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Selected responses to John T. Reed' analysis of Rich Dad Poor Dad by Robert Kiyosaki 3 "Mr. Reed: A co-worker recently recommended Rich Dad, Poor Dad as an interesting self-help tool. After reading about ten pages, I was convinced that this book was fiction. It seemed as though "Rich Dad" and "Poor Dad" knew an awful lot about each other's finances even though it didn't seem as if they had ever even met. So much about Robert Kiyosaki's storytelling seemed so phony. I think, at first, my co-worker thought I was being too cynical until he found your website and your views seemed to mirror what I said. We have had quite a few fascinating coversations over the last few days debating the pros and cons of the book and your review. Kiyosaki spouts the basic good advice "don't get into consumer debt" or "if you're in a whole, stop digging" like he's saying something new. Anyone with an IQ bigger than their shoe size knows what they're getting into with consumer debt and they do it anyway. As a 32-year old self-supporting divorced mother with a good income, some savings, and a small, but growing investment portfolio, I'm open to ideas about investing. However, there's no way I would ever consider trying any of the outlandish things Kiyosaki claims can work. I'd rather be middle class with a nice but affordable house, the bills paid on time, one nice vacation per year, and moderately safe investments. The people that ride on the same commuter train I do must have thought I was nuts when I would laugh out loud at some of the outrageous things Kiyosaki says in that goofy book. I can't believe anyone would blindly follow this guy's advice to put off paying debts until your creditors and the IRS are screaming at you....especially if you're claiming to have the resources to pay these bills on time. One final note. I wholeheartedly agree with your thinking that a Rolex is primarily purchased for the "show off" factor and certainly isn't worth financing $4,000. However, being in a position to pay cash for mine - without negatively impacting my finances or doing something illegal - is well worth the pleasure I get from giving one extremely extravagant reward to myself. There are many things in life that can be categorized as unneccesary, but bring us joy nonetheless. While life is too short to always be frugal, one of the few logical pieces of advice that Kiyosaki gives is to wait for the luxuries until you can pay for them. Maybe if more people would give themselves rewards they save up and paid cash for, there would be more disposable income to invest instead of giving it to credit card companies. In any case, thank you for trying to level the playing field by using logic rather than "razzle dazzle". I truly enjoyed reading your lengthy review debunking that crap Kiyosaki peddles. Gloria Vitro Bolingbrook, IL "John, I am so thankful that I stumbled across this page. I was suffering from insomnia and saw an infomercial by "Rich Dad Poor Dad" Robert Kiyosaki. He was selling a program for $129.00. Now my question is this, if he is so rich and has all of the accoutrements of the wealthy set, why on earth is he peddling an obnoxiously flawed information package. I have also read the book "Rich Dad Poor Dad" and it left me questioning many statements he made. I even had a conversation with my CFP (Certified Financial Planner) and was telling him about the information in the book. Well he read it and said "If anyone follows the steps he has lined out would either be poor the rest of their life or in jail". I just thought I would share my two cents worth and thank you again for this page. Thank you. Tisha Ferron "Mr. Reed, I just spent this past week reading and re-reading Kiyosaki's Guide to Investing and Rich Kid, Smart Kid. I must admit he has me enthusiastic about becoming even more financially literate. I am a 22 year old stay-at-home mother of two, part-time daytrader (yes, profitably) and have been investing my husband's 401k and IRA via the O'Shaughnessy methods. To tell the truth, I never even considered real-estate investing or starting a business until now. I was curious to see what others thought of his books, and a Motley Fool message board linked me here. I almost didn't read your review, expecting a long-winded jeremiad against his admittedly weak prose and vague advice. I was wrong--you really impressed me with your review of the first book. I think Kiyosaki has a better advisor now,

