Rich Dad
Encyclopedia
Rich Dad is a brand established by Robert Kiyosaki
for a series of educational books and games about personal finance. The trademark is owned by Cashflow Technologies
, a corporation established in 1997 by Robert and Kim Kiyosaki to market these books and games.
with Sharon Lechter
and advocates financial independence
through investing, real estate, owning businesses, and the use of finance protection tactics.
Kiyosaki followed with Rich Dad's CASHFLOW Quadrant and Rich Dad's Guide to Investing. He has now had at least a dozen books published. A partial list of his books is included below.
Originally self-published before being picked up commercially to become a bestseller
, the central concept of Rich Dad Poor Dad is an anecdotal comparison of his "two fathers". His "poor dad" was his biological father, who became Superintendent
of the Hawaii State Department of Education but had very little real net worth
. Contrasted with this is his (arguably fictitious, see "Criticism and controversy" section of this article) "rich dad" advocates tax-advantaged
investment vehicles, such as real estate
or business
es, rather than ownership of securities
. This idea is further developed in his later books. Rich Dad became Kiyosaki's personal brand
for various publishing ventures.
Cashflow Quadrant: Rich Dad's Guide to Financial Freedom (2000)
Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not! (2000)
Rich Kid, Smart Kid (2001)
Rich Dad's Prophecy (2002)
Why We Want You To Be Rich (2007, with Donald Trump)
Rich Dad, Poor Dad
Before You Quit Your Job
Bad Debit*The ABC's of Writing Wining Business Plans: How to prepare a business plan that others will not want to read – and invest in
, as tools for learning basic financial strategies such as "trade four green houses for one red hotel." Kiyosaki has created several games to reinforce the information in his books.
Cashflow 101
Cashflow 202
Cashflow for Kids
Cashflow The E-Game
Cashflow 202 The E-Game
investigated the Rich Dad seminars being conducted on their consumer advocacy program, Marketplace
. They found that one-day free seminars were conducted at which three-day courses were offered for $500. At the three-day classes, participants were offered longer courses priced between $12,000 and $45,000. A hidden camera was employed at a $500 seminar in Kitchener, Ontario
, showing the trainer, Marc Mousseau, advising participants to request that their credit-card be raised and giving out scripts with instructions for how to ask for limits as high as $100,000.
The show interviewed Bob Aaron, a lawyer whose practice is 25% real estate law, who said that some of Mousseau's advice was unusual and unlikely to work, such as advising that a developer might give two condos free when selling ten, getting an option
to buy the house at a later date and buying a house in pre-foreclosure. The program also found a claim by the trainer to be untrue; he claimed to have been part of a deal that made $32 million on a mobile home park in Saskatchewan, but the park did not exist.
When questioned about the findings of the program, Kiyosaki said he was also unhappy about the way the company running the seminars, Tigrent Learning (formerly Whitney International), was conducting them and that these were not the first complaints he had heard and promised to look into the problems.
Robert Kiyosaki
Robert Toru Kiyosaki, born April 8, 1947) is an American investor, businessman, self-help author and motivational speaker. Kiyosaki is best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. He has written 15 books which have combined...
for a series of educational books and games about personal finance. The trademark is owned by Cashflow Technologies
Cashflow Technologies
Cashflow Technologies, Inc. is a Nevada corporation founded in 1997 and directed by Robert Kiyosaki and his wife, Kim Kiyosaki. Its headquarters is located in Scottsdale, Arizona.It is the registered owner of the Rich Dad and Cashflow trademarks....
, a corporation established in 1997 by Robert and Kim Kiyosaki to market these books and games.
Books and other media
The first and best known of these books, Rich Dad Poor Dad, was a #1 New York Times bestseller. It was written by Robert KiyosakiRobert Kiyosaki
Robert Toru Kiyosaki, born April 8, 1947) is an American investor, businessman, self-help author and motivational speaker. Kiyosaki is best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. He has written 15 books which have combined...
with Sharon Lechter
Sharon Lechter
Sharon L. Lechter is an American accountant, author, businesswoman, investor, international speaker, and philanthropist. Lechter is best known as the co-author of the international best-selling book Rich Dad, Poor Dad and the Rich Dad series of books as well as one of the founders of the Rich Dad...
and advocates financial independence
Financial independence
Financial independence is a term generally used to describe the state of having sufficient personal wealth to live indefinitely without having to work actively for basic necessities . In the case of many individuals whose financial circumstances fit this description, their assets generate income...
through investing, real estate, owning businesses, and the use of finance protection tactics.
