VS 
Robert Kiyosaki, author of the NY Times best-selling book Rich Dad, Poor Dad, and Suze Orman, author of the best-seller The Money Book For The Young, Fabulous, and Broke, began slinging fireballs at each other on Twitter…
Your Thoughts
Which one do you think is right?
Do they each have a valid point?
Do you like the investing philosophies of one over the other?
Share your opinion below.
{ 80 comments… read them below or add one }
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They are both right but I believe more people have gotten rich through real estate than the slow and steady approach that Suze preaches.
There’s nothing wrong with capital gains AND creating an extra source of income. Kiyosaki was very explicit saying that Real Estate is not the only way to create extra cash flow, but it’s what he preferred, and Suze teaches us to live within our means and prepare for emergencies. All this fighting does is create publicity for both of them so they can sell more books/products, which is a good thing, because this country needs people who are financially savvy.
Robert is right. Of course, I don’t hear suze refute his point, because she can’t. She tried to paint him as something he’s not….in addition to trying to make him seem as if he were selling the ‘perfect’ thing. Nothing is perfect…even on sure deals you’re gonna take a loss.
The problem is, she is advocating you don’t take ANY opportunities, just stick with what you have and you’ll be good when your 90.
What happened to Bernie Madoff again?
Suze is right. Her advice is based on facts and actually changes over time as the markets have changed. Kiyosaki is a self-markter, first and foremost, charging people hundreds of dollars for his “plan”.
I have listened to both, bought books from both and there is something to take from each of them.
First, the best piece of advice I ever got was a line from Kiyosaki, “It is easier to borrow a million than to make a million.” If the money borrowed creates a cash flow as he advocates, creates a tax savings then buying real estate is a great way to become wealthy. I bought 6 properties, all fixed rate mortgages, with downpayments and my net worth is $500,000 even in this lousy market. In just 8 years that will grow another $150,000.
Suzie Orman has given great advice against ARM mortgages and discussed the necessity of paying off a home as quickly as possible. Solid advice that I subscribe to.
Both have made mistakes or worse. Kiyosaki has likely lied about his Rich dad, Poor Dad history. He has also encouraged reckless buying of real estate which is a caution he should have included even if it is common sense.
Suzie sells insurance and in the process recommends long term care insurance. I question her motives and advice with these products. I also think her advice about finding a lender has been off the mark.
As with any source of information, an adult needs to take the best from what they hear and apply only that which is beneficial. I think the good and the bad advice from these sources has been easy to see with some common sense.
With common sense in short supply, many people will look for someone to blame when things do not go as hoped. Robert and Suzie are easy and wealthy targets.
Suze is right, at least in my world because I listened to her and I still have my invested money and paid off my house so I can’t lose!
This is easy… I’m not a big fan of either of these two, but Kiyosaki is a fake. He’s a sales guy. All his ideas are repackaged from a financial advisor, and he can’t write a decent column without serious errors. Investing for cash flow is great, but I don’t think R.K. knows a thing about it. He made his money selling books and classes, not by investing in real estate. He is a great example that even a broken closk is right twice a day. Orman isn’t brilliant (except via comparison to R.K.), but she at least doesn’t tell her clients to do stupid things. I would expect that most people who follow her advice weathered the past two years in decent shape. My 401K is doing just fine – despite 2000 and 2008 my 16 year annual avg return is around 8%. Seems like a very low-risk way to cement your retirement. The folks who lose $ in their 401K are generally poorly diversified/taking huge investment risk, or are in a very poor 401K (which is a wide-spread problem) but if that’s what you have, contribute your match and then to an IRA.
This is easy! Robert was the only person willing to say that your house is NOT an asset to you but to your banker! This lady has some history of financial advice that is worthy, but she is not going to be effective if she continues to preach the old ways.
Rich Kiyosaki, Poor Gakusei
A fool and his money are soon parted.
