Stop Investing Like They Tell You

 

Stephen Spicer's book "Stop Investing As They Tell You" is a helpful manual for overcoming the potentially disastrous errors in an investment portfolio. 

Author Stephen Spicer has over ten years of experience in the financial sector and is a licensed financial planner. He questions the conventional wisdom of a stock-and-bond-only investment plan, arguing that it is founded on false information and falsehoods.

He analyzes and debunks 16 myths that are frequently spread by experts, commentators, and academics. Aside from that, he offers alternate approaches and plans that are more suited to the objectives of individual investors as well as the realities of the current market.

Here are some of the myths that he debunks in the book:

• Myth #1: You need to diversify your portfolio across different asset classes.
• Myth #2: You need to rebalance your portfolio periodically to maintain your target allocation.
• Myth #3: You need to buy and hold your investments for the long term.
• Myth #4: You need to invest in index funds or exchange-traded funds (ETFs) to reduce fees and taxes.
• Myth #5: You need to follow the advice of experts or use robo-advisors to manage your portfolio.
• Myth #6: You need to avoid market timing and stick to your plan regardless of market conditions.
• Myth #7: You need to invest in bonds or annuities to generate income and reduce risk.
• Myth #8: You need to invest in gold or other commodities to hedge against inflation and currency fluctuations.
• Myth #9: You need to invest in real estate or REITs to diversify your portfolio and benefit from appreciation and rental income.
• Myth #10: You need to invest in alternative investments such as hedge funds, private equity, or cryptocurrencies to boost your returns and reduce correlation with the market.
• Myth #11: You need to invest in socially responsible or environmental, social, and governance (ESG) funds to align your portfolio with your values and make a positive impact.
• Myth #12: You need to invest in emerging markets or international stocks to capture growth opportunities and diversify your portfolio.
• Myth #13: You need to invest in value stocks or growth stocks depending on your risk tolerance and time horizon.
• Myth #14: You need to invest in small-cap stocks or large-cap stocks depending on your risk tolerance and time horizon.
• Myth #15: You need to invest in active funds or passive funds depending on your risk tolerance and time horizon.
• Myth #16: You need to follow the 4% rule or the bucket strategy to withdraw money from your portfolio in retirement.

These beliefs, according to Spicer, are founded on antiquated presumptions, poor reasoning, or skewed statistics. He demonstrates how they might result in less-than-ideal performance, increased risk, decreased revenue, increased taxes and fees, less liquidity, decreased flexibility, decreased control, decreased satisfaction, and decreased confidence.

He proposes a different approach that he calls "the Spicer Method", which consists of four steps:

• Step 1: Define your goals and objectives clearly and realistically.
• Step 2: Design your portfolio based on your goals and objectives, using a combination of stocks, options, cash, and insurance products.
• Step 3: Implement your portfolio using a disciplined process that involves screening, selecting, buying, selling, monitoring, adjusting, and reviewing your investments.
• Step 4: Evaluate your portfolio regularly using objective criteria such as performance, risk, income, taxes, fees, liquidity, flexibility, control, satisfaction, and confidence.

Spicer asserts that his approach can produce superior outcomes to the conventional paradigm. He gives examples and case studies of how he has used his approach on both his personal portfolio and the portfolios of his clients. Additionally, he offers resources and tools that you can utilize to apply his strategy on your own.

The book is written in an approachable and readable language that makes it simple to read and comprehend. It is packed with useful suggestions and steps you can do right away. Also, it is jam-packed with graphs, tables, checklists, quizzes, exercises, summaries, key points, advice, cautionary tales, quotations, stories, anecdotes, jokes, references, connections, and resources.

Everyone who wishes to increase their investment portfolio and accomplish their financial objectives can benefit from reading this book. This book has something important and practical for everyone, from novices to seasoned investors.

FAQ

Stephen Spicer criticizes the traditional investment strategies for being too focused on a stock-and-bond-only investment strategy. He believes this approach has potentially ruinous flaws.

The book focuses on challenging the traditional paradigms of investment and guides investors through a comprehensive understanding of the 16 most egregious myths regurgitated throughout the financial industry.

Stephen Spicer advocates for a more comprehensive and personalized approach to investment. He built Spicer Capital to address his clients' investment and financial planning concerns.

The book offers practical advice on how to protect and grow life savings in today's chaotic, ever-shifting market.

Stephen Spicer views the financial industry as having a broken system that often repeats the same myths and misconceptions about investment.

If you want to learn more about the book or the author, you can buy the book through the link below: