Rich Dad Poor Dad’s investing principles - GOOD or BAD?

[Shiloh Lundahl]

Many people on BiggerPockets (at least on the podcasts) have credited their start to investing in real estate to reading Robert Kiyosaki’s book Rich Dad Poor Dad; myself included. However, there are also some investors who disagree with his philosophies. I would like to open up this post to anyone familiar with Kiyosaki’s investing principles taught in any of his books to debate his teachings.

Which of his teachings do you feel are sound teachings and which are unsound in your opinion? I would like to invite everyone into the conversation but I would like to extend a specific invitation to @Omar Khan, @Jay Hinrichs, @Mike Dymski, @JD Martin, @Joel Owens, @Steve Vaughan, @Sterling White, @David Greene, @Dave Van Horn, and @Ben Leybovich.

Thanks to all who care to share their opinion on the subject.

[Bill F.]

I don't view Rich Dad Poor Dad so much as an investment book, but more a lifestyle/self help book. It tells you to invest, but doesn't spend a whole lot of time talking about actual investments.

-You can learn from both dads. He compares the two "dads" and saying how the poor one focuses on the "wrong" things. Financial IQ, interpersonal communication, sales are all great skills, but he downplays, at least to my memory, things like science, math, history ect, in favor of the money making "hard" skills. Looking at the truly successful people, they all study things outside their profession and have many "mental models" to base their choices on. Biology, physics, history, math, ect, even at a basic level can teach us a lot.

-Data doesn't lie. Getting a bachelor's degree, means on average, you'll make more than if you have a High School Diploma. Same for Masters vs bachelors. That's not a guarantee, but it increases your odds of making a higher income. He ignores the fact that his rich dad's success could be an outlier.

-What is wrong with working hard, living below your means, saving money? If you don't have the skill set of the "Rich dad" maybe that is your best bet for success? After all The Millionaire Next Door, did a pretty good job laying out that's how most people got a net worth of seven figures. Unpopular opinion here but, starting one's own business and investing full time is not for everyone. Heck, buying investment property isn't for everyone. Capitalism can be a brutal place.

A fun read for someone who may not have had the opportunities to think/learn about money as a tool rather than an end in and of itself, but not a wonder book that changes the world.