Discover the Wealth Within You
Everyone knows that financial planning is all about goals. But most people incorrectly think that financial goals consist of paying for a child's college education, covering major medical expenses and preparing for retirement.
But as Ric Edelman points out in Discover The Wealth Within You: A Financial Plan for Creating a Rich and Fulfilling Life, those aren't goals, they're obligations. And that's why most people rarely...get excited about financial planning. But Edelman argues that dreams and desires-from traveling to faraway places to pursuing a neglected hobby to realizing a secret ambition-are the true objectives of proper financial planning, and in Discover The Wealth Within You, he shows that paying attention to the pursuit of happiness can turn financial planning -- a task many people find boring and even downright onerous -- into an exciting adventure.
Some of the Unique Award-Winning Advice You'll Discover Inside:
- The 4 Steps to Successful Goal Setting
Ric shows you the secrets to getting what you want out of life.
- How to Pick Mutual Funds
Learn the right way to pick the funds that are right for you.
- The Truth About Creating a Financial Plan
It's not complicated or difficult when using Ric's recipe.
- Learn How to Invest Like a Professional
Ric shows you how to adopt the secrets of America's biggest institutional money managers!
- Too Many Americans Own Too Much Employer Stock
The Enron mess was predictable and easily avoidable. Let Ric show you how to protect yourself.
- The First Real Consumer Guide to Morningstar
The ranking system that virtually all mutual fund investors rely on to invest trillions of dollars -- and almost no one uses it correctly.
- Why Owning Index Funds is a Bad Idea
Learn about "The World's Dumbest Investor."
Edelman starts you on the right track with a richly detailed and imaginative worksheet that helps you set positive goals and establish specific dates for achieving them. He explains how to build a plan based on current realities and reasonable assumptions about the future (including earnings on investments, inflation, tax rates, and more); how to modify the plan as circumstances change; and how to incorporate retirement planning -- the #1 goal of most Americans-into the overall plan.
With plans in hand, Edelman writes, "All you have to do now is figure out where to stash all that cash until you're ready to spend it." Thus, the second part of Discover The Wealth Within You is a detailed exploration of investing, including in-depth review of the flawed investment strategies most commonly chosen by individual investors: the safe, low-growth one-investment portfolio; a mix of low-risk cash equivalents and bonds and high-risk stock (with nothing in between); investments based on the latest reports from Wall Street analysts ("market timing"); and rotating among various stock market sectors. Looking closely and critically at each style, Edelman demonstrates the importance of building a portfolio that embraces a variety of asset classes while reflecting the your personal circumstances, liquidity needs, family and financial obligations, goals, risk tolerance, and experience. Based on Modern Portfolio Theory and the proven track records of institutional investors and other professionals, Edelman's approach pinpoints opportunities many consumers ignore (including real estate and international stocks) and exposes common missteps, like over-buying an employers' stock (think Enron!) and keeping far too much money in cash equivalents.
While acknowledging that there are various ways to buy investments (including using a private money manager or buying specific assets with or without the aid of a stock broker or other advisor) Edelman contends that actively managed mutual funds are the most effective way to create a profitable, well-balanced portfolio. (His own firm recommends mutual funds 85% of the time, with variable annuities accounting for the remainder. They also stay away from index funds, which, despite the hype surrounding them, have not out-performed actively managed funds.) Taking you through the task of choosing the right fund among the 8,171 (!) funds recognized by the Investment Company Institute, Edelman provides a complete, accessible explanation of Morningstar's Star Ranking System, as well as its much more useful and relevant Category Rating System and "Style Box" methodology. He explains how to use this information to evaluate the six most important criteria in choosing a fund: relative performance; standard deviation; volatility; management (including shifts in personnel and/or investment emphases); current holdings; and fees. His advice on whether to purchase hybrid funds that contain investments from two or more asset classes or to go with several different "sector specific" funds addresses such issues as redundancy, volatility (hybrid funds tend to see-saw less), and the amount of time one wants to devote to poring over financial statements.
Discover The Wealth Within You will change your perception of financial planning. Its jargon-free explanations and easy-to-follow charts and illustrations, coupled with real-life anecdotes and Edelman's irrepressible humor, bring an intimidating subject down to earth. As he guides you through the process of setting goals and finding the means of realizing them, Edelman shows that the secret of attaining wealth is within everyone's grasp.
Reviews"Edelman's book is clear and concise -- a vital tool in building long-term wealth."
- Maria Bartiromo, Anchor, CNBC, and author of Use the News
"You're taking a financial risk by not reading this book. If you use Ric's financial recipe you increase the likelihood that you will meet your life goals."
- Michelle Singletary, syndicated personal finance columnist, Washington Post
"Ric's book is invaluable. It will help you to discover where you want to go and how to get there."
- Dara Duguay, Executive Director, Jump$tart Coalition for Personal Financial Literacy and author of Please Send Money: A Financial Survival Guide for Young Adults on Their Own
"Informative and entertaining."
- William L. Anthes, Ph.D., President and CEO, National Endowment for Financial Education
"This is an important book -- a must read for anyone seeking to plan their financial future. It's loaded with information and should be in everyone's financial planning and investment libraries."
- Steve Arpante, Chairman, Foundation for Financial Planning
"Clear, understandable, and comprehensive, an outstanding and entertaining step-by-step guide to financial security."
- Dallas L. Salisbury, CEO, Employee Benefit Research Institute
"Ric makes financial planning fun, by making you think about what gets you excited in life. This is a hands-on, practical guide from one of the country's leading financial advisors, and I highly recommend it."
- Don M. Blandin, President, American Savings Education Council
"Ric's new book is a fireside chat with a warm and funny advisor. Readers will sleep better after reading, enjoying, and using the clear concepts presented in this book."
- Ed Morrow, CLU, ChFC, CFP, RFC President and CEO, International Association for Registered Financial Planners
"In life, you either control your money or it controls you. If you want to win the battle, buy this book."
- Steve Rhode, MBA, President Myvesta.org -- Financial Crisis and Treatment Center