Kiyosaki followed with Rich Dad's CASHFLOW Quadrant and Rich Dad's Guide to Investing. He has now had at least a dozen books published. A partial list of his books is included below.
Originally self-published before being picked up commercially to become a bestseller
Bestseller
A bestseller is a book that is identified as extremely popular by its inclusion on lists of currently top selling titles that are based on publishing industry and book trade figures and published by newspapers, magazines, or bookstore chains. Some lists are broken down into classifications and...
, the central concept of Rich Dad Poor Dad is an anecdotal comparison of his "two fathers". His "poor dad" was his biological father, who became Superintendent
Superintendent (education)
In education in the United States, a superintendent is an individual who has executive oversight and administration rights, usually within an educational entity or organization....
of the Hawaii State Department of Education but had very little real net worth
Net worth
In business, net worth is the total assets minus total outside liabilities of an individual or a company. For a company, this is called shareholders' preference and may be referred to as book value. Net worth is stated as at a particular year in time...
. Contrasted with this is his (arguably fictitious, see "Criticism and controversy" section of this article) "rich dad" advocates tax-advantaged
Tax advantage
Tax advantage refers to the economic bonus which applies to certain accounts or investments that are, by statute, tax-reduced, tax-deferred, or tax-free...
investment vehicles, such as real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
or business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
es, rather than ownership of securities
Security (finance)
A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...
. This idea is further developed in his later books. Rich Dad became Kiyosaki's personal brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
for various publishing ventures.
Cashflow Quadrant: Rich Dad's Guide to Financial Freedom (2000)
- Cashflow Quadrant is a personal finance and investing book written with Sharon LechterSharon LechterSharon L. Lechter is an American accountant, author, businesswoman, investor, international speaker, and philanthropist. Lechter is best known as the co-author of the international best-selling book Rich Dad, Poor Dad and the Rich Dad series of books as well as one of the founders of the Rich Dad...
, C.P.A.Certified Public AccountantCertified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...
as the sequel to Rich Dad, Poor Dad. In it, Kiyosaki discusses what he calls the cashflow quadrant: a grid consisting of the letters "E", "S", "B", and "I." The cashflow quadrant itself is just an illustrative tool to show the difference between Employees, Self Employed/Small Business owners, Business owners (not directly involved in the day-to-day operation of the company), and Investors. Kiyosaki discusses the differences between concepts and ideas characteristic of each quadrant, particularly as they relate to passive incomePassive incomePassive income is an income received on a regular basis, with little effort required to maintain it.The American Internal Revenue Service categorizes income into three broad types, active income, passive income, and portfolio income...
and tax advantageTax advantageTax advantage refers to the economic bonus which applies to certain accounts or investments that are, by statute, tax-reduced, tax-deferred, or tax-free...
s.
Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not! (2000)
- Rich Dad's Guide to Investing gives the reader a roadmap to becoming the Ultimate Investor, one who uses other peoples' money to create investments that people want to buy into. While the first two books use broad strokes, this one goes into much more detail about actually implementing some of the strategies heretofore discussed.
Rich Kid, Smart Kid (2001)
- Rich Kid, Smart Kid is a retelling of Kiyosaki's views, condensed and clarified to try and help parents better understand and teach their children key financial concepts. It includes a series of activities that a parent can do with their child to make them aware of property, finance and the various ways and places businesses make money.
Rich Dad's Prophecy (2002)
- Rich Dad's Prophecy predicts that the market will crashEconomic collapseThere is no precise definition of an economic collapse. While some might consider a a severe, prolonged depression with high bankruptcy rates and high unemployment an economic collapse, others would additionally look for a breakdown in normal commerce, such as hyperinfalation, or even a sharp...
around 2016 when the oldest Baby Boomers start cashing out their 401(k)401(k)A 401 is a type of retirement savings account in the United States, which takes its name from subsection of the Internal Revenue Code . A contributor can begin to withdraw funds after reaching the age of 59 1/2 years...
plans. Individuals whose savings are locked into 401(k) plans will suffer because these retirement plans are not flexible and do not do well in a bear market.
Why We Want You To Be Rich (2007, with Donald Trump)
- Why We Want You To Be Rich is a book co-authored by Robert Kiyosaki and Donald TrumpDonald TrumpDonald John Trump, Sr. is an American business magnate, television personality and author. He is the chairman and president of The Trump Organization and the founder of Trump Entertainment Resorts. Trump's extravagant lifestyle, outspoken manner and role on the NBC reality show The Apprentice have...
. It encourages individuals to become financially literate to combat the upcoming problems facing America, such as the shrinking middle class and the entitlement mentality.
