This person severely misread the book. I could give quite a few examples from the writing. For instance, the child labor issue he brings up is ridiculous - "Rich Dad" obviously didn't benefit from this labor in any financial way. The premise of the book is solid; invest in assets that make money for you without you having to be there. He specifically says in the book a few times that he doesn't necessarily advocate r…
The idea of a "passive investment" is a joke. The example of a web app as a passive investment is crazy -- how many apps exist that won't require support, ongoing maintenance, etc? That's significant work. Stocks, bonds, mutual funds -- the returns here are small enough that you can't generate income to live on without a huge up-front investment. If you could manage a consistent 8% yield you'd be doing well, and it w…
Many years ago, I worked for a property management company who's sole client was a partnership of about 30 people. Between the partners, only two were active partners. The rest did nothing more than show up during the first week of the month to get their disbursement check. This was before direct deposit was widespread.
Of course, the holdings were all commercial, were valued collectively at ~80 million, from initial investments of around ~15 mil (adjusted).
The main problem with "passive" income is that margins on passive income are so low that you need a huge amount of investment to make anything meaningful. You have to keep developing streams of income to replace ones that have burnt out. And you have to keep shoveling your profits back into the venture.
It's a long, hard slog.