Suze is a smart gal. Attacking Kiyosaki for personal attention and gain. Now everyone knows Suze sells her books and other merchandise she is affiliated with on her show and has plenty of ”moral challenges” in her closet. The idea of burning down buildings around her, so that she will be the tallest building standing is absurd. Kiyosaki is the ”KING” and gives great advice that has made me money for years. Suze sells advice for chumps and is mediocre at best!!! And my opinion counts!!!
Not too many people weathered that well in the last years. I bought Iraqi dinars.,up 15%. Neither of these two would recommend that. It’s all about risk tolerance and common sense. Who wants to get rich slow for retirement-1st you may not make it and if you do your too old to really enjoy it. I never watch Suze because her personality really irritates me but what I have seen she can be very condesending. I have learned more from Robert and by the way Suzie Orman also sells books and is a marketer so scratch that accusation.
They both have something to offer, and any savvy individual would do best to follow the nuggets of wisdom they both advocate. I believe it to be distortion to suggest that Kiyosaki is a charlatan. His Rich Dad Poor Dad book, if anything, brought to light the notion that in the USA being an employee is an extreme tax disadvantage. The RDPD book did not to my reading give specifics about “how” to do what he advocates. But the principle of acquiring assets for wealth building, such as cash flow real estate or business income was invaluable.
Suze gives very common sense, financial fundamental advice that I believe is extremely valuable. She is the person for those who have not yet created their wealth vehicle. But I have to at least agree that she rarely recommends taking opportunities. Her advice seems to be for those who plan on being employees all of their lives… and there’s probably nothing wrong with that. But for those looking to become millionaires before they are too old to enjoy the money, she has little to offer.
Bottom line, they both have something to offer. And any fighting between them is just a couple RICH people arguing–which for the vast majority of us, doesn’t advance the argument of what the hell to do in this treacherous economic environment.
Comments on this post mention hundreds of dollars for Kiyosake advice, his books are $5 to $15 on Amazon. Yes, you could spend more on seminars but I didn’t. The first book I bought of his helped lead me to making $500,000 in real estate. No it wasn’t easy but without the advice, I might not have bought properties.
Robert vs. Susan is not a battle between right and wrong, black and white. Take a little from each as you see fit.
JRM- I am happy to hear your retirement plan is going well with such good returns. But many employers, even most now have stopped matching 401K’s. Many people do not even have 401K’s and for those that do, I would bet most have lost a lot of their money in these plans over the last few years. I know I have.
I think for many people, 401K’s are a gamble at best for retirement.
I have to give the edge to suzy, she educates millions of people every Saturday in her show, (no charge) and she is big time against credit card debt, and bank practices, most people dont know what is going on with banks and credit cards she brings it to light,, on the other hand me being in Real Estate knows that we will not see the market of 05 again for a long while.
I do keep one thing in mind.
I do what J.P.Getty used to say: do the opposite of what every one else is doing.And be aware of the bubble..
I have read a couple of books by both authors and always felt that Suze had a more down-to-earth approach to finances and her concepts are easier for the everyday person to implement. Yes, they are conservative, but if you aren’t a financial guru and don’t have deep pockets I think it’s the way to go.
On the other hand, right from the inception of the “Rich Dad Poor Dad” phenomenon(?), I have always felt that Robert Kiyosaki was preaching fluff… not because his concepts were not necessarily implementable, but he never actually gave step-by-step instructions on how to actually do what he was preaching. Everything was all conceptual and to me, if you can’t boil it down to actionable steps, then it’s just fluff.
Is one better than the other? It really depends on the individual obviously. Both have some good take home points and yes… they both have to make a living, and if it is at selling an idea, then as long as someone benefits (other than themselves, of course), it isn’t all for naught.
I vote for Suze. I just attended a long term care seminar last week. (not related to either of them). If you have ANY assets, the government audits 5 years back and will disqualify you for medicare/medicaid. Money that you have or HAD, comes out of your trust (if you have one which most people should). All assets must be sold first to pay for your long term care. Once you’ve depleted your assets then you can apply for Medicaid. Average cost for long term care is 78K/year. If you have 500K in assets, then you are only looking at 6 years of care should you become disabled. Life insurance policies now offer a Long Term Care and Death benefit clause. If you become disabled, you can use your Death benefit to cover your long term care instead. Still researching this, but the ignorant I know are going to rely on Obama to save them, but do you realize that IF you own a home you need to sell it first?
