The Armchair Millionaire: Build and Protect an Extraordinary Portfolio, Even on an Ordinary Income, by Following One Commonsense Investing Strategy [Hardcover]

Douglas Gerlach (Author), Lewis Schiff (Draft Writer)

Book Description

Publication Date: April 3, 2001

A practical, results-oriented five-step program for the non-CEO, this timely trove of proven tips and savvy strategies delivers the inside scoop, straight from the mouths of dozens of real-life "millionaires-next-door".

Editorial Reviews

From Publishers Weekly

While some might guess that an armchair millionaire is someone who can answer all the questions on Regis Philbin's hit TV show, ArmchairMillionaire.com is actually a Web site frequented by tens of thousands of ordinary investors. In this investment guide based on the site's philosophy, Schiff and Gerlach, two of the Web site's principals, assert that investing intelligently requires little more than common sense, discipline, patience and a goal-oriented mentality. Most members of Armchair's virtual community are neither excessively frugal nor do they have perfect credit reports, the authors maintain. Learning about the stock market, avoiding brokers who insist they have the answers and controlling debt are the keys to financial success, they say. In fact, the heart of this program is based on five simple steps max out tax-deferred savings plans, set aside money for yourself before paying your creditors, invest automatically, use the "armchair" investing policy and start today. Schiff and Gerlach's mix of anecdotes, homespun advice and investment strategies will be familiar to those who frequent the site. Uninitiated readers, on the other hand, will have to suffer through what is essentially an extensive ad campaign for the Web site to glean the book's practical benefits. (Apr.)Forecast: Given the popularity of ArmchairMillionaire.com, fans of the authors may well push this book onto some bestseller lists. Ultimately, though, Schiff and Gerlach don't offer much that's sufficiently new or insightful to distinguish their book from the many others on the overcrowded investment shelves, so the book's long-term prospects may fade.

Copyright 2001 Cahners Business Information, Inc.

Review

Robert Safian Editor, Money Magazine A fantastic 'how-to' guide!

Carmine Gallo Co-Host, TechTV's The Money Machine Living next door to a millionaire is one thing, but having one in your own home is another. Here's the book that shows you how to build your own fortune. Best of all, it's simple!

Steven D. Kaye Executive Editor, Mutual Funds Magazine New investors can get a good jump start towards financial security using the Armchair Millionaire's mutual fund strategy.

Armchair Millionaire member "habitatmom" Losing weight is simple: eat less, exercise more. But as many of us know, it's not easy. Only when motivation overcomes resistance do we make progress. Likewise, spend less, save more is simple, but not easy. Savor the struggle that will make you stronger....Hang in there and make your financial plan work.

Armchair Millionaire member "jujubee71" I can identify with anyone who has a feeling of desperation about their finances. I was in the same boat until a friend advised that I take control of my money and gave me hints on how to begin....The first revelation was that I didn't need to be as broke as I was. --This text refers to an out of print or unavailable edition of this title.

See all Editorial Reviews

Product Details

• Hardcover: 224 pages
• Publisher: Atria; 1st Printing edition (April 3, 2001)
• Language: English
• ISBN-10: 0743411919
• ISBN-13: 978-0743411912
• Product Dimensions: 9.7 x 6.2 x 0.9 inches
• Shipping Weight: 12 ounces
• Average Customer Review: 3.9 out of 5 stars  See all reviews (14 customer reviews)
• Amazon Best Sellers Rank: #1,986,723 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

16 of 17 people found the following review helpful:

4.0 out of 5 stars Smoothing Out Emotions for Relaxed Investors to Earn More, April 3, 2001

By 

Donald Mitchell "Jesus Loves You!" (Thanks for Providing My Reviews over 109,000 Helpful Votes Globally) - See all my reviews
(VINE VOICE)    (HALL OF FAME REVIEWER)    (TOP 100 REVIEWER)   

This review is from: The Armchair Millionaire: Build and Protect an Extraordinary Portfolio, Even on an Ordinary Income, by Following One Commonsense Investing Strategy (Hardcover)

This book is a well-written cross between John Bogle's Common Sense on Mutual Funds and Suze Orman's The Courage to Be Rich. Emotions are the biggest challenge that investors face. Although stocks have always gone up in the long-run historically, it is very gut-wrenching to lose money in sharp bear markets (such as the Nasdaq has been experiencing since March 2000). As a result, many people can't stand it, and sell out at low prices after horrible losses. These same people are often inspired by euphoria at high prices to buy too much.

The book seeks to solve this problem by putting you into an investment plan that you can easily follow, spend small amounts of time on, and should give you superior investing rewards compared to most alternatives. The proposal is to put all the money you can into tax-deferred savings, pay yourself with automatic deductions ten percent of your after-tax earnings and invest it monthly on an automatic basis to get cost-averaging benefits, invest the money equally in S&P 500, Russell 2000, and the Morgan Stanley EAFE index funds, and start doing this today.

