Author Topic: Rich Dad Poor Dad declares bankruptcy  (Read 13725 times)

sol

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Rich Dad Poor Dad declares bankruptcy
« on: October 14, 2012, 12:29:10 AM »
« Last Edit: October 14, 2012, 12:36:37 AM by sol »

TomTX

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #1 on: October 14, 2012, 06:07:42 AM »
They guy sounds like a shyster. Cluster of companies to play 3-card Monte with the money - and I won't even get into the truthfulness of his biographical history.

Russ

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #2 on: October 14, 2012, 07:38:40 AM »
Bummer. I listened to a lot of his books on tape with my dad growing up. I agree with Tom; he sounds like a shyster.

veritasnoir

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #3 on: October 18, 2012, 11:16:10 AM »
I've got mixed feelings on this. His book was pretty simple advice and it might have helped some people. That said, it sounds like he went bankrupt after a lawsuit. Not sure what to expect from him moving forward.

igthebold

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #4 on: October 18, 2012, 11:23:58 AM »
I've got mixed feelings on this. His book was pretty simple advice and it might have helped some people. That said, it sounds like he went bankrupt after a lawsuit. Not sure what to expect from him moving forward.

His book advocated paying bills late so you could "pay yourself first." The reason he was rich was more due to his book franchise than to anything he did prior to the book. The Rich Dad was fictional. I have to bite my tongue whenever I hear that a friend is reading/has read it.

Aloysius_Poutine

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #5 on: October 18, 2012, 11:59:03 AM »
His book was the first on personal finance I ever read, and it really resonated with me. It's as good as any self help book for getting you excited about personal finance, but it has about as much actionable advice as "Think and Grow Rich." That is, not much.

tooqk4u22

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #6 on: October 18, 2012, 02:04:36 PM »
He is still plenty rich - put a joint venture into BK that made $50mil in royalties since 2001, got sued for $24mil, which is reason for BK.  I am sure the entity is really justa shell with no real assets and the money got distributed out to him along the way.

This is a non-event for him, a positive takeaway for business people - sheild yourself personally.

happy

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #7 on: October 19, 2012, 02:51:03 AM »
Personally I don't pay much heed to media stories - he might be a shyster or actually a nice guy... the media will paint him how it suits their story.

I had quite a few "aha" moments when I read Rich Dad Poor Dad such a long time ago now...and although it was a great ideas book, I agree there was not much practical actionable advice for an ordinary salary slave like myself without much entreprenerial verve. 

illy5603

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #8 on: October 19, 2012, 12:27:12 PM »
My friend that got me into real estate investing is a big fan of this guy, like major big. I found the books to be rather simple reading and got the point after the first few chapters. I was rather put off by the "fakeness" of the stories.

MrSaturday

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #9 on: October 19, 2012, 02:57:11 PM »
Personally I don't pay much heed to media stories - he might be a shyster or actually a nice guy... the media will paint him how it suits their story.

The media may be biased, but the judge who decided he owed $24M in unpaid bills probably wasn't.

ch12

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #10 on: October 19, 2012, 08:07:40 PM »
Looks like it was a shell company. Oh, you want to sue me for $24 million? Great! I'll just route that through the company that is only worth a few million and say that I'm "bankrupt"...even though I'm worth $80 million.

plantingourpennies

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #11 on: November 10, 2012, 12:45:53 PM »
I don't know much about RK, but I can tell you that his first book was my first exposure to the idea that wealthy treated money in a very different way than poor people, and this was one of the big reasons that they became, and remained wealthy.

For that I remain very grateful to him.

Best,
Mr. Pop

FitStash

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #12 on: November 24, 2012, 11:10:07 PM »
I actually just finished this book the other day.  While it's not mustachian by any means (ex: making a real estate deal to buy a new porsche faster), it motivated me to think about some things a little differently.

Any time I hear people mention a finance related book, I want to read it.  Adding one more angle to the arsenal can't possibly be a bad thing right?

liquidbanana

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #13 on: November 25, 2012, 12:02:53 AM »
I've heard about this person, but never read any of his stuff.

I find it interesting that when a wealthy person or company files bankruptcy, it's just a "strategic move" but when a poor or middle class person does it, they are usually shamed and considered some sort of bottom feeder.

Not saying that poor/middle class people don't take advantage of the system, but who usually feels the blow worse, either way?

Honest Abe

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #14 on: November 25, 2012, 07:21:00 AM »
I read his first book when I was young, and it was good for that time in my life. From what I can tell he's built an empire since then that seems like a drawn-out infomercial. Not for me.

Blackbomber

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #15 on: December 12, 2012, 04:34:47 PM »
When I read Rich Dad, Poor Dad, my income was so low, I didn't really get much out of it. But the idea that "your home is NOT an asset, it's a risk" was worth the purchase price of the book many times over.

GuitarStv

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #16 on: December 13, 2012, 07:56:05 AM »
Kiyosaki has been bankrupt before.  He always seemed like a bit of a fraud to me . . . there is a rather in depth analysis of the shortcomings of his book on the web here:  http://www.johntreed.com .

igthebold

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #17 on: December 13, 2012, 08:43:35 AM »
When I read Rich Dad, Poor Dad, my income was so low, I didn't really get much out of it. But the idea that "your home is NOT an asset, it's a risk" was worth the purchase price of the book many times over.

I've come around on that issue myself. Now I look at it as an asset that generates a housing payment less maintenance costs every month. Not the best investment (5% per annum), but a pretty guaranteed one.

dahlink

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #18 on: January 14, 2013, 02:25:37 AM »
I read the first book on my first 6 month naval deployment. Since then, Ive learned much more I agree that he misses the mark...a lot.  However, one of the things that got me to look at financial things in a different light was that real estate, that YOU personally live in, is a liability rather than an asset.  Back in 2003-05 it seemed like all the married people were taking out mortgages, which is fine, but they kept calling it an investment.  This was well before the housing crash and at that time everyone was getting a mortgage to live in a house and called it an investment.  IMHO, he was right in this situation, by luck or not...but it turned the tide for me to not follow the crowd of trendy financial wisdom and seek out other outlets of financial wisdom.  By luck, one day I did a google search which led to a lifehacker article on commuting expenses by MMM himself and here I am today.

NumberJohnny5

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Re: Rich Dad Poor Dad declares bankruptcy
« Reply #19 on: January 15, 2013, 03:17:05 AM »
I find it interesting that when a wealthy person or company files bankruptcy, it's just a "strategic move" but when a poor or middle class person does it, they are usually shamed and considered some sort of bottom feeder.

Not saying that poor/middle class people don't take advantage of the system, but who usually feels the blow worse, either way?

I'd tell you why this is, but you'd think I'm one of those conspiracy theory nuts.  Basically, as long as the little guy thinks it's highly immoral to file bankruptcy (and via peer pressure, all the little guys thinks it's something to be avoided like the plague), then they won't file even if they desperately need to.  Makes them feel better because, you know, they're better than all the people who do.  Really benefits the big buys, as they can do these "strategic moves" and it's just part of business; at worse it's a side-note (like how many times has Donald Trump declared bankruptcy?  But I doubt he's losing any sleep over it).