Posted by Good Returns Bookstore on 11th Jul 2006

Having read most of Mary Holm's books, and followed her newspaper column for many years, I was interested to read this book.

After some unfortunate experiences of having to sell property at a loss herself, Mary Holm has often spoken out strongly against the Kiwi preference for putting their savings into property. I expected that this book too would discourage having a property portfolio, although I noticed that her stance has mellowed recently.

I was happy to find that this book gives excellent balanced advice for people who realise that Government Superannuation is not going to be enough to live comfortably in retirement. Mary Holm believes that every New Zealander can become richer by changing what they do with their money.

Her book is a basic guide for beginners, and does not take into account such current situations such as the slowing of the boom in housing (making now a bad time to buy property) or the incredible proposed Tax changes for overseas Shares.

The advice given puts the emphasis on safety and security, not growth. Mary advises diversifying, spreading your risk and using techniques such as Dollar Cost Averaging to make sure you never lose your nest-egg.

The book is well set out, easy to read, and has letters 'From the Mailbox' which give interesting examples of situations to illustrate various points. I do feel that some of the illustrator's drawings are rather disappointing, if they are supposed to be attractive and give light relief to the reader.

Mary Holm has always recommended Index Funds as being the safest and cheapest way to get into shares, and always recommends that both shares and property should be held for ten years or more. This is not exciting stuff, but is sound basic advice for inexperienced investors.

One interesting chapter explores the debates which investors discuss: Property versus shares; Sharer versus share funds; Term deposits versus Corporate bonds. The book also discussed the debate of Local shares versus International shares. The answer to this debate will largely depend on the Tax legislation which is being
proposed for April 2007.

Summary boxes highlight the main points, such as:

· Put short term spending money in term deposits, middle term in bonds, the rest in shares.
· In retirement spend your money and leave the kids the house.
· Buy only investment-grade bonds.

The book has good advice on protecting your income and savings with insurance, and also protecting yourself from rip-offs which try to separate you from your hard-earned savings. Some of these scams sound very plausible or tempting and many people are fooled each year. There is also a chapter on teaching your children a good attitude to money.

The last chapter is an action plan to help you get from where you are to where you want to be, and Mary Holm's final sentence sums up the book's message: "Investors who know what they are doing and who take their time to grow their wealth will sleep much better and often end up much better off than Get Rich Quickers."

Altogether, this book is good value for anyone who has decided to save and invest for their future, but doesn't know where to start. It explains the various investment vehicles, and helps sort out which ones which are right for different situations.



Reviewed by Kathryn Dalglish