Robert Kiyosaki

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Robert Kiyosaki
Born	April 8, 1947 (1947-04-08) (age 62) Hilo, Hawaii, United States
Occupation	Investor, entrepreneur, author, motivational speaker
Spouse(s)	Kim Kiyosaki

Robert Toru Kiyosaki (born April 8, 1947) is an investor, businessman, self-help author and motivational speaker. Kiyosaki is best known for his Rich Dad, Poor Dad series of motivational books and other material. He has written 15 books which have combined sales of over 26 million copies.^[1] Although beginning as a self-publisher, he was subsequently published by Warner Books, a division of Hachette Book Group USA, currently his new books appear under the Rich Dad Press imprint. Three of his books, Rich Dad Poor Dad, Rich Dad's CASHFLOW Quadrant, and Rich Dad's Guide to Investing, have been on the top 10 best-seller lists simultaneously on The Wall Street Journal, USA Today and the New York Times. Rich Kid Smart Kid was published in 2001, with the intent to help parents teach their children financial concepts. He has created three "Cashflow" board and software games for adults and children and has a series of "Rich Dad" audio cassettes and disks. He also publishes a monthly newsletter.^{[citation needed]}

Contents 1 Personal life 2 Family 3 Teachings 4 Books 5 Other books 6 Didactic games 7 Rich Dad Advisor Series 7.1 Audio/visual 8 Rich Dad Education 8.1 Real Estate 8.2 Stocks 9 Appearances 9.1 PBS 9.2 News 9.3 New York City's Madison Square Garden (October, 2002) 10 Financial advice 10.1 Mutual funds 11 Criticism and controversy 12 Partial bibliography 13 Notes 14 References 15 External links

[edit] Personal life

A fourth-generation Japanese American, Kiyosaki was born and raised in Hawaii. He is the son of the late educator Ralph H. Kiyosaki (1919-1991). After graduating from Hilo High School, he attended the U.S. Merchant Marine Academy in New York, graduating with the class of 1969 as a deck officer. He later served in the Marine Corps as a helicopter gunship pilot during the Vietnam War, where he was awarded the Air Medal.

Kiyosaki left the Marine Corps in 1974 and got a job selling copy machines for the Xerox Corporation. In 1977, Kiyosaki started a company that brought to market the first nylon and Velcro "surfer" wallets. The company was moderately successful at first but eventually went bankrupt. In the early 1980s, Kiyosaki started a business that licensed T-shirts for Heavy metal rock bands. Around 1996–1997 he launched Cashflow Technologies, Inc. which operates and owns the Rich Dad (and Cashflow) brand.^{[citation needed]}

[edit] Family

He is married to Kim Kiyosaki. He has one sister, Emi Kiyosaki, a Tibetan Buddhist nun and known by the name Ven. Tenzin Kacho. He has co-authored one book with her.^[2]

[edit] Teachings

A large part of Kiyosaki's teachings focus on generating passive income by means of investment opportunities, such as real estate and businesses, with the ultimate goal of being able to support oneself by such investments alone. In tandem with this, Kiyosaki defines "assets" as things that generate cash inflow, such as rental properties or businesses—and "liabilities" as things that use cash, such as houses, cars, and so on. Kiyosaki also argues that financial leverage is critically important in becoming rich.

Kiyosaki stresses what he calls "financial literacy" as the means to obtaining wealth. He says that life skills are often best learned through experience and that there are important lessons not taught in school. He says that formal education is primarily for those seeking to be employees or self-employed individuals, and that this is an "Industrial Age idea." And according to Kiyosaki, in order to obtain financial freedom, one must be either a business owner or an investor, generating passive income.

Kiyosaki speaks often of what he calls "The Cashflow Quadrant," a conceptual tool that aims to describe how all the money in the world is earned. Depicted in a diagram, this concept entails four groupings, split with two lines (one vertical and one horizontal). In each of the four groups there is a letter representing a way in which an individual may earn income. The letters are as follows.

• E: Employee — Working for someone else.
• S: Self-employed or Small business owner — Where a person owns his own job and is his own boss.
• B: (Boss) Business owner — Where a person owns a "system" of making money, rather than a job to make money.
• I: Investor — Spending money in order to receive a larger payout in the future.

