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Discover the Wealth Within You: A Financial Plan For Creating a Rich and Fulfilling Life by Ric Edelman

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Achieve a Healthy, Balanced, and Richly Rewarding Life!

Have your goals and dreams gotten lost in your daily struggle to earn and provide for your family?

If so, join Ric Edelman on a journey to self-discovery and personal fulfillment. In Discover the Wealth Within You, he shows you how to choose fun, enriching ... and rewarding goals and gives you a simple, straightforward plan for achieving them.

You'll discover how easy it is to create wealth, once you're headed in the right direction. After using Ric's work sheets to help you get started, you'll embark on a detailed exploration of personal investing and discover Ric's formula for creating a plan to achieve your goals, build your financial future ... and finance your dream.

Reviews (7)
As usual , Rics casual writing style presents practical wisdom on creating wealth. This volume completes my Ric Edelman librry. If I had started reading his books sooner I would be wealthy by now.
all of his books are great and his radio show is great also.
This is an interactive how-to book fulled with relevant comic strips and cartoons -- a very graphic publication. In it, he promotes reverse psychology to get what you want; my sister mastered in this type of child rearing which I could never learn.

This book is about setting goals, not just realistic, but real. Make this goal as though you were living it today. Visualize. By doing this, your enthusiasm will rise, your focus will intensify, and you'll be able to stick to your goal. Nothing is impossible. Sure enough, one day, you will make it happen, because you'll have made it important to you, vitally important.

After you set your goal, you have to plan how to achieve it. Too many retired people are so focused on maintaining a living that they sometimes forget to have a life, and become 'bored to tears!'

Lincoln said: "And in the end it's not the years in your life that count. It's the life in your years." He gives several "what-if" and "if-only" scenarios.

Whatever you choose, however you go about achieving your goals, the main end result is to be happy along the way and when you reach your destination. We may not get what we want when we want it. I was told by a stranger some years ago that God does not work on our time, but He has a plan for each of us in His own time. I'd really love to go to South America to see their pyramids. John Greenleaf Whittier said, "For all sad words of tongue and pen, the saddest are those "It might have been."

He tells us that "Bill Gates is rich because he own a whole lot of Microsoft, the software company he started. He's the richest person in America, perhaps the world." Part II shows you how to have your cake and eat it, too: take your choice, pound cake is fixed income investments and stocks; marble cake is filled with both. Cupcakes are fads. Avoid them.

