Is Robert Kiyosaki a Fraud? Biggest Scam Online. Hide Your Money! (2022)

The Robert Kiyosaki fraud will take you down the deepest of rabbit holes and leave you scratching your head in disbelief. The man has valid points, but he extorts his vague (and general) advice for financial gain.

If you’ve ever wondered throughout the personal finance realm, you have certainly come across his work and teachings. Is all his financial advice bad or fraudulent? No! In fact, some of it is quite reasonable.

Kiyosaki has always been a huge proponent of owning gold, silver, and now Bitcoin.

Best Silver Stocks

His interaction with a young journalist sums up his entire persona into one, quick story. The journalist mocked one of his books for being poorly written and lacking any clear guidance.

Kiyosaki responded, “The cover says NYT Best Seller, not Best Written“. Robert is a walking charlatan, snake oil salesman, and hoodwinker!

Rich Dad Poor Dad

Rich Dad Poor Dad is on the list of my 5 must-read personal finance books. I think everyone (no matter their interest in personal finance) should read this book.

It’s a wonderful introduction to “accounting for dummies” and distinguishes between assets and liabilities. Kiyosaki notes that “assets put money into your pocket” and “liabilities take money from your pocket”.

If your stuck in determining whether something is an asset or liability, check which way the cash is flowing. These are some of the assets mentioned in the book.

  • Stocks
  • Bonds
  • Rental Property

Notice how all these assets produce cash flow (dividends, interest payments, or rent). Contrarily, Kiyosaki says the middle class is doomed because they accumulate liabilities instead.

  • Mortgage
  • Depreciating Vehicles
  • Vacations

I read this book during my freshman year of high school and again during my senior year of college. It fundamentally altered my mindset regarding assets and passive income.

Thus, I could ultimately use my actively earned income (salary at work) to buy assets that earned passive income, so I could make money while I sleep.

I saved as much as possible, acquired dividend paying index funds that were always reinvested, and have been on a journey to financial independence ever since.

Now, here’s the dilemma. I don’t think Robert Kiyosaki ever expected his book to become the best selling personal finance novel of all-time! I mean c’mon, it has sold over 20 million copies.

(Video) Fake Money Is Making You Poorer! Why Savers are LOSERS - Robert Kiyosaki [ Millennial Money ]

He notes he merely wrote the book to promote his (bluntly put) boring board game, Cashflow. The book was written in the 1990’s, and I think he actually wanted to help his readers achieve financial freedom.

Four Quadrants

The four quadrant picture is embedded in personal finance greatness! It’s a rough sketch of tax planning advice to minimize your total tax liability.

Is Robert Kiyosaki a Fraud? Biggest Scam Online. Hide Your Money! (1)

It’s actually fairly decent advice for tax novices, and it’s the reason billionaires don’t pay taxes. In my article “How to Never Pay Taxes Again“, I provide a further break down between the four quadrants.

Nevertheless, here’s the quick and dirty explanation of tax rates for various groups.

  • Employee (40%)
  • Self-Employed (50%)
  • Business Owner (20%)
  • Investor (0%)

Kiyosaki urges his followers to alter their mindset and work towards becoming business owners and investors (rather than employees or self-employed), so they can minimize tax expenses.

Wait, why do employees pay more in taxes than business owners? It all comes down to the marginal tax rate discrepancies between earned income and dividend income/capital gains.

Warren Buffett pays a lower tax rate than his secretary because virtually his entire net worth is wrapped in Berkshire Hathaway stock. So, if he doesn’t sell any shares, he doesn’t have any income for the IRS to tax.

This could all change under a new tax code, but it’s how the code is currently written. As the old saying goes, it’s not what you earn but what you keep.

I minimize my tax bill by investing in tax-advantaged retirement accounts (401k and IRA) and deferring taxation on capital gains.

Made-Up Story?

The first time I read Rich Dad Poor Dad I thought it was 100% true, but I was a naive 14-year-old. Reading the book as a 22-year-old college graduate offered a whole new lens.

