When I read RK’s book for the first time, I was not sure about the math. To me I carried an anti Real Estate view (still do) so principally I could not agree with him at all. However, I agreed with a lot of his ideas – buy assets, do not borrow, use cash flow quadrants, etc. I agreed with him totally on his idea of assets – what gives you money. I also had the luck of staying with my parents – for a long time. After that I stayed on rent for a very long time – upwards of 18 years – and thus did not have to borrow to buy a house. Yes my money went into equity and not into RE for consumption.
What I do not like about RK is that he recently declared bankruptcy for his company. I am not sure this was the first time, but I would hate declaring bankruptcy because I do not have money to pay off a liability. After all when I incur the liability I should know what I am doing. I should not be a wealth management expert – fund manager, coach, or whatever…and find that I don’t know how to manage my money. Bankruptcy is the ultimate cheating – especially when you are a celebrity. I know I can launch a ‘Subra Credit card’ – and steal money. Is that the purpose for creating a brand name called ‘subramoney’ – the answer has to be no.
Basically, RK’s company didn’t pay the proper royalties on its seminars, and when they lost in court, they didn’t have enough money to pay at all. It wasn’t a personal bankruptcy, rather, a corporate bankruptcy. However, a corporation with money should be able to pay up for a minor royalty dispute (only $23 million compared to $400+ million in revenues). However you may consider it, I find it appalling as a personal finance writer. This guy made a living on selling “his story” and encouraging others to fork out tons of money to hear it. In the end, the story crumbles, and it just makes him a hypocrite. Complete bull shit.
Cheating your readers: when you do investment counselling you can charge a fee. Sure. You can sell books. Sure. However RK charging US $ 45,000 annual fee. I am sure there are financial planners who charge that kinda fees in India too, but I will not mention them here!!
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