Learn to be yielding, and that way, you'll exercise your strength. It sounds contradictory, but it's not. Many ancient cultures consider water the strongest substance on earth because it acts with gentle persistence rather than brute strength, and in that way manages to shape its circumstances without
destroying what lies in its path. Maybe there's a lesson you could learn from that and apply to your own life.
This is Ric Edelman's fourth HarperBusiness book on money and finance. Edelman's 400-page tome is divided into three parts:
I. Part I covers the pursuit of happiness and how to achieve your goals (122 pages)
II. Part II focuses on selecting the most appropriate investment vehicles (102 pages)
III. Part III reviews how to select the best mutual funds for your needs (123 pages)
Overall, the book is an enjoyable read and fully researched, although Part I could have been a book by itself. The layout is pleasing to the eye - numerous charts, cartoons, tables, lists, highlighted text, examples and anecdotes. Edelman supports his material with 219 footnotes (most are personal comments that should in the text rather than placed as footnotes on the bottom of the page) and 51 sourcing footnotes in the appendix.
In Part I, Edelman helps you create a list of goals by providing worksheets. Also provided is a list of questions, and activities to choose from that the reader is asked to fill in and select from, respectively, ranging from actions you'd like to do in your life to accomplishments to places and things you'd like to experience.
Edleman then covers how to achieve your goals by asking key questions. He provides insight on how to build a plan to achieve your goals and how much money is needed. He also covers the importance of not forgetting that long-term care insurance is critical.
In Part II, Edelman covers investments. He is a big fan of using the stock market to increase wealth because of the long-term positive returns, even considering the intervening bear markets. He believes that individuals that invest in cash equivalents (e.g., CDs, T-bills, and money market accounts) are harming themselves because of the ravages of inflation and the low total return compared to stocks.
Edleman provides an interesting table showing an investor's return from 1926 - 2000 based on the percentage of assets that are placed in stocks. For example, investing 0% of one's assets in the market resulted in an annual return of 5.4% (in bonds, for example). At 100% invested in stocks the annual return was 13.1%, and at 50% invested the annual return was 9.4%. Obviously, the higher percentage invested, the higher the annual return. Edelman further points out that over the last 100 years the market has gone up 70% of the time.
Edelman doesn't show 5-year periods or ten-year periods, so you cannot see the variance in different timeframes and the impact of bear markets. Over 74 years the market has gone up, but there have been 14 bear markets and some very severe ones including the most recent from the first quarter of 2000 to the current time. So, Edelman's table is not a true representation of the average investor's return. Interestingly, Edelman dismisses the current bear market as a normal bear market occurrence. This is hardly the case for many investors whose high-tech portfolios have been decimated between 50% - 90%. He does mention, later in the book, that a diversified portfolio would have softened the blow of the 2000 - 2001 bear market for many investors.
Edelman includes a chapter on why an investor should not invest in sector funds - you have to pick the right sector at the right time. He provides the performance of 13 sectors from 1984 to 2000 showing the variation in performance and the difficulty in picking the right sector.
There is another short chapter on the four ways you can buy your investments. He covers mutual funds, annuities, hiring an investment manager, and doing it yourself.
In Part III, Edelman spends 31 pages explaining Morningstar's star rating system, category rating, and style boxes. He believes that most investors pick their funds with the highest star ratings, but are disappointed when future performance is less than expected.
Edelman demonstrates that high star ratings do perform well in the future and shouldn't be used for predicting future returns. His long-winded explanation of Morningstar is a bit of overkill. Also, in early May the firm announced a change to their rating system to be implemented in the near future. So the value of this chapter may be minimal.
Edelman then spends 26 pages on how an investor should select mutual funds by understanding the principal of the standard deviation of different funds. He also provides a chart showing how long it takes to recover from different percentage losses (e.g., a fund losing 80% of its value will take 14 years to break-even assuming a 12% annual return). Edelman favors actively managed funds to index funds because, he says, that the latter haven't outperformed them.
Additional chapters in Part III cover how many funds do you need to be diversified, and active vs. passive management.
Edelman has strong opinions on how to invest. While I always don't agree with them, at least he presents his case with facts, statistics, and examples. Overall this book should provide the reader with useful insights into planning life's goals, enjoying them, and which investments to avoid in order to have the financial assets needed to live a good life.
I'm tired of boring books with columns of statistics, or the unsubstantiated ravings of "feel good" advisors. I bought this book because I enjoyed Edelman's "Financial Security in Troubled Times" and I was not disappointed. It is solid advice, and very well written. Yes, the author is humorous and entertaining, but who really wants to read 300 pages without any effort to smile? The cartoons that spice up the statistics are well chosen, and they reinforce the points. If you are looking for a textbook with which to put college students to sleep, look elsewhere. If you want to better understand how to set your goals, achieve them, and feel that you are in control of the financial products and the practices, then buy this book. But don't expect to recoup part of your cost by re-selling the used volume - you will want to keep this book, use and re-use it. And if you have a brother-in-law that needs a little help, buying him a copy will be cheaper than making a loan.

ISBN: 0060008334

Rating: 4.9/5

Votes: 829

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ISBN13: 978-0060008338

Publisher: Harper Paperbacks; Reprint edition (April 1, 2003)

Language: English

Subcategory: Investing

Pages: 400

Discover the Wealth Within You: A Financial Plan For Creating a Rich and Fulfilling Life
Business & Money
Author: Ric Edelman
Title: Discover the Wealth Within You: A Financial Plan For Creating a Rich and Fulfilling Life