The 'M' Word

by Lori Sackler

I find in the financial publishing world, I often start out reading a book expecting one thing and end up getting something else. As I made my way through the first couple chapters of this book, which started off pretty weak, to be honest, I began to think that the author’s efforts to defend the need for talking about money and rationalizing why the reader needed to make such effort was a bit redundant and not a very good basis for a book. But it wasn't long before the author shifted gears and began looking carefully at the root of the problem: psychology, human nature, misconceptions about money, and how disagreements about money arise. Because money is one of those things that people tend to get emotional about, sometimes due solely to differing individual viewpoints, it often leads lead to conflict, angst, frustration, and even anger. The ‘M’ Word seeks to avoid all that by providing plenty of strategies and practical information to begin discussing financial matters with family and like interests.

Once the author finishes her defense of the subject matter, it’s on to “the money talk”. The money talk is all about understanding your individual situation and the people you must deal with on the other side of the situation. This includes dealing with life changing events, such as the death of a family member, divorce, re-marriage, combining families, wealth transference, the whole lot. The author explores typical scenarios and financial situations, and in case study fashion, describes the experiences of actual clients who went through the money talk under circumstances that may be the same (or similar) to your own. The author then walks the reader through the fine points of the actual talk: hiring a financial consultant, scouting the meeting location, preparing the talk itself and any presentation materials that go with it, and finally, the execution of the talk itself. The author makes extensive use of checklists and sensible guidelines throughout, including a “Things to Think About” box at the end of each chapter, that serves both as a summary and another checklist for reviewing the previous chapter’s material.

If one of the author’s client’s cases matches your own circumstances closely enough, you will have little to do other than follow the book’s instructions and examples. For me, I still felt a little bit like my family and situation didn't exactly fit with The ‘M’ Word mantra, but I think that even if I can’t get my family to have a full blown money talk, I can still ready myself for what lies ahead. That is to say, this is a different sort of book with a lot of essential and valuable information. The ‘M’ Word might not help you solve all your family’s money related problems, but it might keep you from saying a few choice words as you travel down that road. That makes it well worth an easy four and a half dollar signs for me.

Survival of the Fittest for Investors

by Dick Stoken

I read two thirds of this book on a flight back from Mexico. I was disappointed to find that the bulk of the book comprised charts and past data which the author showed supported his theories and investment ideas. Of course, that’s easy when you get to pick the data. More than that, however, this book has some other problems.

Although , I won’t argue against anyone, including this book’s author, who says the stock market is a living system and can be analyzed scientifically using biological theories and methodologies, I will argue that diversification (of investments) is not the same as biological variation, and portfolio re-balancing is not the same as adaptation. Stretching the definitions may be a good investment angle, but it won’t necessarily make you money. Also, several elements seemed out of place, like starting off with a discussion of Newton so that he could show Darwin to be “more applicable” to investing, or his tendency to resort to describing bubbles and how they could be avoided as defense of his methodologies. I just kept wanting to say, yeah, the ten years from 1929 on were a bad time to be investing, we get it. So, now what?

If I had read this entire book, it is possible I may have found some useful nuggets at the end, but the first two thirds of the book were so drab, I just had to put it down. There is stuff to be learned in this book, and I really like the author’s original idea, but overall, it’s just not that useful and really only worth two dollar marks.

Income Investing

 by Jason Brady

Normally, when I review a book in this blog, I write a review that I usually adapt from one that I post on Amazon.com. This time, I happened to wake up in the middle of the night the day after reading this book in one sitting, and the words came to me naturally and flowingly, so I typed them into my phone at 2 in the morning. I liked what came to me in my sleep, unbidden yet inspired, so this time, I’m reproducing my Amazon review verbatim. Here it is:

>>>>>

Brace yourself for reality

This is one of the soundest, solidest books on investing that I've ever read. It covers all the basics in an almost advanced overkill sort of fashion. The author draws on his many years of experience as a fund manager to explain the major classifications of investments and the subtle differences between the average guy’s understanding of the instruments and what they really entail. The object of these explanations is to make it easier for the investor to understand where profit comes from and how better to avoid losses that erode that profit. That’s all well and good and it is very useful and sound information.

The book does go a little bit astray, however, because even though the subtitle says " an intelligent approach to profiting...", there is no strategy outlined and there is certainly nothing resembling an "approach" to investing in this book. The latter chapters serve mainly to expound on the former, driving down a road that basically says, if you understood everything so far, you should also understand this. And if I understood the author correctly, “this” is his personal investing mantra, which in a nutshell is: buy dividend paying stocks with a growing dividend, buy bank stocks, and diversify into other categories of investments (bonds, options, etc.). Mr. Brady takes just a short 200 pages to explain why this makes sense and will be profitable. You’ll get no argument from me. I’ve owned dividend stocks forever and bank stocks of late and I’m not rich, but I’m doing okay, thank you very much. I think this is a sober, useful book, and even had I not received a gratis copy for purposes of writing this review, I'd have been genuinely glad to have read it in any event. I thought about giving it four stars, but even with the misleading subtitle, this is five star material.

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Or, on this blog, five dollar sign material. 

