Why Robert Kiyosaki Is $1.2 Billion in Debt on Purpose

Robert Kiyosaki, author of the bestselling book “Rich Dad, Poor Dad,” says his $1.2 billion in debt is a deliberate wealth-building strategy rather than a financial burden. His philosophy runs counter to conventional advice to live below one’s means, arguing that savers lose out while debt used correctly can generate income.

Debt Structure Isn’t Personal, Ex-Wife Says

Kiyosaki’s ex wife and longtime business partner, Kim Kiyosaki, has said the $1.2 billion isn’t debt he personally owes. Instead, it reflects obligations held by a group of real estate investors across a portfolio of about 1,500 apartment units, structured in a way that limits each partner’s personal liability.

Financial Experts Say Context Matters

Wealth advisor Chris Galeski said the widely cited debt figure can be misleading, since it reflects a strategy that worked well during a specific, favorable period for real estate rather than a blueprint anyone can follow today. He noted that Kiyosaki built his portfolio over decades and benefited from years of historically low interest rates, conditions that look very different from today’s higher-rate, higher-price environment.

Defining “Good Debt” Versus “Bad Debt”

Kiyosaki distinguishes “good debt” as borrowing tied to income-generating assets, such as rental properties or dividend-paying investments, where the asset covers loan payments and produces extra cash flow. Real estate investor Brock Harris echoed this approach, saying the key test is whether someone else, such as a tenant, is paying down the debt.

Experts Caution Against Copying the Strategy Blindly

While Galeski isn’t fully aligned with a debt-free approach either, he emphasized that disciplined leverage, not reckless borrowing, is what separates a sound strategy from a risky one. He said cash flow from any investment needs to comfortably cover ownership costs, with enough of a financial cushion to withstand a downturn.