Robert Kiyosaki and Donald Trump co-authored the book “Why We Want You To Be Rich”.Â I have not got the chance to read the book, but found this book review from USA TODAY, which seems to suggest that it is more inspiring and motivational than a “How to” guide to become rich.
By Kerry Hannon, Special for USA TODAY
Donald Trump and Robert Kiyosaki say they want you to become rich, but don’t expect any magic formula in Why We Want You to be Rich.
Trump, the ubiquitous mega-real estate developer and star of The Apprentice, and Kiyosaki, author of the giant best seller Rich Dad, Poor Dad, decided to write a book because they share the same concerns about some “serious financial problems” facing our world.
Â Among the pressing ones:
Â â€¢ The rich are getting richer, and everyone else is getting poorer.
Â â€¢ The value of the dollar is falling.
Â â€¢ The national debt is increasing.
Â â€¢ Oil prices are rising.
Â â€¢ Jobs are being exported.
But there is something bigger than all that: We have developed an entitlement mentality as a nation:
â€¢ “This entitlement mentality is a monster problem” â€” Trump.
â€¢ People just can’t “expect a handout from the government” â€” Kiyosaki.
â€¢ “Donald and I hope we are wrong, but we sincerely believe America is in trouble” â€” Kiyosaki.
The dynamic duo’s mission: Get readers to raise their “financial IQs.”
In the introduction, they write that their book is not a how-to. If you want more help from them, you probably need to buy an online course from Trump University, www.trumpuniversity.com, or purchase Rich Dad learning products at www.richdad.com.
The bulk of the book is carried by Kiyosaki (and his ghost writer), with Trump (and his ghost writer) chiming in at the end of each chapter. A warning at the start is worth noting: “If you believe that working hard, saving money, investing for the long term in mutual funds and diversifying is good advice then this book may not be for you.”
They denounce the “passive investor mentality” of maxing out on 401(k) contributions, paying off a mortgage quickly, paying off credit cards and having a balanced portfolio of mutual funds.
While this might sound like good advice for “financially unsophisticated people,” according to this duo, you won’t get rich without using debt as leverage, say, borrowing to buy real estate or invest in a business.
That may be true for astute borrowers like Trump and Kiyosaki, who know how to “borrow money and get richer, not people who borrow money and get poorer.”
But using debt wisely can be tricky. They do caution that you need to take the time to get financially smart “to know when to use debt and when not to.”
Diversification is not the way to get rich either, according to this book. It is a “defensive posture,” contends Kiyosaki. “Personally, I do not diversify,” writes Kiyosaki. “I would rather focus. I invested in real estate until I was successful. Today, I still invest in real estate.”
Although it’s easy to dismiss the book as a product of the egos of two super-successful men, there are points worth noting.
“Donald and I are concerned that most people do not choose to learn to manage their own money or learn to invest their own money,” writes Kiyosaki. “Instead of learn, they simply turn their money over to experts and then hope and pray their experts are truly experts.”
This is a legitimate concern.
Control is a key to getting rich, according to this book. As entrepreneurs and real estate investors, they seek control over six factors: income, expense, asset, liability, management and insurance.
In the end, Trump and Kiyosaki pass on some generic recommendations:
â€¢Â College students should study accounting and business law, so not to be fooled by people who position themselves as “experts,” but are not really investors.
â€¢Â You have to love what you do in order to be successful at it.
â€¢Â Invest in what you love.
â€¢Â If you want your wealth to grow, go to a place where people are getting rich (such as a real estate office or stockbroker’s office), join an investment club, or start a study group and meet new friends who also want to grow richer.