For instance he mentions something about making contracts ‘subject to approval of my business partner’. Then he says ‘what they don’t know is my business partner is my cat’!
This sort of stuff is an insult to the reader’s intelligence. And what does it say about ethics & integrity?
I recommend Kiyosaki, but not unless it’s read in conjuction with other books like ‘The Millionaire Next Door’ and ‘The Millionaire Mind’, which are my favourites.
Peter
hi peter!
re: “making contracts ‘subject to approval of my business partner’. Then he says ‘what they don’t know is my business partner is my cat’!
This sort of stuff is an insult to the reader’s intelligence. And what does it say about ethics & integrity?”hmmmm…..that’s like asking the question, whether it’s ethical to
give yourself an ‘out’ before going unconditional.Basically, ANY condition in a contract gives you the out. I always make offers subject to satisfactory builder’s report, subject to my lawyers’s satisfaction as to all terms and conditions, subject to satisfactory LIM report, blah blah.
It’s been suggested to me that ‘subject to satisfactory inspection by my agent’ is a common clause. hey, “your agent” could be the cat too. !
Basically any condition with the word ‘satisfactory’ in it gives you an out. And I don’t even bother with the inspection until i know i can get the property for the right price. So my offers ALWAYS have conditions subject to satisfactory ‘something’ in them and I don’t feel that it’s unethical to do that. RK was just stretching the point to the ridiculous. but that’s what law is like, anyway, which you find out if you study it.
If you think that kind of condition is unethical, then make your offers unconditional by all means, but buyer beware! And if you do due diligence *before* you have a signed and countersigned offer, be prepared for the price to go up…then they know you want it…
cheers-
Miniand BTW you gotta read ‘the one minute millionaire’ by robert allen and someone else. it’s brilliant!!
Mark Victor Hansen – author of the Chicken Soup book – Robert Allen’s co author.
Now I’ve forgotten my question. Oh yeah, at the risk of sounding stupid, what is LIM?
Cheers
MelLIM = “Land Information Memorandum” (I think).
It’s basically a copy of the relevant files held at the local council, it can tell you if there are any outstanding issues with the council (such as drainage problems or work that was started and never given final approval).
I think it also tells you about the council rules for the area (like building restrictions due to high winds etc).
It can only tell you what the council knows, obviously if there is a problem they don’t know about it won’t show up!
P.S. On re-reading what I wrote above I forgot to say this is a NZ term defined in one of the acts governing local councils.
Thanks Graeme.
Having predominantly bought in the ACT, I have never come across that before.
Cheers
MelHi Mini – very thought-provoking!
I don’t see anything wrong with having an out before something goes unconditional.
But shouldn’t the ‘out’ be on the grounds of something that’s stated in the contract (eg an unsatisfactory building inspection) rather than just anything made-up? But if you find out something bad about the property that materially affects its suitability and this wasn’t disclosed to you, then I’d agree it is probably ethical to be more ‘creative’ in finding ‘outs’.
Having a cat (who is unable to sign contracts) as a business partner could be considered to be a ‘white lie’ and a slight compromise of integrity if someone challenges you on ‘who is your business partner’. So could many parts of due diligence, eg ringing up estate agents pretending to be a prospective tenant to get facts about vacancies and rents! The boundaries between acting, resourcefulness, good research, lying and conveying an erroneous perception by saying nothing are interesting and not always clear-cut.
Many of the studies of successful people state the importance of integrity and truthfulness. This includes things like delivering on your promises (actually mentioned by RK in books such as RYRR) and dealing fairly with all people (eg things like win-win outcomes).
In this, I’m probably splitting hairs, but it’s in my mind right now as I’m fresh from (re)reading RK’s mention of the origin of ‘integrity’ which means ‘wholeness’ or similar!
Peter
PS: I suppose you could consider the business partner could be a cat after all. If you fail, he starves. Thus he has an vested interest in your investments working out.
Kiyosaki has basically written several books about……..nothing. His stuff is very light on detail, poorly written & repetitive.Even the interviews that he has given to the media seem to reinforce this. When asked for details, he tends to waffle on.
His products may have some limited use as motivational tools.
I would not be surprised if the vast majority of his wealth, much like his metwork marketing chums, stems from the peddling of his books and other “business building tools”.
There are a lot of “gurus” flogging their product in the marketplace. Some are just more successful at it than others.
Have a nice day.
],
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