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The Lies About Money
Identifies the misleading qualities of popular investment practices to counsel readers on how to protect long-term goals, in a guide that demystifies complex financial concepts while outlining a detailed plan for taking control of one's investments. By the author of Ordinary People, Extraordinary Wealth. 100,000 first printing.
336 pages, Hardcover
First published October 2, 2007
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Displaying 1 - 22 of 22 reviews
December 1, 2008
This is not as comprehensive as the "Truth About Money." Mostly, Edelman uses this book to try to persuade you to stop using retail mutual funds due to their high fees and low returns. A significant part of this book is a comprehensive timeline of what Edelman describes as the "mutual fund scandal." One of the "Lies About Money" are the rip offs in the financial services industry. His 50+ pages of mutual fund mismanagement is dispiriting. Instead, he suggests that people would be better off investing in Exchange Traded Funds. He makes a persuasive case. They trade like stocks, and have very low fees. Even better, they can be very specific. I have seen ETF's for wind power, gold mines, space tech, and different levels of stock shorting. They certainly open up a wider range of investments for the small investor who wants to invest in a specific industry, but doesn't want to have to commit to a particular company's stock.
The other "Lies" are thise people tell themselves: that they can carry endless credit card debt, that they *must* maintain a certain lifestyle, that daily $4 lattes are not financially harmful in the long run. My favorite part of the book is when Edleman takes on the modern Pieta of financial reporting: the little old lady who tearfully says she "lost everything" when Enron, or whoever, went bust. He will have none of this; if the little old lady had used her little old head and diversified her investments, she wouldn't be crying on national TV. Edelman's bluntness and unsentimentality are his strengths. If you want cheerleading, bowl season is coming up.
Edelman also has a pretty complicated test that is supposed to determine which of 44 portfolios would suit you. The portfolios can give you a good sense of the wide range of investment choices that are available, even when you are just mixing stocks, bonds, and hedges. Still, Edelman limits himself to categories of "small-cap," "mid-cap," and "large cap." He doesn't give much specific advice for investing in particular industries or sectors.
This is a good book, but it's not as comprehensive as "Truth." It's more than a little diffuse and scattered. Still, Edelman's bluntness and rigor is well suited to his task: persuade live-for-today Americans to take a decades-long long view in their future financial security.
The other "Lies" are thise people tell themselves: that they can carry endless credit card debt, that they *must* maintain a certain lifestyle, that daily $4 lattes are not financially harmful in the long run. My favorite part of the book is when Edleman takes on the modern Pieta of financial reporting: the little old lady who tearfully says she "lost everything" when Enron, or whoever, went bust. He will have none of this; if the little old lady had used her little old head and diversified her investments, she wouldn't be crying on national TV. Edelman's bluntness and unsentimentality are his strengths. If you want cheerleading, bowl season is coming up.
Edelman also has a pretty complicated test that is supposed to determine which of 44 portfolios would suit you. The portfolios can give you a good sense of the wide range of investment choices that are available, even when you are just mixing stocks, bonds, and hedges. Still, Edelman limits himself to categories of "small-cap," "mid-cap," and "large cap." He doesn't give much specific advice for investing in particular industries or sectors.
This is a good book, but it's not as comprehensive as "Truth." It's more than a little diffuse and scattered. Still, Edelman's bluntness and rigor is well suited to his task: persuade live-for-today Americans to take a decades-long long view in their future financial security.
December 8, 2023
THIS IS A GREAT BOOK that is worth every one of us making the time to read. Plain unvarnished truth. These are ten bullets that we found:
1. The world of finance is full of deception and manipulation. Edelman argues that the financial industry is designed to keep people in debt and make it difficult for them to achieve financial freedom. He says that there are many myths and misconceptions about money that are perpetuated by the industry in order to keep people from making informed decisions about their finances.
2. You don't need to be a wealthy or sophisticated investor to make sound financial decisions. Edelman believes that everyone can learn to invest wisely and achieve their financial goals. He provides a roadmap for how to build a portfolio of low-cost, globally diversified index funds that can help you reach your retirement goals.
3. Actively managed funds are a waste of money. Edelman argues that actively managed funds are expensive and underperform index funds over the long term. He says that the vast majority of investors are better off investing in low-cost index funds instead of trying to pick winning stocks or mutual funds.
4. Market timing is impossible. Edelman says that it is impossible to consistently time the market and that trying to do so will only hurt your returns. He argues that the best way to invest is to buy and hold a diversified portfolio of index funds for the long term.