I don’t think Obama is going to allow one to tap into free health care if you have ANY assets. Prediction is that we are going to be in a worse case scenario in about 15 years as no one is planning for the future or how they will be cared for. Suggestion from my CPA. It is OKAY not to leave anything for your kids or anyone else!
I wish the Government would absorb Suze’s beliefs and tactics.
One episode showed how one Sister would keep giving money to the other to keep her floating. (Kind, you think) but not good. A solution to teach the drowning sister ways to become self sufficient would be tough (the American way) but throwing money in a bottomless well brings everyone down. Like the Peace Corps usually did – give them the tools to learn and not hand out money to pacify. Hello Govenment!!!
Well if you just want to get by Susan would be the one to listen to. But becoming rich is not easy or we would all be Kiyosoki would be the one to listen to.Regular folks that want to retire traditionaly listen to Susan. People that want to make a big diffrence in there lives potentialy listen to Robert.Yes you would have to take risk and may lose but that is the way it is because you could win and win big the educated you are about investing the less risky it is. Susan is a safe way But Robert is the way to true financial freedom.
A very good “boots on the ground” real estate book on real estate investing from Kiyosaki’s “Rich Dad Advisors” series is “Rich Dad’s Advisors®: The ABC’s of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss.” It’s written by Ken McElroy based on the RDPD principles. There was no smoke and mirrors and a lot of very tangible advice on how to evaluate a real estate deal for cashflow.
In terms of critique, there is little there for folks with little access to capital. No advice or information on owner financing or other creative financing vehicles. But in terms of commercial investing where the buyer has capital or access to capital, it has good information there.
SUZE: “Well Robert what about all the money you made people lose with your awful real-estate advice?”
ROBERT: “Yeah, um, but, um… 401Ks lost too. Yeah, that’s the ticket!”
Kinda like answering for murders you committed, and talking about how many people get killed each year by hurricanes.
Suze is just a big mouth Lesbian that has found a niche to rip off gullible people. She tries to use her good looks on other Lesbains to sell herself. I try to watch her show but get sick listening to her stupid approach. Hopefully her looks will fade and she will be off the public scene.
One thing that I’ve learned during the last several years, “learn all you can”. Since the world economy is changing every day, and these two moguls are knowledgeable, each in their own prospective fields, we can learn something from each one of them.
I hope that with all the negativity tearing people and businesses apart, especially now, both Suze and Robert will put their differences aside and concentrate on continuing to educate people who are “hungry”, and in some cases, perhaps desperate, for a “Plan B” in their lives.
Pat
I totally believe in what Suze preaches. I have done it both ways and wasted tens of thousands of dollars on Kiyosaki’s “Wealth Intelligence Academy” classes that he sells at his seminars. They were worthless and most of the information could easily be found online. We were also tricked into signing up for classes that we didn’t want because they were included in the ‘price’ that they tell you. Of course, you don’t know that until you have received the form to sign (after they charge your credit card) and there is no refund. If I had taken the $35,000 that Kiyosaki said I needed to invest and taken Suze’s advice instead, I might not be rich but I would be alot better off and not in all this wallowing debt! It is a mass telemarketing scam and I don’t recommend it to anyone. You can easily get all his books and things that they give you at these classes on ebay…for practically nothing! What’s that telling you? There is no ‘get rich quick’ in real estate…believe me, I have been trying for years since I took the classes.
JRM- It’s hard not to be a salesman when you are selling stuff as Robert Kiyosake is. That doesn’t mean his advice is misguided. I believe you could call Bill Gates a salesman as well… would you listen to him if he was speaking? I read RK’s book and the most important thing i took from it is the fact that Americans love to “look” rich and live beyond there means. With that i started to pay as much attention to my money going out as i did money coming in and that has made a huge difference. As for his advice on investing i feel every person should do extensive homework before flushing there money down the toilet. Buying a $15 dollar book does not cut it. It reminds me of those commercials that say “do not attempt” at the bottom of the screen when a guy jumps off a building or does some other stunt. Are people really getting that dumb. One last thing, if your going to put RK on blast for his spelling you should look up clock in the dictionary.
