The Lies about Money: Why You Need to Own the Portfolio of the Future

by Ric Edelman

Book Overview

Ric Edelman, #1 bestselling author of Ordinary People, Extraordinary Wealth, and the personal finance classic The Truth About Money, offers more great wisdom for investors--and a valuable insert of sample portfolios that outline everything you need to know about building the perfect portfolio.

Ric Edelman has helped more people achieve financial success than any other practicing financial advisor. Now, Ric reveals the deceptive...

• Format: Paperback
• Language: English
• ISBN: 1416543120
• ISBN13: 9781416543121
• Release Date: October 2008
• Publisher: Free Press
• Length: 336 Pages
• Weight: 1.35 lbs.
• Dimensions: 0.9" x 7.3" x 9.1"

Customer Reviews

EXCELLENT Book on How to Build a Sophisticated Portfolio

This is an excellent book, which allows you to QUICKLY assemble and manage a SOPHISTICATED portfolio based upon the latest academic concepts of Asset Allocation. It shows you how to do this IN-EXPENSIVELY, using Exchange Traded Funds (ETF's) and/or Institutional Funds. It then details how to maintain the portfolio going forward, as well as how to implement the strategy in your 401k. The techniques explained are identical to those used by professional money managers (i.e. pension funds, the Harvard and Yale endowments, etc.). I've searched other books on Asset Allocation, and this is the ONLY one I've found that gives you a DETAILED portfolio of SPECIFIC Asset Classes, Subclasses and Allocation Percentages for each. The book contains a detailed questionnaire (based on your age, risk tolerance and other personal factors) that you complete, which in-turn leads to a SPECIFIC Portfolio Recommendation from over 40 model portfolios contained in the book. The book does all the above after giving you a review of all the academic theory and concepts behind Asset Allocation, from the development of Modern Portfolio Theory in 1952, up to the latest work by Professor Eugene Fama at the University of Chicago. Hence you will understand WHY the strategy works, as well as HOW to implement it in the real world. Other books expound upon the tedious mechanics behind determining your portfolio, assets classes and percentages. But they don't give you SPECIFIC recommendations and percentages without detailed statistical analysis that you must perform. Few souls would be hearty enough to complete those exercises at all, let alone accurately and error free. The techniques demonstrated in this book are identical to those that Mr. Edelman uses at his investment firm, which has been in existence for over 20 years and manages several billion dollars of worth of accounts for individuals. If you are a SERIOUS, SELF DIRECTED INVESTOR, who wants to implement a SERIOUS, PROFESSIONAL-QUALITY Asset Allocation portfolio, THIS IS THE BOOK FOR YOU!!!

Lies About Money

Excellent and quick read, less than 2 hours. A must for your financial education

The Lies about Money

Very well worth the read . This books contains a wealth of information. . You'll find straight forward portfolio designs and you'll learn not to make the mistakes that so many people make time and time again.

The Light at the End of the Tunnel Isn't a Train

I am writing this review because, the review I wrote preceding this one (The Little Book of Bull Moves in Bear Markets - Peter Schiff) was overwhelmingly bleak in context. Mr. Edelman offers hope to us all. Start big or small, but start. Invest for the long-run. Don't jump in and out of the market (timing doesn't work). And [Spoiler Alert!] the big secret to pile up good returns over time is to: 1) minimize portfolio costs, i.e. management fees, and 2) utilize ETFs rather than mutual funds. A fun segment of the book includes the mutual fund scandal timeline where you get a thumbnail sketch of those shenanigans.

Excellent book

Once again, Ric Edelman has written a wonderful book outlining problems with the mutual fund industry and his shift to different investments. The analysis of the standard practices of mutual funds was shocking, and the timeline of the mutual fund scandal was hard to believe. His suggestions of switching to institutional funds are sound because those funds have a totally different focus from retail funds which eliminates nearly all problems. Some readers have commented on a switch to indexing. However, he is using ETFs only for asset classes not covered by institutional funds like DFA. I loved his statistics about college planning. His retirement plan advice surprised me somewhat, and it's up to each person's circumstances to decide how to invest their money. I feel that he provides a commonsense approach to investing that anyone can follow. He's interested in the best interests of his clients and readers, which is rare on Wall Street.