I can’t be the only person who thought, “No way! That’s total bullsh*t.” The dichotomy and conversations Robert supposedly has with his Poor Dad and Rich Dad throughout the novel seem a little far fetched.

Call me a little bit skeptical that his dad told him, “Go to school, get a job, work for someone with good benefits, and getting rich is impossible”. Who actually says that?

There are multiple conspiracies hurdling around chat rooms, and no one has EVER been able to pin down who this rich dad actually is! Nevertheless, Kiyosaki firmly states Rich Dad is real.

Journalists went on a search through Hawaii property records and business licenses, but they were never able to locate the supposed character. Again, the Robert Kiyosaki fraud builds.

Robert has done numerous interviews since the book’s publishing, and he always tells the SAME story (just different characters).

(Video) My thoughts on Robert Kiyosaki

Supposedly, Robert has fought with his accounting professor, entrepreneurship professor, and marketing professor because “they don’t know they’re teaching”.

Is Robert Kiyosaki just picking fights with everyone? Or, more likely, is he simply making up the encounters for a dramatic story.

Amway and MLM Sales

Alas, we have reached the epitome of the Robert Kiyosaki fraud. You’re going to need to buckle up because the rabbit hole is so deep you might spot China.

I’m sure everyone is familiar with Amway, but if you’re not, here’s a simple explanation. Amway is a multi-level marketing company, also known as a gigantic pyramid scheme, that provides e-commerce marketing.

Is Robert Kiyosaki a Fraud? Biggest Scam Online. Hide Your Money! (2)

A pyramid scheme is when a company generates income through recruiting, initial investments, and sales to distributors all within the company. There is essentially no revenue from customers outside Amway.

This would be like Disney charging all their employees a fee to work for them. Sounds dumb right?

Well, I was recently pitched on Amway from a recruiter (unsolicited of course), and you bet there was a Four Quadrant and Rich Dad Poor Dad reference.

Recruiters always mention personal finance buzzwords (passive income, entrepreneurship, financial freedom, own your business) to appeal to emotions. Well, no sh*t, I would love to earn income for doing nothing.

Does anyone happen to know an author who wrote a book on this exact topic? Hmm, not ringing a bell. Oh wait, Robert Kiyosaki!

In fact, Robert Kiyosaki and former Amway CEO (Bill Gavin) are very good friends! Well, maybe I am just being a little cynical…..nope I did one quick Google search and the plot fell into my lap.

The pyramid scheme industry provides Kiyosaki with a steady set of customers for his products; in return, Kiyosaki provides these scummy companies his support that you can be a business owner and pay less taxes (untrue of course)!

Going back decades, Kiyosaki has sold millions of dollars in training materials, sales guides, and personal finance books to the Amway cult.

Bankruptcy

Forbes noted, “Robert Kiyosaki, author of the bestsellingRich Dad Poor Dadseries of financial advice books, is offering his fans yet another lesson in how the rich are different than you and me.

They file for bankruptcy not because of ill health or unemployment related issues, but instead as a strategic business move.”

How is this possible? Robert Kiyosaki, the financial guru billionaire, filing for bankruptcy? Now, I understand why he did this, but it’s not a great look for a personal finance expert to file bankruptcy!

(Video) "BE CAREFUL! This Is Serious..." - Robert Kiyosaki's Last WARNING

Sure, this 100% makes Robert Kiyosaki a fraud because he can’t even practice what he preaches, but I digress.

$100K Bitcoin and Corporate Real Estate

This is where Kiyosaki falls right off his rocker! Personally, I think hell will freeze over before the price of bitcoin reaches $100K. Honestly, I think bitcoin is worthless (read my full explanation here).

Following his thesis that central banks, money printing, and booming deficits doom the Bretton-Woods monetary system, he believes Bitcoin can fill the void.

I think gold already serves this role perfectly (it’s only been used as money for 6,000 years). Additionally, he co-authored a best selling novel with Donald Trump on the beauty of corporate real estate.

Geez, talk about two asset classes getting taken behind the woodshed and beaten repeatedly with a metal bat!

