Take Control of Your Money Summary

Take Control of Your Money

The first forty percent of this investment guide covers some of the basic information needed by the novice investor: sources and uses of economic information, the different types of financial services, and the varieties of investment vehicles.

The basic principles presented here (maximize liquidity, consolidate assets, know where your money goes, avoid tax shock, and plan for long-term and short-term financial needs) are designed to stress flexibility.

These five rules are then applied to a wide range of circumstances, ranging from single parent to two-income family to couples living together. Much of the advice is directed at those age twenty-five to forty-five; the needs of those age forty-five to sixty receive less attention. While most of the suggestions are designed to be as broadly applicable as possible, the advice offered is generally suitable for younger individuals with relatively high incomes.

The book does not contain sophisticated financial advice--it is more a primer for the relatively financially unsophisticated--and, in spite of the title, this is not an invest-it-yourself guide. Indeed, the authors frequently suggest relying on the counsel of professionals.

Since this book was written before the (anticipated) passage of the tax reform package, one should be careful in using some of its tax avoidance suggestions.