Synopses & Reviews
Managing your money can be stressful. And confusing and complicated advice from the financial industry just makes it harder. But as the authors of this clear, practical, and enlightening book--part financial guide, part exposé--prove, there are just three simple rules you need to follow and only a few investment products that are necessary for an ideal portfolio. That's it. And the authors dispense with all that "expert" advice by deftly debunking what they call investing's Seven Deadly Temptations. By embracing commonsense solutions and rejecting investments that seem enticing but are needlessly complex, overpriced, and risky, you'll put not only yourself in a stronger position but the entire economy as well.
Review
“This may be the clearest and most valuable guide yet written to successful investment. It immunizes you to the parasitic financial-services industry's offers that you can’t understand and it can’t fulfill. If you read only one investment guide in your life, make it this one—elegantly boiled down to the essence of what makes sense and makes money.”
—Amory B. Lovins, Chief Scientist and Co-Founder Rocky Mountain Institute
“Edesess has done it again. As the individual investor's best friend, he takes the whole financial advice industry to task. What's the secret sauce? Keep your strategies simple.”
—Vanessa Drucker, financial journalist, former Wall Street attorney and writer of popular business fiction
“Put your skepticism aside. Investing properly to achieve your financial goals can be accomplished by following the three simple rules contained in this book.”
—Bob Huebscher, CEO, Advisor Perspectives
“This is the book that investors have needed for a long time. It empowers readers to take control of their financial lives and to tune out the propaganda from the investment industry. It becomes easy for investors to do the right things for themselves once they get rid of all the noise, and follow the "Simple" approach that the book recommends.”
—Joseph Tomlinson, actuary and financial planner
"In the world of high finance and investment, in which the top .01% and the wannabes who work for them are out to make lots more money with your money, without giving a hoot about your interests, this is one of the few books that we non-experts on such matters can trust to get us started."
—Bill Domhoff, a professor emeritus of sociology at the University of California at Santa Cruz
“This very practical book by four expert insiders cuts through all the nonsense and reduces successful investing to a few common-sense principles. It can help you and everybody else, except perhaps, the huge financial industry that generates lavish profits by misleading millions of investors.”
—Richard C. J. Somerville, Ph. D. Professor Emeritus and Research Professor at Scripps Institution of Oceanography at the University of California, San Diego
Synopsis
Over the past several decades, theres been an explosion of investment strategies, products, services, and advisors. Yet, as longtime investment industry insiders show in this powerful exposé, almost all the popular investment strategies and products are based on confusion and deception and dont work, and almost all investment services and advisors cost far more than they are worth.
The book first explains three simple rules of investing—and why Wall Street and most of the investment industry does not want you to know them. Then the authors examine each of the prevailing claims and recommendations espoused by investment industry professionals as well as journalists and explain, one by one, why each is wrong and not only costly to investors but also enormously enriching to investment firms and advisors. The result is the most powerful guide yet published for what investors should and should not do to protect and grow their investments.
About the Author
Carol Fabbri is driven to teach as many people about personal finance as she can.
On any given day you'll find Carol writing, speaking, or presenting on the topic. She believes that the biggest roadblocks to making good investment decisions are emotional baggage regarding money and a lack of clarity in the industry--both of which can be improved with financial education.
By combining her background in management consulting and the finance education she gained at MIT Sloan, Fabbri replaces people's preconceived ideas about finance with knowledge, and breaks down the psychological barriers hindering good investment choices. She has helped thousands learn to manage their money.
Fabbri is the managing partner of Fair Advisors, an independent financial advisory firm. She is also launching the Fair Advisors Institute, a nonprofit dedicated to improving financial literacy in the US.
In 2009 she received the TIAW World of Difference award in recognition for her efforts to advance the economic empowerment of women. She is frequently quoted in national publications like The Wall Street Journal, Forbes, and Smart Money.
Carol's other passions are her husband and her son. She used to have hobbies but then she became a mom.
Table of Contents
Part I. The three simple rules of investing
Rule 1. Tune out noise: Become deaf to Wall Street and the mainstream financial industry
Rule 2. Simplify your options: Ignore all but ten investment products
Rule 3. Look only forward: Plan your investments with the future in mind and dont look back
Part II. Wall Streets Seven Deadly Temptations
Deadly Temptation #1. Beat the market
Deadly Temptation #2. Trust it all to our expertise
Deadly Temptation #3. We will precisely calibrate your portfolio
Deadly Temptation #4. You will be able to sleep well at night with your risk under control
Deadly Temptation #5. There are certain investment strategies that always work
Deadly Temptation #6. Do what the most wealthy and sophisticated investors do
Deadly Temptation #7. Use modern scientific financial theory
Afterword. Economic inequality and the financial industry