because there didn't seem to be as many inconsistencies in the books I read as you describe for RDPD, nor too much bragging. I did notice that the copyright page of the books, aside from the standard investment-advice disclaimer, casually noted that the stories within were fictionalized for impact. That raised a bit of a red flag from the beginning, for me. My husband and I both complained about the inane repetition that did feel like a smarmy infomercial, and while interested in his "board game," really couldn't justify paying about $400 for the complete family set. His praise of "network marketing" also made me wince. And why on Earth is he so interested in Australia? Isn't there enough real estate in the U.S.? There are many other factors that made me uneasy with his content, even though I appreciated the inspirational messages (that I usually hate), and I agree with most of your opinion. The fact alone that little can be discovered of Kiyosaki outside of his seminar and book sales is more than enough to make anyone cringe. I will not purchase any more of his products, thanks to you, though I will now check out some of your book recommendations." Stefanie Paterson "By the time I was half-way into Rich Dad Poor Dad, I had written it off as a series of platitudes accompanied by a gradual flow of contradictions. Oh well, I thought, at least I learned a few real estate investment tricks. Your review robbed me of even that consolation. I'm finding scam artists' ubiquitous warnings concerning naysayers to be excellent indicators of schemes to avoid. George Bernard Shaw offered a good defense for those of us with a questioning bone in our body: "The power of accurate observation is commonly called cynicism by those who have not got it." Incidentally, my purchase of RDPD was accompanied by another impulse buy, "The Millionaire Next Door". I agree with you that this is an excellent book, and perhaps I'll follow it up with some from your recommended gurus." Sincerely, Tom Card, Emeryville, CA "John, I saw RTK on Oprah and was curious. A friend spoke his name almost a year later, and I had a renewed interest. While reading the book, another friend sang his praises. I was hooked. I read the first and started the second. I was on fire. And then half way through, something told me to run a search, not sure what it was, and I found your site. I was immediately upset and discouraged. "Why whenever someone has something inspiring does a naysayer come out to denounce it?" I thought. Some of what RTK said tapped into a previous belief that I had about the way of the world, so it seemed to make sense. But your site brought to light some things that were bothering me. Although RTK's book, RDPD, had me ready to take on the world, I knew that I still knew virtually nothing about real estate or investing. I was disturbed, but thought my answers could be cleared up in the next book. Looking at your site also helped me realize that with my real estate ignorance, he could have told me that realtors have a secret hand shake that gets you great deals on property, and I would have fallen for it. He also praised MLM, which I thought was shady. So I will finish the 2nd book, cautiously, with a little less motivation. Basically, people want to feel good. That book did that for me, but I'd rather feel good because I've been educated, and not because my ears were tickled. Those people who will defend a lie, because "it got them thinking" are fools. I'll take the truth any day. That way I can make informed decisions that may one day lead to me being truly happy. I'm not saying that RTK is a liar. I just realize now that I have a lot to learn about finance before I go hog wild jumping on someone's bandwagon. Thanks John, for keeping my head on straight. Dynero Lee Marketing Communications Specialist Ascent Solutions Inc. 937.847.2374 "If only I had read your critique of Robert Kiyosaki's book, Rich Dad Poor Dad, before I wasted my money on it and therefore helped to increase his coffers. I only bought the book three days ago but it was his appearance on Oprah* that led me to buy it. I thought his book was going to be full of clear-cut advice on what steps can be taken for proper investing. I'm afraid I fell into that category of the uninformed being completely duped. I, too, found that his book is unsettling for reasons that I "can't quite put my finger on". I can say that it gave me a sense of being overwhelmed. His writings infer that there are a great many ways to increase wealth but he writes in such a vague way that it's impossible to know where to begin. Thank you for your web site. You are providing a much needed service that I am very appreciative of. Angela Propes High Ridge, MO *I feel I should mention that I am not a regular viewer of her show for the very reasons you list on your web site. "Let me begin with some background about myself. I'm 30, married, have 2 kids, and I teach fifth grade in a small city in south western Virginia. I enjoy reading books on investing and finance. I drive my wife crazy with our personal finances and torturing her with my observations. Some of the books I've read that have had an impact on me are the Stanley "millionaire" books and the Motley Fool books (particularly the DRIP book) and their website. I've seen a couple of Kiyosaki's books at bookstores and was almost tempted to buy one of them. Something always held me back. I don't think I my intuition saved me, I now believe it was just blind luck but I'll take it where I can get it. When I did find a copy of Kiyosaki's "Rich Dad's Guide to Investing" at my local library I decided to check it out. You can attribute that to some of the frugality lessons I took from Stanley's book. As I read Kiyosaki's book I found myself feeling more and more uncomfortable with what I was reading and feeling. I just couldn't put my finger on it. I couldn't tell if it was the contempt he seemed to have for his father's financial choices or the apparent lack of