‘Rich Dad’ or ‘Debt Dad?’... Kiyosaki Reveals $1.2 Billion in Debt, Warns ‘Don’t Follow My Path’

Recently Revealed Debt Amount on Podcast
"Leveraged 'Good Debt' as Part of Investment Strategy"

Robert Kiyosaki, 79, the author of the global bestseller "Rich Dad Poor Dad," has revealed that he carries debt totaling 1.2 billion US dollars (about 1.619 trillion won) due to real estate investments, drawing significant public attention.

Kiyosaki confessed to having 1.6 trillion won in debt. Screenshot from the YouTube channel 'Get Rich Education'.

According to foreign media outlets such as the New York Post and Vanity Fair on September 6, Kiyosaki stated on the podcast 'Get Rich Education', "I am in debt for 1.2 billion US dollars," adding, "You should not follow my approach." He emphasized, "I have been studying this field since 1974. You must thoroughly educate yourself before leveraging debt."

However, it is known that the 1.2 billion US dollars of debt he disclosed is not personal debt owed solely by Kiyosaki, but rather the total debt linked to real estate properties jointly owned with other investors. His ex-wife and business partner, Kim Kiyosaki, explained in an interview with Vanity Fair, "We own approximately 1,500 apartment units with our investors," further clarifying, "The 1.2 billion US dollars debt is also tied to this real estate portfolio." She added that the debt is secured by the actual real estate assets, and Kiyosaki's personal liability is not substantial.

Robert Kiyosaki, the author of the global bestseller "Rich Dad Poor Dad." Screenshot from the YouTube channel 'Get Rich Education.'

Kiyosaki's massive debt stems from his investment strategy. He has long argued that using "good debt" to acquire income-generating assets is different from incurring debt for consumption. Kiyosaki’s approach involves taking out additional loans by leveraging the appreciated value of owned real estate to fund new investments. This strategy allows him to secure capital for further investment in income-generating assets without selling his properties. For each investment, he also establishes a separate Limited Liability Company (LLC) to shield his other assets from risk in case any individual investment encounters trouble. Regarding his own investment tactics, Kiyosaki commented, "If things ever go completely wrong, all I have to do is talk to my lawyer," adding, "This is how the rich manage their assets."

However, experts have warned that such high-leverage investment strategies are risky for ordinary investors to replicate. John Poole, founder of the US consulting firm JPTD Partners, told the New York Post, "There is good debt and bad debt, but if you have 1.2 billion US dollars in debt, you need to know exactly what you’re doing," adding, "Leverage works beautifully when asset prices are rising, but when the uptrend stalls, it’s like a financial chainsaw coming down."

In fact, Kiyosaki’s investment business has experienced bankruptcy. Rich Global LLC, which he managed, filed for bankruptcy in 2012 after a compensation judgment of about 24 million US dollars was handed down against it.

Kiyosaki gained fame as an author with the publication of "Rich Dad Poor Dad" in 1997, which has sold over 44 million copies worldwide. More recently, he has repeatedly stressed the importance of investing in a variety of assets, including real estate, gold, silver, and bitcoin.

This content was produced with the assistance of AI translation services.