Opinions on Rich Dad Poor Dad

<p>To the people familiar with Robert Kiyosaki's book, what do you guys think?</p>

<p>I think it is not only logical, but probably the best path to wealth. Why are kids going to college? To get a good job? Then what? Buy a big house, nice cars, and pay out big taxes? Kids get trapped in a cycle of spending that crush their chances for becoming upper class. This is especially true for the first generation of children in the family to go to elite colleges. They become doctors and lawyers in hopes of all their problems going away. It is just sad to watch.</p>

<p>Ultimately, people want to become part of the rich. Unfortunately, this is based on net worth rather than income and professionals are weapons of wealth destruction.</p>

<p>Thoughts on his work? I am currently a freshmen at Columbia and have asked myself why my parents wanted the future they did for me. It simply did not make sense when I learned about taxes. Oh the Federal taxes (35%), state taxes(5% in mine), social security and medicare (15%), real estate tax (10%), and sales tax (variable). 55-60% of every dollar you earn goes to Uncle Sam.</p>

<p>
[quote]
I am currently a freshmen at Columbia and have asked myself why my parents wanted the future they did for me. It simply did not make sense when I learned about taxes. Oh the Federal taxes (35%), state taxes(5% in mine), social security and medicare (15%), real estate tax (10%), and sales tax (variable). 55-60% of every dollar you earn goes to Uncle Sam.

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Hopefully while you are at Columbia you'll actually figure out how taxes work with a graduated tax rate for all incomes (and who Uncle Sam is vs. your state).</p>

<p>Well, it usually takes money to make money and not many baristas are turning their $12/hr into fortunes. Not to mention you will age and there is no substitute for doing some things when you are younger than waiting for some unknown future where your carefully saved money could go POOF overnight or you get sick and never get to that enjoyment time. Balance is important too.</p>

<p>@Erin's Dad
I fully understand taxes. The tax bracket system benefits those who earn less. As we exceed $250,000 the total federal tax percentage approaches the rate of the highest bracket. A lot of my peers fully expect to earn in the range of $500,000-$750,000. At this level, their overall federal tax rate is around 30-31%. </p>

<p>State government and federal government are both government; They legally rob your paycheck. The difference is marginal.</p>

<p>What I am concerned about this that my peers have no idea about these taxes. They don't seem to recognize the truly wealthy only pays the capital gains tax. They seem to be destined for a life of high income and low net worth that is unfair to their offsprings. This is issue that I would like to focus on.</p>

<p>Unfair? Is something owed the offspring? How can your peers not know about taxes? I can see them not knowing about capital gains, but they must have noticed deductions on pay stubs.</p>

<p>Peers haven't started working yet. They have never seen FICA on their paychecks yet. They believe that their extent of taxation ends at federal and state tax. They don't consider FICA, real estate, and sales into the equation. They don't know that the wealthy (not high income) actually pays close to what a poor person does percentage wise.</p>

<p>Yes. Parents owe their children a better life than they had. This is not achieved in upper middle class families (doctors, lawyers, professionals). It is unfair to the children because they are raised in a lifestyle of heavy consumption and taught to go to school to become a professional. They are encouraged to be stuck in an upper middle class trap by never accumulating wealth. If properly raised, one can have his lineage be financially independent.</p>

<p>Life has dealt you and your Columbia peers, expecting to earn $500k+ per year, a tough blow. My heart goes out to you and your friends for the bitter hardship you face. Indeed, why should you work hard for big dollars if the government has the temerity to impose taxes on you that benefit the common good rather than just the elite good. Why, it is tantamount to slave labor working for the government to pay taxes, even if they are at near historic lows. You might have to drive around, or over, some of the occupy Wall Street crowd when you go work there, and then have the burden of cleaning your BMW, or hiring someone to do so. You are the victim of an injustice and your righteous indignation is inspiring. I truly feel uplifted by the spirit of civic virtue exemplified by your courageous stance in giving voice to travails of students at the elite universities. We shall overcome . . . .</p>

<p>All of "historic low" taxes can be made lower by simply having children learn about financial literacy and the power of corporations. Now 60% taxation becomes 20% -25% taxation. Actual figure is probably less because the financially savvy wealthy deduct lots of personal items as "business expense."</p>

<p>Also, please read "Think and Grow Rich" by the respected Napoleon Hill. The people who truly believe their success and destined for it. "Success requires no explanation, failure allows no alibis." Please do not judge someone else's ambition.</p>

<p>Do you have a path to wealth that doesn't involve earning a lot of money?</p>

<p>I don't know of ANYONE that makes greater than $250,000 who pays 30% in Federal Income Tax. It simply does not happen. There is some poor disadvantage kid over at Harvard that will become a tax attorney and he will make most of that 30% go away. I have a hard time believing if you come from a wealthy family you don't get that.</p>

<p>Thoughts on Rich Dad? He wrote a book. He got some attention. He made big bucks. </p>

