- Paperback: 304 pages
- Publisher: Penguin Canada; 1 edition (Jan. 9 2007)
- Language: English
- ISBN-10: 0143055437
- ISBN-13: 978-0143055433
- Product Dimensions: 13.4 x 2 x 20.8 cm
- Shipping Weight: 227 g
- Average Customer Review: 6 customer reviews
- Amazon Bestsellers Rank: #282,421 in Books (See Top 100 in Books)
Naked Investor Revised Edition: How To Beat The Odds With The Investment Industry Paperback – Jan 9 2007
Customers who bought this item also bought
No Kindle device required. Download one of the Free Kindle apps to start reading Kindle books on your smartphone, tablet, and computer.
To get the free app, enter your mobile phone number.
About the Author
JOHN LAWRENCE REYNOLDS is the author of almost two dozen non-fiction books, including Bubbles, Bankers and Bailouts, the national bestseller The Naked Investor, and Free Rider: How a Bay Street Whiz Kid Stole and Spent $20 Million, winner of the National Business Book Award. He has also won two Arthur Ellis Awards for best mystery novel, a National Magazine Award, and an Author’s Award from the Foundation for the Advancement of Canadian Letters. He lives in Burlington, Ontario.
Top customer reviews
There was a problem filtering reviews right now. Please try again later.
The people who probably won't like the book are investment advisors who prefer building their own wealth over the wealth of their clients through the sale of expensive, ill-performing mutual funds carrying high MERs and DSCs (the book explains these terms and why they are to be avoided by novice investors). Reynolds' choice of title is based upon the fact that Canadian retail investors lack much of the protection from abuse enjoyed by their confreres in the U.S., not the least of which is a lack of a national securities commission, and the presence weak-kneed regulators.
Much of the book's appeal is based on Reynolds' use of real people and their actual experiences to illustrate the pitfalls facing small investors if they are not paying attention and are relying on government and industry regulators to protect them. Many of the stories are disturbing in their description of alleged investor abuse. One of the author's points is that effective regulation of the industry in Canada is badly needed.
Canadian investors need to know how to protect themselves by understanding how financial advisors and brokers are remunerated and how a commission-based industry reduces many advisors to the level of used car salespeople. This leads to the book's philosophy of conservative investing as opposed to speculative risks, especially as investors grow older and come closer to retirement age. The author's proposal to balance age with the percentage of guaranteed fixed-income investments - a rule with which virtually every investment guide concurs - is designed to ensure that the money accumulated over a lifetime of RRSP investments is there when it's needed.
My financial advisor, whose ethics and skill I respect, loved the book because it substantiates everything that he uses in assisting me and other clients. I find it difficult to believe that other advisors like him, who believe they can succeed only when his clients succeed, would disagree.
Reynolds' mantra in the book is worth noting and repeating: "Never forget whose money it is." It's not the advisor's and it's not the brokerage or investment firm employing him/her. It's the RRSP owners, and they need to read this book!
Just before I read it, I had issues with my own financial adviser. When I questioned him on why he choose a particular mutual fund for me he had no response. Out of a list of 200 funds, that were listed in alphabetical order, he chose the one that was the first on the list. Then there were three choices, A, B, or C.... his choice was A. Out of frustration I pulled the funds, and was rewarded with back end fees.
The only reason I did not give this book the five stars was that it did not give me a solution to problem. It left me frustrated with an industry, and I was now once bitten twice shy and thanks to Reynolds' , and my own experience, I was too afraid and mad to invest via an Financial Planner.
I finally did find other ways to invest, but to be truthful, I lost a lot of compound interest due to my early departure. Nonetheless, there are good books that will help you by-pass your financial adviser, and directly invest into the market. (Relax: It isn't rocket science) Read Derek Foster's books if you are Canadian, and Anthony Robbins' 'Master the Game of Money" if you are American. (best to read them all)
Reynolds does a good job and offers the 'Why' you need to change, and the 'Why' you need to be aware and weary... but then don't be glum or mad. Keep reading to find out 'How' to directly invest from others. No need to be naked, just learn to pull those pants on by yourself!
As the book says, it's scary what you don't know you don't know.
I'm an educated, experienced investor, but some of what you read is quite disheartening, such as the impotence and lack of protection provided by various government and industry groups whose stated goal is to protect individual investors. Sadly, its all about protecting themselves and taking an ever growing percentage of your money.
This author did an excellent job uncovering and conveying the realities of the investment industry. I found it ironic that the US, despite many publicized investment scandals over the years, still provides better investor protection and hands out tougher penalties than here in Canada. The SEC seems to have some teeth, while Canada doesn't even have an equivalent commission in place.
The anecdotes about elderly and novice investors losing large amounts of money as a result of their advisor's 'expert' advice are poignant and sad.
Warning, reading this book will tick you off!
Want to see more reviews on this item?