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Uninvested: How Wall Street Hijacks Your Money and How to Fight Back
Bobby Monks is blowing the whistle on Wall Street, giving middle class Americans the low down on how they’re being fleeced of their retirement money—and what they can do about it
Every month our financial statements arrive, and every month we glance at them, trying to understand, hoping that we’ll come out ahead. But most of us have no idea what’s really going on or the costs involved. According to Bobby Monks—who has been a banker and borrower, investor and entrepreneur—financial firms and money managers have complicated the investing process to keep us in the dark, profiting from our ignorance.
Having dealt with the financial sector throughout his career, Monks has seen it all. In Uninvested, he reveals how, when, and why the relationship between us and our money managers became corrupted—and what we can do to fix it. Monks shows how the system works not only against us as individuals but also against society at large. Without our knowledge or approval, our money is diverted into the pockets of CEOs and misappropriated, promoting business practices that contribute to economic inequality, political dysfunction, and environmental woe.
Monks’ experiences give him a unique perspective on how we got to this point. Drawing on original research and interviews with key figures such as Vanguard founder Jack Bogle, legendary investor Carl Icahn, and former congressman Barney Frank of the Dodd-Frank Act, Monks teaches us how to take back ownership and control of our money. As he
Even in the decades preceding the most recent downturn, very few investors enjoyed financial success equal to that of their money managers. Given this, I have long wondered why investors don’t pull their money out of the system en masse.
I suspect that it is because most feel powerless. Unaware of the implications of their investments and unable to penetrate the excruciating complexity of the system that facilitates them, many seem to seek refuge in their money managers’ aura of sophistication, pretense of competence, and projection of certainty. It seems to me that most investors are simply sleepwalking through the investing process. They have become uninvested.
When we outsource our investing, we sacrifice control—but not responsibility. My goal in writing this book is to convince you that the best (and only) way to fix this broken system is to awaken a critical mass of engaged investors and recruit them to participate more fully in the investing process.
From the Hardcover edition.
Every month our financial statements arrive, and every month we glance at them, trying to understand, hoping that we’ll come out ahead. But most of us have no idea what’s really going on or the costs involved. According to Bobby Monks—who has been a banker and borrower, investor and entrepreneur—financial firms and money managers have complicated the investing process to keep us in the dark, profiting from our ignorance.
Having dealt with the financial sector throughout his career, Monks has seen it all. In Uninvested, he reveals how, when, and why the relationship between us and our money managers became corrupted—and what we can do to fix it. Monks shows how the system works not only against us as individuals but also against society at large. Without our knowledge or approval, our money is diverted into the pockets of CEOs and misappropriated, promoting business practices that contribute to economic inequality, political dysfunction, and environmental woe.
Monks’ experiences give him a unique perspective on how we got to this point. Drawing on original research and interviews with key figures such as Vanguard founder Jack Bogle, legendary investor Carl Icahn, and former congressman Barney Frank of the Dodd-Frank Act, Monks teaches us how to take back ownership and control of our money. As he
Even in the decades preceding the most recent downturn, very few investors enjoyed financial success equal to that of their money managers. Given this, I have long wondered why investors don’t pull their money out of the system en masse.
I suspect that it is because most feel powerless. Unaware of the implications of their investments and unable to penetrate the excruciating complexity of the system that facilitates them, many seem to seek refuge in their money managers’ aura of sophistication, pretense of competence, and projection of certainty. It seems to me that most investors are simply sleepwalking through the investing process. They have become uninvested.
When we outsource our investing, we sacrifice control—but not responsibility. My goal in writing this book is to convince you that the best (and only) way to fix this broken system is to awaken a critical mass of engaged investors and recruit them to participate more fully in the investing process.
From the Hardcover edition.
168 pages, Kindle Edition
First published August 4, 2015
6 people are currently reading
250 people want to read
About the author
Bobby Monks
1 book2 followersEntrepreneur and real estate developer with expertise in innovative public/private partnerships that serve the community and foster economic growth. Experience developing, leading, and growing 19 businesses in financial services, real estate, technology, and communication sectors. Bobby is highly regarded for creating strategic partnerships that promote shared ownership and tether profitability to economic and social development in communities across the country. Proponent of the belief that active ownership is the key to successful ventures.
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Displaying 1 - 6 of 6 reviews
September 27, 2015
In Uninvested, Bobby Monks argues that the financial system is seriously dysfunctional. Especially when it comes to investing for retirement, most people are operating in the dark. They don't understand where their money is going, they don't know how much they are paying in fees, and they aren't sure if they are invested in respectable companies. And, to top it off, their money managers--who are supposed to be giving them wise and unbiased advice--may not necessarily have their best interests in mind.
Monks paints a fairly bleak picture, giving plenty of evidence showing how uninformed investors are getting taken advantaged of by greedy bankers. I thought his perspective on mutual funds--specifically, how investors see mutual funds as a solution to the complex mess of saving for retirement, despite the fact that many don't really understand what they are investing in--was interesting and unique. Most people praise mutual funds (and index funds, too) like they are the gold standard, so it was nice to see another perspective.
