- cross-posted to:
- news
- cross-posted to:
- news
https://www.livemint.com/money/personal-finance/rich-dad-poor-dad-author-robert-kiyosaki-acknowledges-he-is-1-2-billion-dollar-in-debt-if-i-go-bust-the-bank-goes-bust-11704369035314.html
if you owe the bank a hundred thousand dollars, you have a problem
if you owe the bank a billion dollars, the bank has a problem
I read RDPD twenty years ago. I got better. The 'Rich Dad Poor Dad' Mirage: Unmasking the Myth
Being in debt doesn't make you poor. Loads of millionaires/billionaires are in debt. There are reasons why a millionaire/billionaire would choose debt over just paying outright.
If the interest/capital gains of their assets is higher than loan interest rates, then paying outright would be a net loss.
Invested assets: 10% annual gains Loan interet rate: 5% APR
In the above case, keeping the assets invested and taking on the debt would still net gain the remaining 5%.