I saw Yahoo Finance posted a new column from Robert Kiyosaki today. With an open mind, I decided to read it, thinking perhaps he has something positive to say. I wasn’t planning on commenting about the article until I read the third and fourth paragraphs. He’s trying so hard to sell his point of view that he’s willing to leave out important details that conflict with his reasoning, hoping readers will overlook the gap in logic.
Here we go! Paragraph 3:
I have been highly critical of the standard financial planning advice — “work hard, save money, get out of debt, invest for the long term, and diversify” — for a long time. Such guidance is often more a financial advisor’s (subway rider’s) sales pitch than a solid investment guide.
I understand Kiyosaki here. Everyone has a sales pitch and is looking out for their own interest, not the customers’. In some cases, one could argue it is in the advisor’s best interest to retain customers, and one way to accomplish that is to give solid advice. Moving on:
But while I think it’s courageous that Spitzer slaps millions in fines on a few Wall Street firms for their bad investment guidance, I believe the investors who accepted that unsound advice have some responsibility, too. Isn’t knowing the difference between good and bad advice part of knowing what you’re doing?
Also, I can agree with the idea that responsibility should be shared, for the most part. (Can a patient share the blame when a medical doctor misdiagnoses a problem? It depends.) Here’s the problem. In less than one hundred words, Kiyosaki linked, albeit surreptitiously, the buy-and-hold strategy in paragraph 3 with the bad advice that garnered Eliot Spitzer’s fines, mentioned in paragraph 4. That is deceptive and misleading. The bad advice according to Spitzer is advice that involves conflicts of interest, advisors selling specific securities that create the best kickbacks for the advisor, and other related charges.
Skimming the rest of the article, the only items of “evidence” Kiyosaki cites are previous articles he has written for his Yahoo Finance column recently. I had to stop reading this newest article, even after beginning with an open mind (I promise). Kiyosaki’s digestive system is upside-down, if you know what I mean.