A Good Financial Advisor Will Tell You

Verdict: A GOOD FINANCIAL ADVISOR WILL TELL YOU is a how-to-invest guide that goes well beyond standard texts and topics to help draw a good and understandable blueprint for now – and beyond.

IR Rating

 
 

4.0

IR Rating

Intended for affluent investors who’ve graduated from the Suze Orman-like ABCs of financial acumen and are searching for something more in-depth:  Glom onto this plain-speaking, straight-shooting collection of retirement investing guidelines.  You won’t find many better.

Drawing on years of experience, the authors (partners in an investment firm) touch on any and every topic would-be retirees would ask.  And many they don’t.

For instance, the first section deals with a new research area known as behavioral finance or economics.  In other words, people are swayed by emotions, not facts, when they invest, for any number of reasons.  Authors Robert J. Luna and Jeremy Kisner talk about common psychological habits (and, by inference, mistakes):  selling winners and holding losers; overconfidence (and its friend, non-diversification); the recency bias, or the assumption that the recent past performance of any financial instrument will continue.

With that as a foundation, readers learn how to invest like professionals:  how to reduce risk without decreasing returns, the challenges in retirement and income planning (i.e., when to take Social Security), legacy planning (with rather touching samples of letters of legacy), and of course, the all-important dozen questions to ask a financial advisor.

Among the important lessons learned:  there’s no need today to annuitize, i.e., determine exact distributions, the annuities policy in order to receive lifetime income.  And another myth exploded:  Life insurance isn’t a wise investment.  Au contraire, the authors cite four reasons for buying a policy, from being relatively inexpensive and a highly desirable inheritance instrument to tax free and difficult to destroy.

Footnotes and good appendices help reassure readers about the information’s validity, while a well-written narrative, sprinkled with examples, keeps attention on a somewhat dull, but critical topic:  How to afford to live an extraordinary life.

A GOOD FINANCIAL ADVISOR WILL TELL YOU is a how-to-invest guide that goes well beyond standard texts and topics to help draw a good and understandable blueprint for now – and beyond.

Reviewed by Barbara Jacobs for IndieReader