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Business Authors - Which ones are the real deal?
Hi. I wrote you just a day or two ago.
I am reading more of the information on your website, particularly relating to Robert Kiyosaki(http://www.johntreed.com/Kiyosaki.html). At first, I had mixed analysis on whether or not you had actually exposed Robert Kiyosaki.
Then, I noticed some simple errors on your part, generally in the areas where you are critiquing items within Robert Kiyosaki's books. I found your critique to be lame at best.
As I was reading the last few words you wrote, before I started to write this email, it hit me. There is a great possibility that you are a fake, just from a few of the very simple mistakes I have seen in your writing thus far.
FIRST, some background - I have been in business for only 5 years. I am at about the Quarter to Half million of revenue a year mark and am increasing yearly. This would, obviously, not make me "an expert". So, I ASSUMED you would know more than me, if you are actually been in business as long as you have claimed on your website.
SO, HERE ARE SOME EXAMPLES OF YOUR UNINFORMED VIEWS:
- In your Factual Errors Section, I found this completely uninformed comment, "Sole proprietors are only taxed once. Corporation owners are taxed twice on corporate profits: once at the corporate level and again on dividends. Even if the corporate tax rate were just 1% you would be worse off because it is added to your individual rate, not instead of it as Kiyosaki implies."
* I own a C-Corp. First, you are right we are taxed twice, BUT the problem with your argument is it is the 1% you are refering to is a "simplified" understanding of C-Corp taxes. You obviously do not own a C-Corp, as what you said is basically wrong. The advantage to having a C-Corp is that YOU CAN TAKE OUT THE MONEY BEFORE BEING TAXED FOR "BUSINESS EXPENSES" or even to pay the Board Member (who have a personal tax that is low). Now, if you knew anything about tax law with regards to C-Corps, you would not have written what you did on your website(or you are delibrately doing this, playing on people's ignorance). Even I, who only has 5 years experience, seem to know more than you do. Also, you don't seem to understand that a C-Corp offers protection, JUST LIKE KIYOSAKI SAYS. It offers legal protection. When you Do Business Under an Assumed Name or as a S-Corp, you are legally liable for all who SUE YOU. That is why it is relevant to do C-Corps. ANYONE WITH A LOT OF MONEY WILL KNOW THIS. This makes me think you do not have that much money. For, even I, have been threatened several times with lawsuits, sent "Cease and Desist" letters from big companies, etc.
- Wow, I have read many things on your website that are plain wrong. I will have to make a counter page to yours. NOW, if you would have just presented facts and actually had the knowledge you are claiming, I would not do this. BUT, I consider it a slap in the face when you write such misconceptions on your website. Just to be brief, I will try to outline only a handful of the rediculous errors on your page:
Lets start with your first chart on Kiyosaki quotes:
a) Kiyosaki said to avoid 401k because of risk - if you know his books, he defines risk as something that will not make you money, yet make you believe it will make you money. I used to have 401k for about 3 years of my life, when I was a mechanical engineer. I made almost exactly $0 dollars, due to the upturn(gained about $1000) and then the downturn(lost almost the exact same as the gain) of the market during that time period. So, my experience says he is "right". The reason is because most just throw their money into a 401k and assume it will go up without any intervention on their part. Thats why it is "Risky". It plays into people's laziness.
b) Kiyosaki says his net worth is 50 to 100 million. You say "I don't believe that". Well, who cares what you do and do not believe. We are interested in the facts, not what you think is true.
c) investments of the wealthy managed well - this is a simplified statement refering to those who are wealthy and understand how to make wealth. Not some kid that inherited a fortune or some rich newbee getting into investments.
d) says able to retire at 47 - You did not prove his point wrong. You just said, if you were able, why didn't you? He explained it in this "Retire Young Retire Rich" Book. He mentioned taking a year off and how very difficult it was to just do nothing all the time. Assuming you are right about everything, it would still mean he has made over million selling books. He still has not retired even with this knowledge, showing your question's intention is futile.
e) 3 types income - Earned, Portfolio, Passive - This is very simple. He is refering to using a C-Corp to get beyond the tax issue. As I mentioned above, you are showing your ignorance of C-Corp tax law here again. Simply put, he is refering to using the money for "Business Expenses", which can be things such as a Porshe for business use, having a business meeting in Hawaii, etc. These are legal uses of money and I have done similar things on a smaller scale and find your ignorance offensive. I have a CPA I pay to help me with tax law and he says the same thing I am saying here and that Robert Kiyosaki said. With Earned income, you are an employee or S-Corp and you are screwed, as all of your money is taxed. Portfolio and Passive are funneled through the C-Corp. I HAVE PASSIVE INCOME. I get royalties for products I have made that are selling in Best Buy, Sams, Costcos, etc. About $40,000 last year in just royalties. ALL LOW-TAXED, as I used most for "Business Expenses" and only a little for my Earned income. This makes it about 1/4 taxed as about only 1/4 of it was used as Earned Income.
f) Could go on and on. Thats why I am going to make a website that counters yours.. I have made many websites in the past and am sure I could get mine to the top of google.com right next to yours.. Here are a few of my websites: www.musicitem.com; www.godrules.net
I will also be investigating if the other material you presented is factually correct. If you have been showing things incorrectly regarding his military record or anything else, I will counter it.
Sincerely,
Tony W.
Related Resources
- Is Rich Dad Real?
- Commentary on Robert Kiyosaki Intro
- Commentary on Robert Kiyosaki eBook
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