Rich Dad, Poor Dad....A Scam?

[WORKEROUTER]

In my quest to educate myself about money and finances, I have begun reading "Rich Dad, Poor Dad" after seeing the title pop up time and time again in the forums.

Right now, I am about half way through, at the part where he brings up the example of purchasing Phoenix real estate and making a fortune off it ( I believe over 190000 in less than 30 hours).

So far, what I've gotten from the book is that the rich invest in assetts...Middle class invest in liabilities. Thus "make your money work for you" by purchasing real estate, stocks, bonds, etc (for me, I believe that purchasing stocks is a good asset building opportunity). And so from this, he emphasizes the importance for people to actually study finances and accounting, and most of all, to be creative, to take risks. To me, this does seem like golden advice, but it seems more like a self-help book in this respect in that it really inspires some initiative in people to get their ass in gear, stop complaining about their boss or how the rich steal from the poor, and to be an aggressive member of today's capitalist society.

In terms of actually telling one how to go about all of these things, I became a little lost. He dwelves in the whole idea of a corporation, but as an 18 year old college student barely making next month's rent, that seemed a bit over my head. Also he throws in the example of Phoenix real estate, but I didn't really get much out of that. In fact, it seemed too good to be true.

But anyway, I was taking a look at some of the reviews for the book on Amazon and noticed that about half the people claimed this book was an upright scam. They claimed a lot of what the author talks about is unrealistic, vague, and overall, just a bunch of misleading fluff.

Is this true? Should I approach this book with stronger skepticism? I want to hear what you guys think about the ideas presented in this book. Which ones are bogus? And what did you get out of this book?

Also, after finishing the book, where should one go from there? Since this book seems more of a good inspirational book, what would be a book that will actually go into concrete detail about building assets?

 

[Francisco d'Anconia]

His theory about how money works is sound. However, understand when he made his fortune. It was during the real estate boom of the 80's. Don't expect to make your fortune as quickly.

If you read his books thoroughly, you will see that he emphasises gathering additional information to build your knowledge. Surround yourself with people such as mortgage bankers, real estate agents and brokers, lawyers and investors. Pick their brains also.

Personally, I would not solely follow the information found in this forum other than to find additional information from those other sources before deciding if his way is the way you would like to build your fortune.

 

[STR8UP]

Kiyosaki is inspirational. If you are looking for nuts-and-bolts information try Sheets, Whitney, and Allen.

I have to laugh at how the critics are quick with the negativity. Most of the people who find fault with "unconventional financial wisdom" lack any kind of qualifications that give them the credibilty to accurately review such material. Truth is, most of them wouldn't know an "asset" from their "ass". You really have to consider the source.

As far as the basic ideas presented in the book...they are 100% solid. The key to wealth is to acquire assets, plain and simple.

You can do it in 30 or 40 years by busting your tail, living below your means, and buying mutual funds. I would rather do it my way and make it happen in less than half that time.

 

[WORKEROUTER]

Would you agree that for someone in my situation (18 year old college student), my best plan would be to start off by investing in stocks as my primary form of asset? Also, I plan to study finances, investments, and economics on my own to educate myself.

 

[Francisco d'Anconia]

Originally posted by WORKEROUTER
Would you agree that for someone in my situation (18 year old college student), my best plan would be to start off by investing in stocks as my primary form of asset? Also, I plan to study finances, investments, and economics on my own to educate myself.

Personally, if I chose to work the market, I would look into no load funds. I'd also diversify into bonds and other areas as not to end up like those naive saps at Enron.

However, if you don't mind bucking the system, I suggest looking into (hold on to your seats) buying a home with an interest only mortgage and putting the money that would normally go into an equity account into a high yielding, liquid life insurance policy which doesn't penalize for withdrawals. Yes, such a thing does exist, you just need to do some research.

But remember that I suggest that people not base their financial decisions from this forum, but rather to gather their information from professionals.

 

[arq-dj1]

basically
rich people have money making money

poor/medium class only spend money...

hes just saying, be a capitalist... because isn't safer not being one.. the risk of having your "medium" life desappear (in other words, you broke and got poor) is greater then the risks that a capitalist take by trying new things...

it says that you shouldn't settle for a good job, but go for experiences, new ones...


there, i resumed the hole book, no one has to read it

 

[STR8UP]

Originally posted by WORKEROUTER
Would you agree that for someone in my situation (18 year old college student), my best plan would be to start off by investing in stocks as my primary form of asset? Also, I plan to study finances, investments, and economics on my own to educate myself.

