Rich Dad Poor Dad Education: A Review
In this Hub I would like to give a review of the Rich Dad education program. However, before I get into the nitty-gritty stuff let me just start off by saying that this Hub is solely my opinion. I hope that I present this in a way that will help you make an informed decision.
I have often said that opinions are like arm pits. Everyone usually have a couple of them and they typically stink. Therefore, allow my information to be used in conjunction with your own efforts to find out if the Rich Dad Education System is for you.
The Seminar Process
I first started my journey with the Rich Dad system by attending a free seminar. Actually, I have attended two of the free seminars. The first one I attended was on the topic of Real Estate Investing. It was a very informative free seminar, moved very quickly, was very interactive, and there were points made that would help a person who wasn't really educated in real estate.
As I expected this free seminar was to sell a much larger seminar, which is a three day seminar that was going to be held in the area. The three day seminar was priced just under $500 (if my memory serves me correctly. It's been awhile). I did not sign up for the seminar mainly because of two points.
The first point is that I had purchased and sold several pieces of property already. While some of the course topics looked like information I needed I did not think I would need to give up three days and $500 to obtain the information.
The second reason was because I have a pretty solid grasp on tax code having prepared taxes for over 20 years. The individual giving the seminar was throwing around complex tax codes that applied to real estate investing, but probably only applies to 5% of the real estate investing community. Most individual investors will pick up single family homes or a duplex they do not get into large commercial type properties for which the codes he was quoting applied. This turned me off so I didn't purchase.
Some time later I attended another free seminar. I believe the title of it referred to paper assets, but basically dealt with trading stocks. I found this to be very informative and did end up purchasing the three day seminar that was being offered.
My opinion of this free seminar is that I could have walked away from it with a couple of useful bits of information that would have improved my trading skills. However, what it showed me more than anything was that there was a lot more to learn about trading that I had no clue of. This was the main motivational point for me as I was seriously desiring to up my game in trading, but really didn't know which direction to go.
Let me say something else about the three day seminar being offered. They were very upfront about the fact that the purpose of the free seminar was to get you to buy the three day seminar. I thought they handled this in a very good manner.
For signing up for the three day seminar they also gave you a free copy of a stock program called EduTrader (now called MachTrader). With this free copy you also received 30 or 60 days of free usage after which it would cost you $49.00 per month. However, if you canceled within the time specified you would have no charge. I will talk about this program a little later. I also received as a free gift a copy of Robert Kiyosaki's book "Prophecy."
It seems like there was at least 30 days before the three day seminar started. I loaded EduTrader and started playing around with it. I also read the book that was given to me. After reading this book I ordered two more books, "Gold & Silver" and "The ABC's of Real Estate Investing." The first one was extraordinarily interesting the second one didn't impress me. In fact, I never finished reading it.
The Three Day Seminar
I was excited and looking forward to this three day seminar. When the day came I anxiously arrived. In all honesty I was totally engaged in the seminar and thought it was excellent! The speaker was dynamic and very knowledgeable and introduced information that was really useful to me.
Now, having said that let me back up. Although I was not a "successful" trader at the time I had traded for over ten years. I would make some money then lose some money, but pretty much kept myself in neutral territory. Remember above that I stated the reason why I invested in this three day seminar was because I wanted to up my game. In other words, I was in the game and understood a lot of the game, just not enough to be consistently profitable.
In this seminar we were encouraged to sit at different tables each day. Therefore, we go to know people in the class. In talking with the people that I sat with most had no clue as to what was being talked about. I understood what an option was, how a spread worked, the difference between short and long, what selling short meant. I knew what moving averages were, stop losses, limit orders, and a host of other things that were being talked about were. However, if you didn't understand these basic concepts then the items being talked about could easily go over your head.
So what happened was this, if you had a working knowledge of the language of the markets and a basic concept of how the markets worked then there was information given during this seminar that a person could benefit from. With this seminar costing $500.00 I believe that this type of person could have taken something away from this seminar that would have either saved them more than $500 in losses and/or made them more than $500 in profits. However, if the person was not an active trader then I don't believe that they could have walked away from this seminar with enough that would warrant the $500 they spent.
BUT! The seminar was not about training it was about selling more education. For me, I felt that it was worth my $500 investment, but it made me seriously consider what direction I was going to go. I realized there was a lot more to trading successfully then understanding basic concepts. There were ways of putting trades together where you can limit your risk and maximize your profits. The higher seminars were in the thousands of dollars and appeared to have an enormous amount of information.
Before I move on let me bring back up the EduTrader or MachTrader I mentioned early. Remember that I told you it cost $49.00 per month? Well, at this seminar you were introduced to and realized that you needed more than what the $49.00 per month program could offer you. The program that becomes most useful to the user cost $99.00 plus tax ($108. per month). The game is starting to get expensive!
I had a long talk with my wife as to whether or not this fit into our overall plan. We decided that the Advanced courses would be a benefit to helping us achieve our goals. There was another individual who was looking at doing the same thing as we were so we went into this as partners. The cost of going through four advanced courses was going to be $15,000.00 (of which we each paid half).
The courses included three levels each. First we would go through an on-demand course. This was a series of videos that could be watched at our convenience 24 hours a day. The second portion would be a Webinar. This was an online course led by a live teacher going through the course topic, and then you could attend a three day live seminar that would be held somewhere around the country.
