One thing I can say with certainty about Robert Kiyosaki: He is nothing if not prolific in writing books. I was at the library last week and picked up a copy of one of his latest, Rich Dad’s Conspiracy of the Rich. It is subtitled The 8 New Rules of Money, and is his first book written online. There are online reader’s comments sprinkled throughout.
This is the third or fourth book of Kiyosaki’s that I have read. I am neither a devotee nor a doubter of his theories. I like to gather a lot of information and take away that which I think is useful to me.
Kiyosaki begins by asserting that financial education is crucial to individuals, but not adequately provided for in standard school instruction. He implies that this may be by design, that those financially well off might like to keep the masses ignorant.(This theory is alluded to in another famous DVD, The Secret). Until this is remedied, the American public must educate themselves in matters financial. Part of Kiyosaki’s mission is to impart what he has learned in his years in business and finance.
He reviews the government’s role in our monetary system, and decries the removal of the American dollar from the gold standard. He discusses banking practices that are generally unknown to the public and hidden ways in which ordinary people fall behind when it comes to finances. The subprime mortgage debacle is in the center of the debate. Kiyosaki continues to be unconventional in bucking the “school/job/ save for retirement” advice that most people dispense. He often favors entrepreneurship over traditional employment as a path to wealth.
Kiyosaki talks a lot about building his wealth through real estate, although he doesn’t seem to be a fan of “flipping” houses. He also discusses ownership of gold and silver as a hedge against possible “hyperinflation.” The section of the book that really resonated with me, however, was the information on stock ownership. After several tumultuous years of watching the stock market zigzag up and back down, I liked his take on purchasing stocks for cash flow(dividends). It seemed a common sense counter to the trading mania that we see on TV, and I liked this conservative and reasonable approach. (This works as long as the company can maintain the dividend!) A large portion of this book revolves around the idea of “cash flow”, and Kiyosaki is so adament about understanding this concept that he has a game of the same name.
This book also rehashes some of the information found in other Kiyosaki books, which is a good review. But this read, following the past few years, is a little more ominous and at times even a tad frightening. Despite that prevailing tone, there are some remedies suggested.
As a balance to some of the sobering information, Kiyosaki genially relates tales of how he amassed his personal fortune and he is not afraid to reveal how he learned from some of his failures. (It never ceases to amaze me that so many wealthy, respected business people have lost everything they owned at one point in time).
Kiyosaki has his critics, and I don’t want to emulate everything that he does. However, I did find this book a relatively quick read and I always glean some nugget of wisdom from his work.
Source: Rich Dad’s Conspiracy of the Rich/The 8 New Rules of Money, By Robert Kiyosaki, 2009