Finally got around to reading The Wealthy Barber, which was one of the most popular selling books on financial planning in Canada. sold hundreds and hundreds of thousands of copies, maybe a million.
this is from 1989, and reading the 27th printing in 1993. there is an updated version, it still sells, and he talks about etfs, have not read that one. A friend bought this cheap and decided to read it...
The story is about a man who want financial advice, so he goes on a monthly basis to (you guessed it the wealthy barber, and a few friends who hang around the shop). he goes monthly (chapter) with his sister (business woman), and a friend who works at a refinery in Sarnia, also rent out properties.
Good
- easy to read, more like a conversation
- talks and gives easy examples of compound interest, and how quickly you money can grow, he uses 10-15% average returns but this was the 80s, 90s,
- Also good on insurance the type you need, ect.
- covers why you need a will,
- retirment planning, why you should save 10% of your earned income and also contritube to your retirement, believe it is harder for most cdn. to find 10% as most cdn. do not max out their RRSPs.
- owning a home vs. renting, and what to look for, also things to consider to be a landlord.
BAD TERRIBLE
- there was not many etfs, so he cannot talk about that in the 80s, 90s, now he does. and the mutual fund was used by most investor starting out, I used them for half.
- he talks about int. funds, when cdn. funds would have done better.
- he talks about researching the funds, but then does not say about load or no load funds or overall mers,
some load funds at this time charged 2-7% front end, and 9.5% back end funds. also mers of 2-3% many of them to be closet indexers.
he probably sold many books through brokers who at the time were selling high priced mutual funds, with plenty of charges and medicore performance.
the fact that he does not address load funds and the charges, at least to negotiate them or better avoid them is terrible.
also drip and spp stocks were availabe and many cdn. banks returnd 10-15% counting div annually for a decade and more... the fact he never address this is a failure.
the wealthy barber would not be so wealthy giving many of his gains to the fund companies.
instead of paying lower fees, or none, and buying into cdn. drip/spp stocks like the banks...very easy to set up prior to 9-11.
grade 5-10 maybe even 4-10
thanks
selkirk
this is from 1989, and reading the 27th printing in 1993. there is an updated version, it still sells, and he talks about etfs, have not read that one. A friend bought this cheap and decided to read it...
The story is about a man who want financial advice, so he goes on a monthly basis to (you guessed it the wealthy barber, and a few friends who hang around the shop). he goes monthly (chapter) with his sister (business woman), and a friend who works at a refinery in Sarnia, also rent out properties.
Good
- easy to read, more like a conversation
- talks and gives easy examples of compound interest, and how quickly you money can grow, he uses 10-15% average returns but this was the 80s, 90s,
- Also good on insurance the type you need, ect.
- covers why you need a will,
- retirment planning, why you should save 10% of your earned income and also contritube to your retirement, believe it is harder for most cdn. to find 10% as most cdn. do not max out their RRSPs.
- owning a home vs. renting, and what to look for, also things to consider to be a landlord.
BAD TERRIBLE
- there was not many etfs, so he cannot talk about that in the 80s, 90s, now he does. and the mutual fund was used by most investor starting out, I used them for half.
- he talks about int. funds, when cdn. funds would have done better.
- he talks about researching the funds, but then does not say about load or no load funds or overall mers,
some load funds at this time charged 2-7% front end, and 9.5% back end funds. also mers of 2-3% many of them to be closet indexers.
he probably sold many books through brokers who at the time were selling high priced mutual funds, with plenty of charges and medicore performance.
the fact that he does not address load funds and the charges, at least to negotiate them or better avoid them is terrible.
also drip and spp stocks were availabe and many cdn. banks returnd 10-15% counting div annually for a decade and more... the fact he never address this is a failure.
the wealthy barber would not be so wealthy giving many of his gains to the fund companies.
instead of paying lower fees, or none, and buying into cdn. drip/spp stocks like the banks...very easy to set up prior to 9-11.
grade 5-10 maybe even 4-10
thanks
selkirk
Last edited:
