Most helpful critical review
24 of 31 people found the following review helpful
About getting old, not rich!
on January 29, 2013
This book has nothing to do with getting rich. Rather, it's about getting old. In fact, Chapter 10 (only half way through the book) is entitled "Passing On," and is about what to do if you die before your investments have matured, and how to get ensure that your family gets the most of your money. The author even states "TFSAs can make you a millionaire! Not in one year, or five, or even ten. But if you're young enough stay with the plan, it certainly is an attainable goal."
One of the book's saddest moments is when he tells the (fictional) story of a 71-year old woman who opens a tax-free account because it's "never too late". She contributes 5500 a year for 5 years (27,500) and at the end of the term the author says, and I quote, "she has a tax-free nest egg of 31,911." Excuse me, but waiting until I'm 70 to save money on the draws I make on my RRSP by re-investing them into a TFSA at a dismal return of less than 4 thousand dollars over FIVE YEARS does not even begin to describe "rich."
Granted, this book does explain what a TFSA is (which you can look up for free on the government website or simply ask your bank, it's not rocket science) and then explains how compound interest works when applied to a nominal sum of money being contributed monthly and then letting it sit for an extended duration. It also explains some of the other uses for the account, such as stock investing, but fails time and time again to delve into substance and present any information of real use.
I guess by "rich" I was expecting some of this guidance, and tricks about how to maximize the returns, places to invest, not to invest, and how to ensure you maximise your income and your contribution, not have compound interest over 50 years explained dozens of times.
The pages were packed with tons of hypothetical situations showing how a, say, 6-15% return plus maximum contribution over 30-50 years looks (pretty good!) but little or no information about how to get there. He just says, when referring to stock portfolio management, for example, that you have to know what you are doing in the stock market and be comfortable with the risk. Hmm... Isn't this why I bought this book?! Care to share what you've learned? I guess not. (I think the reason here is because he doesn't know. His real money-making strategy is to sell hundreds of thousands of copies of "wealth-building" books. Where is the book that explains THIS with honestly? Perhaps I'll write it for him and reap the benefits.)
I guess if something seems too good to be true, it probably is.
TL;DR: About getting old, not rich. I want my 10 dollars back.