The author of these three financial planning books, Ric Edelman, is a talented and convincing author. Just a read of the titles alone should persuade you. Aren’t they eye-catching?

His books make for excellent reading. And were it not for the fact that I have been in the financial planning business for, let’s just call it a long time, it would be so easy to embrace his every theory and recommendation as gospel. Reading his books makes me realize just how complex, and sometimes subjective the planning process truly is.

Yet the fact is, I like his books, and I recommend them to those who are searching for ideas to improve their plan, even to begin a plan. His recommendations are backed up with an amazing array of facts, figures, statistical information, illustrations and graphs. So amazing is this backup that I almost find it difficult that he would have any time remaining to engage in the business end of financial planning.

Yes, I have a number of differences about this author’s views. Those differences though reflect differences in philosophy, not in absolute right vs. wrong. Let me cite some examples:

1. Use dollar cost averaging. This method can be effective, but it can also be a disaster. It just isn’t as simple as his book would claim.
   
2. Obtain a 30-year mortgage – not 15 – and never pay it off. The author believes that the investor is better served by investing in the stock market, and that the tax law gives added incentive. I don’t think he understands tax laws clearly, and he fails to adequately address the risks associated with such a strategy. Clearly, his advice would make sense in some circumstances, yet I strongly question a blanket endorsement like the one he offers.
   
3. Zero coupon bond funds are for losers. Really? Then why have so many made large profits owning them?
   
4. Do not invest in index funds. Sometimes, an index fund seems to be just the right call in my opinion. And, I predict that, as a group, index funds will give the mutual fund industry a strong challenge in the years ahead.
   
5. Invest for the long term, diversify, buy high quality investments, and hold on. While I like that strategy, I also believe there comes a time to sell. Like the song goes “Know when to hold’em, know when to fold’em, and know when to run.” Equity investing is more complex than one-stop shopping.
   
6. Do not contribute to a non-deductible IRA. On this point, I totally disagree.
   
7. Take Social Security at 62, don’t wait till 65. It isn’t that simple. Those who continue to work after age 62, and particularly those having other income may, be faced with some harsh tax consequences and a requirement to pay back benefits to social security. Each person, his or her particular family circumstances, determines the best option. Age 62 is not the best choice for everyone to begin benefits.
   
8. Carry as big a mortgage on your home as you can. See 4 above. There are issues to consider; affordability, private mortgage insurance, and of course, the psychological cookie … piece of mind. For many of us, no mortgage debt is the better answer.

I could challenge other pat answers as well. Except for item 6, our differences relate back to philosophy and style, not to right versus wrong. We do not all come out of the same pot, and easy answers may sell books, but they do not provide the best answers for all people.

I do agree with many of the points this author had to say. The huge statistics he presented to make his points ring true enough to make my heart go pitter-patter.

There are many roads to financial freedom. How you get there is not so important as that you get there. The three books by this author have much to offer, and I highly recommend them to you.