5. You don't need a financial advisor. Edelman believes that most people can manage their own investments if they are willing to educate themselves and make informed decisions. He provides a number of resources for people who want to learn more about investing.
6. Don't be afraid of debt. Edelman says that debt can be a useful tool when used responsibly. He argues that debt can be used to finance education, buy a home, or start a business. However, he also warns against using debt to finance depreciating assets, such as cars and vacations.
7. Save as much as you can. Edelman says that the most important thing you can do to reach your financial goals is to save as much money as you can. He recommends that people save at least 10% of their income, but ideally more.
8. Invest early and often. The earlier you start investing, the more time your money has to grow. Edelman recommends that people start investing as soon as they start earning a paycheck.
9. Don't panic when the market goes down. The stock market will go up and down in the short term. Edelman says that the important thing is to stay focused on your long-term goals and not panic when the market goes down.
10. Seek professional help if you need it. Edelman says that there are times when it may be helpful to seek professional financial advice. He recommends that people seek professional help if they are feeling overwhelmed or if they have a complex financial situation.
1. The world of finance is full of deception and manipulation. Edelman argues that the financial industry is designed to keep people in debt and make it difficult for them to achieve financial freedom. He says that there are many myths and misconceptions about money that are perpetuated by the industry in order to keep people from making informed decisions about their finances.
2. You don't need to be a wealthy or sophisticated investor to make sound financial decisions. Edelman believes that everyone can learn to invest wisely and achieve their financial goals. He provides a roadmap for how to build a portfolio of low-cost, globally diversified index funds that can help you reach your retirement goals.
3. Actively managed funds are a waste of money. Edelman argues that actively managed funds are expensive and underperform index funds over the long term. He says that the vast majority of investors are better off investing in low-cost index funds instead of trying to pick winning stocks or mutual funds.
4. Market timing is impossible. Edelman says that it is impossible to consistently time the market and that trying to do so will only hurt your returns. He argues that the best way to invest is to buy and hold a diversified portfolio of index funds for the long term.
5. You don't need a financial advisor. Edelman believes that most people can manage their own investments if they are willing to educate themselves and make informed decisions. He provides a number of resources for people who want to learn more about investing.
6. Don't be afraid of debt. Edelman says that debt can be a useful tool when used responsibly. He argues that debt can be used to finance education, buy a home, or start a business. However, he also warns against using debt to finance depreciating assets, such as cars and vacations.
7. Save as much as you can. Edelman says that the most important thing you can do to reach your financial goals is to save as much money as you can. He recommends that people save at least 10% of their income, but ideally more.
8. Invest early and often. The earlier you start investing, the more time your money has to grow. Edelman recommends that people start investing as soon as they start earning a paycheck.
9. Don't panic when the market goes down. The stock market will go up and down in the short term. Edelman says that the important thing is to stay focused on your long-term goals and not panic when the market goes down.
10. Seek professional help if you need it. Edelman says that there are times when it may be helpful to seek professional financial advice. He recommends that people seek professional help if they are feeling overwhelmed or if they have a complex financial situation.
November 3, 2017
The Lies About Money: Why You Need to Own the Portfolio of the Future by Ric Edelman is a finance book offering insights to investors. These investors are not “sharks” but shmos like me, just trying to make it to the end of the day with enough money for a slice of pizza and a bottle of beer.
I started reading many books about finance, they’re usually a quick read (but packed with information) and an easy one because they mostly repeat each other. But I always pick up a few nuggets I didn’t know, or most likely forgot.
I’m not trying to be a financial professional by any means, but I’m just hoping to educate myself on the subject enough to either make informed decisions, or enough to ask the right questions when opportunities present themselves.
The Lies About Money: Why You Need to Own the Portfolio of the Future by Ric Edelman covers many topics, many of which I read about, but all of them I was happy to revisit. Some of the more valuable information I got from the book was regarding myths about retiring, and investment strategies (Mr. Edelman believes in long-term investments and after reading several books on the subject, I tend to agree when it comes to my goals).
I’m a “lazy” investor and do not have much to invest with, so I like to make good choices when I can, especially in light of the many, many, many bad choices I had previously made (which will most likely never allow me to retire – ever). I’m always weary about people trying to separate me from my hard earned money, whether they’d be sleazy con-artists costumed as professionals, or simply incompetent professionals.
It doesn’t matter though, the outcome would still be the same.
I read these books not only for my own knowledge, but to pass it down to my young children. I want to get them in the mindset of working hard, saving, and understanding how money grows before it’s too late.
Sadly, from personal experience.
For more reviews and bookish posts please visit: http://www.ManOfLaBook.com
I started reading many books about finance, they’re usually a quick read (but packed with information) and an easy one because they mostly repeat each other. But I always pick up a few nuggets I didn’t know, or most likely forgot.
I’m not trying to be a financial professional by any means, but I’m just hoping to educate myself on the subject enough to either make informed decisions, or enough to ask the right questions when opportunities present themselves.
The Lies About Money: Why You Need to Own the Portfolio of the Future by Ric Edelman covers many topics, many of which I read about, but all of them I was happy to revisit. Some of the more valuable information I got from the book was regarding myths about retiring, and investment strategies (Mr. Edelman believes in long-term investments and after reading several books on the subject, I tend to agree when it comes to my goals).
I’m a “lazy” investor and do not have much to invest with, so I like to make good choices when I can, especially in light of the many, many, many bad choices I had previously made (which will most likely never allow me to retire – ever). I’m always weary about people trying to separate me from my hard earned money, whether they’d be sleazy con-artists costumed as professionals, or simply incompetent professionals.
It doesn’t matter though, the outcome would still be the same.
I read these books not only for my own knowledge, but to pass it down to my young children. I want to get them in the mindset of working hard, saving, and understanding how money grows before it’s too late.
Sadly, from personal experience.
For more reviews and bookish posts please visit: http://www.ManOfLaBook.com
November 25, 2022
A useful guide to financial planning, although rather dated by now. Author Ric Edelman is a well known financial planner whose Saturday morning radio show in the Washington, D. C. metro I well remember from my time in the area. Here, he writes clearly warning of the disadvantages of mutual funds as am investment strategy, suggesting instead the use of ETFs and a vehicle known as institutional shares. The latter are similar to the portfolios built by university development departments and large pension funds. These are available only from a limited number of financial advisors (of which Edelman's firm is one). The reader may develop the feeling that the book is structured as an advertising pitch between hard covers. Indeed Edelman raises this consideration in the book himself. Readers are invited to visit his website for additional information.
My chief concern with the book is the fact that Congress and various governmental financial agencies, such as the IRS, have changed their rules since the book was published in 2007. Nonetheless, it remains a helpful introductory guide to financial planning. He, of course, stresses the importance of starting early to save and invest, to follow a buy and hold strategy, and not to avoid getting professional help in planning just because of the fees. His approach is self serving, but worth investigating further.
My chief concern with the book is the fact that Congress and various governmental financial agencies, such as the IRS, have changed their rules since the book was published in 2007. Nonetheless, it remains a helpful introductory guide to financial planning. He, of course, stresses the importance of starting early to save and invest, to follow a buy and hold strategy, and not to avoid getting professional help in planning just because of the fees. His approach is self serving, but worth investigating further.
June 7, 2018
Not what I expected.
December 16, 2014
This is the same "invest in the lost possible cost mutual fund" advice as 1000 other books and a blatant advertisement for Edelman Financial, the author's company. But I still highly recommend reading it. This book, unlike other similar books I've read, goes into why and how to diversify and how mutual fund fees are calculated and sucked from your returns.
Unfortunately the solution is rather grim. Trying to diversify the way he says is nearly impossible with companies like Vanguard, Fidelity, TIAA-CREF (and those are the low-cost guys), both due to their offerings and the tools they provide to slice and dice the underlying investments the way you really need to. (That's my experience, not Mr. Edelman's words.) Maybe I'll even call Edelman financial one day, but for now I just buy mostly US equity and bond indexes and hope for a strong enough economy that I don't need to diversify into additional asset classes.
Unfortunately the solution is rather grim. Trying to diversify the way he says is nearly impossible with companies like Vanguard, Fidelity, TIAA-CREF (and those are the low-cost guys), both due to their offerings and the tools they provide to slice and dice the underlying investments the way you really need to. (That's my experience, not Mr. Edelman's words.) Maybe I'll even call Edelman financial one day, but for now I just buy mostly US equity and bond indexes and hope for a strong enough economy that I don't need to diversify into additional asset classes.
June 10, 2008
I owned this for about six months before getting the courage to pick it up. I'm listening on cd (so I only get to hear it when I'm traveling without the kids) but I've learned a lot from it.
I wouldn't say it's a thrilling read, but what finance book is? I like Edelman's style--it's for everyone, not just the financially astute--and if nothing else, he encouraged me to get back on top of my finances once and for all.
