Steve Braun

Oct. 11, 2006 - Jonathan Clements on Kiyosaki

Jonathan Clements is a fantastic personal finance writer for the Wall Street Journal ($ subscription only) and has a weekly column called Getting Going. I always look forward to reading his column each Wednesday to see what he has to say.

Imagine my delight to see Clements weigh in on the murky financial reality that exists in the mind of Robert Kiyosaki, author of the popular book Rich Dad Poor Dad and a host of follow-up ramblings. (See my three-part review of Rich Dad Poor Dad for some perspective and context on what you'll read below.)

Clements takes on Kiyosaki's latest goofy tome, Why We Want You to Be Rich, co-authored with Donald Trump. I love the title of Clements's column.

Rich Men, Poor Advice:

Their Book Is Hot, But Their Financial Tips Aren't

Clements gets to the heart of the matter quickly by noting many of the same issues that plague Kiyosaki's other works of fiction.

The book is rather simplistic and void of details.
The book offers very little practical or useful advice.
The book contains many confusing or contradictory statements.

Typical Kiyosaki fare. Nothing new here.

The best part is when Clements quotes Kiyosaki:

"Donald and I can beat Warren's (Warren Buffett's) rate of returns on investment. He may be richer, but we can get richer faster using our own methods and use less money."

That's standard Kiyosaki braggadocio. This guy is so full of himself that he has to go attacking Warren Buffett's proven track record in order to make his unproven track record appear to be good. Clements's response is beautiful.

"If Mr. Trump can earn higher rates of return, why does he rank 94th on Forbes magazine's listing of the 400 richest Americans, with a net worth of $2.9 billion, while Mr. Buffett ranks second with $46 billion?"

Good question. Even more hilarious is that Kiyosaki isn't even on the list, let alone worth anything approaching the bottom of the list. That must really grind at the king of greed and envy. He doesn't even qualify to be part of the club, yet he has the gall to criticize a man at the top.

Clements questioned Kiyosaki about some of his assertions and conflicting statements in the book. Basically, he received many of the standard non-answers, obfuscations, and further contradictions for which Kiyosaki is so famous.

In other words, there's no meat folks. Kiyosaki has produced another batch of simplistic fodder purporting to show the masses how to get rich -- when it's really him that is making all the money from selling books.

Here's one final item that reveals the shallowness of Kiyosaki's advice. Clements cites Kiyosaki's favorite investments as "rental real estate, silver, gold, and oil and gas partnerships." Rental real estate has always been part of Kiyosaki's shtick so no surprise there. What's interesting are those other investments.

You see, in Rich Dad Poor Dad, Kiyosaki NEVER mentions investments in "silver, gold, and oil and gas partnerships." On page 89 of that book he takes great pains to list specific "real assets" that he suggests "you or your children acquire." He then goes on to talk specifically about one of his favorites -- small company startups that he can take public (for which there is no documentation that he ever did). That's it. There's nothing about "silver, gold, and oil and gas partnerships."

Why the shift from the investment advice in Rich Dad Poor Dad? Kiyosaki, lacking any real investing skills, just follows the latest hot invesment fads and trends to make himself sound knowledgeable and look savvy.

In the late 1990's when Rich Dad Poor Dad was originally published, the hot investments were IPOs, especially small startup technology and internet companies. (Remember those days when a company with no profits and a back-of-the-envelope business plan could raise billions overnight?) Silver, gold, oil, and gas were dirt cheap and totally out of favor as investments. Thus, Kiyosaki made a big deal out of what was hot then (small company IPOs) so he could look like a wealthy genius and be hip.

Fast forward to 2006. Silver, gold, oil, and gas have had a tremendous 5 year runup and are the talk of the investing world. Small company IPOs (other than Google) are not exactly in vogue like they were in 1999. Plus we had the great plunge in the NASDAQ from 2000 to 2002 that burst the bubble of many of those once high-flying small company startups. So now Kiyosaki trumpets "silver, gold, and oil and gas partnerships."