Honestly, I was completely on board with Monks until the very end. Unfortunately, when it came time to DO something about the problem, Monks couldn't deliver. His solutions are way too basic and nebulous to be useful, and, worse, they don't make sense. In addition to knowing and understanding the contents of your portfolio and what you pay in fees, etc., Monks encourages investors to buy stocks directly from individual companies that they believe in and are familiar with--and no more than ten at a time. While I, of course, agree that investors should be familiar with their investments, I don't see how investing in a handful of companies that "share my values" is going to get me through retirement. I may like baseball cards and organic skin products, but that doesn't necessarily mean that Topps and Honest Company are going to be the aggressive growth companies that will sufficiently grow my nest egg. And God forbid one of them goes under...
Moreover, one of the great benefits of mutual funds is that people like me--people who have a little bit of money, but not a lot--actually have the option to access and invest in solidly growing, well-founded blue chip companies that otherwise would be out of my price range and unavailable to me. No, I don't want to be fleeced by money managers and their fees, but I still see investing in index funds as an okay way to build my retirement accounts.
Ultimately, I enjoyed this book up until the end. Monks laid out such a great case for how messed up the system is, but then went nowhere with it--not a tangible solution in sight. As a result, I finished the book feeling dissatisfied and slightly depressed. I will continue to work to understand my portfolio and prospectuses, yes, but, for right now, I'm sticking with my index funds.
Monks paints a fairly bleak picture, giving plenty of evidence showing how uninformed investors are getting taken advantaged of by greedy bankers. I thought his perspective on mutual funds--specifically, how investors see mutual funds as a solution to the complex mess of saving for retirement, despite the fact that many don't really understand what they are investing in--was interesting and unique. Most people praise mutual funds (and index funds, too) like they are the gold standard, so it was nice to see another perspective.
Honestly, I was completely on board with Monks until the very end. Unfortunately, when it came time to DO something about the problem, Monks couldn't deliver. His solutions are way too basic and nebulous to be useful, and, worse, they don't make sense. In addition to knowing and understanding the contents of your portfolio and what you pay in fees, etc., Monks encourages investors to buy stocks directly from individual companies that they believe in and are familiar with--and no more than ten at a time. While I, of course, agree that investors should be familiar with their investments, I don't see how investing in a handful of companies that "share my values" is going to get me through retirement. I may like baseball cards and organic skin products, but that doesn't necessarily mean that Topps and Honest Company are going to be the aggressive growth companies that will sufficiently grow my nest egg. And God forbid one of them goes under...
Moreover, one of the great benefits of mutual funds is that people like me--people who have a little bit of money, but not a lot--actually have the option to access and invest in solidly growing, well-founded blue chip companies that otherwise would be out of my price range and unavailable to me. No, I don't want to be fleeced by money managers and their fees, but I still see investing in index funds as an okay way to build my retirement accounts.
Ultimately, I enjoyed this book up until the end. Monks laid out such a great case for how messed up the system is, but then went nowhere with it--not a tangible solution in sight. As a result, I finished the book feeling dissatisfied and slightly depressed. I will continue to work to understand my portfolio and prospectuses, yes, but, for right now, I'm sticking with my index funds.
January 11, 2019
It is striking and remarkable that in reading a book that I thought would complement what I had been reading by John Bogle and those who follow him, and low and behold, this book contains a great deal of the advice of John Bogle even if it has a different focus. It is striking, and more than a little bit alarming, that one can encounter John Bogle so often when one is looking for those who are less than sanguine about the way that Wall Street makes its money as parasites on the well-being of financially active people in the general public. It is one thing to make a living, as I do, by existing in the middle space between messy data and people who are not well-equipped to deal with, but it is an entirely less noble calling to make money out of the proceeds that belong to others without providing any worthwhile service as a result. How did this come to pass? The author explains that this unfortunate turn of events has taken place as a result of a sleeping public that has blindly trusted that someone would look out for their interests when no one has.
The author begins this short book of less than 150 pages by discussing the investor's dream of ownership outsourced (1) and then the shift from defined benefit pension plans to 401(k) retirement plans (2) that occurred as companies were unable to keep up with their pension obligations. The author then moves to discuss the lack of oversight over the financial industry that takes places by watchdogs that have all too often become lapdogs for those corrupt companies engaged in various chicanery at the expense of ordinary investors (3). The author talks about the big sleep that people have felt when it comes to their mutual funds (4) and the fact that there is no escape from the big sleep at present for all too many people (5). The author closes the book with chapters on a better way to invest than simply trusting people who have no motivation nor interest (or ability) to make more money for investors (6) and then provide seven ways to reinvest in a different way for the reader to take advantage of (7), after which there is a conclusion, acknowledgements, and notes and an index.
