New Personal Finance Book Asks the Right Questions and Answers Them

I’ve read several books about investing, and while I’ve gleaned some small wisdom from them, certain of my questions were never answered. But in “A Good Financial Advisor Will Tell You…” authors Robert Luna and Jeremy Kisner ask many of the same questions and then provide clear and insightful answers. One thing I didn’t expect to find in this book was that some of the answers I already thought I knew were not necessarily true, or not as simple as I had thought, such as the Rule of 100. The authors explain why these simple answers do not work in convincing detail.

Both Kisner and Luna have years of experience between them, from working on Wall Street to operating their own investment firms before they merged their businesses to form a partnership and co-author this book. They have worked with numerous clients and focus especially on helping “middle-class millionaires” who find themselves with portfolios ranging from half a million to ten million dollars. Many of these people, who were very successful at accumulating assets in the first half of their lives, are not prepared to manage those assets in retirement. They frequently make the same mistakes, which are predictable and avoidable. Beyond “what not to do,” Kisner and Luna offer practical advice about the problems with investing only for safety, trying to live off the interest and not touch principle, and where investors go wrong when trying to play and beat the market.

In this book’s pages is everything the person preparing for retirement needs to know to make the most of retirement, including at what age to claim Social Security benefits, how to estimate your life expectancy, how much money you’ll need to retire, how to plan your investments to keep pace with inflation, the seven steps to a lower-risk portfolio, why insurance can be a valuable part of your retirement portfolio, and perhaps most importantly, how to interview and find a good financial advisor, as well as when to fire him.

While I found all of “What a Good Financial Advisor Will Tell You…” to be interesting, insightful, and even entertaining because of the many stories told to illustrate the main points, what fascinated me most was the section on “The Psychology of Investing.” Learning about the psychology behind financial decisions made me realize that despite being an educated person who has always been careful about his money, I am still prone to making irrational and emotional decisions. I feel I have a better idea now of what questions to ask my financial advisor and also to ask myself when making investment decisions. Here is one short passage about the psychology of investing that I especially found illuminating:

Perhaps the most common mental shortcut we see is called Recency Bias. In short, you may feel that recent past performance (good or bad) will continue. The human mind is wired to see the world linearly. We seek out patterns even when none exist. We convince ourselves that whatever is the most recent pattern will continue indefinitely-even in the face of overwhelming evidence that it won’t. The result is an ongoing cycle of booms and busts.

The media tends to feed our recency bias by focusing on recent performance and spotlighting the biggest winners and losers of the day, week, month, or year. You always have to keep in mind that the media is in the business of selling advertising, not making you a better investor.

What I also appreciate about the book is that the authors use simple language-I never felt they talked over my head, and whenever they used technical terms, they adequately explained them. That said, this book is far more than a simple starter for investors. Certainly, people beginning to invest will benefit from it, but so will people who have been investing for years. “A Good Financial Advisor Will Tell You” contains that extra dose of advice and knowledge that separate it from other personal finance books.

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Using Personal Finance Books As Motivators

There is no question that many people struggle with their personal finances. It seems like more and more you hear about the average credit card debt going up, with people having more and more problems paying their mortgage or saving for retirement. It is not a huge surprise, because the culture seems to promote spending money, and makes it seem like you are an outcast if you do not try to “Keep up with the Joneses.”

However, there is a segment of society that people can turn to if they are looking for support and ideas and how to get out of this endless cycle, and that is personal finances books and websites. There are hundreds of books (probably too many) promoting the benefits of strong personal finance, with suggestions on how to live your life in a way that helps you plan for the future and make sure it is secure. These types of books can help in a couple of different ways.

One, they give you ideas to help you live more frugally and responsible with your money. They can also help you figure out the best places to put or save your money, since this is often an area where people feel overwhelmed. Oftentimes, you might want to start a retirement account, but you don’t know how, so you simply do nothing. With the right materials, you can find out that it is not nearly as hard as you think it is, and you can get it done. It can help you realize that doing things 85% correctly is better than not doing anything at all.

Another way that these books can help is to provide you with encouragement and motivation. If you are at home on a Friday night because you don’t want to spend the money it takes to have a night out on the town, it can get you down, and make you feel like you are missing out on life. However, if you have these books as motivation, it can help you realize that you may be sacrificing now so you can live a more rich life later. It can provide that spark that you need to make those financial changes in your life, and make sure that things are staying on the right path for you to reach your financial goals. This is especially true if you do not have friends that are helping you on that path.

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The Three Top Selling Personal Finance Books

In the recent times, there are many personal finance books available to you in lots of different selections. Once you go to the book stores, you actually just need to look into the best selling books in order to get the right books. This will help not to waste your times searching the one best of hundreds books available to you. Check out the best selling books of personal finance and get one that meet your personal needs.

Your Money Or Your Life: Transforming Your Relationship with Money & Achieving Financial Independence – the Book

Book entitled “Your Money or Your Life: Transforming Your Relationship with Money & Achieving Financial Independence” is the best choice for you. This is one of personal finance books which will answer all of your questions related to personal finance. If you get this book, you’ll find that this will meet all of your need of finance information.

This incredible book provides you valuable insights into changing jobs even if you can’t afford to create the switch. By read up this personal finance book, you can to improve your financial condition even you are in debt, need to alter your finance condition, or financially well-off.

“The Unofficial Guide to Managing Your Personal Finances” is the third choice of the excellent individual finance books are concerned. This is a practical guide that assists one manage one’s personal finances. Furthermore, this supplies useful insights into applying credit cards, dealing with banks, making investments, and how to shop for your car or house without breaking up the bank in the process.

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