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Selected responses to John T. Reed’s analysis of Rich Dad Poor Dad by Robert Kiyosaki 4

“Thanks for the on-line evaluation of Robert Kiyosaki. As a small time real-estate investor with several rental properties, I purchased this book with high expectations of expanding my admittedly limited knowledge base. Not only was I disappointed by the poor writing and useless information that was presented in this top-selling publication, but as a Japanese-American and active duty military officer, became incensed and a bit ashamed to be related to Mr. Kiyosaki, however slight, via heredity and profession.
It's a shame that Mr. Kiyosaki and others have been able to dupe the public through self-aggrandizing proclamations and hype. Perhaps it's also a testament to the fragile nature of the human psyche which gravitates toward such publicity in the first place. Nevertheless, you're doing a tremendous public service through your on-line reviews and frequent updates, and I wanted to thank you for your meticulous analysis and diligence. Keep up the great work.
Sincerely, Clem Tanaka CDR, USN [Note: Tanaka is a graduate of UC Berkeley and the Naval Post Graduate School.]
[John T. Reed’s repsonse to Tanaka:] Thanks, One question for you as a Japanese-American. I did not find anything in Kiyosaki's book that I thought related to his ancestry, except that I did wonder about what I characterized as his fascination with indirect reverse psychology ways of teaching and learning. It seemed reminiscent of the Karate Kid movie. Is there anything in Japanese culture that would account for such a fascination? Another possible thing that comes to mind is that Asians are known for encouraging their children to work hard on academics. Is that possibly a factor in his hatred of traditional schooling and apparent rejection of the main theme of his father's life? John T. Reed
Mr. Reed, According to Robert Kiyosaki's web-site, www.richdad.com, he's a fourth-generation Japanese American (the same as myself). As for his philosophy of teaching/learning, Mr. Kiyosaki appears to be trying to interweave Confucian methods with those of his "past teachings." Although I can't say that I'm a scholar in Confucius philosophy, the basic tenet revolves around using metaphors to drive home points, vice direct statements. These have been portrayed in various western media such as in the television series "Kung Fu" and the "Karate Kid" movies which you mention.. He also made moral statements without actually preaching. For example, with respect to human relations and the results of one taking advantage of another, Confucius says: "If one's acts are motivated by profit, he will have many enemies." Confucius does not say "Do this" or "Don't do this," but rather elucidates the consequences of various actions, negative and especially positive. Many of the Asian cultures have been heavily influenced by this Confucian thought process, but sadly, this influence appears to be waning among the current generation of youngsters... much to the chagrin of their parents. Getting back to how this relates to Kiyosaki, my personal cut is that he's twisted the "ancient methods" to his own gain, and uses them as a way to subliminally bait the average American with the "power" of these teachings. The Asian culture does indeed emphasize academics, however it appears that Kiyosaki became more enamored by the success of his "rich father" and the apparent ease by which it was attained which lead to his rejection of the traditional path to success (involving hard work and long hours) and eventually to the spurning of his own father. Apologize for the long-winded response. Hope this helps. Clem Tanaka
“I just wanted to show you my appreciation for your website.

I just bought his 3rd book, and was highly intrigued by tons of financial information that I was never aware of. So I carefully read tons of raving reviews of his books on Amazon.com (and conveniently downplaying the negative ones), and decided to buy his first book, just so that I can read them in sequence.

While I was reading the 1st chapter of the first book, I came across your website and read your analysis of his book. I scanned it rather quickly, and mentally filed away your objections, because I was more into reading the book for making money.

When I finished reading the book, I felt like I was hit with bat to my guts because my way of thinking was perfectly aligned with "Poor Dad"'s thinking.

In order to calm myself, I re-read your review much more carefully, and felt as if I was hit in my stomach once again, this time for falling for such a hyped and low-quality book! How could I have parked my brain outside so guilelessly? This was so hard to take because I take pride on being able to discriminate good books from bad ones.

Anyway, I am returning the two books so you have saved me $50 CDN (I live in Canada), but more importantly you have saved me from countless hours of futility and despair. I am buying books on finance, accounting and taxes so that I can no longer fall for these scams.

[You may quote me] for I also felt inspired by the quote of that MBA finance guy who described my feelings perfectly. (Also felt good that if somebody who have had the actual knowledge of finance and accounting could fall for it, me a web developer with no finance knowledge could fall for it as well, if not more easily!)
Thank you!” Byungwook Bob Yu
“I took the time to read your rather long and thorough examination of K's book. Wonderful! Afterward, I did some internet searching on a book you mentioned, "The Millionaire Next Door," and for some reason decided to play with the search criteria. The result was a link to K's 'rebuttal' to your review. (http://www.mastermindforum.com/kiyosakiresponsetoreed.htm)

I must admit that I haven't finished reading it yet; but the first paragraphs are already triggering those inner warning lights. My first impression is that he's trying to make his 'simple' book appear to be a mild, innocent target of abuse by the bad Rich Man (referring to your psychoanalysis of K). In fact, 'simple' (and its variants) seems to be his favorite word. I almost get the impression that he defends his book as being entertainment, and as such, immune to close scrutiny.

[Thought it best to finish reading his letter. Wasn't that long.]

After reading his letter, I can't help be feel indifferent to him. He certainly hasn't convinced me I should buy his book despite your review.

I live in Norway, and therefore, regretably, don't have much use for your books on real estate (or coaching sports, for that matter.) I do, however, want to thank you for saving me from wasting my money on K's simple and entertaining book.”

Thankfully yours,
Roger Alterskjær
Trondheim, Norway
Subject:
The Point of Rich Dad Poor Dad, since you obviously MISSED it.
Date:
Tue, 13 Mar 2001 13:53:10 -0500
From:
"M. Jamal Green" <jamal@jmlcentertainment.com>
Organization:
JMLC Entertainment, Inc.
To:
johnreed@johntreed.comMr. Reed,

I found your so-called critique of Rich Dad Poor Dad to be the rantings and ravings of a man who's extremely jealous of Robert's success. Especially since you hold the view that Robert Kiyosaki can't be a TRUE real estate investor, knows absolutely nothing about finance, and (God forbid) didn't make it into West Point. It must drive you nuts that such an ignorant man is making as much or more money than you teaching things he doesn't know about. His book RDPD, which is full of inconsistencies and misinformation (according to you and a few others) has netted Robert and his company MILLIONS. How can you STAND IT?!?!?!

Robert Kiyosaki has admitted that he continues to try and work on his public speaking skills, is not the best writer in the world (but he's a best selling author...not writer..BIG difference), and when it comes to finance he knows enough to pick the best advisors. He never said he was the best student, or the smartest guy on the block which is why he recommends to EVERYONE to acquire the best advice you can. (Incidently, one of his advisors, Diane Kennedy, is a well respected CPA, only has clients with a yearly income of $500,000 or more, and is one of the authors of the Best Selling (there's that phrase again) book Inc. and Grow Rich)

Now on to the point of Rich Dad Poor Dad. The whole point of the book is to explain to ordinary folks who are trapped in the rat race, how they got there, and the mental changes they need to make to get out. Period. The book outlines the philosophy the rich have vs. the poor and middle class. YOU are an example of the philosophy Robert teaches. You are a
Real Estate investor whose properties bring in Passive income. I'm sure that the money you've made from your assets purchased your private jet, financed your son's Ivy league education, and pays for any expenses or liabilities you've incurred over the years.

Your main beef though seems to be with Roberts Real Estate Investing Methods. While I'm just learning the REI business, the very REASON I'm even educating myself about it is because of Rich Dad Poor Dad. my financial IQ has increased 10-fold, and I have Robert to thank for that..Even if the deals he outlined in his book are BS the very fact that I can do similar deals and make a killing inspired me to learn about Creative Real Estate Investing which is just what Robert wants his readers to do.

Finally, since you LOVE to quote from the book, let me give you a quote that you obviously missed in reading it. I suppose you were to blinded by your own arrogance and prejudice toward Robert Kiyosaki to see that this one sentence sums up the whole purpose of RDPD...