<p>Taxes don't "rob" the rich any more than they rob the poor. The amount paid may differ, but critical reasoning suggest the rich are left with more discretionary income than the poor. Tax 300k at 50% and 150k remians; tax 40k at 40% and 24k remains. Pick a number and/or a percentage. </p>

<p>You cannot academically defend the position that a higher income group offers more to society or works harder. The secretary or paralegal, after all, is part of the same chain that allows the attorney to serve the same clients. The tailor fixes up his or her snazzy suits. Their children are taught by lesser-paid teachers. You can, however, offer opinion that what matters is the actual dollar value contributed- and get lots of emotional response.</p>

<p>"Rich" can be a state of mind. You really should be running all this thinking through the context of the education you are receiving right now. Perhaps some time with a CPA would show how tax-paying potential is modified, in practice. There would be no "capital gains" tax assessed at all for those who did not have the discretionary income to invest. There is no mortgage interest decuction for people who rent. And, we all pay the same cost/unit for electricity, a can of beans or gasoline.</p>

<p>It can be quite tough "out there." To suggest it is rougher for the rich is to have tunnel vision.</p>

<p>
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A lot of my peers fully expect to earn in the range of $500,000-$750,000.

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</p>

<p>Ah, the sweet naivete of youth.</p>

<p>OP,
I am not familiar with the book as with any other book or opinions of other people. I simply do not care what others think and rely on my own life experience in my decision making. It has worked so far for both of us and our kids. Nobody can tell what will happen tomorrow, but today all of us are happy. Warning - this is my opinion, not based on any reading as I do not enjoy reading any more. "They become doctors and lawyers in hopes of all their problems going away. It is just sad to watch." - this is not sad to me at all. Doctors, Lawyers, engineers, computer programmers, cleanning ladies, teachers or whoever, as long as person is working and happy with what he/she is doing and earning enough to support his/her family, I do not see anything wrong with that, very happy for all of them. If person is doing nothing but protesting against whatever he himself has no idea what, I do not support this type of assisted living, which requires somebody's else income to support this type of parasite. "Rich" or not, as long as you are satisfied with your life or moving towards being satisfied in some kind of reasonable manner, it is OK. If somebody is living in a woods being self sufficient, I do not see anything wrong with that. But when person like this comes out of the woods and requesting medical assistance that he has never paid a dime for, I do not support this type of life.</p>

<p>I have not read this book. I am sure we all know people who make a lot of money but are broke. The art of getting rich has always been to save more than you spend. Money is a funny problem. It is a problem when you have too much and when you have too little. Remember money can not buy you love or happiness. It can only give you a sense of security at best. </p>

<p>Don't spend it and one day you too can be rich. That way you can send it along to the likes of Paris Hilton.</p>

<p>Kiyosaki's method may have worked when there were sub-prime mortgages before the real estate bubble popped. Both of my kids bought and read his book when they were undergrads - apparently all the kids at school were reading it, also.</p>

<p>Real estate is a very time consuming way of making money unless you can afford other people to do all the work - realtors, lawyers, property managers. Wall street is a much easier way to make easy money, imo.</p>

<p>If his method was so successful, as with all people with get rich quick schemes, why did he need to write a book?</p>

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<p>Real estate? Of course they don't think about real estate taxes. How many college kids have ever owned any real estate?</p>

<p>Hmm, reminds me of the line from Lucy Van Pelt in the Charlie Brown Christmas special--complaining that she never got what she wanted for Christmas, "What I really want is real estate."</p>

<p>It's time OP left the confines of his little world. I recommend he spend some time in the hood. Or in Appalachia, in Detroit, in the hinterlands of New Mexico. Maybe Uganda or Chad or rural Myanmar. </p>

<p>Then come back and talk about options, opportunities and expectations. My thought is that this will be a very different discussion.</p>

<p>Wow. Some of you parents are really harsh. I think the OP was actually criticizing his/her peers who aspire to make big incomes only to turn around and spend it all.</p>

<p>The premise of the Rich Dad/Poor Dad is that income is taxed, but wealth is not (except upon death), therefore the way to a good financial life is to focus on net worth, rather than gross income. This a pretty solid philosophy and this kid is excited about it. Why don't we give him a little bit of a break.</p>

<p>The same premise is also well articulated in two other books I would recommend, The Millionaire Next Door:
Amazon.com:</a> The Millionaire Next Door: The Surprising Secrets of America's Wealthy (Millionaire Set) eBook: Thomas J. Stanley Ph.D., William D. Danko Ph.D.: Kindle Store
and Your Money or Your Life:
Amazon.com:</a> Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence: Revised and Updated for the 21st Century eBook: Joe Dominguez, Vicki Robin: Kindle Store</p>

<p>I would simply add for the OP that once you think about developing financial wealth, you will also start to think about other issues this way: "Am I building social capital by building up my family relationships and friendships in a positive way, and am I adding to the cultural capital of my community?" There are many kinds of wealth, and they are not mutually exclusive.</p>

<p>^^ I think what we're objecting to is OP's sense of entitlement.</p>