Gee, what a forward thinking genius. He follows fads because he is really just a fad himself.

I'm glad to see someone as prominent and respected as Jonathan Clements recognize that there's very little substance behind Kiyosaki's glitz and glitter.

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Mar. 1, 2006 - Rich Dad Poor Dad - Part III

(Below is Part III of a three-part series on the book, Rich Dad Poor Dad, by Robert Kiyosaki with Sharon Lechter. Click on these links to read Part I or Part II.)

Problem #4 - Kiyosaki's Many Other Fabrications

Time does not permit a thorough review of all of Kiyosaki's other exaggerations, half-truths, embellishments, and outright fabrications. For a comprehensive list, check out John T. Reed's web page devoted to an analysis of Rich Dad Poor Dad from the perspective of a fellow real estate investor and promoter. He covers the whole gamut of issues in fabulous detail. There is also more information in SmartMoney magazine (Karma Chameleon by Eleanor Laise, February 2003, pages 97-103) and Money magazine (Poor Man's Prophet by Peter Carbonara, January 2003, pages 83-87). Here, however, is my quick list:

Kiyosaki's Imagination: "Sometimes I even start the company and take it public [i.e., an "initial public offering" or IPO]." (page 90)

In Reality: SmartMoney was only able to get the name of one such company from Kiyosaki, "Yamana Resources [now Yamana Gold, Inc.], a gold exploration company that trades on the Toronto Stock Exchange. And if he had anything to do with Yamana's IPO, that comes as a surprise to the company's founder and CEO, Victor Bradley. Kiyosaki's only connection is that he owned shares of Platero Resources, a privately held mining exploration company that Yamana bought in 2001 -- six years after Yamana went public."

Kiyosaki's Imagination: "I began writing it [Rich Dad Poor Dad] after my other book became a best seller..." (page 8)

In Reality: Kiyosaki's only book before Rich Dad Poor Dad was not a best seller (If You Want to Be Rich & Happy, Don't Go to School published in 1992). What book is he referring to?

Kiyosaki's Imagination: "At the age of 9, I decided to listen to and learn from my rich dad about money. In doing so, I chose not to listen to my poor dad, even though he was the one with all the college degrees." (page 17)

In Reality: Reed makes an interesting observation about Kiyosaki's first book (If You Want to Be Rich & Happy, Don't Go to School published in 1992). He notes that the 1992 book is "dedicated to Ralph H. Kiyosaki, former Superintendent of Education, State of Hawaii, the best teacher I ever had." That's the man who would later become Poor Dad. Reed goes on to tally 111 people in the acknowledgements section, none of whom appears to be the real Rich Dad. How could Poor Dad, his natural father, be the best teacher he ever had in 1992 but not worth listening to by 1997? Could it be that in 1992 Rich Dad had not yet been invented by Kiyosaki's active imagination? (Side note, do we really want to exhort our children to follow the teachings of a man who chose not to listen to his own father, beginning at the age of 9?)

Kiyosaki's Imagination: Throughout Rich Dad Poor Dad, Kiyosaki refers to various examples of real estate transactions where he made a killing. Here he really went out on a limb because real estate transactions are public records. For example, "I had sold a house for $60,000 that cost me $20,000. The $40,000 was created from money in my asset column in the form of a promissory note from the buyer. Total working time: five hours." (pages 116-117)

In Reality: SmartMoney and Reed have researched the public records and have not been able to turn up any evidence to support Kiyosaki's claims. In the above example, SmartMoney caught Kiyosaki in a string of outright lies where the numbers in the book don't jive with the public records in Phoenix, Arizona. SmartMoney writes, "nor could he provide any documentation of his own."

Kiyosaki's Imagination: In Rich Dad Poor Dad, Kiyosaki leads you to believe that he made his fortune in real estate, with a little help from stock trading, and "retired" at age 47 (see pages 118-124). He claims such examples are "actual and simple cases" on page 121.

