“Rich Dad Poor Dad” author Robert Kiyosaki has publicly claimed that he is $1.2 billion in debt, but the figure does not represent his personal liability alone.
His former wife and business partner, Kim Kiyosaki, confirmed the amount in an interview with Vanity Fair, explaining that it represents debt held collectively by a group of investors across a real estate portfolio comprising around 1,500 apartment units.
According to Vanity Fair, Kiyosaki’s personal share of the debt could range from $30 million to $60 million, based on his claim that he earns approximately $3 million annually.
“He loves to say things that shock,” Kim Kiyosaki said, noting that such statements allow him to explain his belief that certain forms of investment debt can be beneficial.
The 79-year-old financial author has long promoted the concept of “good debt,” which he defines as borrowing used to acquire income-generating assets that effectively repay the debt.
In a recent video, Kiyosaki described good debt as long-term, fixed-rate borrowing backed by an asset that produces income. He stressed that it should not be confused with credit-card debt, variable-rate loans or borrowing used to fund cars, holidays and larger homes.
Kiyosaki built his financial education business around the argument that strategically using debt, rather than avoiding it altogether, can help create wealth.
First published in 1997, “Rich Dad Poor Dad” has sold more than 44 million copies worldwide, according to Vanity Fair.
