Pound Foolish

Product Description

If youve ever bought a personal finance book watched a TV show about stock picking listened to a radio show about getting out of debt or attended a seminar to help you plan for your retirement youve probably heard some version of these"es: Whats keeping you from being rich? In most cases it is simply a lack of belief." --SUZE ORMAN " The Courage to Be Rich"" Are you latte-ing away your financial future?" --DAVID BACH " Smart Women Finish Rich""I know youre capable of picking winning stocks & holding on to them." --JIM CRAMER " Mad Money" Theyre common refrains among personal finance gurus. Theres just one problem: those & many simi-lar statements are false. For the past few decades Americans have spent billions of dollars on personal finance products. As salaries have stagnated & companies have cut back on benefits weve taken matters into our own hands embracing the can-do attitude that if were smart enough we can overcome even daunting financial obstacles. But thats not true. In this meticulously reported & shocking book journalist & former financial columnist Helaine Olen goes behind the curtain of the personal finance industry to expose the myths contradictions & outright lies it has perpetuated. She shows how an industry that started as a response to the Great Depression morphed into a behemoth that thrives by selling us products & services that offer little if any help. Olen calls out some of the biggest names in the business revealing how even the most respected gurus have engaged in dubious even deceitful prac-tices--from accepting payments from banks & corporations in exchange for promoting certain prod-ucts to blaming the victims of economic catastrophe for their own financial misfortune. " Pound Foolish "also disproves many myths about spending & saving including: Small pleasures can bankrupt you: Gurus popular-ized the idea that cutting out lattes & other small expenditures could make us millionaires. But reduc-ing our caffeine consumption will not offset our biggest expenses: housing education health care & retirement. Disciplined investing will make you rich: Gurus also love to show how steady investing can turn modest savings into a huge nest egg at retirement. But these calculations assume a healthy market & a lifetime without any setbacks--two conditions that have no connection to the real world. Women need extra help managing money: Product pushers often target women whose alleged financial ignorance supposedly leaves them especially at risk. In reality women & men are both terrible at han-dling finances. Financial literacy classes will prevent future eco-nomic crises: Experts like to claim mandatory sessions on personal finance in school will cure many of our money ills. Not only is there little evidence this is true the entire movement is largely funded & promoted by the financial services sector. Weaving together original reporting interviews with experts & studies from disciplines ranging from behavioral economics to retirement planning " Pound Foolish "is a compassionate & compelling book that will change the way we think & talk about our money."