In Reality: As noted above, the public records do not support his real estate claims and there is ample reason to doubt his stock trading prowess too. For example, notice how he completely embellished his connections to Yamana Resources, left some details out, and made others up. Ironically, it is very likely that Kiyosaki's fortune was not made until Rich Dad Poor Dad became a best seller. Before that he was just another hustler on the seminar circuit.

SmartMoney and Reed also analyzed information from Kiyosaki's other books, tapes, and seminars. Their research casts doubt on many of Kiyosaki's claims regarding his educational background, his military service, experiences in the military, other business ventures, his claims of wealth, and even his claim to have been bankrupt and living in his car in 1985.

When all is said and done, Robert Kiyosaki does not come across as an honest, trustworthy man. He does not even appear to be the real estate or stock market guru he imagines himself to be in his delusions of grandeur. But let's give him credit for turning his inner "storytelling genius" into millions of dollars. He has his reward in full.

Scripture provides us with tools for evaluating the works of another. Jesus said that we would "know them by their fruits" in Matthew 7:16-20. Interestingly, He precedes this passage with this warning in verse 15, "Beware of the false prophets, who come to you in sheep's clothing, but inwardly are ravenous wolves." We also know that Jesus taught that the father of lies and deception is Satan and there is no truth in him (John 8:44).

You be the judge. From where do Kiyosaki's tales and explanations proceed -- the Spirit of God or the father of lies? What does Kiyosaki's fruit resemble -- the fruit of the Spirit or the deeds of the flesh?

Problem #5 - Kiyosaki's Bad Advice

Last but not least, there is much in Rich Dad Poor Dad that is just plain silly, wrong, illogical, illegal or some combination thereof. Here is a small sampling.

The History Flunky

"Soon there will be such a horrifying gap between the rich and the poor that chaos will break out and another great civilization will collapse. Great civilizations collapsed when the gap between the haves and havenots was too great. America is on the same course, proving once again that history repeats itself, because we do not learn from history." (pages 47 and 48)

Actually, it is Kiyosaki who does not learn from or know history. I'm open to correction on this, but I cannot recall any great civilizations that have collapsed due to the "gap between the haves and the havenots." Is he referring to the Sumerian, Babylonian, Persian, Egyptian, Assyrian, Greek, Roman, Indian, Incan, Mayan, Chinese, Japanese, British, Spanish, Soviet, or Western civilizations? This is yet another example of a statement that sounds great but has zero substance or basis in reality.

The Economic Flunky

"Prices go up because of greed and fear caused by ignorance. If schools taught people about money, there would be more money and lower prices..." (page 48)

Schools do teach about money, at least in an economics class. But perhaps Kiyosaki wasn't paying any attention. In a free economy, prices are determined by supply and demand, not "greed and fear caused by ignorance." In addition, "more money" is actually inflationary (not deflationary as Kiyosaki implies) because there are more dollars chasing the same number of goods.

The Logic Flunky

One of Kiyosaki's supposedly profound observations is that your home is not an asset, but a liability. The reason is that his definition of an asset is "something that puts money in [your] pocket." (page 61)

A home clearly does not put money in your pocket. Even without a mortgage, it still costs you taxes, maintenance, and repairs. Fair enough. But since buying assets, instead of liabilities, is one of the key points in the book, you'd think Kiyosaki would provide some slick alternative to buying a home. He doesn't.

So just where are people supposed to live? The alternative is to rent, but that is just another form of a liability. All Kiyosaki will say is that a young couple would be better off "starting an investment portfolio early on" (page 73) or buying "assets that will generate the cash flow to pay for the house" (page 74). Sounds nice but either way it takes time to accomplish his advice and it doesn't solve the immediate problem of where to live in the meantime. To recover from this idiocy, Kiyosaki then states, "I am not saying don't buy a house..." Then what's the point? He's just running in circles.

A home is an asset. A mortgage is a liability. Your objective should be to maximize the value of your asset and minimize the impact of any liability. Don't bite off more than you can chew when it comes to buying a home. It's that simple.

