Wealth Building

Liz Dennett is a public service librarian in the Science and Technology
Library at the University of Alberta.

Kurt Rosentreter’s third book on financial matters proposes a holistic
and evolutionary approach to growing and protecting wealth. He believes
that most Canadians currently take a piecemeal and product-based
approach to their finances. They buy mutual funds and life insurance,
contribute to their RRSPs, and file a tax return, but they do not
consider how these products fit together or if they will have enough
money to reach their retirement goals. He also believes that Canadians
often do not change financial strategies as they age and their financial
position changes.

In his approach, Rosentreter breaks his advice down into four different
parts loosely defined by one’s age and net worth. He suggests starting
with the big picture, which considers your income, debt, investments,
taxes, insurance, and pre- and post-retirement goals. Then develop an
investment strategy, which considers your tax position, risk tolerance,
cash flow needs, and timelines. Only after that should you consider
purchasing products that fit your strategy. Finally, review your
products (he suggests appropriate timelines for each type of product)
and strategy on a regular basis to ensure your goals are still being
met.

Rosentreter also includes useful advice on reducing the total amount of
tax you paid, getting the right amount and types of insurance, using
debt to increase your wealth, retirement planning, estate planning, and
what the best investment products for each person might be. He suggests
specific questions to ask a financial advisor when hiring one or
assessing their work, and provides guidelines for how much it is
reasonable to pay for their advice.

This book is a wake-up call to many Canadians who prefer not to think
too much about finances except to contribute to a pension plan and file
income tax returns. Rosentreter convincingly demonstrates the error of
that way. His straightforward advice will be useful to readers with a
wide range of financial knowledge and in various circumstances.