We've done a fairly good job of budgeting in the past two years, but now that we're back in the US and our income is more predictable, I'm excited to start doing more with our money in terms of saving and investing. Edelman touches on all aspects of investing (mutual funds, EFTS, futures contracts, REITS, tax implications, etc) so if you're looking for an intro or review of all things finance, this is the book for you.
I wouldn't say it's a thrilling read, but what finance book is? I like Edelman's style--it's for everyone, not just the financially astute--and if nothing else, he encouraged me to get back on top of my finances once and for all.
We've done a fairly good job of budgeting in the past two years, but now that we're back in the US and our income is more predictable, I'm excited to start doing more with our money in terms of saving and investing. Edelman touches on all aspects of investing (mutual funds, EFTS, futures contracts, REITS, tax implications, etc) so if you're looking for an intro or review of all things finance, this is the book for you.
March 25, 2013
Edelman's project is noteworthy: to bring financial education to the masses. The book is easy to understand and Edelman is very pedagogic in covering complicated topics such as market risk, variance etc.
Edelman describes why and how you should saving money and start investing. It is honest and sound advice for the most part - even the part why on why hiring a financial adviser is a good thing (Edelman is himself a financial adviser, which he is well aware create conflict of interest)
If you have NO idea of investing - this is a good starting place and you won't get burned by his sound investing advice.
Edelman describes why and how you should saving money and start investing. It is honest and sound advice for the most part - even the part why on why hiring a financial adviser is a good thing (Edelman is himself a financial adviser, which he is well aware create conflict of interest)
If you have NO idea of investing - this is a good starting place and you won't get burned by his sound investing advice.
March 31, 2008
I know next to nothing about financial matters. So in that respect, this book was quite good in that I learned a ton just from reading it. I'm not in a position to say whether the information in the book is accurate or truthful. However, the tone of it made it easier to read, and if you take him at face value he appears to be truly trying to provide people with information that will help them make financial decisions.
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August 27, 2023Good arguments for mutual funds (but not retail mutual funds)- and for diversifying, active selection of asset mix, and then passive holding of those assets. There is a quiz you can take to determine your ideal portfolio, based on the amount of money you are investing, your age and your risk tolerance. Overall, it was fairly interesting for a financially-minded person, but might be too dense for the average Joe without any financial knowledge.
October 28, 2008
Good book for beginner investor. Author tries to sell his Financial Planning services more than once. He advises to stay away from "Retail" Mutual funds and go to Institutional mutual funds (which can only be obtained with the help of an advisor) or ETFs. Anyway, if you can read around the sales pitches, you can find some good tools in the book.
July 10, 2008
The best thing about this book is that it's easy to read. He is funny and I was able to read this book in about 4-5 hours. He has a very specific approach to investing so you have to be willing to commit that whole approach. It won't work if you only use some aspects of it.
March 5, 2009
While I don't know if I will ever diversify my investments as much as Edelman suggests, his research and and strategy make sense. He also makes a compelling argument for following his investment advice. This is an interesting primer on investing in the market - even in troubled times.
March 15, 2013
Whoa -- you won't want a mutual fund after this one. Ric is not shy with his opinions and backs them up quite well. financial eduction is strong but to me more inspiring to get to the real truth. in the end we all are on different paths but you'll not go wrong listening to his positions.
December 25, 2013
Ric Edelman provides an excellent overview of investment fundamentals in an easy-to-read format. The book also provides good hands-on instruction for creating a realistic portfolio for long-term investing.
May 27, 2009
Ok, I'm tired of being ignorant about stocks and investments and all that stuff, so when I saw this in the book store, I decided it was time to learn something new.
June 8, 2008
Not as good as I thought it would be. It actually convinced me that the stock market is not the way to go. I think I'll stick to a Self Directed IRA in Real Estate, more control, less volatility.
July 23, 2008
Edelmen is a talented writer for this type of material. Very informative, well documented, incredibly readable.
Although I should have read it 30 years ago. Then I'd be set.
Although I should have read it 30 years ago. Then I'd be set.
August 9, 2008
Interesting conspiracy theory. He is a decent writer and has alot of good things to say, nothing too new though.
September 6, 2008
I think Ric Edelman is one of the best financial experts writing today. This one, like his others, is simply written and easy to understand. If only following his advice were as easy!
April 23, 2012
A worthwhile book to read for anyone concerned about their investments. Straight talk and an easy style of writing.
January 21, 2016
Informative but not certain if everything in this book is over exaggerated or not. Need to educate myself further on mutual funds and stocks.
Displaying 1 - 22 of 22 reviews