The Accounting & Tax Flunky

In chapter five (pages 95-105), Kiyosaki sets forth the advantages of owning a corporation. If you can wade through the mumbo-jumbo, you'll find "tax advantages" on page 104. Here he makes some very odd and legally questionable statements. What is even more amazing is that Kiyosaki's co-author, Sharon Lechter, is a CPA (certified public accountant)! Based on what appears in this book, I would not let her do my income taxes even with the assistance of TurboTax.

Error #1: "By owning your own corporation -- vacations are board meetings in Hawaii."

The Truth: Vacations are not deductible expenses. First, the primary purpose of the trip must be for business, not personal, and the expenses must be ordinary and necessary. Second, only that portion of the trip that is dedicated to business purposes is tax deductible. Expenses that are personal, whether they be for activities, meals, hotel, or travel are not tax deductible. Finally, expenses for accompanying family members who are not employees or officers of the corporation are not deductible at all. (See IRS Publication 463: Travel, Entertainment, Gift, and Car Expenses)

Error #2: "Car payments, insurance, repairs are company expenses."

The Truth: Only that portion of such expenses that are business related can be deducted. Expenses for personal use are excluded or must be attributed to the employee as personal income. (See IRS Publication 463: Travel, Entertainment, Gift, and Car Expenses)

Error #3: "Health club membership is a company expense."

The Truth: Club memberships are never a deductible company expense. (See IRS Publication 17 Chapter 28 and Publication 535: Business Expenses)

Error #4: "Most restaurant meals are partial expenses."

The Truth: This is only true if you are away from home overnight conducting business or entertaining a client and discussing or transacting business. At that, only 50% of the meal is deductible so the net tax advantage is lost by the total expense. (See IRS Publication 463: Travel, Entertainment, Gift, and Car Expenses)

Based on what we have already learned about Kiyosaki, it does not surprise me that he would advise pushing the envelope over the edge on tax issues. I would expect much better judgement from Sharon Lechter as a CPA. She wrote the following in the introduction on page 9, "For any accountants who read this book, suspend your academic book knowledge and open your mind to the theories Robert presents." I guess Lechter also wants us to suspend adherence to federal tax laws too! It is inexcusable for her to let such errors into a book which she co-authored, especially in her area of expertise. But in the "age of Enron" I guess anything is possible from the accounting profession. Given the above, plus all the other issues in Rich Dad Poor Dad, Lechter's credibility and trustworthiness rank right down there with Kiyosaki's.

The Securities Law Flunky

"There are forms of insider trading that are illegal, and there are forms of insider trading that are legal. But either way, it's insider trading." (page 171)

As portrayed by Kiyosaki in Rich Dad Poor Dad, this statement is pure bunk. The examples he cites are all clearly illegal insider trading as defined by law and applied by the Securities & Exchange Commission. Again, Kiyosaki is just likely spinning yarns about his investment prowess or making empty statements to impress readers.

Humorous Irony

Kiyosaki generally disparages mutual fund investing (pages 77 and 78 contain a few examples).

It's ironic, then, that Kiyosaki admires Peter Lynch, an icon of the mutual fund world as an outstanding investor and mutual fund manager, and quotes him several times in the book (page 152 is one example).

(Okay, that's a weak one. It's probably only humorous to those of us in the financial services profession.)

The Relationship Flunky

"I have found that the principles of finding value are the same regardless if it's real estate, stocks, mutual funds, new companies, a new pet, a new home, a new spouse, or a bargain on laundry detergent." (page 190)

I'm sure every woman out there would just be thrilled to hear her husband lump her in with the laundry detergent or the family pet. And just what does Kiyosaki mean by "a new spouse?" Do you go looking for another one when your current spouse's "value" is diminished? Do you trade spouses like stocks or flip 'em like hot properties? Maybe it's this line of thinking that leads a man to choose to ignore his own father (Poor Dad) for another man (Rich Dad). How pathetic!