Corporate real estate values are collapsing as tenants abandon traditional office space in the work-from-home economy. There are wonderful tax benefits from owning real estate.

  • Depreciation
  • Interest Deduction
  • 1031 Exchange
  • Stepped-Up Inheritance Basis

I think Robert is living in fantasy land if he genuinely believes Bitcoin will 10x in price and is where you should park your retirement savings.

What do I know, I’m just a kid? At least I never declared bankruptcy!

Vague Advice

In late 2019, I kept seeing the great YouTube algorithm suggesting new Kiyosaki videos. The videos were so generic and clickbaity (so naturally I clicked). These are some of the ludicrous titles!

  • Rich vs Poor Mindset
  • The Speech That Broke The Internet!!! Keep Them Poor!
  • What The Elite Don’t Want You To Know!

I began to notice that most of the videos were interviews with Brian Rose from London Real. Also, every video juxtaposed elites against the working class.

He never recognizes someone may be down on their luck!

Who are these elite people, and what don’t they want me to know? I highly doubt the Rothchilds are cringing and foaming at the mouth because Robert Kiyosaki gave me some vague advice.

Every video leaves you wondering, “Great, but what do I do now?” He just mentions buzzwords and “they don’t teach you this in school”.

Yeah, they don’t teach me how to fix a spare tire in school, but it takes 5 minutes to learn. What should I invest in? How do I amass wealth? What is my next step?

All of these questions have no answer, but I bet Robert would love for you to purchase his overpriced real estate investing courses!

(Video) Authentic or Charlatan: Robert Kiyosaki | Exposing Internet Marketers

Bashes Financial Assets

He has this super rehearsed line of buying stocks, bonds, mutual funds, and ETFs in a 401(k) is for losers. Then follows another line about investing long-term in the stock market is for schmucks.

I always wonder, “Dude, where are you getting your advice?” There has never been a 20 year stretch in US history where the S&P 500 has gone down.

I realized it’s because he has absolutely no idea how to fundamentally value a business. He never mentions value investing, like a Warren Buffett disciple might.

Nope, instead he talks about the time he bought Coca Cola at the recommendation of his financial planner and lost money. Well, did you run a DCF valuation or do any analysis? Highly unlikely.

He stirred the whole financial world into a storm with his famous line, “Saving money is for losers. Why save money when the government is printing it?”

I don’t disagree, but that’s why I own real assets. The Fed can print money, but they can’t print real estate, innovation, and businesses! Inflation can wipe out your cash savings fund, but that’s why you diversify.

Debt is Money

Not all of his advice is too bad, and I actually agree with a lot of his criticisms surrounding the Federal Reserve. Kiyosaki has long argued against the abolition of the gold standard by Richard Nixon in 1971.

Politicians hate the gold standard for the same reason high school kids don’t want chaperones at prom; they facilitate restraint, take the punch bowl away, and kill all the fun!

But, we couldn’t stimulate the economy during a recession if we were on a gold standard? Yes, that’s true, but one could also argue the stimulus is an artificial high.

Hayek’s Nobel Prize winning theory on the boom-bust and credit cycle all boils down to loose monetary policy from the Federal Reserve and foreign central banks.

Historically, individuals could redeem their US currency (fiat, paper money) for real gold reserves stored at the central bank. The old saying was “the dollar is good as gold”, which was true.

In the 21st century, you most definitely cannot redeem currency for gold (I dare you to try). Kiyosaki has argued that central bank meddling in fixing interest rates has led to debt = money.

Interest rates are the price of money, and we wouldn’t want the government setting the price of bread. Somehow, we have allowed un-elected bureaucrats to set the price of money.

What’s He Selling?

Honestly, every time I see another Robert Kiyosaki fraud I just wonder, “What’s he trying to sell me now?” Is he writing a new book or developing another sales guide?

The best way to make money online is to talk about how to make money online. It’s a lot harder to build a legitimate business and generate revenue, with a high profit margin.

This is a good question to ask any time someone solicits you for “just a quick call”. Ulterior motives and poorly aligned incentives are one-in-the-same online.