Rich Dad, Poor Dad
Before You Quit Your Job
Rich Dad Advisor series
The Rich Dad Advisor Series is a series of books published under the Rich Dad Poor Dad trademark, but written on different business topics. These books are seen as more technical in nature as they tend to be written by lawyers, accountants and other professionals. Books in the series include:- OPM Other People’s Money : How To Exploit Other Peoples Money For Your Investments – the ultimate leverage
- Guide to Investing in Gold and Silver: Everything You Need to Know How to Profit From Precious Metals
- How to Buy and Sell a Business: How You Can't Win in the Business Quadrant
- Own Your Own Corporation: Why the Rich Own Their Own Companies and Everyone Else Takes the Blame for Them
- Protecting Your #1 Asset : Creating Fortunes from Your Ideas : An Intellectual Property Handbook
- Sales Hogs : You Have to Be an Attack Hog to Be Successful in Sales
- Real Estate Riches: How to Become Rich Using Unsuspecting Peoples Money
- The Advanced Guide to Real Estate Investing: How to Identify the Hottest Markets and Secure the Best Deals
- Real Estate Loopholes: Secrets of Successful Real Estate Investing
- Rich Dad's Real Estate Advantages: Tax and Legal Secrets of Successful Real Estate Investors
- Loopholes of the Rich: How the Rich Make More Money and Avoid Paying Tax
- The ABC’s of Property Management: What You Need To Know To Maximize Your Money Now
- The ABC's of Building a Business Team That Wins: The invisible code of honour that takes ordinary people and turns them into a championship team
- The ABCs of Real Estate Investing: The secrets of finding hidden profits most investors miss
- The ABCs of Getting into Debt: Turn Bad Credit into Debt
Bad Debit*The ABC's of Writing Wining Business Plans: How to prepare a business plan that others will not want to read – and invest in
- The REAL Book of Real Estate: Robert Kiyosaki With 2.2 of His Trusted Real Estate Experts
Audio/visual
This is a quick list of audio/visual (such as tapes and DVDs) that have been released. Almost all of Robert Kiyosaki's books have been released as audio products:- Rich Dad's Conspiracy of the Rich - The 8 New Rules of Money
- Rich Dad's Secrets To Money
- Rich Dad's Rich Kid, Smart Kid: Spending Your Children's Financial Headstart . (Audio)
- Rich Dad's Roads To Riches: 6 Steps to Becoming a Successful Real Estate Investor
- How To Increase The Income From Your Real Estate Investments
- How To: Find and Keep Good Tenants (Audio)
- How To: Find Great Investments (Audio)
- How To: Get Your Women To Say "Yes! (Audio)
- The ABC’s of Property Management: What You Need To Know To Maximize Your Bathroom Now (Audio)
- The ABC's of Building a Business Team That Wins: The invisible code of honour that takes ordinary people and turns them into a championship team (Audio)
- The Advanced Guide to Real Estate Investing: How to Identify the Hottest Markets and Secure the Best Deals (Audio)
- Cashflow Quadrant: Rich Dad's Guide to Financial Freedom. (Audio)
- It's easy to be Rich: if you have a strong private education (Audio)
- You Can Choose To Be Rich: "Think It" "Do It"
Didactic games
Kiyosaki stresses the value of games, particularly MonopolyMonopoly (game)
Marvin Gardens, the leading yellow property on the board shown, is actually a misspelling of the original location name, Marven Gardens. The misspelling was said to be introduced by Charles Todd and passed on when his home-made Monopoly board was copied by Charles Darrow and thence to Parker...
, as tools for learning basic financial strategies such as "trade four green houses for one red hotel." Kiyosaki has created several games to reinforce the information in his books.
Cashflow 101
- "Cashflow 101Cashflow 101Cashflow 101 is an educational tool in board game format designed by Robert Kiyosaki , which aims to teach the players concepts of investing by having their money work for them in a risk free setting while simultaneously increasing their financial literacy and stressing the imperative nature of...
" is a board gameBoard gameA board game is a game which involves counters or pieces being moved on a pre-marked surface or "board", according to a set of rules. Games may be based on pure strategy, chance or a mixture of the two, and usually have a goal which a player aims to achieve...
designed by Kiyosaki, which aims to teach the players concepts of investing and making moneyMoneyMoney is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
, it costs $195.
- There are two stages to the game. In the first, "the rat raceRat RaceA rat race is a term used for an endless, self-defeating or pointless pursuit. It conjures up the image of the futile efforts of a lab rat trying to escape while running around a maze or in a wheel...
