Rich Dad, Poor Dad author Robert Kiyosaki acknowledges he is $1.2 billion in debt: ‘If I go bust, the bank goes bust'
Rich Dad, Poor Dad author Robert Kiyosaki has recently shared a unique take on debt, and investment, one that encompasses assets and liabilities. The best selling author took to social media platform Instagram, and said that he uses debt to pay assets.
Elaborating further, Kiyosaki said that luxury vehicles that he owns-- A Ferrari, and a Rolls Royce-- are fully paid off, and therefore qualify as liability, and not asset.
In the reel, Kiyosaki voiced doubt about the act of saving cash, pointing to the US dollar's detachment from the gold standard during President Richard Nixon's tenure in 1971.
Rather than saving cash, Kiyosaki opts to store gold and convert his earnings into silver and gold.
Kiyosaki credits this strategy for amassing a debt of $1.2 billion, an amount he openly acknowledges. He says he is in debt because “if I go bust, the bank goes bust. Not my problem."
Elaborating further on the reason behind the debt,Kiyosaki said that the money had been used to buy assets. Instead of saving cash, Kiyosaki saved gold and converted his earnings into gold and silver. This strategy, according to him, led to the accumulation of such a large debt.
Of this good debt is that which helps build wealth, such as loans used for acquiring income-generating assets like real estate, businesses or investments.
Kiyosaki advocated using debt as leverage in investments, especially in real estate, and saw it as an efficient way to tackle market fluctuations.
«I don’t own any copper. I own a lot of silver. I found a silver mine in Argentina and Yamana Gold (Canadian mining company) bought it from me. I do own tons of gold and silver,» Kiyosaki had said in an interview with Stockpulse at Vancouver Resource Investment Conference in
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