What do I really think about ‘The Barefoot Investor’? – by Steve May

If you’re in any way interested or concerned about getting ahead financially, it’s likely you’ve heard of the book called The Barefoot Investor.

As a Financial Planner who works with many people on their budgeting, superannuation, investments and overall wealth creation strategies it’s a book many of my clients have read and quoted back to me.  The author, Scott Pape, raises some great points and any book that gets people interested in managing their financial affairs has to be a good thing in my opinion.

Paying down debt, investing in superannuation and having a simple banking structure are all great concepts, although the book is probably a little too general and assumes all people are in a position to follow the structures and strategies outlined.

Where the Barefoot Investor goes wrong big time though, is in recommending that people use a specific superannuation fund, Host Plus, and a very specific investment option within that super fund.  It’s not responsible, in my view, to recommend a specific investment in a forum that people are likely to follow.  Scott Pape cites the extremely low fee of the investment option as being the reason to use it.  Unfortunately he provides no information on the inferior past returns of that option.

Recommending another specific savings account and providing advice about the level of life and income insurance the readers should have is also somewhat irresponsible in my opinion.

Nonetheless, I can’t bring myself to rubbish a book that helps people become interested in their financial affairs.  Those that have read it and then decided to obtain qualified, personalised financial advice have been the winners.

If you would like clarify anything you may have read previously regarding your financial situation, give the team at Steve May a call and start a conversation today.