Rich Dad Poor Dad’s Robert Kiyosaki Says He’s $1.2 Billion in Debt But Stays 1 Step Ahead Of Creditors — If It All Goes Bust, ‘You Can Talk To My Attorney’

Debt isn’t exactly something most people brag about. Robert Kiyosaki does.

Best-selling “Rich Dad Poor Dad” author Robert Kiyosaki has spent years talking openly about his massive debt, arguing that borrowing money can be a powerful tool when it’s used to buy assets. Now, a Vanity Fair profile published Aug. 26 takes a closer look at the strategy behind his much-discussed $1.2 billion debt figure.

Kiyosaki’s former wife and longtime business partner, Kim Kiyosaki, confirmed the figure but clarified that it isn’t simply money Robert personally owes. The debt is connected to real-estate investments held with partners, including a portfolio of apartment properties.

“We have a lot of apartment houses with our partners,” Kim said. “So technically, yes, we have all this debt.”

The Debt Keeps Buying More Assets

Kiyosaki’s strategy is built around leverage. He uses borrowed money to acquire assets, then borrows against those assets when their value rises. Rather than selling a property to access its equity, he can use additional borrowing to keep investing.

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“Bankers never asked for a report card yet,” Kiyosaki told Vanity Fair.

Vanity Fair writer Christopher Cox described the approach as staying “one step ahead of your creditors.”

Cox explained that when a property’s value rises, Kiyosaki borrows more money against the equity and treats the loan proceeds as tax-free income. Each investment is also separated inside an LLC, creating a firewall between properties.

If one investment fails, Cox wrote, the bank may be left with the problem while Kiyosaki remains protected by the structure.

Kiyosaki was blunt about that protection.

“If it all comes to hell, you can talk to my attorney,” he said. “Firewalls—that’s the way the rich play the game.”

The Billion-Dollar Debt Claim Went Viral

The $1.2 billion figure had already made headlines before the Vanity Fair profile.

In 2024, Kiyosaki discussed his debt in an Instagram Reel, explaining that he uses debt to buy assets. He then delivered the line that spread across social media.

“If I go bust, the bank goes bust. Not my problem.”

The thinking behind the statement is central to Kiyosaki’s financial philosophy. A massive debt balance doesn’t necessarily mean financial trouble, he argues, if the borrowing is attached to valuable assets that generate income or appreciate.

That strategy isn’t without risk. Real estate values can fall, interest rates can rise and cash flow can weaken. Leverage can magnify losses just as quickly as it can magnify gains.

But Kiyosaki’s approach isn’t about eliminating debt. It’s about using borrowed money to control assets, separating investments through legal structures and keeping the financing moving.

In his world, the goal isn’t to avoid the creditors. It’s to stay one step ahead of them.

On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.