Rich Dad, Poor Dad author Robert Kiyosaki, Declares Bankruptcy
Robert Kiyosaki had been known from selling books, Rich Dad, Poor Dad and as a
motivational speaker in his seminars. He
greatly benefited the Amway pyramid scheme
and Oprah Winfrey endorsement and these
had altogether helped build his empire.
A few years back, he collaborated with
American business magnate, Donald Trump
and co-wrote a book, Why We Want You to Be
Rich: Two Men, One Message.
One of Koyosaki’s former companies was sued
by Learning Annex. The said company had
promoted Kiyosaki’s Rich Dad, Poor Dad and used the company for his several speaking
engagements. Kiyosaki allegedly failed the agreed fee thus his company was ordered to
pay $24 million to Learning Annex and its founder chairman, Bill Zanker.
The company being sued by Learning Annex is Kiyosaki’s Rich Global LLC. The company had
been dormant and does not have the capacity to pay $24 million. Ed Butowsky, a famed
wealth manager and a managing partner of Chapwood Investments sees Kiyosaki’s move a
bold and clever. It seems that Kiyosaki did it to safeguard his wealth.
The business magnate is wealthy, other business ventures and personal assets are
protected. Since he declared Rich Global LLC, the company being sued as bankrupt, he does
not have to pay the $24 million and that makes Learning Annex receive whatever assets left
in the bankrupt company.
Filling bankruptcy is always associated
with stigma, says Ed Butowsky. And it
seems ironic that a man who teaches us
to be financial independent ends up in an
opposite direction. On the other hand a
bankruptcy provides a brand new start for
an individual but it comes with a
A bankruptcy file may remain on your
credit history for years and actually impedes to establish wealth in the future. And there are
certain individuals driven by their weak decisions regarding credit and the overwhelming
obligation prompt them to declare bankruptcy thinking that it is the best way out of their
Kiyosaki’s cleverness was prepared him to cover his personal wealth from the judgment by
declaring Rich Global LLC as bankrupt. It seems the last resort when one is faced with huge
financial responsibility to settle a company more than what his company is worth. What
“few million” left with Rich Global LLC is what Learning Annex will get and that “few million”
only represents a portion of Kiyosaki’s vast wealth.
As what Ed Butowsky has said, Kiyosaki decision to left a few million in the company was a
right move because if he left nothing, Learning Annex will do their extent they can muster
to get Kiyosaki’s wealth in his other ventures or even his personal wealth.