[edit] Books

Kiyosaki is best known for his book Rich Dad, Poor Dad, the #1 New York Times bestseller. Kiyosaki followed with Rich Dad's CASHFLOW Quadrant and Rich Dad's Guide to Investing. He has now had at least a dozen books published. A partial list of his books is included below.

Originally self-published before being picked up commercially to become a best seller, the central concept of Rich Dad, Poor Dad is an anecdotal comparison of his "two fathers". His "poor dad" was his biological father, who became Superintendent of the Hawaii State Department of Education but had very little real net worth. Contrasted with this is his (arguably fictitious, see "Criticism and controversy" section of this article) "rich dad" advocates tax-advantaged investment vehicles, such as real estate or businesses, rather than ownership of securities.^{[citation needed]} This idea is further developed in his later books. Rich Dad became Kiyosaki's personal brand for various publishing ventures.

Cashflow Quadrant: Rich Dad's Guide to Financial Freedom (2000)

Cashflow Quadrant is a personal finance and investing book written with Sharon Lechter, C.P.A. as the sequel to Rich Dad, Poor Dad. In it, Kiyosaki discusses what he calls the cashflow quadrant: a grid consisting of the letters "E", "S", "B", and "I." The cashflow quadrant itself is just an illustrative tool to show the difference between Employees, Self Employed/Small Business owners, Business owners (not directly involved in the day-to-day operation of the company), and Investors. Kiyosaki discusses the differences between concepts and ideas characteristic of each quadrant, particularly as they relate to passive income and tax advantages.

Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not! (2000)

Rich Dad's Guide to Investing gives the reader a roadmap to becoming the Ultimate Investor, one who uses other peoples' money to create investments that people want to buy into. While the first two books use broad strokes, this one goes into much more detail about actually implementing some of the strategies heretofore discussed.

Rich Kid, Smart Kid (2001)

Rich Kid, Smart Kid is a retelling of Kiyosaki's views, condensed and clarified to try and help parents better understand and teach their children key financial concepts. It includes a series of activities that a parent can do with their child to make them aware of property, finance and the various ways and places businesses make money.

Rich Dad's Prophecy (2002)

Rich Dad's Prophecy predicts that the market will crash around 2016 when the oldest Baby Boomers start cashing out their 401(k) plans. Individuals whose savings are locked into 401(k) plans will suffer because these retirement plans are not flexible and do not do well in a bear market.^[3]

Why We Want You To Be Rich, co-authored by Donald Trump (2007)

Why We Want You To Be Rich is a book written by both Robert Kiyosaki and Donald Trump. It encourages individuals to become financially literate to combat the upcoming problems facing America, such as the shrinking middle class and the entitlement mentality.^[4]

[edit] Other books

• If You Want to be Rich & Happy, Don't go to School (1992)
• The Business School for People Who Like Helping People (2001) - endorses multi-level marketing.
• Retire Young, Retire Rich (2001)
• Rich Dad's The Business School (2003)
• Who Took My Money (2004)
• Rich Dad, Poor Dad for Teens (2004)
• Before You Quit Your Job (2005)
• Rich Dad's Escape from the Rat Race - Comic for children (2005)
• Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money (2008)
• Rich Dad's Conspiracy of the Rich: The 8 New Rules of Money (2009 – free online edition)

[edit] Didactic games

Kiyosaki stresses the value of games, particularly Monopoly, as tools for learning basic financial strategies such as "trade four green houses for one red hotel." Kiyosaki has created several games to reinforce the information in his books.

Cashflow 101

"Cashflow 101" is a board game designed by Kiyosaki, which aims to teach the players concepts of investing and making money, it costs $195.

There are two stages to the game. In the first, "the rat race", the player aims to raise his or her character's passive income level to where it exceeds the character's expenses through a variety of investment options. The winner is determined in the second stage, "the fast track." To win, a player must get his character to buy his "dream" or accumulate $50,000 in monthly cash flow.

The game forces the players to do the accounts by themselves. In place of "score cards", there are financial statements. Therefore, players can see more clearly what is happening with their money. It generally shows how assets generate incomes and liabilities and 'doodads' affect expenses.