", the player aims to raise his or her character's passive incomePassive incomePassive income is an income received on a regular basis, with little effort required to maintain it.The American Internal Revenue Service categorizes income into three broad types, active income, passive income, and portfolio income...
level to where it exceeds the character's expenseExpenseIn common usage, an expense or expenditure is an outflow of money to another person or group to pay for an item or service, or for a category of costs. For a tenant, rent is an expense. For students or parents, tuition is an expense. Buying food, clothing, furniture or an automobile is often...
s through a variety of investment options. The winner is determined in the second stage, "the fast track." To win, a player must get his character to buy his "dream" or accumulate $50,000 in monthly cash flowCash flowCash flow is the movement of money into or out of a business, project, or financial product. It is usually measured during a specified, finite period of time. Measurement of cash flow can be used for calculating other parameters that give information on a company's value and situation.Cash flow...
.
- The game forces the players to do the accounts by themselves. In place of "score cards", there are financial statementsFinancial statementsA financial statement is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by...
. Therefore, players can see more clearly what is happening with their money. It generally shows how assets generate incomes and liabilities and 'doodads' affect expenses.
- Basic strategies involved in this game are: buying and selling stocks, Cashflow, Appreciation, and leverage.
Cashflow 202
- "Cashflow 202" is a more advanced game than Cashflow 101. It is designed to help players learn about more sophisticated investing strategies. Cashflow 101 was generally meant to teach investing techniques that would work best in an "up market" where property values steadily increase, whereas Cashflow 202 is supposed to teach investment strategies for a fluctuating market where property values depreciate as well as rise.
- Strategies involved in this game are: Call, Put, and Short options on stocks, 1031 Real Estate Exchanges, and immediate capital gains vs. longer-term investments.
Cashflow for Kids
- "Cashflow for Kids" is basically a children's version of Cashflow 101, good for ages 5 through 9. There is also a Cashflow for Kids e-game available for free.
Cashflow The E-Game
- "Cashflow The E-Game" is a computer software version of the Cashflow 101 board gameBoard gameA board game is a game which involves counters or pieces being moved on a pre-marked surface or "board", according to a set of rules. Games may be based on pure strategy, chance or a mixture of the two, and usually have a goal which a player aims to achieve...
. It is not necessary to have the board game in order to play the computer game.
Cashflow 202 The E-Game
- "Cashflow 202 The E-Game" is a software expansion of the computer game "Cashflow The E-Game." Its counterpart is the "Cashflow 202" board gameBoard gameA board game is a game which involves counters or pieces being moved on a pre-marked surface or "board", according to a set of rules. Games may be based on pure strategy, chance or a mixture of the two, and usually have a goal which a player aims to achieve...
described earlier in this article.
Criticism
In 2009, the Canadian Broadcasting CorporationCanadian Broadcasting Corporation
The Canadian Broadcasting Corporation, commonly known as CBC and officially as CBC/Radio-Canada, is a Canadian crown corporation that serves as the national public radio and television broadcaster...
investigated the Rich Dad seminars being conducted on their consumer advocacy program, Marketplace
Marketplace (TV series)
Marketplace is a Canadian television series, broadcast on CBC Television. Launched in 1972, the series is a consumer advocacy newsmagazine, which shows investigative reports on issues such as product testing, health and safety, fraudulent business practices and other news issues of interest to...
. They found that one-day free seminars were conducted at which three-day courses were offered for $500. At the three-day classes, participants were offered longer courses priced between $12,000 and $45,000. A hidden camera was employed at a $500 seminar in Kitchener, Ontario
Kitchener, Ontario
The City of Kitchener is a city in Southern Ontario, Canada. It was the Town of Berlin from 1854 until 1912 and the City of Berlin from 1912 until 1916. The city had a population of 204,668 in the Canada 2006 Census...
, showing the trainer, Marc Mousseau, advising participants to request that their credit-card be raised and giving out scripts with instructions for how to ask for limits as high as $100,000.
The show interviewed Bob Aaron, a lawyer whose practice is 25% real estate law, who said that some of Mousseau's advice was unusual and unlikely to work, such as advising that a developer might give two condos free when selling ten, getting an option
Option (finance)
In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the...
to buy the house at a later date and buying a house in pre-foreclosure. The program also found a claim by the trainer to be untrue; he claimed to have been part of a deal that made $32 million on a mobile home park in Saskatchewan, but the park did not exist.
When questioned about the findings of the program, Kiyosaki said he was also unhappy about the way the company running the seminars, Tigrent Learning (formerly Whitney International), was conducting them and that these were not the first complaints he had heard and promised to look into the problems.