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What’s on financial planners’ must-read list?
By Rachel Pleasant
Staff Writer
Next to family and friends, financial planners could be the most important people in our lives.
These people take our earnings and make them grow, allowing us to do the things we always wanted to do: travel, put our children through school or buy that dream house.
But what makes these number crunchers tick, and how can we, their clients, better understand the way they think?
What about reading the books they read?
The Charleston Regional Business Journal surveyed a handful of the area’s financial planners to find out what books are on their must-read lists.
Look for security
Larry Wetherford rattles off the intricacies of things such as a Roth-IRA with ease but also offers literary recommendations for those not so financially minded.
Wetherford, who has worked in financial services in Charleston for 26 years, tops his list of reading suggestions with “Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money—That the Poor and Middle Class Do Not!”
The book, by Robert T. Kiyosaki, an investor and businessman, and Sharon L. Lechter, a CPA, teaches its readers to approach wealth realistically, Wetherford says—a good lesson for any investor.
“I liked some of the philosophies about striving to become safe and secure, then comfortable, then rich. A lot of times, people try to put the cart in front of the horse, and they need to work on being safe and secure. Once they get adequate insurance and savings for emergencies, then they do the more exotic things,” says Wetherford, who works out of an office at 100 S. Main St. in Summerville.
Among those more exotic financial moves, Wetherford says, is buying real estate and flipping it, and other transactions that should not be attempted by a novice. Another example is getting into the stock market. Starting out, investors should opt for mutual funds.
Take the old advice
For a personal finance overview, Justin Gore, a financial adviser with Charleston Asset Management at 884 Orleans Road, says he relies on “The Intelligent Investor” by Benjamin Graham.
Though originally written nearly 50 years ago, Gore says this book still holds an important place in the world of personal finance.
“It’s probably the best book out there. It goes over everything. It goes over the basics and the more complicated things and all the theories,” he says.
But Gore cautions that “The Intelligent Investor” is not for everybody.
“It’s not storyline-based,” he says. “It’s not something that you’ll want to read every night before you go to bed.”
Gore says he uses the book regularly, pulling it out as reference material.
“It’s a good all-around financial Bible,” he says.
Find a good story
For those who prefer a story with characters and plot, Wayne Cassaday, a certified financial planner at Covenant Financial, 745-A Johnnie Dodds Blvd. in Mount Pleasant, says to check out “The Wealthy Barber” by David Chilton.
The book takes place in a barbershop, where a variety of characters discuss such important financial issues as savings, insurance, wills, buying a home, retirement and paying for higher education.
Not only is there a wealth of information to be gained, Cassaday says, but you’ll hardly notice you are reading about something as serious as financial well-being.
“It’s a good story. It’s a fictional story that gives a lot of the facts and a lot of the reasoning behind saving early, being insured and diversifying investments,” Cassaday says.
“This is literally a story about a barber who teaches people. It’s real easy to read; it’s not technical. It’s a novel.”
Most importantly, Cassaday says, the book provides a real-life perspective to often drab numbers and timetables.
Avoid the trends
When choosing a personal finance book, beware of trends, says Catherine Latto, a certified financial planner at Charleston’s Latto & Associates, 1942 Sam Rittenberg Blvd.
“They’re like diet books,” Latto says. “There are so many trends.”
When choosing a personal finance text, if you are looking for a general overview, stick with the basics, she says.
For that, she suggests “Personal Finance for Dummies” by Eric Tyson or a similarly basic book with easy-to-understand language.
Keep in mind you’re specific circumstances, whether you’re a young professional dealing with student loans or a parent putting children through college and looking forward to retirement, Latto says.
Choose books that are tailored to your needs to avoid being overwhelmed with information you don’t need right now, she says.
Rachel Pleasant is a staff writer for the Business Journal. E-mail her at rpleasant@charlestonbusiness.com.
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