My analysis: The on-demand videos are hard to stay focused on at least for me. The information in most of them was good. A lot of it is very basic. It lays a good ground work of understanding. I definitely recommend watching them before attending the Webinar. The Webinar's are much better than the on-demand courses. It is a live instructor and you have the ability to ask question through the Adobe Presenter program they utilize. Obviously, the live seminar is the most productive since there is a lot of interaction with these.
Is it worth the cost of the program? This is a hard question to answer. I believe that coming into the program you need to take a hard look at yourself. If you are a person that diligently goes after information and applies it, then yes it can be worth the cost. However, if you are just trying to learn something in hopes of making money the cost is probably more then you will recoup.
Rich Dad Coaching
Shortly after I enrolled in the Advanced Education Courses I received another call inviting me to go through their coaching program. This was going to be a program that would allow me to work one-on-one with a professional trader for 12 weeks then have access to a group of professional traders through a hotline for another period of time. I think it was twelve months, but I am not sure.
The Resource Line is very useful if you use it. The majority of the people I have talked to, including my own personal experience is that most do not use it all that much. So while it is beneficial, if it is not used it doesn't do you any good.
This course would also include a Stock Success Team, which is a trading lab that lasted ten weeks or so then a weekly one hour trading lab for another 12 months (my months may not be exactly right as I am going off of memory).
After severe consideration I decided to go ahead and utilize the coach process as did my partner in education. My evaluation will be based upon both mine and my partners experience because our coaching was separate from each other. We both had different coaching and the experience is not a one size fits all approach.
Out of everything that I had done up to this point the coaching was the most beneficial to me. I cannot begin to express what I learned through my coach. This is what I had been looking for the whole time. Something that would up my game and that certainly happened through the coach. However, my education partners experience was somewhat different.
He started about three weeks before me, but after my second week I was way ahead of him in the learning curve. We discussed our coaching sessions at great lengths. His coach followed the Rich Dad outline verbatim, my coach did not.
In my opinion, if I would have had the coach that my education partner had I would have been totally disappointed, but having the coach I had I am totally elated. So, my opinion of whether the coaching is worth the cost will be totally dependent upon the coach that you get and what your objective it. I did not know this going into the coaching program, but my opinion is that it is a gamble. You may come out greatly ahead, but you may not. After we concluded our sessions I asked my educational partner what he thought of the program. He said that he would give it a C- (to me that's not worth $10K!).
The second part of the coaching was the Stock Success Team. This is a small group of people in a class with a teacher. I think there were seven of us in this team. It was 10 or 12 weeks long and about 2.5 hours each session. While most of the information was basic, I felt that this was a very good program. I learned a lot in this and the interaction with the teacher was awesome. After this program you are assigned to a trading lab which is once a week for an hour. This was very beneficial also.
As for me, I am very satisfied with the Coaching Program. However, I also have seen where I could be very disappointed in it. I recommend asking a lot of questions and even being introduced to your potential coach before signing up.
One side tip. Although the coaching program worked out very well for me I do not feel that the information given to me prior to the coaching program adequately reflected what the coaching program is. I would ask a lot of questions so that you build your comfort level before purchasing.
Beyond the Coaching program there is also a Mentoring program where you spend a few days with a professional trading and get some real one-on-one training and also where you develop your trading plan. I did not utilize this program so I cannot give my opinion of it.
Based on my coaching experience I would have to say that the success of this program is going to be which mentor you get. One of the good things about the advanced education is that many of the mentors are teachers within the program. Therefore, you can get to know different one's personalities and possibly have a better chance of getting the mentor that is right for you.
All-in-all I feel that working with a person who is successful in what you want to do is FAR better than watching videos. It will obviously cost more, but the information is far more real.
There are many tools that you need if you are going to trade successfully. I guess I should rephrase that, there are many useful tools that can help you trade successfully. EduTrader or MachTrader being one of them.
This program has a lot of useful features, is easy to set up, easy to scan stocks for what you are looking for, create a watch list, draw trend lines, etc. However, you really need the level that cost $99.00 a month plus tax to get good benefit out of it. To me that is very expensive. In addition, how long to you really want to spend analyzing charts?
Once you get your trading strategy down and know how/what you want to trade find a service that can help you identify what you are looking for.
I canceled my subscription to EduTrader (now called MachTrader) and subscribed to www.stockcharts.com for about 1/3 the price I get nearly the same thing. There are a couple of things I liked better about MachTrader, but there are also things I like better about Stock Charts. In the end it wasn't worth the extra $50+ dollars per month to continue with MachTrader.
As far as stock identificaiton there are several services that can be subscribed to. I use www.breakpointtrades.com. I am not endorsing any of these, they just work for me. Every night I get a video that covers what the market did which I find very informative and then I can sign into their website and look at their recommendations. Not all are trades that fit my style, but I can find enough trades that they have identified that fit what I do and I don't have to spend hours scanning charts.
If you are an options trader there is are many sites you can use for this also. One such site is www.poweropt.com they have some good scanning tools to find the types of spreads that fit your trading style.
Overall, I believe that the Rich Dad Education is a very high quality education program. I have read many of Robert Kiyosaki's articles and books and believe that he has great insight into how money works and has a real desire to help people get financially educated. On the flip side you are going to have to be willing to invest in yourself. The investment is not cheap, but neither are you. Even though I am pleased with my outcome I would definitely encourage you to do your homework first.
If you are going to the free seminar beware that the three-day seminar's main purpose is to sell you on advanced education. You will not leave the three day seminar with enough education to be a totally effective trader.