Conclusion

On that note, it is time to end. Like I stated at the beginning of Part I, there is so much material that it's hard to know where to begin. That also means it's hard to know when to stop. Frankly, Robert Kiyosaki and Rich Dad Poor Dad are so full of baloney that I've had my fill and don't want to go on.

Some of you may have already read Rich Dad Poor Dad and feel inspired to become more educated with your finances and alter your money habits. That's great. Follow up and take action. There are many other resources, however, that are much better than Rich Dad Poor Dad from which you can learn. They are superior in terms of biblical values, financial wisdom, and practical advice. I encourage you to seek out those other resources and forget about Kiyosaki.

Others of you may already be fans of the entrepreneurial and real estate investing concepts portrayed by Kiyosaki in Rich Dad Poor Dad. More power to you -- go start a business, invest in real estate, or build your residual income. As noted above, there are much better resources out there for you too.

Also keep in mind that it's a lot tougher in the real world than Kiyosaki and other "seminar hustlers" would have you believe. It takes a lot of hard work and discipline to make any endeavor succeed. A few make it big, others do okay, but most fall by the wayside. I wish you the best. Or as the apostle John wrote, "Beloved, I pray that in all respects you may prosper and be in good health, just as your soul prospers." (III John 1:2, emphasis added)

I have often wondered, however, why these "seminar hustlers" don't just go out and rake in their millions actually doing what they teach, rather than schlepping their books, tapes, seminars, and "secret techniques" to everyone else. After all, they generally claim that their systems are simple, easy, and lucrative, whether it's flipping real estate, trading stocks or options, creating internet businesses, generating residual income, etc. Yeah, it's a snap all right! Could it be that all they're really selling, like Kiyosaki, is just more books, tapes, and seminars that don't really have much value? But that's a topic for another day.

If you are a Christian, you cannot ignore the unbiblical message of greed that permeates Rich Dad Poor Dad (or any other publication) and the questionable character and advice of Robert Kiyosaki and his co-author, Sharon Lechter (or anyone else). Burying your head in the sand by claiming that the book "helps" or "inspires" you is not an option. Instead, Scripture exhorts you to "not believe every spirit, but test the spirits to see whether they are from God; because many false prophets have gone out into the world." (I John 4:1) You should avoid seminars and other materials that teach "entrepreneurship" or other business techniques based on the principles and teachings of Kiyosaki. Don't drink the serpent's venom. To say "I'll take the good and leave the bad" or "I'll take the meat and spit out the bones" is not wise. To the contrary, you will find in Scripture that bad corrupts good in every instance. In the end you may well find the bones stuck in your throat and choking you to death. Don't take the chance.

Go to God's word and study it. Consider what I have written and pray about it. I welcome your comments.

Click on the links below to go back to...

Part I

Introduction
Problem #1 - Kiyosaki Mocks, Twists, & Contradicts Scripture

Part II

Problem #2 - Kiyosaki's New Age Background & Philosophy
Problem #3 - Rich Dad Does Not Exist

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Feb. 28, 2006 - Rich Dad Poor Dad - Part II

(Below is Part II of a three-part series on the book, Rich Dad Poor Dad, by Robert Kiyosaki with Sharon Lechter. Click on these links to read Part I or Part III.)

Problem #2 - Kiyosaki's New Age Background & Philosophy

Kiyosaki's talk of an inner "financial genius" only hints at some of his bizarre beliefs and spiritual moorings. It's a long story, but he has been a motivational speaker for the better part of 25 years employing various New Age concepts and psychobabble such as self-actualization, visualization, motivating forces, metaphysical coaches, rebirthing, auditing, thought reform, Buddhism, Hopi Indian sacred teachings, and heavy doses of Scientology (yes, the same wacko stuff that actor Tom Cruise promotes). What else would you expect from a disciple of Werner Erhard and his controversial EST movement of the 1970's? Kiyosaki's values are rooted in the "human potential movement" and its emphasis on "self."

