Canadian Finance Blog

Book Review – Master Your Money Management

Posted: 18 Oct 2010 02:00 AM PDT

Master Your Money Management: How to manage the advisors who work for you, is the second book I’m reviewing in the “Master Your” series by The Knowledge Bureau. The previous title, Master Your Taxes, was written by Evelyn Jacks. For Master Your Money Management, The Knowledge Bureau used the expertise of Jim Ruta, who began as a financial advisor in 1977 and is now coaching financial advisors as president of Expert Institute.

The most important chapter may be Selecting a Great Advisor. In it, Jim points out what to look for in an advisor, ensuring that they specialize in you by asking the right questions, know their material and speak in plain language. There are also eight questions you should ask when interviewing a potential new advisor.

One part I question, but can’t exactly disagree with, is calling it a “myth” that fee-for-service is the only way to go. As the book mentions, there are commission based advisors that do a great job for their clients, and likewise, there are fee based advisors that may not be so great. However, finding a great fee-only financial planner removes any of the inherent conflict of interest that advisors have when they can make more money for themselves by recommending certain investments.

The chapter on monitoring your advisor and your results includes a lengthy advisor scorecard, with simple yes or no questions to help you decide if your advisor is helping you achieve the results you are hoping for. If they are not cutting it, or if some of the listed danger signs sound familiar, there is also advice on how to fire your financial advisor.

I recommend Master Your Money Management to those that realize they need the help of an advisor, but want to be part of the process. By working with your financial advisors, and not simply handing over your money, you will both be able to work towards the best result for your unique situation.

Book Giveaway

To enter to win Master Your Money Management: How to manage the advisors who work for you, leave a comment (use valid email address so I can contact the winner) on this post before the end of day on October 24th.

After leaving a comment so that I know you're interested in the book, you can get bonus entries by doing either (or all three) of the following:

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This contest is for one copy of Master Your Money Management: How to manage the advisors who work for you, and is open to anyone in Canada. The deadline for entries is Sunday, October 24th at 11:59PM MST and the winner will be contacted by email on Monday. There will be one winner, chosen with a random number generator from Random.org. If the winner does not reply within one week, a new name will be drawn. Good luck!

Book Review – Master Your Money Management originally appeared on Canadian Finance Blog on October 18, 2010.

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