Trump and Kiyosaki Write Useless Personal Finance Book

Ok, so the title may be a bit unfair. After all, I haven't read Why We Want You to Be Rich, the new book from Donald Trump and Robert Kiyosaki (best known for his New York Times best seller Rich Dad Poor Dad.) But there are two reasons I don't think I'll like it. First of all, Kiplinger's review of the book leaves this comment that makes me think I'll hate it:

Impressive resumes. Alas, unimpressive book. Why We Want You to Be Rich is a thinly veiled infomercial for more financial-advice products from Kiyosaki, Trump and their minions. They sell positive thinking and can-do haziness -- specific details cost extra.

Just what we all need -- a sales-related personal finance book. Sheesh!

Then, if I wasn't already turned off, Kiplinger's also makes the following comments:

Forget mutual funds and modern portfolio theory, Kiyosaki argues for most of the book. Instead try investing in real estate, especially if you borrow money from the bank to do it. Just leverage your way to a portfolio of real estate and small businesses that will generate enough income to retire to Easy Street.

Still not sure how to do that? Well, buy more books and attend more conferences featuring -- you guessed it -- Kiyosaki and Trump.

Ok, so maybe Kiplinger's just didn't like it but perhaps it really is a good book after all. This brings me to my second reason why I think I'll hate the book -- an interview with Trump and Kiyosaki. In this piece, Kiplinger's asks each of them what readers should take away from the book. Here's what they each have to say:

TRUMP: I think it's just that they are going to have a better life. Money is not everything, as the expression goes, but it certainly makes life easier. And we teach people how to make money and we teach people how to have a better life. And some of that is through money and some of that is through attitude. The book is very much about attitude and it is also about creation of wealth.

KIYOSAKI: Yes, but I think the main reason we got together was not to talk so much about money, but also the concern about the collapse of pension plans, the idea that so many Americans don't have 401(k)s or Medicare and health insurance costs are on the way up. Why we got together was that most financial experts say to live below your means. And Mr. Trump and I definitely don't live below our means; we work hard to expand our means. I think that's what makes our book different than the traditional personal-finance book, which says live below your means, save money and invest in mutual funds. It's very different.

Later on, they ask the authors for their best pieces of real estate advice (Trump) and general advice (Kiyosaki) and here's how they respond:

TRUMP: I think part of the advice I give in this book is that you have to know your subject, whether it's real estate or not. I know a lot of people go into real estate and they lose a lot of money because they don't know what they are doing. You have to know your subject. If you are in real estate, even if you know real estate, you have to know your locale or your area.

KIYOSAKI: I'm always the guy who watches the long-term trends, that's why I read. Right now, what I'm watching is a number of hedge funds that are taking companies private through private equity and all this. And that's driving the price of the stock market out of control. There's so much liquid cash chasing so few real assets. I think we have a bubble in credit and debt. I sit there and watch that and do my best to figure out where is this thing going to go and what do I invest in.

So, from the authors' own mouths, there appears to be no compelling reason why I would want to read this. Is this really the best these two can do? (BTW, Trump's advice is ok, but Kiyosaki's seems quite useless.)

I may take this book out of the library and check it out, but from what I've heard so far, I'm certainly underwhelmed and am not going to spend money on this book.

Comments

[Rabbit]

FMF,
I don't have a comment about this article but I have a general question about Insurance. I don't know whether this is the place to ask or not but here goes and if I need to bring this up somewhere else just let me know. I currently have life insurance on my kids (15 and 17 yrs old) through a company and it cost me about $80 every 3 months for both of them. It is on a $10,000 policy for each. Is this a necessary expense or should I even be carrying life Insurance on them at this point? I would appreciate any comments on this subject.

Thanks,
rgrrabbit00

[Duane Gran]

The more I learn about finance the less kind words I have for Kiyosaki. His crowning achievement was explaining the difference between an asset and liability in a way that makes the middle class care. Seriously, that is no easy task, and for that I quote and refer to him.

However, once it comes to the nuts and bolts of building a portfolio of assets I find his advice lacking and, frankly, self serving. Also I don't care for gratuitous story telling -- I can read about investing scenarios without explaining that "Tom stopped in my office to learn about real estate and multi level marketing."

