| Robert Kiyosaki |
Article Index for Robert |
Website Links For Robert |
Information AboutRobert Kiyosaki |
|
Robert Toru Kiyosaki (ロバート・トール・キヨサキ, 清崎 徹, born April 8 , 1947 ) is an Investor , Businessman , and Self-help Author . He is married to Kim Kiyosaki. He was born and raised in Hilo , Hawaii and is a fourth-generation Japanese-American . He attended the U.S. Merchant Marine Academy in New York, and served in the Marine Corps as a Helicopter Gunship Pilot during the Vietnam War . Kiyosaki left the Marine Corps in 1974 and got a job selling copy machines for the Xerox Corporation . In 1977 , Robert started a company that brought to market the first nylon and Velcro "surfer" wallets, which grew into a multi-million dollar worldwide product. In 1985 Robert founded an international business and investment education company that taught to a large number of students throughout the world. Kiyosaki is best known for his " Rich Dad, Poor Dad " series of motivational books and other material. He has written at least a dozen books, which are now published by Warner Books, a division of AOL Time Warner. 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. The book "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 games for adults and children and has a series of "Rich Dad" audio cassettes. He also publishes a monthly newsletter and gives motivational talks around the world. [http://www.richdad.com/biography-of-robert-kiyosaki.html ROBERT KIYOSAKI'S TEACHINGS Education In his words, "Education is more important today than ever before. But we need to teach people to think a little further than just looking for a secure job and expecting the company or the government to look after them once their working days are through. That is an ' Industrial Age ' idea, and we aren't there anymore. The rules have changed." –Direct quote from Robert Kiyosaki 2000 Cashflow Quadrant “The main reason people struggle financially is because they spent years in school but learned nothing about money. The result is people learn to work for money...but never learn how to have money work for them,” says Robert. {Link without Title} Kiyosaki 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 according to Kiyosaki, in order to obtain financial freedom, one must be either a business owner or an investor, generating passive income. In effect, Kiyosaki stresses what he calls "financial education" as a means to obtaining wealth. Wealth through passive income According to Kiyosaki, Wealth is measured as the number of days the Income from your Assets will sustain you, and financial independence is achieved when your monthly income from assets exceeds your monthly Expenses . He equates this point with "true wealth". Assets Vs. Liabilities One of the basic points Kiyosaki writes and talks about is to think of an Asset as something that puts money in your pocket and a Liability as something that takes money out of it. He states that contrary to popular belief, a property is an Asset only if its rental income exceeds the costs of ownership ( Mortgage payments, Taxes , Maintenance , etc.). Otherwise it is a liability and only makes money for a bank. Even after the mortgage is paid off, the home is still a liability because of expenses such as rates and maintenance. The Cashflow Quadrant "The Cashflow Quadrant" is the name Kiyosaki gives to his proposed system in which all the money in the world is earned. It is outlined in the diagram to the right. The diagram consists of 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.
Kiyosaki says that those on the left side of the diagram never obtain true wealth while those on the right are on the road to true wealth (see the "Wealth Through Passive Income" section of this article). Leverage “‘ Cashflow ’ is the most important word in the world of money.”, begins Kiyosaki. “The second most important word is ‘ Leverage ’. Leverage is the reason some people become rich, and others do not. Because leverage is power, some use it, some abuse it, and others fear it. The reason less than 5% of all Americans are rich is because only 5% know how to use the power of leverage.” “True leverage is the ability to do more and more with less and less.”, says Robert. “Here’s a suggestion. Get a clean sheet of paper and begin to write your answers to this question. How can I do what I do for more people, with less work, and for a better price? Rich Dad called this ‘the million dollar question’.” –Robert Kiyosaki 2002 Retire Young, Retire Rich His primary examples of using leverage are in utilizing “OPM” (Other People’s Money) and “OPT” (Other People’s Time). Debt “There is good debt and bad debt. Good debt makes you rich, and bad debt makes you poor.” –Robert Kiyosaki. Kiyosaki agrees with most, in that he dislikes Consumer Debt . However he says that a “sophisticated Investor ” knows that Debt is not always a bad thing to have. In other words, when debt produces Profitable Asset s, it may be a good debt to have. Meaning, debt taking money out of your pocket is justified if it enables you to put a greater amount of money into your pocket. For example, if you take out a Mortgage Loan on a house, you are in debt to the bank; but this debt is