|
FRANK'S REVIEWS for the NJPCUG |
|
|
Book: NET WORTH -Creating and Maximizing Wealth with the Internet Author: Edward J. Renehan Jr. Publisher: Jamsa Press 1996 498 pages, $49.95 list price This book is full of important information on the broad range of personal finances. There are many books on this subject, but they present many subjects which, therefore, are afforded only an overview and further data gathering is necessary. That is where this book stands out. It is augmented by a list of over 950 informative web sites. The book also includes a CD with an electronic version of the full book and displays of the software programs listed. The “Creating” part of the title is a bit misleading. As Ray Charles sings “You gotta have something before you can get something. How you get the first is still a mystery to me”. However, this book does give tips on reducing expenses and using the savings to fund investment for capital appreciation. The author discusses determining one’s net worth and future requirements. Stocks, options, commodities, bonds and mutual funds are covered in individual chapters with consideration of acceptable risk in accumulating capital. There are some interesting web site tutorials listed in this area. Insurance issues are then covered, including determining how much insurance to have. Policy terminology, the different kinds of life insurance, health insurance, the important but often over-looked disability insurance as well as property and liability insurance are discussed. Some may be interested in the sites for yacht insurance - good for them. The author considers a home-mortgage (with its tax advantages) and education loans as good debt since they improve one’s life. Aspects of home-buying are covered with discussion of renting versus buying, condominiums and co-ops, use of agents and seller financing. A personal note of caution here: colleges require a larger share of children’s assets to pay for college costs, diminishing the good intents of many gift-givers. Also, the author does not discuss the tax-advantages of home-improvement mortgages versus non-advantaged, fairly high college-loan interest rates. The web site list includes scholarship and loan search sites, most of which charge a fee. He warns against the slippery slope of credit card debt at exorbitant interest rates, especially at high levels and gives advice on lowering this debt load. Car financing is discussed, comparing direct purchase with leasing and borrowing. Interestingly, the author recommends getting financing from other than the car dealer unless there is a special financial sales incentive program. Once we have financial resources the government invariably wants some of it. So there is a discussion on taxes, primarily Federal, and tax-timing, record keeping and audit avoidance. There are tips on electronic filing of the Federal income tax return. Tax-sheltered investments are covered, basically saying that under recent tax laws most of these have been phased out, especially for the middle-class. Then follow sections on retirement planning, demeaning the usefulness of Social security retirement benefits and recommending maximum use of employment-related options such as 401(k) and Keough Plans. With foresight and effort you probably will leave an estate - unless you decide to enjoy spending it all on yourself. There is material on the ramifications of the different kinds of property ownership and dual ownership titles as well as material on trusts, including living trusts, and the emphatic need for proper, professionally crafted wills for proper asset distribution and to minimize estate taxes on the first and second generations. Yes, it is more complicated than we thought. The book discusses home-banking and bill paying, including security. The Appendix is a cornucopia of downloadable financial shareware and freeware. As mentioned above, the CD includes a listing of the programs and sites, plus it shows a screen to give a better idea of the working program. All in all, the book covers much financial ground that is significant to our personal financial well-being and the extensive web site listings afford easy access to information that is needed to supplement such a wide-ranging book. Many of the web sites require a fee or membership, but to give a flavor of the listings I have noted a few that I tried and thought interesting and which carry no fee. However, this is a rapidly changing environment and many of the book’s sites no longer exist. SITE LIST: (all at “http://www.” unless noted)
|