I think Suzy Orman has the best approach. Kiyosaki has a slick, con man approach that I don’t believe in or trust.
Honestly I have read both authors. Kiyosaki has always preached frugality, living below your means, financial education then investing. Suze Orman has a message of frugality as well, but her message is formulaic: Invest in 401ks and Roths and you will be fine because the market always goes up. Looking at some of her early writings she quotes historical market gains of 15%. That was accurate during only one period in history, 1990-2000. I am definitely a Kiyosaki fan.
I’m a fan of Rich Dad Poor Dad because of the principles it teaches. His main point is that if you want to be rich, it highly depends on your financial intelligence. It is up to you to take control as the investor.
Although I praise Suze Orman in her efforts to wake people up about their finances, I think her message is wrong. Invest in your 401k, pay off your mortgage, buy term life insurance, cut up your credit cards, etc.
401k retirement plans are losing money fast. How is that OK? She says to stick with it for the long run. It’s easy to put money in but not many know how to get the money out.
Paying off your mortgage may be your riskiest financial decision. How many stories have we heard of people losing their homes with all that equity even after having accelerated their payments for a number of years.
Term life insurance is expensive. The only time you get the greatest return on this policy is if you die on your way home from signing up for it. The aging population have little to no life insurance because the term premiums are too high. Now the risk has been transferred from the insurance company to the individual.
Credit cards are merely a tool. They are like cars. Cars can be deadly vehicles. However, most use them productively. Too bad there are no classes on how to use a credit card.
If you want to be like everyone else, follow Suze Orman. There’s nothing wrong with that. If you want to be rich, think differently. Change. There’s a reason why 20% of the population make 80% of the money.
To your prosperity!
I put a majority of my investment money into aunuities because slow and steady wins the race.
Has any one of you seen this investigation on Rich’s Dad company by CBC?
http://www.cbc.ca/marketplace/2010/road_to_rich_dad/main.html
It’s really amazing how it has gotten worse and worse over the last couple of years, to the point where it’s basically a scam.
Pot calling the kettle black!
Suzie teaches responsible investing and long term planning. Her approach is more slow and sure than quick and fast. Get rich quick seems to work for some (the first off the line) but not for all. If I remember my fables correctly, I think in the end the tortise won.
Investing for Cash flow is not easy all over America. In fact it is virtually impossible in some areas. Rental mark ups can be very narrow based on the availibility of real estate in some areas.
A smart investor would use real estate and the markets both. I have and it works but cash flow is not an option where I live. That will lead to a self imposed crash.
If you want solid financial advice listen to Dave Ramsey. His “Total Money Makeover” changed our lives. Like Dave says, ” In this microwave oven world, he is selling crock pots!” So you aren’t going to get rich quick, but hang in there! To paraphrase the skipper from Gilligan’s Island, Neither a borrower nor a lender be, do not forget stay out of debt!
Annuities? May be good for a select few, not everyone as most life insurance companies will have you believe.
The higher the upfront commission, the more likely a “financial advisor” will sell you out.
Go to Barnes or Borders…. So many books on how to get rich quick. Suzy teaches how to build a stable financial future. As far as I’m concerned this “Kiyosaki” (who the h*ll is he?), isn’t even in her League. Don’t waste your time Suzy.
If you subscribe to the idea that paying off your mortgage early is a waste of time and money or that creating a retirement account is bad then you probably subscribe to the idea that we live for the here and now and make no plan for tomorrow.
If you pay down your mortgage and run into bad times you have equity you can pull by selling the property. Savings is once again a hedge against bad times. So cutting expenses and cost is preferred to spending every dime you make. My experience is that unless you budget savings there will be none except what a company may create for you.
There are a lot of good books on finance but unless you are a follower all you need is a Finance 101, 102 and maybe 103.
