World News: A big and shocking revelation has come to light regarding the real-estate investment of Robert Kiyosaki, author of the famous book 'Rich Dad Poor Dad'. According to a report by New York Post, Kiyosaki has a huge debt of about 1.2 billion dollars ($120 crore). However, his ex-wife and business partner Kim Kiyosaki has clarified this figure, clarifying that this entire amount is not a personal loan to Robert, but is linked to his large real-estate portfolio and property-backed loans.
79-year-old Robert Kiyosaki has often proudly stated in his speeches and podcasts that he owes more than a billion. He believes that a loan, taken in the right way, is an excellent way to purchase income generating assets. However, he also warns people not to copy such strategies without proper financial education and understanding the risks. According to a Vanity Fair report, Kiyosaki's strategy involves borrowing against the increasing equity of the property and using the proceeds as tax-free income.
Experts have come out with different opinions on this. While some experts consider it a great and simple real-estate strategy, some financial advisors have issued a strong warning about it. Commenting on this, John Poole, founder of consultancy firm JPTD Partners, said that as long as the leverage (borrowed money) goes up, everything seems fine, but if the market falls, it can prove to be as dangerous as a 'chainsaw'. For ordinary investors, this strategy can quickly lead to huge financial crisis. Kiyosaki has long advocated such financial measures to build assets and save taxes.