justified by your ability to own the Property and produce Income from it, so long as that income exceeds your Expenses . “One of the most recognized forms of leverage is borrowing money. Today, we are aware of the severe problem of people abusing this powerful form of leverage. Many people now fear this form of leverage, saying ‘cut up your credit cards, pay off your mortgage, and get out of debt’. My rich dad would chuckle and say ‘Cutting up my credit cards won’t make me rich. Cutting up my credit cards only makes me miserable.’” –Robert Kiyosaki 2002 Retire Young, Retire Rich Spending habits No one disputes that the rich buy "income-producing Assets ". Kiyosaki argues that the poor buy worthless items that they think are assets, which clearly do not earn anything, and may have no market value. Kiyosaki says the rich think differently in how they define simple words like Asset s and Wealth , and how they fund their luxuries. He explains that he defines an Asset as any item which produces Income (such as rental property, stocks or bonds), and a Liability as anything which produces Expense (such as one's own home and car). Risk-taking Kiyosaki advocates risk-taking and often stresses the importance of "having guts" to take risk. Many wealthy men such as Robert Kiyosaki and Donald Trump stress this lesson. They say risk is necessary to yielding high gains on investments. Kiyosaki also points out that risk may be calculated, so as to minimize the danger of failure. Dealing with failure Kiyosaki says mistakes and failure are to be expected, and then learned from. “…the worst thing that happened at school was that they taught me not to make a mistake.”, says Robert in an audio recording called “It’s Easy To Be Rich”, an adaptation to the board game “Cashflow 101”. He continues, “Now if you don’t make a mistake, that means you’re always afraid of trying something new. And the way a human being is designed to learn is by making mistakes.” Repetition Kiyosaki makes constant use of Repetition . He feels that in order for an important idea to sink in, one should normally have to consider it again and again. This style is apparent throughout his publicized material. It is a style which is opposed by some of his critics. (see “Criticism And Controversy” section of this article) Association “Birds of a feather flock together” is a small lesson of Kiyosaki’s. This opinion of his was mentioned in the audio companion to his board game “Cashflow 101”. It is an old saying that in this context is meant to imply that if you want to be and think a certain way (i.e. financially educated and wealthy), you should associate with others who either are this way or also intend to be. For instance, spending time with business owners or investors might give you support to be one yourself. He implies that those who are merely employees or self employed individuals may hinder your progress by offering discouragement and bad advice. Consultation Kiyosaki says that “free advice is often the worst advice”. Meaning many people will offer you advice, but only a few will offer good advice. And although he recognizes that good advice may sometimes come freely, he suggests that paying an experienced, competent professional to share their opinions and advice with you is often a smart thing to do. For instance, consulting a CPA or Attorney . BOOKS Kiyosaki is best known for his book “ Rich Dad, Poor Dad ”, the #1 New York Times bestseller. Robert followed with Rich Dad's CASHFLOW Quadrant and Rich Dad's Guide to Investing - all 3 books have been on the top 10 best-seller lists simultaneously on The Wall Street Journal, USA Today and The New York Times. He has now had at least a dozen books published. A partial list of his books is included below. {Link without Title} Rich Dad, Poor Dad ( 2000 ) See Also: Rich Dad, Poor Dad “Rich Dad, Poor Dad - What the Rich Teach Their Kids About Money - That the Poor and Middle Class Do Not!” Written by Robert Kiyosaki & Sharon L. Lechter. Publisher - Warner Business Books / First published in ( 2000 ) / ISBN 0446677450 / Barnes & Noble - Reviews Originally self-published before being picked up commercially to become a Best Seller , the central concept of the book 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," his best friend's father who became "the richest man in Hawaii" by investing his smaller Income into income-producing investments. Its main purpose as a Self-help book is to help people rethink their idea of money and especially their concept of themselves as Employee s who will gain financial rewards from conformity and education. Kiyosaki uses the "rich dad, poor dad" comparison to illustrate his view that the majority of people are stuck in what he refers to as "the Rat Race "—living Paycheck to paycheck and spending all of their time working to pay bills. In his books, Kiyosaki advocates Tax-advantaged investment vehicles, such as Real Estate or Business es, rather than ownership of Securities . This idea is further developed in his later books and "Rich Dad" became Kiyosaki's personal Brand for various publishing ventures. Rich Dad, Poor Dad Book Quotes:
Cashflow Quadrant ( 2000 ) “Cashflow Quadrant” is a personal finance and investing book written with and Tax Advantage s. Again, as a Self-help author, he invites readers to consider their own ideas about money. (see “Cashflow Quadrant” section of this article under “Robert Kiyosaki’s Teachings”) Rich Kid, Smart Kid ( 2001 ) “Rich Kid, Smart Kid” is a comprehensive retelling of Kiyosaki's views, condensed and clarified to 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 Plan s, aren't flexible and don't do well in a bear (down) market. {Link without Title} From the Publisher: {Link without Title} The #1 New York Times bestselling authors of the Rich Dad Poor Dad series deliver a financial plan to help Baby Boomers survive an impending economic crash. Anyone with a 401(k) knows that investing in mutual funds is not safe, or so claim Kiyosaki and Lechter. Even worse, they warn that a devastating Economic Crash is imminent because Baby Boomers will soon be required by law to drain trillions of dollars stashed in 401(k) s, IRA s, SEP s, and other Mutual Fund Savings Account s as they start to retire. In short, the country's financial system won't withstand the drain, and relying on a 401K and Social Security will mean financial disaster. Here, Kiyosaki and Lechter provide a financial roadmap for readers to prosper during these troubled times. DIDACTIC GAMES Kiyosaki stresses the value of games; particularly '' Monopoly '' as a tool 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 See Also: Cashflow 101 “ Cashflow 101 ” is a Board Game designed by Robert Kiyosaki, which aims to teach the players concepts of Investing and making Money . 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 Expense s. The winner is determined in the second stage, "the fast track". To win, a player must get his or her character to buy their "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. 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 raise. Cashflow for Kids “Cashflow for Kids” is basically a children’s version of Cashflow 101 . Cashflow® The E-Game “Casfhlow® 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. (Opinion:) For what it’s worth, I (the person writing this entry) have spent some time playing the game and feel it was very worthwhile and educational. Cashflow 202 The E-Game “Cashflow 202 The E-Game” is a software expansion of the computer game “Cashflow® The E-Game”. It’s counterpart is the “Cashflow 202” Board Game described earlier in this article. APPEARANCES Television: PBS Several local stations of the Public Broadcasting System (PBS), including KOCE of Los Angeles, 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. Television: News Robert Kiyosaki has been seen giving financial advice on various network news channels. Event: New York City's Madison Square Garden (October, 2002) When Robert Kiyosaki's fans heard he'd be speaking at New York City's Madison Square Garden, they came by the thousands. For three hours, Kiyosaki charmed and motivated. He cajoled them to network with each other. He flouted the conventional financial institutions they'd lost faith in and preached his familiar message of self-help and financial independence. {Link without Title} CRITICISM AND CONTROVERSY His 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. {Link without Title} Kiyosaki has also been criticized for being overly Repetitious in his teachings. Some consider this a tactic to produce “filler” within his material in order to make it appear he is covering more material than he is in actuality. Kiyosaki’s defense is that this is an intentional teaching style he feels important. (see “Repetition” section of this article, under “Robert Kiyosaki’s Teachings”) Kiyosaki's appearances on PBS (see "Appearances on PBS" section of this article) 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 (see the "Risk-Taking" section of this article). This standpoint conflicts with the views of financially conservative investors. Kiyosaki's boardgames (see "Didactic Games" section of this article) have been criticized for costing appreciably more (USD $200 for the most expensive '' Cashflow 101 '') than a copy of '' Monopoly '' (approximately $15), despite being significantly more complex. 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. For a more complete view of this subject, please see the "Education" section of this article. 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 less than the $50 to $100 million USD he 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. Because of the heavy use of allegory to teach his lessons, some readers believe that Kiyosaki created Rich Dad as an Author Surrogate (a Literary Device ). Kiyosaki seems to maintain 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 (or even likely) 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?” In response, 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 “Kim” or “Kimi”. {Link without Title} Though he did not make his money in the industry, Kiyosaki is also an endorser of (controversial) network marketing (such as Amway , Tahitian Noni , Mary Kay , Quixtar , etc.) which some consider to be little more than pyramid schemes. 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. PARTIAL BIBLIOGRAPHY
EXTERNAL LINKS
|
|
|