In general, this book does not offer its reader any sort of financial truth that is not widely available to anyone who can read books on investing wisely. Yet a large group of people need to know not only that the current way of investing largely profits croupiers and middlemen who benefit from opaque business operations. There are only a few ways out of these problems, one of which is to adopt a strategy that seeks to ensure the normal gains of the market and abandoning efforts to beat the market, and the only other ways are to seek enough information that one at least can invest according to one's own standards and belief systems through knowledge of the operations of companies and their ethical standards. Yet given the sad state of bureaucracy as well as the self-interest of large and powerful financial companies, it is likely that things will change only when customers cut out the financial companies and take some personal responsibility with their investments. As unlikely as this seems to be, it is the goal that the author has with this book, and it is a goal I wholeheartedly support and hope to see at least in part.
The author begins this short book of less than 150 pages by discussing the investor's dream of ownership outsourced (1) and then the shift from defined benefit pension plans to 401(k) retirement plans (2) that occurred as companies were unable to keep up with their pension obligations. The author then moves to discuss the lack of oversight over the financial industry that takes places by watchdogs that have all too often become lapdogs for those corrupt companies engaged in various chicanery at the expense of ordinary investors (3). The author talks about the big sleep that people have felt when it comes to their mutual funds (4) and the fact that there is no escape from the big sleep at present for all too many people (5). The author closes the book with chapters on a better way to invest than simply trusting people who have no motivation nor interest (or ability) to make more money for investors (6) and then provide seven ways to reinvest in a different way for the reader to take advantage of (7), after which there is a conclusion, acknowledgements, and notes and an index.
In general, this book does not offer its reader any sort of financial truth that is not widely available to anyone who can read books on investing wisely. Yet a large group of people need to know not only that the current way of investing largely profits croupiers and middlemen who benefit from opaque business operations. There are only a few ways out of these problems, one of which is to adopt a strategy that seeks to ensure the normal gains of the market and abandoning efforts to beat the market, and the only other ways are to seek enough information that one at least can invest according to one's own standards and belief systems through knowledge of the operations of companies and their ethical standards. Yet given the sad state of bureaucracy as well as the self-interest of large and powerful financial companies, it is likely that things will change only when customers cut out the financial companies and take some personal responsibility with their investments. As unlikely as this seems to be, it is the goal that the author has with this book, and it is a goal I wholeheartedly support and hope to see at least in part.
August 5, 2015
A Chilling Read About a Seemingly Banal Topic
Before I read Uninvested, I had no idea that the vast majority of financial advisors and money managers have no legal requirement to act in my best interest! Our financial system seems huge, complicated, and impenetrable to all but the biggest investment companies and financiers, and it turns out that this is deliberate: if you think that you can’t understand or pick your own stocks or even evaluate an Exchange Traded Fund, these same companies have a much easier time selling you on products that benefit them and not you.
Verdict: A highly recommended read. I’m just glad that I read Uninvested at this point in my life while I still have a chance to change my investing strategy.
Before I read Uninvested, I had no idea that the vast majority of financial advisors and money managers have no legal requirement to act in my best interest! Our financial system seems huge, complicated, and impenetrable to all but the biggest investment companies and financiers, and it turns out that this is deliberate: if you think that you can’t understand or pick your own stocks or even evaluate an Exchange Traded Fund, these same companies have a much easier time selling you on products that benefit them and not you.
Verdict: A highly recommended read. I’m just glad that I read Uninvested at this point in my life while I still have a chance to change my investing strategy.
August 4, 2015
Extremely interesting and useful book!
Uninvested enabled me to better understand the investment process between investors and money managers and how brokers and mutual fund managers put their interests ahead of investors'. Monks also explains how this corrupted financial system has a negative impact on both the individual and society as a whole. Reading this book has greatly changed my perception of the investment world which will undeniably help me from a personal finance point of view. I truly recommend this book as it is not only eye-opening but also provides advice to protect one's investment.
Uninvested enabled me to better understand the investment process between investors and money managers and how brokers and mutual fund managers put their interests ahead of investors'. Monks also explains how this corrupted financial system has a negative impact on both the individual and society as a whole. Reading this book has greatly changed my perception of the investment world which will undeniably help me from a personal finance point of view. I truly recommend this book as it is not only eye-opening but also provides advice to protect one's investment.
August 6, 2015
Before you read my review, please note that I have no background in the financial industry and currently don't have investments which is probably a good thing especially after reading this book. I would have never known that financial advisers take advantage of their clients and the average person but it isn't that shocking. Most of Wall Street is driven by greed and anyway to get it. Uninvested is a great book for people who are looking to get into investing and for people who are already investing. Bobby breaks down confusing terms into "everyday" language which I found very helpful. Once I get ready to invest, I'm definitely reading this book again.
August 4, 2015
Deep down, I had a feeling that money managers were cheating the system, and that I wasn't getting the most returns on my investments, and Bobby only confirms my suspicion! This wonderfully written book is incredibly insightful and worth a read for anyone whose money is being managed by Wall Street.
Displaying 1 - 6 of 6 reviews