For example, Kiyosaki offers this New Age gem on pages 46 and 47,

"Rich dad went on to explain that a human's life is a struggle between ignorance and illumination. He explained that once a person stops searching for information and knowledge of one's self, ignorance sets in." [emphasis added]

Another example is found on page 69,

"The mirror symbolizes the power of self-knowledge."

and page 70,

"That is why my educated dad said the Japanese valued the power of the mirror the most, for it is only when we as humans look into the mirror do we find truth."

Notice the focus is always on "self" as the answer. Everything you need is inside you. All you have to do is wake it up or become illuminated.

Yet Solomon taught in Proverbs 1:7 that "The fear of the Lord is the beginning of knowledge..." and in Proverbs 2:5-6 "Then you will discern the fear of the Lord, and discover the knowledge of God. For the Lord gives wisdom; from His mouth come knowledge and understanding." Knowledge doesn't come from the inner "financial genius" or "self."

Scripture consistently reveals that God is the answer to all of life's questions. Truth is not found in the mirror but in Christ. "For the Law was given through Moses; grace and truth were realized through Jesus Christ." (John 1:17) Jesus said, "I am the way, and the truth, and the life..." (John 14:6)

In short, Kiyosaki does not bring one biblical credential to the table when it comes to money. Instead he relies on a tangled web of meaningless New Age theologies and the perversion of Scripture. He doesn't even take the time to pretend he's a Christian. What is this man doing in our churches teaching God's people? Why are Christians recommending and selling his materials?

Problem #3 - Rich Dad Does Not Exist

I hate to break it to you, but Rich Dad does not exist. The entire storyline of Rich Dad Poor Dad, presented as unquestioned fact by Kiyosaki, is really a work of fiction.

SmartMoney magazine (Karma Chameleon by Eleanor Laise, February 2003, pages 97-103) provides the best summary of Kiyosaki's deceptions regarding Rich Dad.

When questioned by Laise, Kiyosaki gave this string of answers regarding Rich Dad's existence.

1. "Rich Dad passed away at around the same time as his biological father -- in 1992."

2. "Two weeks later...Kiyosaki [claims] Rich Dad...is very much alive -- he's just a reclusive invalid."

3. Later when asked again, Kiyosaki "insists there was an original Rich Dad, but he admits that the character in the books is actually a 'composite' of seven different mentors..."

4. When pressed further, "Kiyosaki finally loses his cool. 'Is Harry Potter real?' he demands. 'Why don't you let Rich Dad be a myth, like Harry Potter? The real issue is, am I credible?'"

No, Mr. Kiyosaki, you are not credible. A man or woman is only credible by telling the truth. All four of those statements cannot be true and Kiyosaki is therefore lying. Liars are not credible.

Amazingly, Kiyosaki's attempts to deceive don't end there. He employed the following gimmick with another investigative reporter as described in Money magazine (Poor Man's Prophet by Peter Carbonara, January 2003, pages 83-87):

"Kiyosaki, though, agreed to put me in touch with the son of Rich Dad, on the condition the family name not be printed. Why the secrecy? Kiyosaki says he promised Rich Dad not to identify him publicly. I did speak to a Hawaii businessman who knew Kiyosaki as a boy in Hilo and who says his father is the real Rich Dad. He too asked that his family name not be used."

So which is it? Is Rich Dad dead, an invalid, a composite, a fictional character like Harry Potter, or a real man with a son living in Hawaii? The truth doesn't need a string of lies to defend it. I can only conclude that Rich Dad is a figment of Kiyosaki's imagination. That's why he can't get his facts or story straight. He's making it up as he goes, just like the book.

You will see in Part III that this isn't the only area where Kiyosaki gets caught in his own web of deception. Most people I know -- Christian or not -- believe honesty is the best policy, especially when it comes to money. Is this the kind of man we should trust for financial knowledge and guidance? Is a liar someone we should hold up as an example to our children by using his materials to instruct them about money? Not in my house.

Don't worry if Kiyosaki caught you off guard on this one. You're not alone. Even Oprah was duped! Kiyosaki was her guest in 2000 and she plugged the book. Hmmm....I wonder if she's going to come clean about Kiyosaki like she recently did on her website, Oprah's Book Club, and TV show with the book "A Million Little Pieces" by James Frey?