I would try all three roads to wealth (real estate, stock market, and business) to decide what is right for you. They each have advantages and disadvantages and it all boils down to what works for YOU.

His theory about how money works is sound. However, understand when he made his fortune. It was during the real estate boom of the 80's. Don't expect to make your fortune as quickly.

I have made more on real estate in the last 6 months than I have made in the last 32.5 years I have been alive. The party isn't over. It's NEVER over. It simply moves from one area to another or one market to another. That's why it is important to be able to take advantage of situations when they present themselves.

But remember that I suggest that people not base their financial decisions from this forum, but rather to gather their information from professionals.

The question is, who qualifies as a "professional"?

You mention bankers, real estate, agents, and lawyers. The problem with these people is that bankers have blinders on, real estate agents are out to sell you something, and lawyers are for the most part too busy working to get deep into investing.

You have to consider the source of your information carefully. The way I see it, only those who have travelled the road I wish to take are worthy of giving quality advice.

You will always need legal and accounting assistance, but other than that you won't find very many people listed in the yellow pages that can help you amass wealth in a short period of time. Ask a financial advisor how wealthy HE is. If he can't prove that he knows his stuff should you let him play with your money?

 

[Interpol]

Originally posted by Francisco d'Anconia
His theory about how money works is sound. However, understand when he made his fortune. It was during the real estate boom of the 80's.

Actually, he wasn't rich at all until he scammed people into buying his sh*tty book. Do some research.

 

[Francisco d'Anconia]

Originally posted by Interpol
Actually, he wasn't rich at all until he scammed people into buying his sh*tty book. Do some research.

Actually he had sold three companies (the cheapest one was only 7 figures) before writing the book. In my book a few million dollars constitutes a substantial amount of money.

Do your own fvcking research. Oh, my bad, you weren't even born then. Maybe momma should have swallowed.:crackup:

 

[Interpol]

Originally posted by Francisco d'Anconia
Actually he had sold three companies (the cheapest one was only 7 figures) before writing the book. In my book a few million dollars constitutes a substantial amount of money.

Do your own fvcking research. Oh, my bad, you weren't even born then. Maybe momma should have swallowed.:crackup:

Oh really? Do you know that for sure? Do those companies have names? Is there any proof, anywhere, that Kiyosaki ever owned or sold them? Do those companies really even exist?

http://www.johntreed.com/Kiyosaki.html

Scroll down until you see the red heading "How much money does Kiyosaki have?"

:kick:

 

[diplomatic_lies]

This discussion has been brought up in another thread.

My advice: Spend more time working on money instead of talking about who is and who isn't a scam.

 

[Interpol]

Originally posted by SuperGigaloDJ
I KNEW someone was gonna bring up John Treed.

So are you suggesting it is better to take advice from someone who proclaims to be wealthy, yet refuses to divulge the explicit facts of how he became wealthy (Kiyosaki), than someone who is completely upfront with their accomplishments and willing to provide proof of them (Reed)? Ok hotshot, you keep doing that.

 

[STR8UP]

Originally posted by Interpol
Oh really? Do you know that for sure? Do those companies have names? Is there any proof, anywhere, that Kiyosaki ever owned or sold them? Do those companies really even exist?

http://www.johntreed.com/Kiyosaki.html

Scroll down until you see the red heading "How much money does Kiyosaki have?"

:kick:

Reed is a lowlife. Anyone who resorts to mudslinging to be able to sell HIS OWN materials automatically loses 99.9% of his credibility. Obviously he can't simply sell his ideas their own merit so he has devised another way. Pitiful at best!

Another thing that is worth mentioning is that smart real estate and business investors have many ways to hide their assets from the public to avoid lawsuits and such. Just because you can't find a person's name in the public record doesn't mean that they don't have an interest in a certain asset.

I don't know how much time Reed has spent trying helplessly to discredit his competition, but it must be in the THOUSANDS of hours. I can't imagine having the time to be this obsessed over something. He admits to not having bought real estate in a long time and now makes his living solely from being an author. that might shed a little light on the subject...

