'Rich Dad, Poor Dad' author Robert Kiyosaki reveals he's $1B in debt
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Re: 'Rich Dad, Poor Dad' author Robert Kiyosaki reveals he's $1B in debt
#2"Living debt free is the worst advice you could give"
What advice can one give me, an individual who does not wish to live the life of a tape worm?
Re: 'Rich Dad, Poor Dad' author Robert Kiyosaki reveals he's $1B in debt
#3"Living debt free is the worst advice you could give" What advice can one give me, an individual who does not wish to live the life of a tape worm?
How does life of a tape worm connect with the idea?
Re: 'Rich Dad, Poor Dad' author Robert Kiyosaki reveals he's $1B in debt
#4"Living debt free is the worst advice you could give" What advice can one give me, an individual who does not wish to live the life of a tape worm?
He's talking about debt to purchase cash flow generating assets, not consumer debt.
Re: 'Rich Dad, Poor Dad' author Robert Kiyosaki reveals he's $1B in debt
#5Re: 'Rich Dad, Poor Dad' author Robert Kiyosaki reveals he's $1B in debt
#6I thought this was actually going to be an interesting article, about how he over leveraged himself and is now bankrupt, but no.
It's a high profile person who is using debt to build a business. This is basically every business person in the USA, except Kiyosaki hit some magic number at $1bn.
This is completely meaningless without knowing what his assets are worth. Probably more than $1bn.
Yet again, it's proved to me journalism is completely dead.
Re: 'Rich Dad, Poor Dad' author Robert Kiyosaki reveals he's $1B in debt
#7"Living debt free is the worst advice you could give" What advice can one give me, an individual who does not wish to live the life of a tape worm?
> While he recommends leveraging debt to buy assets, he disapproves of taking out a loan to buy materialistic items that won’t increase in value or pay dividends.
> “A lot of people use debt to buy liabilities,” he said. “I drive a Ferrari. Guess what? It’s paid off 100% because it’s a liability. I drive a Rolls-Royce. It’s paid off 100% because it’s a liability.”
There's your answer. And this is actually sound advice. You don't want to accrue interest payments on depreciables. But in the current money printing macro environment, it makes sense to leverage, depending on your time horizon and the prevailing interest rates.
Re: 'Rich Dad, Poor Dad' author Robert Kiyosaki reveals he's $1B in debt
#8"Living debt free is the worst advice you could give" What advice can one give me, an individual who does not wish to live the life of a tape worm?
How does life of a tape worm connect with the idea?
I think the idea is that Kiyosaki's lifestyle is that of a parasite.
Society is built from people producing economic output.
But this guy just buys low, sells high, and uses other people's money to do so?
Re: 'Rich Dad, Poor Dad' author Robert Kiyosaki reveals he's $1B in debt
#9If you owe the bank $100k that's your problem. If you owe the bank $100M that's their problem.
Re: 'Rich Dad, Poor Dad' author Robert Kiyosaki reveals he's $1B in debt
#10"Living debt free is the worst advice you could give" What advice can one give me, an individual who does not wish to live the life of a tape worm?
> While he recommends leveraging debt to buy assets, he disapproves of taking out a loan to buy materialistic items that won’t increase in value or pay dividends. > “A lot of people use debt to buy liabilities,” he said. “I drive a Ferrari. Guess what? It’s paid off 100% because it’s a liability. I drive a Rolls-Royce. It’s paid off 100% because it’s a liability.” There's your answer. And this is actually sound advic…
Which means for the average person, where nearly all their purchases are liabilities, telling people to live debt free is good advice and Kiyosaki quotes getting thrown around out of context do more harm than good.
I’m also curious to see how all these debt gluttons using “OPM” are going to fair in an environment of rising interest rates. When the tide goes out we’ll see who was swimming naked. I’m sure we’ll see many people get humbled.