Forget Oprah. Should the Christian community embrace and promote the work of a man who stakes his credibility on a complete fabrication and then goes to great lengths to cover his deception by telling more lies?

I say no.

Is Kiyosaki's popularity among Christians and homeschoolers a reflection of his powers of persuasion or our lack of moral standards and a willingness to uphold them?

I fear it is the latter.

Click on the link below to continue with...

Part III

Problem #4 - Kiyosaki's Many Other Fabrications
Problem #5 - Kiyosaki's Bad Advice
Conclusion

Click on the link below to go back to...

Part I

Introduction
Problem #1 - Kiyosaki Mocks, Twists, & Contradicts Scripture

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Feb. 27, 2006 - Rich Dad Poor Dad - Part I

(Below is Part I of a three-part series on the book, Rich Dad Poor Dad, by Robert Kiyosaki with Sharon Lechter. Click on these links to read Part II or Part III.)

Introduction

It's time to be controversial and stick my neck out.

What you are about to read flies in the face of the glowing reviews and fawning attention given to the book Rich Dad Poor Dad and its author Robert Kiyosaki.

It's time someone in the Christian community declared, "The Emperor Has No Clothes!"

Where to Begin?

This topic has been simmering in my mind since I first read the book about five years ago. The problem is that there is so much wrong that it's hard to know where to begin. Indeed, one could devote an entire blog or website to it.

Let me first tackle the shortest and easiest part by acknowledging the few good points about Rich Dad Poor Dad:

It's Interesting to Read - Kiyosaki does a great job of keeping reader interest from chapter to chapter, especially for a book about a topic (real estate investing) that most people would never touch.
The Stories & Examples Are Vivid - Kiyosaki has an anecdote or entertaining story to illustrate every major point. This brings the concepts home with clarity.
The Diagrams Are Simple - Kiyosaki uses excellent diagrams to explain basic accounting and financial principals that any reader can follow and understand.
It's Inspiring - After reading through the book, despite its many flaws, it's tough not to be inspired.
It Contains a Few Sound Principles - Avoid consumer debt, build assets, be entrepreneurial, don't trust the education system, don't rely on the government for your well-being. It's all simplistic stuff we've heard before, but good nevertheless.

These are great things to find in a financial book but that doesn't mean Rich Dad Poor Dad is worth reading or that Kiyosaki is a man worth listening to. He is a great communicator, motivator, salesman, guru -- whatever you want to call him -- so it's easy to see why he is a best selling author.

The Sad Reality

Just don't call Kiyosaki the many other adjectives he'd like to claim -- honest, truthful, consistent, investing genius, or real estate tycoon. Yes, that's right, most of what you read in Rich Dad Poor Dad is undocumented and quite likely pure fiction. On top of all of that, the very premise of the book is unbiblical and anti-Christian. But what do you expect? That's Kiyosaki's background.

You wouldn't know any of this, however, based on all the Christian leaders who cozy up to Kiyosaki, the churches that invite him to speak, or the bookstores and homeschool vendors who promote his materials and philosophies.

Christians have not done their homework. Instead, it has been the secular financial media and a few others that have done the real homework -- all while the church sleeps and lends its credibility to Rich Dad Poor Dad and Kiyosaki.

Specific Problems

Below and continuing through Part II and Part III are the specific problems with Rich Dad Poor Dad that I find the most troubling. Please note that when I refer to page numbers that my copy of the book was printed in 2000. It's entirely possible that the page numbers are not the same in earlier or later editions.

Problem #1 - Kiyosaki Mocks, Twists, & Contradicts Scripture

Right off the bat in the seventh paragraph of chapter one (page 13), Kiyosaki let's us in on the underlying philosophy of greed that permeates his book and way of life. In so doing, he clearly mocks and contradicts the Bible.

"For example, one dad [Poor Dad] would say, 'The love of money is the root of all evil.' The other [Rich Dad], 'The lack of money is the root of all evil.'"

