Most people, as bestselling author Robert T. Kiyosaki points out in this iconoclastic book, have a retirement plan that's predicated on the notion that their income will inevitably decline once they stop working. As the rich dad -- a character Kiyosaki evokes whenever some pithy financial advice is needed -- might say, that's a poverty-friendly plan because it assumes that having a job is equivalent to acquiring wealth. Listen to the author's own life story if you'd like further clarification. In December 1984, Kiyosaki and his wife, Kim, were living on their last few dollars; just nine years later, they were both financially free people who could retire to enjoy the bounty of their middle years, a period most of us spend working. Instead of being caught up in the rat race, they found a formula for transcending it, leaving behind the legacy of what Kiyosaki calls the "Industrial Age" workplace for a future devoted to the pursuit of their own passions and interests.
So, what's the magic formula for success? Well, the answers that Kiyosaki found don't fit nicely with the conventional wisdom most of us have automatically accepted. 401(k) plans and other market-based vehicles? Too risky. After all, the market could fall a year or two before your retirement, leaving your nest egg in serious jeopardy. Carefully putting your money into risk-free savings accounts and investments? Too conservative. Without taking some risks, you nullify your potential to receive the large rewards that would allow you to escape into an early retirement. The answers Kiyosaki finds center around the concept of leverage, which, put most simply, is "the ability to do more with less." In other words, you need to use some of the quantitative modes of leverage (money, real estate, paper assets) as well as some of the qualitative modes (your imagination, habits, education, and planning skills) to reshape your world so that you can realize your dreams. Just as people leveraged existing technologies to create the airplane, thereby outdoing birds, who had only the power of their own bodies to rely upon, so too, according to Kiyosaki, can individuals use existing resources to perform better than nature and circumstance may ordinarily allow.
Fans of the Rich Dad series and readers who want to explore ways in which they can realize their dream of retiring early will find this book to be informative and engaging guide. (Sunil Sharma)