Review by Richard F. O'Boyle, Jr., LUTCF, MBA
There are literally hundreds, if not thousands of books that try to say "what, when and how" of retirement planning, but few can tell us "why". "Retirementology: Rethinking the American Dream in a New Economy" by Gregory Salsbury, Ph.D. introduces the reader to the field above and coming of "investor psychology" which helps explain why treat money the way we do.
We all make mistakes - and this book is to help readers understand why: do not sell losing investments and reduce our losses; spend differently with a credit card we do with cash; feel richer when the housing market appreciated; and many other common misperceptions about money working to sabotage our financial security. It is easy to highlight the common mistakes of money because there are so many of them. But it is difficult to solve these deep-seated problems.
What makes the book by Dr. Salsbury is so admirable in his footsteps methodical and detailed action aimed at reorienting the reader of these psychological traps practical suggestions.
Many of my clients want me to "run the numbers" and tell them how much to save and where to put it. I often meet resistance when they recommend you make changes that go against their deeply rooted beliefs about money - sometimes the strategies used by their Depression-era parents. Money is always an emotional issue because we work so hard for it and most people feel they do not have enough, with a deep sense of insecurity. When a counselor asks the client to make changes outside your comfort zone, which breeds fear and suspicion.
"Retirementology" gives the reader a useful and entertaining foray from time to time in the field of retirement planning. I can appreciate attempts to convince the reader to better understand himself and to take the necessary actions to avoid future errors. I wish more pre-retirees in the general public could add this book to the pile of repetitive "how much" planning books and understand the "why" better.
(C) 2012 Prism Innovations, Inc. All rights reserved.
0 comments:
Post a Comment