Is Rich Dad, Poor Dad (Robert Kiyosaki) a fraud?

Question

He doesn't give any specifics on how to become rich, no techniques, just general mumbo jumbo, it seems.

Answer 1

Kiyosaki's books and teachings have been criticized by some for having anecdotal lessons, but lacking concrete advice on what exactly one should do. Many readers find his work highly motivational and educational, but some find it lacking information to put it to use. Kiyosaki responds that his material 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, Kiyosaki shocked some members of the audience with stereotypical comments about African-Americans in an attempt to motivate.
Questions have arisen concerning Kiyosaki's true financial acumen, particularly in light of his ubiquitous, vocal and trusted presence in the popular culture of financial advice. For example, 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. Kiyosaki repeated this claim in a subsequent column, expanding his criticism of mutual funds by stating they are for "losers".
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.
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. Kiyosaki claims that this is an intentional teaching style that he feels is important.
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 Kiyosaki
Critics of Kiyosaki's work 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. Kiyosaki advocates risk-taking and recommends people "have guts" to take risk. These standpoints conflict with the views of conservative investors.
Kiyosaki's boardgames have been criticized for being excessively expensive - USD $200 for the most expensive Cashflow 101.
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 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 and anecdote in many of his works. Some readers believe that Rich Dad is fictional and that Kiyosaki created him as an author surrogate (a literary device). In the past, 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, 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 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.
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, 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.
***the book is really good, though***

Answer 2

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Answer 3

Rich Dad Poor Dad Scam

Answer 4

This Site Might Help You.

RE:
Is Rich Dad, Poor Dad (Robert Kiyosaki) a fraud?
He doesn't give any specifics on how to become rich, no techniques, just general mumbo jumbo, it seems.

Answer 5

Yes, I believe it is. I hoped it wasn't...
My wife and I fell for this six years ago, at the beginning of our marriage. We paid all that money and even got our credit card limit raised, like they said too. We are still trying to pay off our debt. They promised so much and the only thing we have to show for it is the game, "Cash Flow 101". I feel sad just remembering how we were suckered in. We learned a great lesson and we will never do anything like that again. We were very foolish to believe that we could, "get rich" by raising out credit card limit and paying them so much money. They never gave us the things they promised and did not return any money to us. I hope that Robert K. is not being dishonest with people and their hard earned money. I hope he is really helping people out but it sure doesn't feel that way. We hope and pray some day all this debt will be payed off. PLEASE don't make the same mistake we did. DO NOT "invest" your money into this program. :(

Answer 6

I avoid ANY "free seminars". "Free seminars" are always SALES PITCHES. Ask yourself why would someone spend lots of money on advertising to promote something that is "free"??? ANSWER: It CAN'T be free!! Eventually any free seminar is going to TRY to make money off of you. They want to UP sell you something. Usually it's an annuity. In the case of Robert Kiyosaki it's expensive one-on-one classes about real estate. Look at what happened to people who invested in real estate in 2008!

Never bear too much risk or bear too little risk. Putting all of you eggs in real estate is bearing too MUCH risk, ESPECIALLY when you are BORROWING money. This only AMPLIFIES your risk! If you borrow 75% and the price of your property goes down 25%, you haven't lost 25% -- You have lost 100%.

Instead stick with the time tested method of investing. Buy, hold and re-balance bond and stock ETF's like VOO and IEF. Wealth is grown the slow, steady way.

Answer 7

Absolutely a scam from the workd go. He s not at any of his seminars. Probably TO AVOID BEING SHOT. This guy is nothing but a liar and a cheat. He is the L.Ron Huburd of the financial industry. A word of advice if you attend and fall for his B.S. that starts out around $500. Then they string you along so your refund period expires. File a complaint with your State Attorney s office. We did and got our money back less the cost to send his worthless crap back.

Answer 8

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Answer 9

Robert Kiyosaki claims "Rich Dad" is a true life character. However, no one to this day was able to verify it 100%. Nonetheless, despite this, his books contain many useful information. It is certainly not a "How to do it step by step guide", it is more of motivational book with extremely different views on many aspects of investing.

Answer 10

Read what people that know something about the subject have to say about him. He's a crook and he wants you to be one too. If he's so good, why did he just have to file for bankruptcy (again)?

http://www.enemyofdebt.com/2010/04/my-beef-with-rich-dad-poor-dad-author-robert-kiyosaki/
http://ethanvanderbuilt.com/2014/01/20/robert-kiyosaki-scam-artist-yes-opinion/
http://www.thesimpledollar.com/deconstructing-robert-kiyosaki/
http://www.johntreed.com/Kiyosaki.html
http://www.businessinsider.com/the-author-of-the-rich-dad-poor-dad-books-has-filed-for-chapter-7-bankruptcy-2012-10
http://investorjunkie.com/11194/rich-dad-poor-dad-review/
http://www.glancingweb.com/2650/rich-dad-lying-scammy-asshole-dad

Answer 11

Run!
Run away from this!
Fortunately they only took me for the first $500 seminar 10 years ago!