Rich/Poor Dad changed my life. What you think is everything. Thinking rich vs poor is monumental. Quit spending so much and start investing in ASSETS not LIABILITIES. Find investments (businesses, real estate, paper assets) to put your hard earned money and you can eventually be free! Susie tells me to pay down my credit cards, get insurance, buy mutual funds. I think Susie is helpful but not life changing the way RK has been for me. I don’t follow her advice. RK only really tells WHY not is not specific in HOW. Keep learning and specializing.
My cashflows from my RE will contribute much more to my retirement income than my IRAs and my 401. I have more control (and is more work) over my RE too.
Those who did not leverage their rentals to the max. are just fine even in this depressed market as they have “staying power”. Now is great time to buy with low prices, low interest rates (if you can get a loan), etc. Today’s cash buyers will probably be able to refinance (if they choose to) down the road for more than they paid. Cash and staying power will always pay off down the road!!
Fro Aaron” As far as I’m concerned this “Kiyosaki” (who the h*ll is he?), isn’t even in her League. Don’t waste your time Suzy”………………………………Araon, if you do knot know or never read any of Kiyosaki’s books, etc then how can you say “he isn’t even in her league”? Both have merit to their readings, but you have to sift thru the B/S (from both) and figure what fits you best. I use both of their ideas, but surely not all they preach.
They are both wrong for pushing the same thing. Both are in the business to make money from you and me. Suze’s audience is generally women who do not know one bit about managing money. She teaches them some basics, real basics and then she becomes their queen, or king or whatever. Robert is more proactive. He is now teaching people how to make money in the stock market. However, he is not a champ at this. My suggestion is that people read several books on personal finance and investing. Do not be fooled by these two celebs. Remember, they are in this for themselves. NOT YOU !!!!!
I cannot help but notice those for robert seem to have the financial lingo and suze’s speak from faith and non facts, just an observation.
I think they both have valid points. Both are intelligent but they have their own point of view. I don’t think publicly attacking each other is the answer. So ladies and gentlemen go back to your corners and do what you do best. But I do lean towards Suze’s advice. Feisty lady with brains.
I think most of us should follow Suze advice, because every penny we have is real money and from hard work. We should carefully know how to manage our money. We should not spend more than we make and should know how to invest it wisely. Her advice is good for individual and good for the society.
Robert on the other hand is risky. Just look at the real estate market today. There are more loser than winner. The money that we lost to the 401k and other investments are all because the collapsing of the real estate market and so the banks. Owning a real estate is not free. You have to keep maintaining, paying tax, paying interest and insurance etc. Remember you can not make money without somebody pays for it.
However, you should at least own you own home instead of paying rent.
They are both pretty weak in as much as their advice is so simple and basic, that you have to be pretty niave to think they got rich taking their own advicde. they got rich selling basic simple – and to me obvious – advice to people who were buying a dream.
I got rich the old fashioned way… building a business, saving my money, and not making the mistake of confusing an asset with an investment. Speaks to both of their advice streams.
The business (and it is a business) to be in is organized religion, i.e the Catholic church – they’re one model to follow to the road to wealth. They’ve got the best deal in town – tons of tax exempt real estate. If the government would wise up to these jokesters, there’d be a means to pay off the deficit! The Church are modern day crooks. And the victims are its parishioners who donate gobs of dough so God will think of them as worthy to go to some joke of a place called heaven, that’s about as bad as some of the advice Suze and Robert two have sold to us. However, they’re not to blame any more than the church is to blame for being allowed to operate outside of the laws that apply to everyone else….it’s a game…Suze and Robert are quasi coaches…play the game that most suits you much in the same way people use religion. Who’s right in the end? Who knows. Just be careful who you regard to be a God or Goddess.
Be one in your own life…..
I think anyone reading anything about this is a moron with no life or no money.
stop reading this, get off your butt and get a job or make a job and earn some legitimate money.
I’ve not read anything from either of these gurus but I have seen where RK advises to people to purchase silver. Any thoughts on this?
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