Page 19 "...The lessons are not meant to be answers, but guideposts."
M. Jamal Green darxkydehu@hotmail.com
“John,
You have a way with words. I liked your comprehensive analysis of "Rich Dad Poor Dad" but I must say that I also enjoyed the book. Many of your points underline areas where I would stop and choke as I read. Having said that, I think the author, like the skillful politician, captured the essence of a fresh paradigm. I did not view his book as investment advice at all, but as a sort of big picture reevaluation of my financial goals and "what assets" I was focusing upon. Like your comment about ink blot psychology, I think his charismatic, "you can do it" big picture evoked different things in different people. For me, it made me mentally divide my resources up once again into those that create assets and those that create liabilities. Anyway, I think your overall analysis was great and very useful for all of us who may have looked to "RK" as a sort of financial guru. Thanks again.” Mike Oakes
“I just wanted to thank you for writing your comprehensive review. I came across it after reading half-a-dozen typically, shallow, complimentary reviews about Rich Dad, Poor Dad.” Frank Boyaner, Ottawa, Canada
“I want to give you my impression of Kiyosaki's book, Rich Dad, Poor Dad. Let me start off by saying that I was very curious about this particular book based on the amount of press it has gotten, and the amount of controversy that has resulted from very divergent schools of thought about the book's content. First of all, I wish to say that all of the rhetoric involved with the term "poor" upsets me. I was raised in a middle class family, and in fact, two generations ago, my family could have been considered "poor". Every single individual in my family has sacrificed a great deal to further each subsequent generation, and the way this author lumps the "middle class" with the "poor", and calls them ALL "poor" really upsets me. I, myself, am a college graduate in the engineering discipline. I am also a self-taught student in the areas of finance, to which the author refers.

I read your review, and I can't do anything but agree with all of the critisims you have given this book. The author's CONSTANT and INCESSANT use of phraseology that seems to build up his conspicuous opulence really bugs me to no end. I, myself, will someday be a millionaire, and I can assure you that there is no way on earth I could afford spending $70,000 on a Porsche... Not a chance! And then there is the glaring BS - the fact that he makes sure to point out in his book that he likes to keep his income small and his bills low. What, with that Porsche, Mercedes, and Armani suits he keeps talking about?

John, like you, I went to both public and Catholic schools growing up. I can understand his disgust with the school system's lack of financial education. However, my mother is a teacher, and we have discussed this topic at length. We both concur that IT IS THE RESPONSIBILITY OF SCHOOL TO MAKE REASONABLY LITERATE PEOPLE... PEOPLE WHO CAN BALANCE THEIR CHECKBOOK AND, HOPEFULLY, AVOID BANKRUPTCY. IT IS NOT THE DOMAIN OR THE RESPONSIBILITY OF SCHOOLS TO TRAIN MILLIONAIRES! So, I can see how it might be disturbing that schools do not teach this information, but I feel that this is yet another example of "passing the buck"... expecting schools to pick up the slack where the parents can't or don't fulfill their first and foremost responsibility to their children for education. That really irks me deeply.” Sean Clark
“Dear John,
How fantastic that you are taking the time to publish financial information on the internet.
I have recently read Rich Dad Poor Dad, which I'll admit I found very exciting and inspirational - as a recent graduate I have never thought about money as in way but a hassle - the "don't have any" kind of hassle. Here is a book which encouraged me to think about my money in new way.

Luckily, MY dad ( a POOR DAD by the book standards) has always encouraged me to make up my own mind about things by doing the research for myself.

I started by trying to look for criticisms of the RDPD method, and reading your critique has definitely been thought-provoking and helpful. I will be approaching any investments I make with much more care and preparation”.