(Video) Why Graham Stephan is WRONG about Fake Gurus

Robert Kiyosaki Fraud

The Robert Kiyosaki fraud will take you down the deepest of rabbit holes and have you scratching your head in disbelief. The man has valid points, but he extorts his vague (and general) advice for financial gain.

Talk about a supposed “expert” littered with negative reviews, lawsuits, business bankruptcy, vague advice, and sleezy sales tactics.

This isn’t the same guy who wrote a life-changing book in the 1990’s. It’s a guy looking to capitalize on his false authority and part you from your hard-earned money.

FAQs

What Robert Kiyosaki said about money? ›

No. 47 was a statement by Robert Kiyosaki: “It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”

What is Kiyosaki known for? ›

Robert Toru Kiyosaki (born April 8, 1947) is an American businessman and author. Kiyosaki is the founder of Rich Global LLC and the Rich Dad Company, a private financial education company that provides personal finance and business education to people through books and videos.

Who is Mike in Rich Dad Poor Dad? ›

Mike is the beneficiary of his father's financial lessons as well as the author and in a way the book is a narrative of how they each carried out the lessons of the “rich dad.”

What is the Rich Dad Poor Dad philosophy? ›

It advocates the importance of financial literacy (financial education), financial independence and building wealth through investing in assets, real estate investing, starting and owning businesses, as well as increasing one's financial intelligence (financial IQ).

What does rich Dad say? ›

Most people become a slave to money… and then get angry at their boss.” “Excessive fear and self-doubt that were the greatest detractors of personal genius.” “Most people fail to realize that in life, it's not how much money you make, it's how much money you keep.” “I can't afford it' shut down your brain.

What did Robert Kiyosaki said about school? ›

After elucidating his experience in understanding money, he added, “School never teach you about money, school is designed to teach you to be an employee, but it's important for a doctor or a lawyer, a specialist, but never about money.

Is Kiyosaki a billionaire? ›

As of October 2022, Robert Kiyosaki's net worth is roughly $100 Million. What is this? Robert Toru Kiyosaki is an American businessman and author from Hilo, Hawaii. Kiyosaki is the founder of Rich Global LLC and the Rich Dad Company.

Why do people want to be rich? ›

Why We Want You to Be Rich: Two Men, One Message is a non-fiction book about personal finance, co-authored by Donald Trump and Robert Kiyosaki. The book was first published in hardcover format in 2006.
...
Why We Want You to Be Rich.
Book cover
AuthorsDonald Trump Robert Kiyosaki
Media typePrint (Hardcover)
Pages345
ISBN978-1933914022
10 more rows

What is the monthly income of Robert Kiyosaki? ›

Robert Kiyosaki Net Worth 2022: Biography Income Career
Net Worth:$110 Million
Salary:$10 Million +
Monthly Income:$1 Million +
Date of Birth:April 8, 1947
Gender:Male
5 more rows
11 May 2022

Who is Robert Kiyosaki's best friend Mike? ›

The Kimi family lived down the street from Kiyosaki in Hawaii. True to the story, Kiyosaki was friends with his son “Mike,” whose real name is Alan Kimi.

What is the conclusion of Rich Dad, Poor Dad book? ›

The result is that the majority of people get trapped in work to pay their bills and are chasing paychecks all their life. This is the sad conclusion Robert Kiyosaki draws in his bestselling book Rich Dad, Poor Dad.

How old is Kiyosaki? ›

Can saving money make you rich? ›

Saving money does not protect you from market conditions such as inflation and economic downturns. In essence, saving money creates opportunity, but investing is the way to capitalise on the chance to create more wealth. The value of money decreases over time.

What assets do the wealthy own? ›

Investing Only in Intangible Assets

Ultra-wealthy individuals invest in such assets as private and commercial real estate, land, gold, and even artwork. Real estate continues to be a popular asset class in their portfolios to balance out the volatility of stocks.

Is Rich Dad Poor Dad worth reading? ›

Rich Dad, Poor Dad is one of the most famous books in all of personal finance. Though it came out in 1997, it's still a #1 Best Seller on Amazon in 2022. Many of today's most popular finance gurus cite it as the inspiration for their success.

