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"The
savage truth on money is…if it were that easy to be wealthy, we’d
all be rich!" Those words come from nationally recognized
financial authority Terry Savage.
In
her book "The Savage Truth On Money" she continues to
promote the strategies for achieving financial independence first
mentioned in her previous book, "Terry Savage’s New Money
Strategies For The ’90s." The "New Money
Strategies" book is a primer for the beginning investor, while
"Savage Truth" "is meant to lend perspective to those
decisions you’ve already made, or postponed making about your
financial future."
Learning
to create wealth is one of this book’s important themes. Savage
writes, "Real wealth is created by recognizing and capitalizing
on change…you must at least be flexible and aggressive enough to
swim with the tide. And you must be alert enough to recognize when
the tides are changing so that you don’t get caught in the
undertow."
Before
analyzing the different components of money investment matters,
Savage applies some time-tested rules for effective management of
your financial resources. She cautions that one should be aware of
the great risks of money management: being the first one in and the
last one out. Remember that what can hurt you the most is what you
think you know that isn’t so; don’t miss the online revolution;
and most importantly, TIMING IS EVERYTHING.
The
book’s 12 chapters address almost every aspect of money management
and financial planning and are written for the interested layperson.
Chapter 5’s analysis of the stock market has information on the
risk factors involved in investing in stocks, how to build wealth
through the stock market, timing the market versus buy and hold, and
the psychology of investing.
The
stock market chapter leads into Chapter 6’s discussion of mutual
funds. Savage explains what constitutes a mutual fund and explores
their advantages, disadvantages and risks. One important passage
involves the misconceptions that surround mutual funds. She reminds
the reader that mutual funds expose, not protect you from the
market; that it is your responsibility to sell (not the fund manager’s);
and past performance is no guarantee of future success.
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this review]
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One
important reason for building wealth is to prepare for retirement.
In Chapter 8, Savage is blunt about planning for retirement:
"You can never have too much." Her three principles of
retirement offer sage advice for any investor: It doesn’t take a
lot to make a lot; time is on your side; and better late than never.
She analyzes the different vehicles for achieving a secure
retirement, including 401(k) plans and IRAs (Roth and traditional).
For
people who have other considerations to weigh in their financial
planning, she explains some of the best options to pay for college
and insurance policies. At the top of her to-do list for paying for
college: Don’t be intimidated by the high cost, and start saving
as early as possible.
Her
chapter on the insurance "best bets against the odds"
covers life insurance, annuities and specialty policies (such as
disability and liability). Always figure the amount of life
insurance money you will need to provide for your family, and buy
policies only from the highest-ranked companies.
Savage
rounds out the book with information on managing spending and debt,
wills and estates, and money matters for women.
"The
Savage Truth On Money" is an excellent source to help chart
your course through the rough waters of financial planning and money
management. The book’s easy arrangement invites the reader to pick
and choose any topic of interest. A listing of mutual funds
(complete with toll-free numbers and web addresses) and a subject
index are also included.
In
the last paragraph of the introduction, Savage explains why she
wrote this book: "It is designed to help you understand the
basics, sort out the advice, learn how to find the most current
information, and make judgments about that information in order to
make smart money decisions." "The Savage Truth On
Money" is recommended for anyone who is interested in current
information on money management, financial planning or investing.
For
more information, visit the library at 725 Pekin St. or call (217)
732-8878.
[Richard Sumrall, Lincoln
Public Library District]
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