It turns out that Poor Dad is closest to the biblical truth expressed by Paul in I Timothy 6:10. "For the love of money is a root of all sorts of evil, and some by longing for it have wandered away from the faith, and pierced themselves with many a pang." Kiyosaki's statement makes a mockery of God's word.

His statement also contradicts Scripture in two ways. First, he advocates ignoring the clear biblical wisdom espoused by Poor Dad. Second, he implies that simply having enough money can eliminate most or all of the evil in the world.

Scripture teaches, however, that evil proceeds from the human heart (Jeremiah 17:9, Matthew 15:19). Money isn't the remedy Jesus offers to humanity in a broken and fallen world.

Rather than see the human heart as the problem, however, Kiyosaki focuses on the mind. Rich Dad says on page 47,

"Because it is ignorance about money that causes so much greed and so much fear."

The implication is that if only we were better-educated (presumably through Kiyosaki's books, tapes, and seminars), then everything would be okay. How nice and simple. How wrong! (It is people like Kiyosaki who really fan the flames of greed and fear through books like Rich Dad Poor Dad.)

Kiyosaki repeats his philosophy in the second paragraph of chapter nine (page 165).

"I believe that each of us has a financial genius within us. The problem is, our financial genius lies asleep, waiting to be called upon. It lies asleep because our culture has educated us into believing that the love of money is the root of all evil." [emphasis added]

Again, the Scriptural truth is mocked while the pursuit of money is exalted. That is the basis for all that Kiyosaki believes and teaches -- accumulating money is the game of life.

"If you call on your financial genius, you can have all the goodies of life, get rich and pay bills, without sacrificing the good life. And that is financial intelligence." (page 177)

No, that is a financial pipe dream. Or let's call it the gospel according to Kiyosaki. But don't mistake it for the gospel of Jesus Christ.

Kiyosaki, for his part, believes his advice does line up with Scripture. He is quoted in SmartMoney magazine (Karma Chameleon by Eleanor Laise, February 2003, pages 97-103) as stating at a church seminar:

"Every one of my books comes from a biblical principle. The word becomes flesh."

Implying that his teaching is akin to the Incarnation is further mockery of Scripture and an insult to God. Kiyosaki may stumble across some biblical truths (avoid consumer debt, etc.), but the foundation of his book is the greedy pursuit of the Almighty Dollar, not the Lord Almighty.

Kiyosaki even manages to pervert some of the biblical principles he recommends. Giving and generosity are examples. Rich Dad states on page 184,

"If you want something, you first need to give."

Later on that same page Kiyosaki continues,

"I just trust that the principle of reciprocity is true, and I give what I want. I want money, so I give money, and it comes back in multiples."

The principles of giving and generosity are Scriptural, but Kiyosaki's motivation is all wrong. Giving to get is not the same as giving out of concern or love for others. The Bible teaches that "God sees not as man sees, for man looks at the outward appearance, but the Lord looks at the heart." (I Samuel 16:7) God rewards giving because of the motivation of the heart, not just because a person gives. Again, Kiyosaki shows his true stripes of self-centered greed.

God does bless His people and money is one such blessing He provides. There is nothing wrong with money per se or being rich. But the Bible also warns us not to trust in or set our hearts on money as noted above in I Timothy 6:10. Solomon put it in much more eloquent terms in Proverbs 23:4-5, "Do not weary yourself to gain wealth, cease from your consideration of it. When you set your eyes on it, it is gone. For wealth certainly makes itself wings, like an eagle that flies toward the heavens."

In the Bible, there is only one character portrayed as consistently mocking God's word and twisting it for his own ends -- Satan (see Genesis 3:1-6; Job 1:9; Matthew 4:1-9). It is that same spirit behind Kiyosaki's deceptions. He is a wolf in sheep's clothing.

Where are the shepherds of God's flock when the wolf comes? Unfortunately, they're standing up on stage introducing him to their congregations or recommending his materials!

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Part II