‘Rich Dad, Poor Dad’, Author Robert Kiyosaki Reveals He Is $1.2 Billion In Debt

Source: New York Post

Instead of saving cash, Kiyosaki opts to store gold and convert his earnings into silver and gold. He credits this strategy for amassing a debt of $1.2 billion, an amount he openly acknowledges. The author says he is in debt because “if I go bust, the bank goes bust. Not my problem.” He further explained the reason behind the debt, Kiyosaki said that the money had been used to buy assets. Rather than saving cash, he saved gold and converted his earnings into gold and silver. According to Robert Kiyosaki, this strategy led to the accumulation of such a large debt. 

He says good debt is that which helps build wealth, such as loans used for acquiring income-generating assets like real estate, businesses, or investments. Kiyosaki encourages using debt as leverage in investments, especially in real estate and sees it as an efficient way to tackle market fluctuations and uncertainties. 

In an interview with Stockpulse at the Vancouver Resource Investment Conference in 2022, "I don’t own any copper. I own a lot of silver. I found a silver mine in Argentina and Yamana Gold (a Canadian mining company) bought it from me. I do own tons of gold and silver.” Kiyosaki has always favored “real assets" like Bitcoin, silver, gold, and Wagyu cattle​​. Bitcoin, especially, is a favorite of his, perceived as a hedge against the deteriorating value of the US dollar​​.

The author views gold as more stable and reliable than cash, which he calls “trash” because he just doesn’t “trust the frickin' dollar." His investment portfolio also includes silver in a significant part. Kiyosaki views it as a long-term investment, particularly because of its increasing rarity and relatively lower price than gold​​. However, real estate remains a cornerstone of his investments, valued for its dual benefits of rental income, and capital appreciation​​. The most unconventional of his investments is in Wagyu cattle. This investment of the best-selling author only mirrors his belief beyond traditional investments​​.

Kiyosaki also ventures beyond traditional investments, exemplified by his investment in Wagyu cattle. This unconventional choice aligns with his philosophy of exploring alternative paths to wealth creation and taking calculated risks. Published in 1997, "Rich Dad, Poor Dad" challenged the notion that high income is the sole key to wealth and championed the power of entrepreneurship and smart risk-taking.

Source: Robert Kiyosaki's $1.2B Debt Explained By His Tax Advisor Tom Wheelwright

Frequently Asked Questions 

Q. Is Rich Dad Poor Dad still valid?

Yes, “Rich Dad Poor Dad” is still worth reading and one of the must-reads for anyone seeking to gain financial knowledge, reshape their mindset, and create a solid foundation for long-term wealth.  The book teaches about having the right mindset and not being scared to make mistakes and take chances. This book is definitely a good starter kit for understanding money and setting you on the right path to financial success. 

Q. Is Rich Dad Poor Dad really rich?

The author Robert Kiyosaki kept it a complete mystery citing a written agreement with the family of Rich Dad to keep him anonymous. Many even believe that Rich Dad is a made-up character, drawing inspiration from numerous mentors and experiences in Kiyosaki’s life. Therefore, it’s hard to tell whether Rich Dad is really rich or not,  is not. 

Q. How does Kiyosaki make money?

Rich Dad Poor Dad author, Robert Kiyosaki, despite his latest statement about $1.2 billion debt, has multiple income streams that contribute to his wealth. These sources include books, courses, coaching, and speaking appearances, precious metals & cryptocurrency, business ventures, and Kiyosaki also makes money through real estate investing.

Q. What assets does Robert Kiyosaki buy?

While it’s hard to tell the specifics, Robert Kiyosaki publicly promotes a diverse range of assets, focusing on income-generating properties, tangible assets like precious metals (Gold and Silver), and potentially high-growth opportunities like businesses and cryptocurrencies. He has also mentioned investing in other assets such as commodities and intellectual property. 

Q. Does Rich Dad Poor Dad actually teach you anything?

Whether a Rich Dad or Poor Dad actually teaches you anything depends on many factors such as your existing knowledge, financial goals, and preferred learning style. However, generally, the book offers many powerful money lessons on financial education, passive income, risk-taking, leveraging resources, controlling spending, handling debts, and personal growth. 

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