[FMF]

Rabbit --

Check out this article as well as others on Money Central (there are a few there if you search for them):

http://articles.moneycentral.msn.com/Insurance/AvoidRipoffs/10kindsOfInsuranceYouProbablyDontNeed.aspx

[Lord]

People always want to know how to do it, but all they can offer is how to think about it. That is valuable but it leaves most disappointed. The easy answer is there are no easy answers and if you really want to do it, only you can. Nevertheless, I appreciate the Zen like approach to thinking about things in new ways, even though it likely goes by most of their audience without thought.

[Amateur Investor]

I am glad that you posted this, I was tempted to go out and buy the book, but don't really like Trump all that much. I liked Rich Dad, Poor Dad because it teaches you to think outside the box, even though it doesn't give you too many details on getting "rich". Another reason I was reluctant to buy this book is I am currently reading a RDPD series book on real estate authored by one of his cronies, and it is pretty much the same thing, lots of stories no hard info that I can really use. So it looks like I will be waiting to get it used or from the library. Thanks for saving me some money.

[Steve]

I love how they are promoting the book. Trump is such a smart guy, but hearing him talk about restricting Chinese imports into the US didn't reflect this.

[Dave]

Regarding Kiyosaki, my recommendation is to read Rich Dad, Poor Dad, and ignore everything he and his cronies wrote after that. Rich Dad, Poor Dad is valuable for defining the nature of true assets (something so many people don't understand). But the rest of his stuff is basically worthless self-help finance without any specifics, and a fair amount of bad advice.

[Sack]

Ditto what Dave said. Be careful even with Rich Dad, Poor Dad. Some of the advice is morally questionable, not to mention illegal. The series exists for the same purpose as many other personal finance books, to make the author rich. Take the Automatic Millionaire. Good book, provides a helpful premise to get investments started via automatic withdrawal/depostit, but do you really need Automatic Real Estate, Automatic Millionaire for Women, Automatic Millionaire for Couples, etc, etc. Same idea, new book to make more money. All you need ia a "hook" and a great marketing campaign and you are in business.

[Lord]

I agree if you have read one or two, you really don't need more of the same, but remember there are always people out there who have never heard of it and may find it useful. There is rarely anything truly new under the sun.

[Lazy Man and Money]

To what Sack said, if they were really concerned about American's and their pension plans, why not give the book away for free or put the content on the web where it can be accessed for free (or just pennies) by many. It's not like they can't afford the web hosting.

Also it seems to me that the real estate is a zero sum game if you are talking about the US only. If I make a dollar in real estate by renting a place out to someone else, it's a dollar from them I am taking. I guess I'm just saying that money I would make following their advice would have to come from somewhere - and that place is... other Americans.

Now I love capitalism, but they seem to be pitching a message that they can help ALL Americans, when in reality the ones that make money are themselves for copy of the book sold.

[David]

Look guys, we all trying to make money. Some people are out and out to rip you off in a mean spirited fashion. Some others at least have the noble pretension of attempting to help those us attuned to wanting to expand our means. Mr Kiyosaki and Trump aspire to the latter pretension at the least.

The first guy on this message board said he hadn't even read the book and had an entirely negative opinion of a book he does not know about. The other reviewer said that he had heard not very good thiings about Kiyosaki. This is basically like giving an opinion here based on hearsay from other unverified and impeachable sources of information. Then there are the people that want to be given the blow by blow of exactly how to make money. Sorry guys life does not work that way.

I suggest you guys get firsthand info and arrrive at your opinions and decisions. This process of growth and wealth is always about who you have to be and not about what you are told to do. The best analogy I can give you guys is that of the person that wants to lose weight. Of course its never easy to go through the actual process of losing weight but in the end its really about how you live your life with food(Who you have to be) and not about Jennys weight loss system or Adkins diet or Pritikin method or whatever. Thats all I can say about this.

[Sci Fi]

I find it rank hypocrisy for Kipflinger's to be quoted on this subject in the way it is. Have a good trawl through their web site and, surprise!, you will also find no hard 'how-to' info. Rather a series of links to products and seminars etc, etc. My experience of Kiyosaki is that, through his books, the message is to get out there and get educated in the things that interest you when it comes to financial growth. I don't for a minute think that I'm going to receive some get-rich-quick panacea; but I do get direction and a change of thought process. People learn and are motivated in different ways; some need technical input, others just a shove in the right direction to discover the information their own way. Through Kiyosaki and follow up education (not his or anyone else's seminars by the way) we have a $3M development on the way as well as a new business. But that's just us. I'm sure if Kipflinger had a licence to sell Trump or Kiyosaki merchandise, their reviewers and reviews would have a somewhat different lien.