US News

2011 readers

29 users here now

News from within the empire - From a leftist perspective

founded 5 years ago

MODERATORS

muad_dibber@lemmygrad.ml

Rich Dad, Poor Dad' author Robert Kiyosaki reveals he's in $1.2 billion debt. (lemmygrad.ml)

submitted 8 months ago* (last edited 8 months ago) by SovietReporter@lemmygrad.ml to c/us_news@lemmygrad.ml

4 comments fedilink hide all child comments

https://www.livemint.com/money/personal-finance/rich-dad-poor-dad-author-robert-kiyosaki-acknowledges-he-is-1-2-billion-dollar-in-debt-if-i-go-bust-the-bank-goes-bust-11704369035314.html

you are viewing a single comment's thread
view the rest of the comments

[–] bleepingblorp@lemmygrad.ml 16 points 8 months ago

Being in debt doesn't make you poor. Loads of millionaires/billionaires are in debt. There are reasons why a millionaire/billionaire would choose debt over just paying outright.

If the interest/capital gains of their assets is higher than loan interest rates, then paying outright would be a net loss.

Invested assets: 10% annual gains Loan interet rate: 5% APR

In the above case, keeping the assets invested and taking on the debt would still net gain the remaining 5%.