Chuck Jaffe takes on Robert Kiyosaki

[jazz4cash]

I've got a lot of books from financial types that eventually crashed and burned in several types of financial vehicles. Some praised real estate, others bonds, others options, others oil holdings, others retail conglomerates. Usually I got at least one good idea from each author, although the concepts were dated or unusually effective in certain time windows.

All it takes is a tax change or interest rates or employment number or some other variable to make a great idea a horrible one. I read several others here give a pearl they learned by a person generally scorned now.

Partly I think this is because when we a new searching for financial nuggets of wisdom,
we attribute common investment wisdom we first are exposed to by that author and may not have enough sophistication to see what could burn us in other parts of the book.

I know this is an old thread, like 10 yrs old, but am curious who the new financial person of fame who is falling or fallen may be?

I feel lucky to have some ability to objectively consume information, sort through it and analyze it in a fashion that works for me. I consume all kinds of info on TV and radio and attend free seminars, but rarely ever buy any books or "programs". Many of the people that have helped me greatly certainly have fallen out of favor, but the nuggets I learned from them have served me well. No guru could match the insight gained from this forum.

I nominate Suzy Orman for the flameout award with honorable mention to Jim Cramer (because I find him entertaining which will probably keep him on the air for awhile).

 

[Onward]

I think Suzy Orman has made the most from offering the least. Plus, I find her vaguely menacing and unpleasant ... girlfriend!

Dave Ramsey is the only one who offers a detailed, step-by-step plan to go from financial basket-case to financially independent. (Just don't trust his SWR's.)

Kiyosaki is sort of the anti-Ramsey, in that nothing in the Rich Dad books is detailed or concrete. Yet every hundred pages or so, if you can wade through all the fluff, he drops a glowing gem of non-obvious financial wisdom that makes the whole book worthwhile (esp. if you're new at this stuff).

Clark Howard offers good tips in a geeky sort of way, and makes you want to ask his forgiveness for beating him up in school.

Have I missed anybody?

 

[brucethebroker]

I think Suzy Orman has made the most from offering the least. Plus, I find her vaguely menacing and unpleasant ... girlfriend!

Dave Ramsey is the only one who offers a detailed, step-by-step plan to go from financial basket-case to financially independent. (Just don't trust his SWR's.)

Kiyosaki is sort of the anti-Ramsey, in that nothing in the Rich Dad books is detailed or concrete. Yet every hundred pages or so, if you can wade through all the fluff, he drops a glowing gem of non-obvious financial wisdom that makes the whole book worthwhile (esp. if you're new at this stuff).

Clark Howard offers good tips in a geeky sort of way, and makes you want to ask his forgiveness for beating him up in school.

Have I missed anybody?

Stanley and Danko, the Millionaire Next Door.
Although it would help if there was a summary at the end of the book saying "Millionaires use these principles, so do this." Lots of info to wade through, but very, very interesting.

 

[Onward]

Stanley and Danko, the Millionaire Next Door

So many forum members rave about this book that I sometimes wonder if I read the wrong one? I got very little out of it other than the notion that rich people don't flaunt their riches. That's an important idea, but IMO it could have been said sufficiently in a page or two.

Same with another perennial favorite around here, Zelinski's How to Retire Happy, Wild, and Free. I got almost nothing out of it.

So which books opened the heavens and really showed me the path to FIRE?

Cashing in on the American Dream inspired me.

Your Money or Your Life gave me the proper brain-adjustment.

A Random Walk Down Wall St. showed me how not to invest.

Bogleheads' Guide to Investing showed me how to invest.

 

[Winemaker]

I read a bunch of RK's books; I just found them to be a motivator to get into rental real estate. It has w@rked out very well for my family.

The best guy I ever listened to was Bruce Williams (IIRC), he was on the radio station WOWO out of Indiana. I listened to him on my 90 minute commute to the mine on midnight shift.

DW and I retired at 56, members of the double comma club.

 

[Scrapr]

I read a bunch of RK's books; I just found them to be a motivator to get into rental real estate. It has w@rked out very well for my family.

The best guy I ever listened to was Bruce Williams (IIRC), he was on the radio station WOWO out of Indiana. I listened to him on my 90 minute commute to the mine on midnight shift.

DW and I retired at 56, members of the double comma club.

I remember Bruce Williams. I really enjoyed him. Listened for a few years as i was driving truck on the late shift. gave me enough confidence to start my business shortly after

 

[RobbieB]

I've never read any financial or "self help" books. I spent the dough on beer.

 

[garyt]

So many forum members rave about this book that I sometimes wonder if I read the wrong one? I got very little out of it other than the notion that rich people don't flaunt their riches. That's an important idea, but IMO it could have been said sufficiently in a page or two.

Same with another perennial favorite around here, Zelinski's How to Retire Happy, Wild, and Free. I got almost nothing out of it.

So which books opened the heavens and really showed me the path to FIRE?

Cashing in on the American Dream inspired me.

Your Money or Your Life gave me the proper brain-adjustment.

A Random Walk Down Wall St. showed me how not to invest.

Bogleheads' Guide to Investing showed me how to invest.

