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.
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 consequence.
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 financial obligation.
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 financial obligation.
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.