Customer Reviews

Why Smart People Do Stupid Things with Money: Overcoming Financial Dysfunction

5 star:		(24)
4 star:		(2)
3 star:		(3)
2 star:		(0)
1 star:		(1)

 

 

Is it me or are all these "reviews" obviously endorsements from the author's large network of friends and contacts? I can't find a single "review" in the 25+ here that gives even a single sentence of detail about the book -- not one! These are all generic "terrific finance book for everyone - 5 stars!" Plus, nearly all these reviews were posted within the first 6 days of the release and each gave 5 stars. Not plausible.

I don't blame the author for asking friends to put reviews up, but then have them actually read the book and put together a real REVIEW, not a vacuous endorsement. This is especially important since there is no "See Inside" capability with this book. I depend on Amazon reviews when making decisions on products I'm buying here. I don't appreciate an obvious attempt to subvert the process.

This is one book that I'll keep on my shelf and re-read, and refer to as reference. The author's 35 years of experience really shows in his analysis on financial personality types and risk tolerance. He had me pegged! Based on a short self-test, he predicted the kind of spender and investor I am with accuracy. The book does go into pretty good detail for the beginning investor; it can make your brain hurt. But, that's what's great about it- the amount of information packed into this short book makes it well worth buying and keeping on hand.
The reason I only gave 4 stars: I disagree with him about not paying your mortgage off as quickly as possible. He uses calculations to show that by getting tax breaks for mortgage interest, you'll come out ahead if you invest the extra money instead. There's one thing he, and other authors who advocate this, have never addressed- the Standard Deduction. If you have unusually high deductions such as medical bills that puts your itemized deductions above the standard, then his system make sense. But, if all of your deductions, including the mortgage interest, comes beneath the standard deduction the government gives to everyone, then you would take the standard. So, you wouldn't be getting any additional deduction for the interest than you would without it. This makes it highly impractical to pay three times the value of your mortagage, if you have the extra money to pay it off more quickly.
No, I'm not a financial expert; I'm actually a complete novice when it comes to investing. But I have worked as a tax preparer, and in my own returns, I've always taken the standard deduction, since I didn't have enough itemized to top it. So, for me his recommendation makes no sense at all. You would have to evaluate your own deductions, and if you itemize, your tax savings, to make an informed choice as to whether you'd be better off investing the money, instead of making additional payments on your house. But, I think it's irresponsible for him to make a blanket statement that no one should try to pay off their house early.
That's the only thing I found wrong with the book. Other than that it taught me alot, and is well worth the read.

I have to agree with Lapis' assertion that most of the reviews appear to be fraudulent. Click on "see my other reviews" and most of them have only one review...for this book. I'm sure most amazon.com users don't post only one review. It's difficult enough to not carried away reviewing books and other consumer goods. It is extremely suspicious and I agree with Lapis that I often make purchasing decisions based on user reviews.

To be clear, I am not a friend or relative of the author, nor am I associated with his publishing house or anything like that. I am giving this a five-star review because it deserves it.

The author is great at disseminating the identities that people take on regarding finance- such as the Scrooge, the Traveler, etc. He makes it abundantly clear why we think and feel the way we do about money. He encourages us to go into our earliest memories regarding money (if they're anything like mine, they're not so pleasant). I was really impressed with this book. I just finished reading "Conscious Finance" (different authors), and this was far better. It explores the belief systems behind our actions, and then tells us how to actually CHANGE those beliefs. You know, the part most financial books leave out!

Finally, a financial advisor with the courage to tell us that financial magazines are nuts for telling us to switch around our portfolios every time there's a full moon! I always intuitively knew this, but I was grateful to have back-up from an expert.

This is not a get-rich-quick book. Hardly. I'd say it was refreshingly conservative and reaffirming- the author doesn't demand that you never take on student debt, assume that everybody reading his book must already make $100,000+ a year, or tell you that paying your kid's college tuition payment should be your no. 1 priority in life. No. He speaks to those that don't make a fortune, don't have a degree in finance, and don't always have their s*** together. Finally! I can read a book on finance and not feel guilty!

That said, he makes great points about saving and consumer debt- nothing really new, but without a bunch of complicated, left-brained, holier-than-thou nonsense. I felt encouraged after reading his book. That is a new one for me. For anyone who reads Money magazine or the like and feels like a failure because they don't have $10,000 to invest in some new stock or mutual fund every month, may I respectfully suggest reading this book. It will be an eye-opener.

Mr. Whitehead claims that one should not pay off a mortgage but use a house as leverage to invest in the stock market!!!!! A whole lot of people used the "equity" in their houses and now they've joined the millions of people experiencing foreclosure. On the other hand Suzy Orman always says, "If you have a cash cushion, pay off your mortgage because at least you'll have a place to stay if you lose your job." Who was right?

Today, people are probably more confused about financial matters than they ever were before. Newspapers, magazines, and TV do not make the subject any more understandable. The author offers valuable financial advice. The theme that I got from this book is that every individual or family is different, and they should follow a different financial plan tailored to their own needs. Some readers might find this book a bit too promotional, but it provides good advice.

- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market

The book can be a valuable mind set for many people comtemplating financial security and/or retirement. Certain sections, like the one on home ownership, are outdated and need a rewrite to reflect the housing crisis and decline in values of home ownership. In general it is a good basic education for the unsophisticated.

Like most texts on this subject, the author reflects on his many years in practical practice of what works, what does not work, what is inadvisable, what is more likely to provide good returns and security. But not all probabilities work out all the time and the book could be better balanced in describing positions taken, risk factors, and alternatives.

Read Liz Blue Eye's review if you want to understand the value of this book by someone who is not a financial adviser. In this age of mega corps, advertising conglomerates ans questionable motives, it's hard to see who the good guys really are. I also have no affiliation with Bert Whitehead, publisher etc., but I have met Bert, read his books, and heard him speak. I am familiar with his practice model and philosophy. Bert is one of those few people who had the courage and insight to follow his integrity-bound instincts and practice financial planning the way it should be done versus how everybody else was doing it. He is both brilliant and a good communicator and we are fortunate to be able to read about his discoveries and insights that he has acquired after several decades of relatively "quiet" diligent work. He is not burdened with an inflated ego or the narcissistic plague. Those looking for real insights will not necessarily agree with all of Bert's thoughts, but no one will fail to acquire new ones.
JWood, CFP, ChFC, CLU, CASL

Radical because instead of being based on how numbers or huge investors work, it's based on how people work. Easy to understand because once you know what you're talking about, it's all common sense. No schemes or gimmicks, nothing that forces you to be financial guru. Bert Whitehead shares tools and techniques you've never heard of (because they don't make money for the stockbrokers or insurance salesmen) but that have proven themselves with real clients over the last thirty years. Learn what you need to know to make yourself (not your financial advisor) more financially secure.

I give this book to every one of my new clients and require them to read it. Bert's financial smarts were acquired over 35 years of practice, trial and error. He really knows his stuff.