Basic strategies involved in this game are: buying and selling stocks, Cashflow, Appreciation, and leverage.

Cashflow 202

"Cashflow 202" is a more advanced game than Cashflow 101. It is designed to help players learn about more sophisticated investing strategies. Cashflow 101 was generally meant to teach investing techniques that would work best in an "up market" where property values steadily increase, whereas Cashflow 202 is supposed to teach investment strategies for a fluctuating market where property values depreciate as well as rise.

Strategies involved in this game are: Call, Put, and Short options on stocks, 1031 Real Estate Exchanges, and immediate capital gains vs. longer-term investments.

Cashflow for Kids

"Cashflow for Kids" is basically a children's version of Cashflow 101, good for ages 5 through 9. There is also a Cashflow for Kids e-game available for free.^[5]

Cashflow The E-Game

"Cashflow The E-Game" is a computer software version of the Cashflow 101 board game. It is not necessary to have the board game in order to play the computer game.

Cashflow 202 The E-Game

"Cashflow 202 The E-Game" is a software expansion of the computer game "Cashflow The E-Game." Its counterpart is the "Cashflow 202" board game described earlier in this article.

[edit] Rich Dad Advisor Series

The Rich Dad Advisor Series is a series of books written on different business topics. These books are seen as more technical in nature as they tend to be written by lawyers, accountants and other professionals. Books in the series include:

• How to Buy and Sell a Business: How You Can Win in the Business Quadrant
• Protecting Your #1 Asset : Creating Fortunes from Your Ideas : An Intellectual Property Handbook
• Sales Dogs : You Do Not Have to Be an Attack Dog to Be Successful in Sales
• Real Estate Riches: How to Become Rich Using Your Banker's Money
• Loopholes of the Rich: How the Rich Legally Make More Money and Pay Less Tax
• Real Estate Loopholes: Secrets of Successful Real Estate Investing
• Rich Dad's Real Estate Advantages: Tax and Legal Secrets of Successful Real Estate Investors
• Own Your Own Corporation: Why the Rich Own Their Own Companies and Everyone Else Works for Them

[edit] Audio/visual

This is a quick list of audio/visual (such as tapes and DVDs) that have been released. Almost all of Robert Kiyosaki's books have been released as audio products:

• Rich Dad's Conspiracy of the Rich - The 8 New Rules of Money
• Rich Dad's Secrets To Money
• You Can Choose To Be Rich: "Think It" "Learn It" "Do It"
• Rich Dad's Roads To Riches: 6 Steps to Becoming a Successful Real Estate Investor
• How To Increase The Income From Your Real Estate Investments
• How To: Find and Keep Good Tenants (Audio)
• How To: Find Great Investments (Audio)
• How To: Get Your Banker To Say "Yes! (Audio)

[edit] Rich Dad Education

[edit] Real Estate

Kiyosaki has brought a 50% partnership with Wealth Intelligence Academy to help promote real estate systems^{[citation needed]}

[edit] Stocks

Kiyosaki has used his brand for a training company to teach about making money in the stock market^{[citation needed]}

[edit] Appearances

[edit] PBS

Several local stations of the Public Broadcasting Service (PBS), including WTTW of Chicago, KAET of Phoenix, KOCE of Orange County, California, WLIW of the New York/New Jersey area, and WGBH of Boston, have featured Kiyosaki during fund-raising drives. During this television special, Rich Dad's Guide to Wealth with Robert Kiyosaki, he provides viewers with what he calls "financial education", as opposed to academic or professional education.

[edit] News

Kiyosaki has been seen giving financial advice on various network television news channels.

[edit] New York City's Madison Square Garden (October, 2002)

This speech was the subject of a CNN story.^[3]

[edit] Financial advice

[edit] Mutual funds

Kiyosaki wrote 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.^[6] Kiyosaki expanded on his criticism of mutual funds in another column by stating they are for "losers."^[7] He has drawn much criticism for comparing investing in mutual funds to playing the lottery, and for discouraging 401(k) investing, contrary to the advice of most professional financial advisers.^[8] In contrast to these statements, Kiyosaki wrote in his book Prophecy that mutual funds are not bad investments, but are risky investments for those that are not financially educated.