 

[STR8UP]

Originally posted by Interpol
So are you suggesting it is better to take advice from someone who proclaims to be wealthy, yet refuses to divulge the explicit facts of how he became wealthy (Kiyosaki), than someone who is completely upfront with their accomplishments and willing to provide proof of them (Reed)? Ok hotshot, you keep doing that.

I have been playing the the same gane as Kiyosaki long before anyone knew he existed. The only proof I need that he knows his stuff is found between the covers of his books.

When YOU have some experience under your belt THEN come back and show us how it is REALLY done, "hotshot".

 

[Interpol]

Originally posted by STR8UP
Reed is a lowlife. Anyone who resorts to mudslinging to be able to sell HIS OWN materials automatically loses 99.9% of his credibility. Obviously he can't simply sell his ideas their own merit so he has devised another way. Pitiful at best!

Another thing that is worth mentioning is that smart real estate and business investors have many ways to hide their assets from the public to avoid lawsuits and such. Just because you can't find a person's name in the public record doesn't mean that they don't have an interest in a certain asset.

I don't know how much time Reed has spent trying helplessly to discredit his competition, but it must be in the THOUSANDS of hours. I can't imagine having the time to be this obsessed over something. He admits to not having bought real estate in a long time and now makes his living solely from being an author. that might shed a little light on the subject...

Discrediting (or attempting to discredit) John Reed doesn't change anything about Robert Kiyosaki. He's a shady guy who relies on Oprah to sell books and doesn't give proof of anything. Just the fact that even with the entire internet at your disposal, you can't find a single shred of evidence of any property or businesses he has bought or sold should tell you something.

You knock Reed for being primarily an author at this point of his life, but you ignore the fact that NO ONE knows ANYTHING Kiyosaki has done except write books. It's all smoke and mirrors. He encourages insider trading for God's sake. Yeah, that sounds like advice I wanna take.

 

[MetalFortress]

You're 19, Interpol, and a lot less rich than Str8up is. Why don't you shut up and learn from those who are more experienced and richer than you?

 

[spider_007]

Originally posted by WORKEROUTER
Would you agree that for someone in my situation (18 year old college student), my best plan would be to start off by investing in stocks as my primary form of asset? Also, I plan to study finances, investments, and economics on my own to educate myself.

If you wana learn about stocks A MUST READ is HAW TO MAKE MONEY IN STOCKS, by William J.Oneil. It tells you everything you need to look for in a stock, and it explains the points behind it. Also it gives some good examples. I thought the book was writen wery well.

As for rich "dad poor dad", I read that book and I thought it was insperational (spelling) and made some good points. Haw ever, I have had the other two for about a year now (qudrants, I can't remember the other one) And I have yat to read it past chapter one. It is just HORROBLY writen. He yaps, and yaps about **** over and over again, that does not make any sence (to me anyway) But i do agree with the general ida.

 

[Interpol]

Originally posted by MetalFortress
Why don't you shut up and learn from those who are more experienced and richer than you?

Why don't you ignore my age and address my actual argument?

 

[Francisco d'Anconia]

Originally posted by Interpol
So are you suggesting it is better to take advice from someone who proclaims to be wealthy, yet refuses to divulge the explicit facts of how he became wealthy (Kiyosaki), than someone who is completely upfront with their accomplishments and willing to provide proof of them (Reed)? Ok hotshot, you keep doing that.

I could care less how much money he has, I'm smart enough to do my own research on his theories. I have and have become more successful because I took advantage of what I found out.

It's like this, if we had the same perspective as you, we wouldn't be giving a 19 year old the time of day with prattle such as yours. You can't even buy a beer and we are supposed to listen to your insight? You still live at home, don't you?

 

[STR8UP]

Originally posted by Interpol
Why don't you ignore my age and address my actual argument?

Because you don't have a legitimate argument.

He's a shady guy who relies on Oprah to sell books and doesn't give proof of anything.

Not disclosing assets has nothing to do with being "shady". The guy writes books. He isn't knocking on your door trying to scam you out of your life savings. You need to learn the difference between a scam artist and a creative thinker.

Go ahead, follow the rest of the sheep kid...you'll always have plenty of company, that's for sure.