loyalty he seemed to have for his own father. Maybe it was the implausibility of the numerous conversations he had with his Rich Dad. I kept getting the feeling I was getting a print version of a cheap TV infomercial. Halfway through the book I finally realized I needed to see if I could find any information on Kiyosaki on the net. I realized I'd been misled by the legitimacy that being a "best seller" bestows upon an author. I mean, if your book is a best seller and can be found at Walden Books then you must be "right"? An Internet search led me to your site. Let me say THANK YOU! You've saved me the hours it would have required me to finish Kiyosaki's book. One of the few positive things that Kiyosaki prattled on about was the value of time. Although he never quite gave you specifics or hard data on how to make use of time. That was one of the reasons I kept reading despite my misgivings. I kept waiting for Kiyosaki to lay out some kind of plan, some hard data to back up his arguments. I now find it strange that someone could go on and on about their success without actually providing dates, times, places, and names to strengthen their arguments. Again, thank you for your web site. It's a great benefit to anyone whose made the mistake of reading one of Kiyosaki's book. At least I only wasted time, I feel for those who actually paid hard cash to read one of his books. E. Morejon" "I don't know if you remember me. I wrote you a few months back and RAILED against you for denouncing Robert Kiyosaki. To be honest his response to you was disappointing to say the least. Unlike you, Mr. Kiyosaki has YET to give details about the money he's made as well as the Real Estate deals he's done. However, as my mom (who's a wonderful woman from South Carolina) always told me, "Son, when someone is telling you something, you eat the meat and spit out the bones." If I can learn from Robert, then I'll take what I can get and discard the rest. However, that's neither here nor there. What I wanted to commend you on is the candid information you give here. I don't agree with everything, but I got to say I'm with you on 85% of your views. After reading your site objectively I can honestly say you are doing a great service to the Real Estate Investing Community. Especially for beginners. Too often we novices are taken in by the sway of the so-called "gurus". I never trusted infomercials so at least I didn't fall into THAT trap. However as I was looking at these "Real Estate Guru" courses, I kept wondering why they were so damn expensive. I'm not even going to COMMENT on Ron Legrand's Cashflow System. 3 of these courses (not to mention Ron's "HOTLINE" Team), for $1200. Has anyone stopped to think... If the "hotline" personnel are experts, why would they waste their time to sit around all day and talk to YOU? They could be out making deals. How can they give me FEEDBACK if they're not out there with me going through what I'm going through? All they can "give" me is "armchair" philosophy. Also your guru analysis is excellent and I REALLY love your B.S. Artist Detection List. For the most part it's right on the money. It's always amazing that when you ask a charlatan to PROVE their claims they always have an excuse as to why they can't produce proof. Once you start digging, it all starts to fall apart. YOU can give the names and addresses of the deals you've done, WHY CAN'T THE GURUS?!?!?! I suspect because not ONE of them has even done a real deal. I got most of my good information from a Real Estate Investor in my area who actually has a LEGITIMATE wholesale resale system, and reading The Unofficial Guide to Real Estate Investing. (I did read Shemin's Secrets of a Millionaire Real Estate Investor as well. It was an okay book, but as you said he did offered some questionable advice. I did appreciate the fact that the outlined both the PROS and CONS to certain methods.) I was in the process of doing a deal and I found out FIRST HAND that the whole NO-MONEY-DOWN scenerio as told by the "gurus" doesn't fly in the real world. Even with seller financing I STILL had to come out of my pocket of at least 5% plus I had to have at least 6 months worth of reserves in the bank before they would even CONSIDER it. Not to mention my credit wasn't that great. After I DID find a lender, the interest rate was at 12% on a SFR. My profits........$17 and change. Much bleaker than the rosy picture as told by the "gurus" isn't it? I decided it wasn't worth it and to work on strengthening my credit position and saving my money. When I asked the Real Estate Investor who's mentoring me about lease/options and all that other "creative financing" stuff, he laughed at me. He purchases properties for pennies on the dollar, rehabs them, RENTS them, then sells the rented property to other investors at FMV after rehab. However, He has a line of credit and a large portfolio of projects. This didn't happen over night but he has shared his experience with me of what he's learned over time. He does do this full time. How much has it cost me to learn from a REAL professional who's doing deals? $0. Whats his reward? He gets another person on his buyers list (I'm not stupid :-). How much did it cost me to learn about the nuances to Real