Who wrote Rich Dad Poor Dad? ›

Rich Dad Poor Dad

What schools dont teach you? ›

"WHAT SCHOOL DOESN'T TEACH YOU" by Nihit Mohan is a good self-help book, which guides us to achieve our dreams. It describes such lessons, skills and suggestions which are really helpful to built the best path of our carrier and successful life. It contains 10 chapters.

What city has the most billionaires? ›

Beijing

How can I be a billionaire? ›

Study interest rates, tax brackets, and dividends to become a billionaire. Finance and entrepreneurship are two lucrative subjects to consider to become a billionaire in young age. Educate yourself in market research and how to find a gap and then create business strategies around it.

What are the characteristics of a rich person? ›

The prototypical personality profile of the rich is marked by higher Risk tolerance, Openness, Extraversion, and Conscientiousness, and lower Neuroticism. Further, we provide initial suggestive evidence that this unique personality profile may contribute to wealth accumulation.

What is Donald Trump's net worth? ›

Do rich people pay themselves first? ›

They pay themselves first

“Whether it be into their employer retirement plans, IRAs or general investment accounts, this is money they put away and invest with no intention of using it for day-to-day living,” Daugs says.

How do you pay yourself first? ›

"Paying yourself first" simply involves building up a retirement account, creating an emergency fund, or saving for other long-term goals, such as buying a house. Financial advisors recommend measures such as downsizing to reduce bills to free up some money for savings.

Who said pay yourself first? ›

“Pay yourself first” was first coined in the 1920s by George Samuel Clason, an American entrepreneur who founded a successful publishing business in Denver, Colorado.

How many characters are there in Rich Dad Poor Dad? ›

Rich Dad, Poor Dad revolves around three main characters: poor dad, rich dad (Kiyosaki's second father) and the son (the author himself as narrator of the book).

What is Kiyosaki wife? ›

What does it mean the rich don't work for money? ›

Even highly paid people know that the money they earn from “working” is just the tip of the iceberg.) The rich DON'T work for money. They make their money work for THEM. Rich people grow up knowing that wealth comes not from work, but from LEVERAGE. They invest their money and the investment vehicles do all the “work.”

How common is the approach to money taken by Roberts poor dad? ›

How common is the approach to money taken by Robert's poor dad? The approach taken by Robert's poor dad is very common. Most of my kin is in some kind of service; either government or private. I was advised of a similar approach to play safe and take risks once I get settled.

What did the rich dad mention as the most important point? ›

But the “rich dad” says that the most important goal is to learn how money works so you can make it work for you. To be financially smart, Kiyosaki says you must master accounting, investing, markets and the law. The more you broaden your skills, the more successful you'll be.

What degree is Robert Kiyosaki? ›

Robert Kiyosaki

Why do students work for C students? ›

Most “A” students are people who excelled at specific subjects. “C” students on the other hand became generalists who can see the big picture. They are more likely to end up on the path to financial freedom in the “B” and “I” quadrants. That's why “A” students work for “C” students.

How much is Dave Ramsey's net worth? ›

Ramsey's net worth is estimated to be around $200 million as of 2021.

What does it mean the rich don't work for money? ›

Even highly paid people know that the money they earn from “working” is just the tip of the iceberg.) The rich DON'T work for money. They make their money work for THEM. Rich people grow up knowing that wealth comes not from work, but from LEVERAGE. They invest their money and the investment vehicles do all the “work.”

What does the rich have money work for them mean? ›

Rich people are said to make money work for them. Instead of just working and relying on income, a rich person would take a proportion of their income and invest it. Compounded interest works in favour of the rich.

Why do people want to be rich? ›

Why We Want You to Be Rich: Two Men, One Message is a non-fiction book about personal finance, co-authored by Donald Trump and Robert Kiyosaki. The book was first published in hardcover format in 2006.
...
Why We Want You to Be Rich.
Book cover
AuthorsDonald Trump Robert Kiyosaki
Media typePrint (Hardcover)
Pages345
ISBN978-1933914022
10 more rows

Do not work for money let the money work for you? ›

One of the basic money rules everyone should follow is this: Never work for money, but let money work for you, says Mehrab Irani, general manager-investments at Tata Investment Corporation Ltd.

