Rich Dad Poor Dad Author Robert Kiyosaki Is In $1.2 Billion Debt

The author of Rich Dad and Poor Dad and seasoned investor shared a unique philosophy on investment and debt and stated that he has a debt of around 1.2 billion dollars. During his Instagram reel on 30th November 2023, he explained a critical difference between liabilities and assets.  As per Robert Kiyosaki, generally, people use debt to buy liabilities; however, they use debt to purchase assets. To explain this approach, Kiyosaki said that his vehicles, which include the Rolls Royce and the Ferrari, which are fully paid, are liabilities instead of assets. In the reel, Kiyosaki also showed his doubt about the cash-saving process by referencing the detachment of the US dollar from gold standards in 1971 under the leadership of then-president Richard Nixon. Richard Nixon used to save gold in place of cash and used to convert his earnings into gold and silver. Using the same strategy by Kiyosaki has resulted in the accumulation of 1.2 billion dollars of debt. According to Kiyosaki, he is in this debt because “if I go bust, the bank goes bust. Not my problem.”

Kiyosaki makes use of debt very strategically to increase his wealth. He divides debt into two distinct categories: good debt and bad debt. Good debts are those used to increase wealth, such as investing in business and real estate. Robert Kiyosaki favours using debt to invest in real estate as it helps the individual make the most of the opportunities present in the market. 

Robert Kiyosaki makes use of a multifaceted investment strategy. He always opposes investing in plain money and focuses on investing in gold, silver, and Bitcoin, which, according to him, are tangible assets.  With the deteriorating value of the dollar in the market, Bitcoin is his favourite form of investment.  As per the statements made by Kiyosaki in his Instagram reel, gold is an integral part of his portfolio as it is more reliable and stable than cash which is, according to him, “just trash due to its frickin nature.” He also admitted to increasing his gold holdings in the future, even in case of a price drop. 

Silver is also an essential part of Robert Kiyosaki's investment portfolio. According to him, it is a form of long-term investment due to its lower price and increasing rarity.  However, real estate is still the cornerstone of Robert Kiyosaki's investment portfolio. Real estate provides double income through capital appreciation and rental income.  Robert Kiyosaki believes in operating a diverse portfolio; therefore, he has also invested in Wagyu Cattle. Wagyu is a black cow found in Japan. Wagyu Cattle Company offers high-quality Japanese beef black cows to its customers. The lower melting point of these castles' intramuscular fat helps provide customers with a delightful eating experience. 

The strategy used by Robert Kiyosaki in managing investments and debt is part of a broader perspective related to wealth and finance. According to Robert Kiyosaki, money is an obligation or debt only used for generating wealth and acquiring assets. 

Although the methods used by Robert Kiyosaki have been very beneficial for them, they may be less beneficial for others as they come with various risks. This is evident from his financial troubles, which included filing a bankruptcy case in 2012 over royalty issues.