‘Rich Dad, Poor Dad’ author Robert Kiyosaki is $1.2 billion in debt
Kiyosaki went on to say that his premium automobiles, a Ferrari and a Rolls Royce, are entirely paid off and hence qualify as a burden, not an asset.
Robert Kiyosaki, author of Rich Dad, Poor Dad, has provided a novel perspective on debt and investing, one that includes both assets and liabilities. The best-selling author turned to Instagram and stated that he utilises debt to pay assets.
Kiyosaki went on to say that his premium automobiles, a Ferrari and a Rolls Royce, are entirely paid off and hence qualify as a burden, not an asset.
Kiyosaki cast doubt on the act of saving money in the video, citing the US dollar’s divorce from the gold standard during President Richard Nixon’s term in 1971.
Rather than saving money, Kiyosaki prefers to accumulate gold and convert his profits into silver and gold.
Kiyosaki attributes his $1.2 billion debt to this method, which he publicly admits. He claims he is in debt because “if I go bust, the bank goes bust. Not my problem.”
Kiyosaki elaborated on the purpose for the loan, stating that the funds were utilised to purchase assets. Kiyosaki saved gold instead of currency and transformed his profits into gold and silver. According to him, this method resulted in the garnering of such a huge amount of debt.
Good Debt, Bad Debt by Robert Kiyosaki
Good debt is one which aids in the accumulation of wealth, such as loans used to acquire income-generating assets including real estate, enterprises, or investments.
Kiyosaki promoted the use of debt as leverage in assets, particularly real estate, and regarded it as an effective method to deal with market swings.
“I don’t own any copper. I own a lot of silver. I found a silver mine in Argentina and Yamana Gold (Canadian mining company) bought it from me. I do own tons of gold and silver,” Kiyosaki told Stockpulse in a 2022 interview at the Vancouver Resource Investment Conference.
Kiyosaki has long advocated for “real assets” such as Bitcoin, silver, gold, and Wagyu cattle. Bitcoin, in particular, is a favourite of his, seen as a hedge against the US dollar’s declining value.
Kiyosaki considers gold to be more secure and reliable than currency, which he refers to as “trash” since he does not “trust the frickin’ dollar.”
Silver is also an important aspect of his investing approach. He sees it as a long-term investment, owing to its rising shortages and cheaper price in comparison to gold.
Real estate is a key component of his portfolio, valued for the combined benefits of rental income and capital gain.
His most extravagant investment is on Wagyu cattle. This investment by the best-selling author simply reflects his trust in alternatives to traditional investments.
‘Rich Dad, Poor Dad’ by Robert Kiyosaki was published in 1997 and has sold over 40 million copies. Kiyosaki argued in the book that making great money was not the only way to build wealth, and he emphasised the benefits of calculated risk taking and entrepreneurship.
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