Estate Investing such as property analysis, profitablity equations, how to do due dilligence, pitfalls to watch out for? - $15.29 (The Unofficial Guide to Real Estate Investing). I also want to be a Note Broker, so I've spent about $300 on relatively inexpensive books (I actually have 7 of them), a subscription to noteworthy, and 2 courses (both by Jon Richards - who I’m GLAD you recommend). THATS STILL cheaper than ONE real estate investing boot camp by gurus. I also have books on Tax Law, accounting, and Stock Market Analysis, both Fundamental and Technical (I feel you can't use one technique without the other). Even if you add all of the books I purchased over a 7 month period it's still cheaper than a "boot camp". To sum it up Mr. Reed I'm glad there is someone out there willing to ask the tough questions, and force the gurus to prove their claims..legitimately. Keep up the good work and do NOT hesitate to post this on your website if you see fit. One day I'll be an experienced investor who might be able to learn from your experiences as well. I bet there will be more meat than bones :-) Thank You, Melvin Jamal Green Virginia "Thank you, thank you!!! I have just read Kiyosaki's three books and enjoyed them - after all, they are extremely easy reading. However, I kept having the feeling that something wasn't quite right but I couldn't put my finger on it. We were already beginning in the real estate market and were looking for guidance. His books hinted vaguely at what success is and that it is extremely easy for anybody interested, but then offered no specific help. The corporation thing really bothered me and I was beginning to wonder if my CPA was guiding me correctly when his versions of what corporations could do differed with these best-selling books. That's when I started my own research and I happened upon your page. Your page is extremely clear, concise, well-written and easy to understand, plus it has the facts to support the conclusions—something Kiyosaki's books don't have. So again I say, "Thanks" for confirming my intuitions when I didn't have the fundamental knowledge to back them up!" Sharon Sanders "Dear John, haha. I laugh at myself and shed a tear, too. Why? For the simple reason that I have just wasted a few hours of my time reading Rich Dad, Poor Dad. As I was reading, I came across a few tidbits that made sense, i.e. understanding accounting and the way the market works will understandably make you a better investor. Pretty obvious though, right? But what struck me first was the unbelievably mature attitude two 9 year old boys had towards wanting to learn about money. I thought, how many kids that age give up softball (or even the beach... it's Hawaii for heaven's sake!) to dust shelves? But my common sense got pushed to the back of my mind and I continued to read. Woe is me. I was given the address to this review by a fellow reader. I laughed my way through it. Why? Because you hit the nail on the head and I laugh at my own waste of time. But have been convinced to heed my common sense in the future. Thanks for taking the time to write and research this review. I enjoyed it more than I enjoyed the book. Most sincerely, Pam Pamela M. Bossard-McDanolds, freelance writer Harrisburg, PA "I have had such fun reading your comments, which seem more like a hobby for you than a review at this point, that I wanted to thank you for your efforts. I have not read his book but have been intrigued by the title and the differences it implies about people with different upbringings. Just this evening my 19 year old daughter was asking me several questions about 401k's, IRA's, the compounding of money, etc., and she wanted to know how I knew all this stuff and where people learn it if their father doesn't tell them. I wanted to follow up that conversation so I went to the "Retire Early" site where he did a brief review of it, and he led me to your site. I am a 56 year old lawyer--I have been in the Air Force, worked in government and for a major corporation, and am now in private practice-- and I appreciated the wisdom and experience and respect for learning that you have acquired and are able to bring to bear in this review--all with charming candor, zero pomposity and a fine edge of irritation. It's plenty of good advice and a good read as well. Thanks. My compliments to you." Russell D’Italia "I read Robert Kiyosaki's book hoping to gain insight into financial success. Fifty pages into the book, I was in disbelief. He does a great job in coming up with little sayings that sound good but actually contain no substance. And the worst part is that he repeats them, over and over again. I went onto amazon.com hoping to see other reviews and expositions of this crummy writing. Of 535 reviews, the average rating of the book is 4/5 stars! But then again, I guess the general public isn't intelligent enough to discern fact from bullshit. I salute you for your excellent and well writen analysis of the book. Again, I have faith in humanity and the education I received in school. I found your review to be 100 times more interesting than actually trying to absorb his unfounded preachings. Thanks again, William Barret

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