Rich Dad, Poor Dad author acknowledges $1.2 billion in debt: ‘If I go bust, the bank goes bust'

 

Renowned author of "Rich Dad, Poor Dad," Robert Kiyosaki, recently shared his distinctive perspective on debt and investment, emphasizing the distinction between assets and liabilities. Taking to Instagram, the bestselling author revealed that he uses debt to acquire assets.

Kiyosaki elaborated further, highlighting that his luxury vehicles, a Ferrari and a Rolls Royce, are fully paid off and consequently qualify as liabilities rather than assets. Expressing skepticism about saving cash, he pointed to the detachment of the US dollar from the gold standard during President Richard Nixon's tenure in 1971.

Instead of saving cash, Kiyosaki opts to store gold and convert his earnings into silver and gold. Despite openly acknowledging a debt of $1.2 billion, he asserts that the debt has been used to purchase assets, stating, "If I go bust, the bank goes bust. Not my problem."

Kiyosaki advocates for the concept of good debt, emphasizing its role in building wealth through loans used to acquire income-generating assets like real estate or investments. He sees debt as leverage in investments, particularly in real estate, viewing it as an efficient strategy to navigate market fluctuations.

In terms of investments, Kiyosaki favors "real assets" such as Bitcoin, silver, gold, and even Wagyu cattle. Bitcoin, considered a hedge against the depreciating value of the US dollar, holds a special place in his portfolio. Kiyosaki values gold as more stable and reliable than cash, which he dismisses as "trash" due to a lack of trust in the dollar. He sees silver as a long-term investment, given its increasing rarity and relatively lower price compared to gold.

Real estate remains a fundamental part of Kiyosaki's investment strategy, appreciated for its dual benefits of rental income and capital appreciation. His unconventional investment in Wagyu cattle reflects his belief in diversifying beyond traditional investments.

"Rich Dad, Poor Dad," released in 1997, has sold over 40 million copies. The book challenges the notion that earning big is the sole path to wealth and advocates for calculated risk-taking and entrepreneurship.