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I first read Robert Kiyosaki’s Rich Dad, Poor Dad when I was in my twenties and wanted to know more about how to handle money. I came back to it with a lot more financial knowledge in my thirties and forties. His ideas were a lot more worrisome on the second and third reading.

Don’t get me wrong, the book contains some kernels of good advice. Kiyosaki advocates financially educating yourself and investing in income-producing assets. But he’s also overly dismissive of people who work 9-to-5 jobs, gung-ho about taking risks, and champions some questionable tax practices.

Here are three major reasons not to listen to Robert Kiyosaki.

1. He encourages people to take big risks

Not only does Rich Dad, Poor Dad push several risky ways to make money, but it also glorifies risk-taking in general. For example, Kiyosaki extols the virtues of high-risk assets like penny stocks. To be clear: Many, many retail investors have lost money through buying penny stocks. They are highly speculative, prone to fraud, and unproven.

Now, in fairness, Kiyosaki also stresses the importance of educating yourself so you can evaluate these risky investments for yourself. But what makes my blood boil is that he casts shade on the very idea of playing it safe. Many of today’s millionaires got there by consistently living below their means and putting a portion of their paycheck into their brokerage accounts.

Plus, Kiyosaki only presents the extremes. On the one hand, his high-risk penny stocks, tax liens, and house flipping. On the other, what he calls “sanitized” secure investments. There’s a whole smorgasbord of investments in the middle that will generate solid returns and won’t give your financial advisor an aneurysm.

Instead of listening to Kiyosaki

Don’t take big risks if you don’t have a lot of cash to spare — you could wind up with nothing. Plus, there are many different ways to build wealth to suit all levels of investor. You don’t need to be a financial expert to get started.

For example, historically the S&P 500 has generated average annual returns of 8%. If you put $750 a month into an ETF or index fund that tracks the S&P 500, those gains could make you a millionaire in 30 years.

2. His tax advice is questionable

One of the messages that’s repeated in Rich Dad, Poor Dad is this: The rich barely pay any taxes. And if you want to get rich, neither should you. He’s a big fan of using corporations to avoid tax, saying, “It’s one of the biggest legal tax loopholes that the rich use.”

He says you can bill various expenses to a corporation — including restaurant meals, health club memberships, and travel. It’s true, there are ways to deduct business travel and dining costs. But don’t think you can book a luxury vacation and claim it as a business expense.

I’m not going to get into the ethics or politics of tax avoidance, but tax evasion is illegal. And Kiyosaki’s advice that we should set up corporations in order to avoid paying tax is at best oversimplified and at worst dodgy.

Instead of listening to Kiyosaki

There are many tax-advantaged ways to invest that don’t involve funneling your money through a corporation, particularly if you’re saving retirement. For example, if your company has a 401(k) plan, that can be a good place to start, especially if the company will match your contributions.

Check out our best brokerages for IRAs and think about which individual retirement account (IRA) is best for your situation. Traditional IRAs reduce your tax bill today, while Roth IRAs give you tax-free withdrawals once you retire.

Some brokerages, such as Robinhood, will even match a percentage of your IRA contributions. Customers of its premium Robinhood Gold service can benefit from a 3% match, while other customers get a 1% match. Click here to learn more about how Robinhood can help you save for retirement.

3. He has a twisted idea of paying yourself first

Many financial advisers talk about paying yourself first. It basically means you put money into your savings or investment accounts before you spend it on other things. It can be a good way to prioritize your financial foundations, especially if you often find you don’t have cash to invest at the end of the month.

Kiyosaki’s version is more extreme. The rich dad character in his book bought assets (aka paid himself first) ahead of paying essential bills and even his taxes. His logic? Owing money to creditors forces him to find other forms of income in a way that owing money to himself won’t.

Instead of listening to Kiyosaki

Pay yourself first, but not at the expense of essential bills. Just one missed payment can tank your credit score and stay on your credit report for years. And if you don’t pay your tax bill, the IRS can charge you interest and a penalty.

Look at your budget and work out how much you can realistically put aside each month. If you want to be sure you make that payment, set up an automatic transfer from your checking account.

Key takeaway

If you’re a Rich Dad, Poor Dad fan, you may think I’m what he’d call a Chicken Little crying that the sky is going to fall in. The thing is, I’ve hit financial rock bottom through taking too many risks. It’s not fun. Now, I work as a freelancer — and it isn’t risk-taking that’s enabled me to live the life I want. It’s the solid foundation I built by playing it safe.

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Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.