I never even read "The Millionaire Next Door" but it shaped my thinking as a younger guy to save like a madman and LBYM. I had read a review of the book and got enough out of it to know that I could save some serious money over time. For that, I'll be grateful to the author.

 

[eleighj416]

The following quote is attributed to PT Barnum; "There's a sucker born every minute". IMHO, both Kiyosaki and Robbins have figured out how to exploit it.

 

[exnavynuke]

The following quote is attributed to PT Barnum; "There's a sucker born every minute". IMHO, both Kiyosaki and Robbins have figured out how to exploit it.

Just an FYI, your signature currently says you retired debt free 89 years in the future in 2106..

 

[MuirWannabe]

I remember Bruce Williams. I really enjoyed him. Listened for a few years as i was driving truck on the late shift. gave me enough confidence to start my business shortly after

+1
I remember Bruce Williams as well. Hadn't heard him in years and had forgotten until the mention in this thread. I still remember his voice. Don't remember much detail, except he seemed to possess good common sense and offered decent advice to callers. Just looked it up and he quit broadcasting in 2010 but is apparently still alive at age 85.

 

[Nightcap]

I read a bunch of RK's books; I just found them to be a motivator to get into rental real estate. It has w@rked out very well for my family.

The best guy I ever listened to was Bruce Williams (IIRC), he was on the radio station WOWO out of Indiana. I listened to him on my 90 minute commute to the mine on midnight shift.

DW and I retired at 56, members of the double comma club.

Bruce Williams was good. So was Bernie Meltzer of happy memory.

My particular favorite has always been Andrew Tobias. I earnestly disliked The Millionaire Next Door, I trust Tony Robbins only as far as I can fire-walk him, and Dave Ramsey inserts too much religion into his advice for my taste. (I also don't trust the franchise operation he's set up.)

 

[ncbill]

You'll get a better version of the same message from Carnegie or Hill than from newbies like Tony Robbins, RK, etc.

 

[Onward]

Andrew Tobias

He's also one of my favorites.

 

[YVRRocketSurgery]

I've never read any financial or "self help" books. I spent the dough on beer.

I used to buy the odd book but I've kind of rediscovered my library card. I've taken out a few books but the real magic is that our library system has a great collection of online newspapers and e-books too.

 

[MooreBonds]

The best guy I ever listened to was Bruce Williams (IIRC), he was on the radio station WOWO out of Indiana. I listened to him on my 90 minute commute to the mine on midnight shift.
.

I fondly remember listening to Bruce Williams on Talknet, driving home from the cafeteria that my grandparents frequented every weeknight, with my grandfather occasionally driving home a point that Bruce made. And I also remember his distinctive voice.

 

[Helena]

I don't understand why everebody dislikes RK on this forum.

.

I'm not familiar with everything he advocates.

But his take that one's home is a debt not an asset is correct [unless somehow your home is making you money instead of costing you money.]

This is why it is smart to retire in the least expensive home possible for your needs in a less expensive part of the country.

.

 

[Luck_Club]

I read a bunch of RK's books; I just found them to be a motivator to get into rental real estate. It has w@rked out very well for my family.

+1
I remember the exact point in time when I read his rich dad poor dad message. It's a kind of long story so buckle up.

My wife and I along with our 3 year old son had just sold our first home and were relocating to a new area. I had been encouraged by my boss to move closer to the office, and upgrade my home because I would always make more money. Our house sold quickly, and we hadn't found a new place in the new town, and decided to rent.

Then the stinky hit the fan. We lost a major client, and my income was reduced by nearly 40%. So much for always making more money. We found ourselves with a nice nest egg, but couldn't afford to buy in the new area due to the drop in income and rapidly escalating prices. We were burning about $800 a month in savings to stay afloat, and the boss was trying to take me down another $500, so we ventured into investment real estate and bought our first "income" property at a foreclosure auction; sight unseen with the former owners still squatting.

The house was a mess and required 60 yards of construction debris to clean it out and get it repaired for rental. after about 12 weeks of repair work, we rented it to a divorce, who paid six months in advance. On the 7th month I was knocking on the door, because no check arrived. We were clearing a little cash flow maybe $300 a month, and after the refi we had all our money back out and in our bank account.

On month 12 we sold that house and bought another using a 1031 exchange, and pulled out another $60K in cash, and improved the flow to $500 a month.
In the 3rd or 4th year the economy was picking back up, and I left my former employer who got me into the mess, really ratcheted up my earnings and got us back into our own home.

Out on my own at this point, I continued to buy real estate and had a growing positive cash flow every month. Enough so that when 10 years later another financial storm took 88% of my income, it was scary, but I sailed through it just fine.

Was it RK's books that made this happen. Not entirely, but they certainly didn't hurt.

The lessons from RK and others had taken root, and I fully realized you can't count on anyone to have your best interest in mind, and you really need to make your own destiny.

 

[calmloki]

Tom Vu was my inspiration. The way he just sailed through life buying distressed properties and using secret copyrighted techniques to fund his Rolls Royce, yacht, and bikini clad babe bevy just made me feel like such a dim loser I had to just try harder.

Wondered what he was doing these days and Wiki claims he's doing OK. drat.. So much for him as a disgraced financial self promoter.