Protecting Your Wealth in Good Times and Bad

Rating:
Summary: Message to Boomers: Save or Bust !
Review: Americans are saving no more for retirement than they did twenty years ago. Bad advice from the brokerage community, the financial media, and mutual fund companies compound the difficulty of developing a sound strategy for accumulating sufficient wealth to achieve financial independence. All this is at a time when workers have more retirement options available to them. This book is written for people who want to do their own financial planning. Each of the chapters summarizes and list key points for easy back reference. Given the obstacles investors face from outside advisors and the author's conviction that the projected benefits from Social Security are "destined" to be reduced, the importance of financial planning is compelling.

Ferri's investment advice is straightforward: Save consistently. Diversify. Keep investment costs low. Use market tracking index funds. Many of Ferri's ideas can be found in other recently written books on the subject, but as a stand alone introduction, this is a good place to start. Some readers will take the author's suggestion and begin with the third and final part of the book where advice is given for readers at different stages of their investment lives. But it is in the earlier sections of the book the author builds his case for developing realistic return expectations, reducing risk by using different kinds of assets like foreign stocks and real estate, and keeping costs down. It is also in these sections that Ferri is especially hard, I think unfairly, on stockbrokers who are dismissed as undereducated and mercenary, but these traits are more representative of individuals than a profession. His criticism of the mutual fund industry is more objective with respect to hidden costs and strategies for inflating performance for public consumption. These criticisms echo the periodic comments of industry gadfly John Bogle whose book on mutual funds is recommended in an Appendix.

Not every investor - my guess is only a small minority - will have the discipline to learn to manage their own financial affairs without some outside guidance. However, sound information covering a broad range of topics of the kind Ferri has compiled in this book will greatly improve an investor's chances for success with or without outside help.

Rating:
Summary: Great Resource for Do-It-Yourself Investors
Review: As a fee-only financial planner, I really enjoyed this latest book by Rick Ferri. It provides a straightforward approach whereby anyone can construct a low-cost portfolio to build and preserve wealth. The book would be valuable to anyone who wants to understand why markets behave as they do, and to fashion a plan to invest in uncertain times. The author includes useful advice about how much money one needs to accumulate for retirement, and how much income can be withdrawn safely. Mr. Ferri offers plenty of technical information to support his ideas, but it is presented in an easy to read style. I particularly liked the guidelines for setting realistic expectations for investment returns in the future, and the practical advice for successful investing at different phases of life. Many of my clients are do-it-yourself investors who are looking for some guidance. This book provides it - and I plan to recommend it to clients as an educational resource.

Rating:
Summary: Great Resource for Do-It-Yourself Investors
Review: As a fee-only financial planner, I really enjoyed this latest book by Rick Ferri. It provides a straightforward approach whereby anyone can construct a low-cost portfolio to build and preserve wealth. The book would be valuable to anyone who wants to understand why markets behave as they do, and to fashion a plan to invest in uncertain times. The author includes useful advice about how much money one needs to accumulate for retirement, and how much income can be withdrawn safely. Mr. Ferri offers plenty of technical information to support his ideas, but it is presented in an easy to read style. I particularly liked the guidelines for setting realistic expectations for investment returns in the future, and the practical advice for successful investing at different phases of life. Many of my clients are do-it-yourself investors who are looking for some guidance. This book provides it - and I plan to recommend it to clients as an educational resource.