I have two basic problems with the book that caused me to grade it down a little. First, that exact mix of index funds isn't perfect for everyone. If you are fairly near retirement, you should be easing into money markets (see Charles Schwab's new book). If you are quite young, you should probably favor the Russell right now over the other two. Second, we have a market that is heading south very rapidly. By waiting a few weeks, you can probably get a much better deal on stocks. Although normally you should not try to time the market, when you are in the middle of a collapse, I would suggest waiting a bit to start. Many stocks could still fall another 50 percent. Why start out with large losses? So, if you start today, I'd say be heavy on money market funds of government securities.

If you have severe psychological hang-ups about money and investing, this book won't be heavy duty enough for you. If you are just open minded and ignorant, this book should be helpful.

I really liked the writing style. It is simple, direct, and filled with helpful metaphors. "Investing is a lot like buying a car." "As a consumer, you've got many choices but there's no such thing as the 'best' car for everyone." "[There's] only one that's right for you." " . . . [A] solid investment strategy is every bit as crucial as a car."

The book also offers the back-up of a web site where you can get advice from others who are further along with their investing. This can help you feel more confident at times like this when television is blaring bad economic and financial news. The book is enlivened and improved by many quotes from on-line comments and questions by investors.

The attitude you are encouraged to develop is one of setting a goal and then being a common sense, do-it-yourselfer in pursuing this through a plan of savings and investing that gives you the portfolio that will succeed. You are reminded that "even millionaires can spend their way into the poorhouse."

I thought that the best piece of advice in the book was to "take all the ideas you have about investing and throw them right out the window." Most inexperienced investors have very peculiar and incorrect ideas about investing. Consciously discarding those, while being skeptical, is a good approach as you seek better information. But remember, "your investing plan and your relationships will work only if you're going to stick together through ups and downs, for better and worse."

After you review this book, be sure that you do set explicit financial goals that you write out as a first step. Then, be sure you do develop a plan to meet those goals that avoids any unnecessary risk.

If you are a new investor, I would still like to see you read Rich Dad, Poor Dad and Common Sense on Mutual Funds before you finalize your plans.

May you develop the financial resources to meet your goals in a way that is comfortable and pleasant for you!

13 of 14 people found the following review helpful:

5.0 out of 5 stars A Great Example of K.I.S.S.--"Keep it simple, stupid", April 6, 2001

By 

"drcrezip" (Queens, NY) - See all my reviews

This review is from: The Armchair Millionaire: Build and Protect an Extraordinary Portfolio, Even on an Ordinary Income, by Following One Commonsense Investing Strategy (Hardcover)

Besides the fact that the authors manage (I think successfully) to present themselves clearly and in a straightforward manner, I think what's worth appreciating about this book is what's NOT in it: It has none of the typical "my-idea-is-newer-and-better-than-yours" blather that makes up so many investing books these days.

Instead, the authors promise to keep it simple and they do just that. It's tempting to want to ask, "what's new in this book." I think what's new is the fact that it's got an easy and proven plan to build a million dollar portfolio. Proven with the author's own money!

That's pretty good stuff for a $20 book.

The authors show great restraint by not dwelling on the gobs of investing science behind the Armchair Millionaire's Five Steps to Financial Freedom. In fact, there's enough Nobel prize winning research behind their method to choke a horse. They mention it along the way but avoid the temptation to bog you down in it. Instead, they stick to their own self-imposed line and keep it simple.

The risk of this is they can be called simplistic. The value, of course, is that they provide all the tools you need--and only those tools--to do-it-yourself. In other words, they'd rather you successfully start your own portfolio than convince you that they are smarter than everyone else. Rare indeed, these days.

My recommendation is to give this book to people you care about--People who you want to succeed. There's an old saying, you can lead a horse to water but you can't make them drink. This book is the water. It's got everything you need to build financial success for yourself. What you do with the information contained inside is up to you.

PS: This is my first book review--I finally felt I could say something that might help someone make a smart decision. Hope you like it!

9 of 9 people found the following review helpful:

5.0 out of 5 stars I think it's an easy way to start investing, June 14, 2001

By 

"annegold" (Turtle Lake, ND) - See all my reviews

This review is from: The Armchair Millionaire: Build and Protect an Extraordinary Portfolio, Even on an Ordinary Income, by Following One Commonsense Investing Strategy (Hardcover)

I'm a brand-new investor. I don't have a lot of money, either. I first picked up this book because I liked the title. Plus the chair looks really cozy, doesn't it? When I read the inside cover of the book, it sounded like the perfect book for me.

I like how easy it is to read. It's funny, too. I also like that it has stories about real people and money. Mostly I like that the plan is really simple. Even though I don't have a lot of money and I don't know a lot about investing yet, I can start using the plan right away. I just need to pay off some little debts first, and the book helped me figure out how to do that too.

I live in a rural area so there aren't really any investment classes nearby. Nobody I know ever really talks about money, either. This book helped me learn more without any classes. I will definitely recommend this book to some of my friends who want to learn how to invest, too.

I haven't looked at the website yet. I hope it has even more good information.