Medicated Money

Thursday, June 08, 2006

Book This - Smart And Simple Financial Strategies for Busy People

Our third book we decided to review is 'Smart and Simple Financial Strategies for Busy People' by Jane Bryant Quinn. We decided to read this book after it was a book that was on the 'Color of Money' book club in the Washington Post. Overall, the title fits the book perfectly. Quinn offers personal finance advice on a simple and concise platter. From how to get starting in organizing one's personal finance to buying the right type of insurance, 'Smart and Simple Financial Strategies' explains just enough for the common person to get buy.

It is hard to determine if this book is too superficial for most readers due to our personal feeling that one needs to spend a considerable amount of time to make sure their financial house is in order. However, Quinn feels that most people want the simplest, straightforward plan to reach financial stability, and this book provides that plan.

She preaches the benefits of automated deposits; set it and forget it. She recommends Target Retirement mutual funds and Lifecycles mutual funds exclusively over all other investment vehicles. Everything that Quinn talks about and recommend is the fundamental advice heard all throughout the personal financial world. With her guidance, you are not going to see results immediately. However, after years of following the smart, simple plan, you will have financial goals met.

To be honest, we didn't find any of the information new except for one small, important concept. Quinn discusses the importance of reallocating investment accounts often. After market prices change, Quinn recommends rebalancing your investment portfolio to stay at your home base. Your home base is the asset allocation you feel comfortable with. She recommends for most a 70% stock/30% bond portfolio. She does go in more detail about how each % should be broken up. Personally, we created our asset allocation; however, we were planning on revisiting it on a annual basis. However, with Quinn's advice, we are going to be looking at it a little more closely.

Overall, we would give 'Smart and Simple Financial Strategies for Busy People' by Jane Bryant Quinn 4 out of 5 stars. We would recommend the book for those who are looking for a beginning step into the personal financial world. It is very basic, but like the title says, it is a smart, simple plan to winning that is needed in today's world of financial confusion.


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