Rich Dad Poor Dad Scam
Posted by rjkeller
Robert Kiyosaki's Rich Dad Poor Dad have been criticized by some for having anecdotal lessons, but lacking concrete advice on what exactly one should do. Many readers find Rich Dad Poor Dad, Robert Robert Kiyosakiighly motivational and educational, but some find it lacking information to put it to use. Robert Kiyosaki responds that Rich Dad Poor Dad is meant to be more of a motivational tool to get readers thinking about money, rather than a step by step guide to wealth. He also says the books are supposed to be "interesting" to people, which precludes involving a lot of technical material. At the Learning Annex seminar in New York in 2005, Robert Kiyosaki shocked some members of the audience with stereotypical comments about African-Americans in an attempt to motivate.
Questions have arisen concerning Robert Kiyosaki's true financial acumen, particularly in light of his ubiquitous, vocal and trusted presence in the popular culture of financial advice. For example, Robert Kiyosaki claimed in one column that investors in any mutual fund with a 2.5% annual fee would, over a long time period, surrender 80% of the earnings to the fund. Robert Kiyosaki repeated this claim in a subsequent column, expanding his criticism of mutual funds by stating they are for "losers".
Robert Kiyosaki's claim is given credence by the founder of mutual fund powerhouse Vanguard, John C. Bogle. In a Frontline episode titled 401(k)s: The New Retirement Plan, For Better or Worse, Bogle, too, claims that management fees gobble up approximately 2.5% of an investor's annual returns and approximately 80% of an investor's long term gains. He claims management fees reduce the value of a $1,000 investment over 65 years from approximately $140,000 at 8% compounded annually to a mere $30,000 at 5.5% compounded annually. Bogel's solution is to utilize index funds to substantially reduce or eliminate management fees.
Robert Kiyosaki has also been criticized for being overly repetitious in his teachings. Some consider this a tactic to produce “filler” material in order to make it appear he is covering more material. Robert Kiyosaki claims that this is an intentional teaching style that he feels is important.
Robert Kiyosaki has made appearances on PBS that are thought by some to be little more than expanded infomercials. This choice of programming has been generally controversial among PBS viewers, and is discussed on John T. Reed's criticism of Robert Kiyosaki
Critics of Robert Kiyosaki's Rich Dad Poor Dad have thought some of his advice to be financially poor or even dangerous. For example, he advocates focusing on a few "good investments" rather than diversifying or putting money into 401(k)s. Robert Kiyosaki advocates risk-taking and recommends people "have guts" to take risk. These standpoints conflict with the views of conservative investors.
Robert Kiyosaki's boardgames have been criticized for being excessively expensive - USD $200 for the most expensive Cashflow 101.
Robert Kiyosaki downplays the importance of traditional/tertiary education to the importance of financial success. There are individuals who would object to this assertion, as well as studies to the contrary.
Some have questioned Robert Kiyosaki's status as a successful investor and businessman prior to the formation of his present venture, CASHFLOW Technologies, Inc. They claim that his wealth has come only as a result of selling books and audio presentations about topics he has not personally succeeded in and that he is probably worth far less than the $50 to $100 million USD he once claimed in an interview. They note he has claimed to be bankrupt as recently as 1985, a high school dropout and a deserter from the military. Some of these items do not agree with records and may have been stated for "dramatic effect". In several of his books he makes claims about his accomplishments which appear to be exaggerations, fabrications or misdirection.
It may be difficult to discern fact from fiction in Rich Dad Poor Dad. Some readers believe that Rich Dad is fictional and that Robert Kiyosaki created him as an author surrogate (a literary device). In the past, Robert Kiyosaki has maintained that Rich Dad actually existed, but that he died decades before the book was first published. However, he has never revealed his name or any other identifying information. Attempts by outsiders to determine Rich Dad's identity have not revealed a conclusive candidate, despite the prominence such a wealthy individual would likely have had in Hawaii in the 1950s. In the February 2003 issue of SmartMoney magazine, Robert Kiyosaki appeared to back off his claim that his "rich dad" was a real person, instead stating “Is Harry Potter real? Why don’t you let Rich Dad be a myth, like Harry Potter?”. Some supporters of Robert Kiyosaki claim to have researched the issue and come up with the notion that “Rich Dad” is really a (now deceased) man named "Richard Kimi". In his latest book however he claims that Rich Dad was in fact real, but was asked by his family not to reveal this indviduals name.
Robert Kiyosaki is also an endorser of network marketing (such as Amway, Tahitian Noni, Mary Kay, Quixtar, Juice Plus, etc.). He reasons in his book, The Business School For People Who Like Helping People, that the companies teach the skills necessary to be a successful business owner, like leadership, the ability to sell and teach, and emotional intelligence. Critics say he endorses the industry in order to sell more of his books and material to their members.
On September 19, 2006, Robert Kiyosaki wrote in a Yahoo Finance that the NYMEX is an exchange where "orange juice, pork bellies,... are traded". In reality, neither orange juice nor pork bellies are traded on the NYMEX.