Achieve Financial Freedom - Big Time!

by Sandy Botkin and Matthew Botkin

Here’s an edited version of the review I posted on Amazon:

"Back in college, a popular drinking game was “Hi Bob”. Everybody had their drink of choice and we all sat down to watch an old episode of The Bob Newhart Show. Whenever somebody on the show said, “Hi Bob!”, everybody drank up. The Botkins’ version of “Hi Bob” is the word “chuckled”. In this book, Sandy chuckles, Matt chuckles, Sam chuckles, Jeff chuckles, Lori chuckles, every gosh dang person in every information filled chapter chuckles. That is to say, Sandy Botkin and his CFA son Matt have taken a lot of highly useful information, broken it down into a bunch of scenarios and “discussions” with various subject matter experts in wide-ranging areas of financial expertise, and presented these dialogs as individual chapters in this book. (I do not believe any of these were actual conversations recorded and written down – far too contrived for that.) The information is sound, if a little basic, but the dialog format is easy enough reading. They cover everything the typical non-professional investor needs to know, from life insurance and mutual funds, to saving for college and retirement, to mortgages and commodities, and everything in between. It’s all, as I said, informative, important, and useful information.  It’s just that all that information is pushed along by a lot of not-very-funny lines that end with somebody chuckling that drove me to drink – just like Hi Bob – and made me subtract one mark from my rating."

I think book needed a little better editing and probably, the authors should not have used the dialog format for every single chapter. They would have done better to intersperse the dialogs more sparingly, perhaps with something like: “In this chapter, we’re going to tell you a few more things that Jeff taught us...” or something like that. Still, this is a good beginner’s finance book.

The Toilet Paper Entrepreneur

by Mike Micalowicz 

The title of this book, Toilet Paper Entrepreneur, suggests this is not your everyday business book. And it isn't  The author equates starting a business to a certain biological function, and then he continues to draw analogies between what we do when we do number two, and what we do when we start our own business. And although that analogy is something short of obvious, the author still succeeds in using it to provide a useful guide to entrepreneurship. TPE contains the usual hints, suggestions, tips and strategies of any number of self-help business books: how to obtain and keep customers, how to save money in everyday business, how to get motivated to start, and the like. Where it differs is that it takes a much more down-to-earth approach and is candidly realistic. The author continues the candor and refreshingly straightforward approach to tell the reader what will or will not (in the author’s opinion) work in starting one’s own business. The author also discusses the entrepreneurial mindset and even goes so far as to tell the reader that if you don’t possess a certain quality or foster a certain talent, you need to give up the idea of being an entrepreneur and go back to your day job. The book has a number of the money saving tips and is chock full of practical advice from the author’s own experience. Not everything in this book is for everybody. For example, there is a whole section about capitalizing on one’s youth, which as a pushing-fifty company man I felt completely alienated me and ruled me out as a potential entrepreneur. (Personally, I think my experience and knowledge are assets that are at least as valuable, if not more valuable, than the “vigor of youth”.) Anyway, the sections that are applicable to you as an individual reader will be interesting and definitely of some use if you plan to start your own business (and even if you don’t). This is a well written, informative, at times funny, and always earthy book. I recommend it to anyone who has an interest in business in general, or who is interested in becoming an entrepreneur.

Note: The author provided a gratis copy of the book for purposes of this review.

The Malign Hand of the Markets

by John Staddon

When a professor of neurobiology writes a book like this, it seems easy to pass it off as a cross-discipline, “make easy money from an obvious situation” kind of stunt, almost. But this book is extremely insightful, carefully written, highly detailed, and probably accurate. It points out that there is more to economics than meets the eye and that when human behavior is involved, financial markets are at risk from other forces besides supply, demand, interest rates and the like.

Your money is at risk because ignorance creates gaps in knowledge, gaps in knowledge cause specious thinking, and specious thinking causes illogical behavior. This leads to laws and regulations that actually work to make the situation worse, not better. Can all this be prevented? The author thinks so, but I think not nearly enough people are reading this book (or writing others like it) to change the economic policies of the world much. And that’s scary.

This is an interesting and original book. Not everyone will agree with what it posits, but there are enough graphs, illustrations, and logical arguments to convince most free-thinking readers. I don’t hold out much hope for positive change, but I’m glad I read this book. At least I can steer myself clear of the malign hand, even if the government won’t do it for me.

The Chinese Way to Wealth and Prosperity

by Michael Justin  Lee

The author, Michael Lee, has peppered this book with stories and anecdotes from Chinese history, both from the world at large and from the history of the Chinese experience in America. But telling these stories and sprinkling some common sense investment practices explanations with terminology in Chinese does not by any means make this a book about “The Chinese Way” to do anything. Just because there is a word for it in Chinese doesn’t mean it was absorbed by Western society from Eastern culture. It could just be common sense (and often, it is).

Still, this is an interesting and helpful book, clearly written, well organized, and short and to the point. There are a few inconsistencies that detract from it to make it only an average book on the “utility in investing” scale. For example, on page 4: “Your diamonds...are in your own back yard...” Page 54: (the title of one whole section, no less) “Invest Beyond Your Backyard”. The common sense can be boiled down to any number of simple topics, all of which have been written about before: Don’t waste your money, invest in an education, buy things with value, etc. These only have to do with “The Chinese Way” in that, people need to do these things to be prosperous, whether they are Chinese or not.

Given the tenuous connection of this book to (specifically) the Chinese Way (leaving the argument about whether the Chinese are, in fact, wealthy and prosperous), this is not the best book on investing, and certainly not the best book to learn about Chinese financial goings on and the like. But the average reader should be able to get through the book easily enough and pull out some valuable insight, making it well worth three dollar marks.