Moron
Robert Kiyosaki has an article on Yahoo Finance that I'm not even sure I should encourage you to read. It's called Playing the Mutual Fund Lottery, and it provides some of the worst investing advice I've ever had come across my computer screen. How is it a bunch of amateur bloggers can write much more insightful and helpful columns than this supposed expert?
First, just some quick background on this guy - he is an investor, author, and motivational speaker who is best known for his series of Rich Dad, Poor Dad books. And, just because it feels good to point this out, The Wall Street Journal hated his book with Donald Trump, "Why We Want You to Be Rich "(preview of review here).
The article basically states that IRA's and 401(k)s are bad investments and not a path to retirement. That's a contrarian viewpoint, isn't it! He says that an investor has little control over his or her IRA or 401(k), and that you'd be better off playing the lottery. (Note that he doesn't just mention the lottery thing once as a joke -- he repeatedly drives home this point, that the lottery is at least a gamble worth taking). I feel like an idiot for even pointing this out, but I have complete control over my IRA. That's the best part about it - I buy exactly the stocks I want. I can buy and sell with no tax consequences. It rocks! I have slightly less control over my retirement funds at work, but the choice of which funds to invest in is still mine. What the heck is this guy smoking?
The best part is at the end, where he says, "Of course I would never advise a client to rely on the lottery for retirement..." while that's exactly what he espouses for the entire column! He says you should look at "other investments." What other investments?? Also that "financial freedom is available to those who want to learn about it." I have learned alot about 401(k)s, IRA's, stocks and mutual funds, and my net worth is advancing forward according to plan, thanks to those investments.
It's hard to believe any respectable financial website would give him a soapbox to stand on. Yahoo's readers really let him have it -- at the end of the article, you'll find a crapload of comments lambasting the guy.
5 comments:
I'm reading Rich Dad, Poor Dad, right now just so I can justify my dilike for the guy. Everything I've heard quoted from him makes him sound like an idiot, but I don't want to judge him not having personally read his book. There was article somewhere (Money maybe?) talking about what he represents. He's hedgehog - he only knows one thing, and only preaches that one thing - real estate.
cool, come back and give us a book review when you're done with his book.
I actually like Donald Trump, but that book they co-wrote got some nasty reviews.
I do real estate, so I'm glad he preaches it. But wow, his advice is so horrible for investors.
I have always thought the majority of Kiyosaki's advice was irresponsible at best. With the tone of this article it truly points out the only thing he is doing is seeking attention.
I read about 6 Rich Dad books in college and I bought the damn game as well. Such a waste of money! I blamed it on my youth! Never again!
Oh snap, there was a game??? Sometimes, there are some purchses you just want to take back (1980's Chrysler LeBaron comes to mind for me)
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