Kiyosaki's view is supported by the founder of mutual fund Vanguard, John C. Bogle. In a Frontline episode titled "401(k)s: The New Retirement Plan, For Better or Worse", Bogle stated that management fees and trading costs gobble up approximately 2.5% of an investor's annual returns and approximately 80% of an investor's long term gains. He says management costs 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. Bogle's solution is to utilize index funds, which charge as little as 0.09%, to substantially reduce or eliminate management fees.^[9]

[edit] Criticism and controversy

Kiyosaki's books and teachings have been criticized for focusing on anecdotes and containing little in the way of concrete advice on how readers should proceed.^[10] 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.^[11]

Even some of the facts he has offered directly have been questioned.^[who?] For example, on September 19, 2006, Kiyosaki wrote in a Yahoo Finance article that the NYMEX is an exchange where "… pork bellies,… are traded."^[12] In reality, pork bellies are not traded on the New York Mercantile Exchange,^[13] rather they are traded on the Chicago Mercantile Exchange.

ABC ran a 20/20 segment on May 19, 2006 in which Kiyosaki was to advise three entrepreneurs on how to make money. They were given $1000 and 20 days to try and make the most money possible. One earned a return of 24%, the second earned a return of 54% but gave it all to charity, and the third lost 100% because she invested in machines that could not be delivered in 20 days. The contestants alleged that Kiyosaki never gave concrete advice. "All he [Kiyosaki] does is, I guess, is open your mind to the possibility. He doesn't tell you how to do it." Kiyosaki responded that failure is important to learning. At the end, 20/20 asks, "Does anyone really need 18 books to learn to fail?"^[1]

The Wall Street Journal harshly criticised Why We Want You To Be Rich by Kiyosaki and Trump^[14] as did Kiplinger's Personal Finance.^[15]

[edit] Partial bibliography

• If You Want to Be Rich & Happy: Don't Go to School? : Ensuring Lifetime Security for Yourself and Your Children (1992). ISBN 0-944031-38-2.
• Rich Dad, Poor Dad - What the Rich Teach Their Kids About Money - That the Poor and Middle Class Do Not! (first published in 1997), by Robert Kiyosaki & Sharon L. Lechter. Warner Business Books. ISBN 0-446-67745-0.
• Cashflow Quadrant: Rich Dad's Guide to Financial Freedom (2000). ISBN 0-446-67747-7.
• Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not! (2000). ISBN 0-446-67746-9.
• Rich Dad's Rich Kid, Smart Kid: Giving Your Children a Financial Headstart (2001). ISBN 0-446-67748-5.
• Rich Dad's Retire Young, Retire Rich (2002). ISBN 0-446-67843-0.
• Rich Dad's Prophecy: Why the Biggest Stock Market Crash in History Is Still Coming… and How You Can Prepare Yourself and Profit from It! (October, 2002). Warner Books, Incorporated. ISBN 0-641-62241-4.
• You Can Choose to be Rich (2003) 12-CD Audio series with booklet.
• Rich Dad's Before You Quit Your Job : 10 Real-Life Lessons Every Entrepreneur Should Know About Building a Multimillion-Dollar Business (2005). ISBN 0-446-69637-4.

[edit] Notes

[edit] References

[edit] External links

• Robert Kiyosaki's official website
• Conspiracy of the Rich, includes Kiyosaki's blog
• RichWoman.Com Sister site to RichDad.com for women
• RichKidSmartKid.com Official site connected to RichDad.com for kids
• Yahoo! Finance Robert Kiyosaki biography and archive of articles
• Hawaii Business Magazine June 2002 cover story on Kiyosaki
• (fr) Analyse de Robert T. Kiyosaki : un maître à penser ?

v • d • e Robert Kiyosaki Series Rich Dad, Poor Dad Book Series Rich Dad, Poor Dad  · Cashflow Quadrant  · Rich Kid, Smart Kid  · Rich Dad's Guide to Investing  · Rich Dad's Prophecy Collaborative Books Why We Want You to Be Rich Other Projects Cashflow 101  · Wealth Expo Affiliated People Kim Kiyosaki · Sharon Lechter · Donald Trump