What do most rich people do for work? ›

1. Banking and finance. More ultrawealthy people work in banking and finance than any other industry, according to Wealth-X. JPMorgan Chase CEO Jamie Dimon is among the 19.8% of wealthy people worth over $5 million who made their money in the financial sector.

How do rich people make their money? ›

According to a study published in 2019 by Wealthx, here's the breakdown of millionaires with at least $30m in net worth: 67.7% are self-made. 23.7% made their money from a combination of their own efforts and inheritance. 8.5% inherited their wealth entirely.

How can I make money if I don't want to work? ›

11 ways to make money without a real job
  1. Get paid to test websites.
  2. Become a crowdworker.
  3. Design and sell t-shirts.
  4. Work as a transcriber.
  5. Shop for others.
  6. Sell crafts online.
  7. Get paid to pet sit.
  8. Sell your photos online.
8 Feb 2022

Where do rich people put their money? ›

Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills. Some millionaires keep their cash in Treasury bills that they keep rolling over and reinvesting. They liquidate them when they need the cash.

How can you tell if someone is rich? ›

How to Tell if Someone is Rich - YouTube

How much money do you need to be considered rich? ›

What's the Dollar Figure for Being Rich? How much money do you need to be considered rich? Well, according to Schwab's 2021 Modern Wealth Survey (opens in new tab), Americans believe it takes a net worth of $1.9 million to qualify a person as being wealthy. (Net worth is the sum of your assets less your liabilities.)

What is Donald Trump's net worth? ›

How can I grow my money fast? ›

If you're younger and your income limits allow, open up a Roth IRA. Invest in mutual funds and ETFs. Make sure you have enough cash in your emergency fund.
...
Earn Much, Much More
  1. Work Hard Now. ...
  2. Invest in Your Education. ...
  3. Invest in Yourself and Your Marketing. ...
  4. Venture into Entrepreneurship. ...
  5. Try Real Estate.
26 Sept 2019

What is the best thing to invest money into? ›

12 best investments right now
  • High-yield savings accounts.
  • Certificates of deposit (CDs)
  • Money market funds.
  • Government bonds.
  • Corporate bonds.
  • Mutual funds.
  • Index funds.
  • Exchange-traded funds (ETFs)
5 days ago

Videos

1. 'Rich Dad Poor Dad' Robert Kiyosaki Exposed - Part 1 of 3 Investigative Report
(MadasHellatKiyo)
2. 'Rich Dad Poor Dad' Robert Kiyosaki Exposed - Part 2 of 3 Investigative Report
(MadasHellatKiyo)
3. Don't Let Wall Street STEAL Your Dreams and Your Retirement - Robert Kiyosaki [Millennial Money]
(The Rich Dad Channel)
4. Robert Kiyosaki Is Wrong
(Build Your Tomorrow)
5. What happens when the economy is fake? - Robert Kiyosaki, Kim Kiyosaki, @Nomi Prins
(The Rich Dad Channel)
6. [PREPARE YOUR FAMILY] "We Are In Big Trouble"- Robert Kiyosaki's Last Warning
(InvestoPads)

You might also like

Latest Posts

Article information

Author: Stevie Stamm

Last Updated: 10/21/2022

Views: 5914

Rating: 5 / 5 (80 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Stevie Stamm

Birthday: 1996-06-22

Address: Apt. 419 4200 Sipes Estate, East Delmerview, WY 05617

Phone: +342332224300

Job: Future Advertising Analyst

Hobby: Leather crafting, Puzzles, Leather crafting, scrapbook, Urban exploration, Cabaret, Skateboarding

Introduction: My name is Stevie Stamm, I am a colorful, sparkling, splendid, vast, open, hilarious, tender person who loves writing and wants to share my knowledge and understanding with you.