Why Smart People Do Stupid Things with Money

Bert Whitehead, named by Worth magazine as one of the top 100 financial advisors in the country, is the cowboy-hat-wearing presenter for this low-key workshop on “overcoming financial dysfunction.” Citing four main causes for poor money management—money personality, family belief systems, biased advisors (i.e., advisors working on commission, as opposed to fee-based), and mass media hype—Whitehead gets off to a shaky start with a suggestion that spending/saving habits or high-risk/low risk tendencies somehow translate into so-called money personalities, such as “traveler” or “nester” (to me, the notion that risk tolerance can be a predictor for one's interest in traveling or home improvement is more than just a little dubious). But Whitehead gets back on financial terra firma with a PowerPoint-enhanced overview of the five fundamentals of fiscal fitness: always save 10% (even after retirement), buy a house (and do not pay off the mortgage early), fully fund pensions, maintain adequate liquidity, and don't carry credit card balances. While none of these suggestions is particularly revelatory, they offer good financial common sense, and Whitehead throws in a handful of smart tidbits (for example: don't give money to charity—use donor-advised funds, which benefit charities while reducing your own tax burden). DVD extras include 42 minutes of expanded segments on donor-advised funds and retirement savings options. Recommended, overall. Aud: P. (R. Pitman)