Carry on the good work!
Regards,
Kristi Jarvis, New Zealand
“I've never heard of you, but I did find your comments on this novel to be dead on. My dad bought me "Rich Dad, Poor Dad", probably after his wife saw something on Oprah, or got a recommendation from a friend. I'm only 23, but I majored in Economics and have invested on my own for 3 years, and I found the book really lame. I tried as hard as I could to get something out of the book because my dad gave it to me and I wanted to impress him. After reading it, though, I just had this real uneasy feeling. I wasn't able to place it until I read your analysis - he does, as you say, seem like "he was scarred deeply by that humiliation" of growing up poor. Anyway, good job - I enjoyed reading your web site.” Regards, Kevin Brock, San Jose
“Very good - Thank you I am astounded at the depth and completeness of your writing.” Respectfully, Jon Cole, home builder
“Just got through reading your review of the subject book and had to write to tell you that you performed a real public service in taking this pop investment book apart. I read the book a while back and while I found it mildly amusing there was absolutely nothing in it of any real value to real investors. Your dissection of the reasons for this was both incisive and entertaining. …I found your Aggressive Tax Avoidance... book of great value and still consult it some 5-8 years since I first came upon it. Also You need to know that it is totally out of character for me to write such a fawning note to an author, but please put me down as an admirer of someone like you who can cut through the crap and tell it like it is. Thanks again.” Irv Halland/ Saratoga CA
“I am 22 years old professional, I own my own home and I am looking to invest in rental properties as a means to financially support the less lucrative career I desire to have. I just wanted to say THANK YOU for your guru critique page. I saw the episode of the Oprah show with guest Robert Kiyosaki (Rich Dad, Poor Dad). I decided to see what this guy was all about and bought the book Rich Dad, Poor Dad. After reading it I had so many unanswered questions. I didn’t understand how to begin to do the things he suggested and why he would give away such valuable “secretive” information to the entire world. I caught a few of the inconsistencies you pointed out in your analysis and couldn’t decide if my hunch was right, or if I just wasn't investor savvy enough to apply these “amazing” secrets. Although I don’t 100% agree with your analysis, (I did at least find the book to be motivational and give me the “I can do this” push I needed to further research more proven methods and other resources) it did provide some valuable insight to the many scam artists out there looking for beginner investors just like me. Thanks again, your website is a great resource.”
Regards, Stacy D. Scholz
“Thanks for the nice hard wet slap across the face. I definitely needed it. I can't explain what happened other than I let my guard down. Knowing that I like to read on various business subjects, my wife recommended that I get Kiyosaki's "Rich Dad, Poor Dad." She had heard wonderful reviews about the book. It was an impulse purchase which, should have been my first indication of what was to come.
I breezed through the book and became motivated. Here was a great statement about the lack of financial education in our school system. Here was an interesting little story about a father figure helping to educate a boy about money. I admit it. I got sucked in and realized it after I read your review of the book. I thought to myself, "How could I let this happen? I have an MBA with a concentration in Finance, how could I just blow through the most basic concept of the time-value of money or some of the other inaccuracies?" In retrospect, several reasons come to mind as to why I fell for it.
The first is that I was reading the book for entertainment not content. Another, the statement of the lack of financial preparedness in our education system struck a cord with me. I looked for reasons in the book to support that statement. "Yeah, down with the man!" There are several other reasons that would be too long to list. The end result is that I fell for the hype and frankly feel very foolish and embarrassed. Thanks your verbal Aqua-Velva I realized the clarity of my mistake.” Regards, Chad Schneider, San Francisco, California
“Hi, my son (14 yrs) thought I should read Kiyosaki book RICH DAD, POOR DAD. I did.....and I am found him to sound like a AMWAY sales person. The give away was the cowboy boots, he was wearing!! Every person that I have come across who wears cowboy boots.....are not who they are. There was only one truth in the book...‘learn how to write a best seller.’” M. Nicholson

“I agreed with what you have written. I am a fan of Robert Kiyosaki. I have all his tapes, books, his autograph and even a picture of him. But NEVER in any page of his books, did he at least give 1 single plan for wealth creation. Not even a single formula. He once said in his tapes that he "does not want to insult the readers' intelligence by telling them the steps." But what about [beginners]? They have no intelligence in the field of wealth creation. What intelligence is there to insult in the 1st place?” Tan Soon Chye
“I just wanted you to know I thoroughly enjoyed your in-depth review of Robert Kiyosaki and his book "Rich Dad Poor Dad." I've always thought of him as somewhat of a quack so far as financial advice is involved, and found what he preaches to be a bit on the shady side. It's hard to believe that the wealthy accumulate money by taking questionable business deductions, or using insider information to play the stock market. His message has a dark tone, implying that in order to get ahead one must abuse the system or take advantage of others. I fail to understand how his book got a 4.5 average rating out of 5 stars at Amazon.com, from over 300 reviews. Either I'm not getting it, or there are a lot of clueless & illogical thinking people out there.” kchang@usa.net
John T. Reed, a.k.a. John Reed, Jack Reed, 342 Bryan Drive, Alamo, CA 94507, Voice: 925-820-7262, Fax: 925-820-1259, Email: johnreed@johntreed.com

CONSUMER WARNING NOTICE: I recently saw Russ Whitney on a late night TV infomercial and then attended one of his "free" seminars. Unfortunately I believed all of their LIES and FRAUDULENT CLAIMS and I paid thousands of dollars to go to his "training camps". Needless to say I was clearly ripped off, cheated and lied to by Russ Whitney and his employees (band of thieves). My mistake was not searching the Internet to find out more about Russ Whitney and his company's HORRIBLE reputation for fraud, deception and illegal activities. Had I searched online I would have found out about THOUSANDS of customers being cheated, HUNDREDS of investigations by the Attorney General into the fraud of Russ Whitney and his company's, and that Russ Whitney himself is a CONVICTED VIOLENT FELON and spent years in PRISON. I saved the cached pages from the major search engines of the John Reed lawsuit with Russell Whitney and the TRUTH and FACTS that Reed discovered during his investigation of Whitney. I am posting this information on real estate discussion boards so other people do NOT get cheated and ripped off like I did.