Edelman - The Truth About Money

For Jean

whose love, boundless support, endless patience, intuitive
understanding, deep personal sacrifice, endless patience, total dedication,
ceaseless work, endless patience, unwavering commitment, and
endless patience serve as my inspiration.

I am both grateful and humbled by her presence in my life, and
whatever success I attain is my tribute to her.

To My Dad

who taught me everything I know about business

and To My Mom

who let him

Contents

Save for your future is advice that cannot be given or absorbed at too early an age. After that, the list of things we need to know just keeps growing.

Unfortunately, many of us have trouble keeping up with that list. The Internet allows a million experts to spread their wisdom even if they have no solid basis in analysis, knowledge, or fact. Most of us get our financial advice from friends and family, according to 20 years of Retirement Confidence Survey data. Children learn from watching their parents, according to the ASEC Youth and Money Survey, yet most parents report that they need help and that they do not think they are good money role models.

Even for those of us who were lucky to have good financial role models growing up, like I was, thanks to my parents, the rules of money have changed. Mom and Dad never allowed themselves to live beyond their means, even when it meant going without. They loved life, yet lived frugally saving, investing, buying insurance to protect against risk, and managing their money as though they would live to 90. Yet even that conservative estimate wasnt conservative enough, because Mom and Dad both lived until just shy of their 94th birthdays.

In other words, we all need help.

Over the past two decades, I have experienced Ric Edelman helping individuals of all ages get it when it comes to money. Whether as a leader in the Jump$tart Coalition for Personal Financial Literacy taking clear messages to kids, or his radio and TV shows and seminars taking the message to all ages, Ric teaches with humor, stories, and the facts, in a way that makes it fun.

The Truth About Money is a Ric Edelman guidebook that shows the way. At a time when money is freely available in many forms, making it easy to build debt instead of an emergency fund let alone savings to invest Ric shows you how to save money, make a financial plan, and grow what you save. He teaches you how to protect you and your family from the financial risks we all face, whether it be a market crash or a personal crisis such as disability or the sudden need for long-term care.

For a young person, reading this book may be the first step in setting a course to personal control and financial success. For those in their forties or fifties, it may inspire you to take more control of your financial life and to better plan ahead. For the person age sixty or more, it can show you retirement and estate planning and help you figure out how to make certain your money lasts as long as you do. Whatever life stage you are in, The Truth About Money can help you on the road to success.

This fourth edition of The Truth About Money deals with investing, retirement planning, home ownership, estate planning, and what others have un-artfully termed the decumulation phase the last 30, 40, or 50 years after you stop working and receiving a paycheck. This book should become your companion and money life resource. Read it carefully, and use it as a guide to the questions you should be asking, the plans you should be making, and the risks you should be considering.

Ric Edelman brings an unparalleled passion to helping individuals and families find financial control and independence. Make this book the next birthday gift to everyone in and out of your family, for everyone needs to know The Truth About Money.

Dallas L. Salisbury, June 2010
President and Trustee, Employee Benefit Research Institute
Founder, American Savings Education Council and Choosetosave.org