• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The College Investor

Student Loans, Investing, Building Wealth

  • About
  • Podcast
  • Research
  • Contact
  • Save For College
      • How To Start

      • How To Save For College
      • How To Pay For College
      • What Is the Average Cost of College?
      • What Is A 529 Plan and Where to Open One in Your State
      • How Much Should You Have In A 529 Plan By Age
      • How To Use A 529 Plan For Private Elementary And High School
      • What Are Qualified Expenses For A 529 Plan (And What Doesn’t Count)?
      • The Best Brokers To Open A 529 Plan
      • Tools + Accounts

      • 529 Plans: The Ultimate College Savings Plan
      • 529 Plan Contribution Limits
      • Prepaid Tuition Plans | What To Know
      • Understanding And Using 529A ABLE Accounts
      • Using A Roth IRA To Save And Pay For College
      • FAFSA Deadlines for Financial Aid
      • CollegeBacker Review
      • Upromise Review
      • UNest Review
      • Other Options

      • Student Loan And Financial Aid Programs By State
      • The Guide To Military And VA Education Benefits
      • How To Fill Out The FAFSA
      • How To Find College Scholarships
      • The Best College Scholarship Search Websites
      • How To Find Grants To Pay For College
      • Pell Grants: What They Are And How To Qualify
      • Understanding Federal Work-Study
      • How To Use A 529 Plan If Your Child Doesn’t Go To College
  • Student Loans
      • Borrowing

        • How Student Loans Work
        • How To Apply For A Student Loan
        • How To Find The Best Student Loans And Rates
        • Best Private Student Loans Of May 2022
        • Best Student Loans To Pay For Graduate School
        • Best Student Loans To Pay For Medical School
        • Parent Loans To Pay For College
        • No-Cosigner Student Loan Options
        • Guide To Income Sharing Agreements (ISAs)
        • Best International Student Loans
      • Get Out Of Debt

        • Best Places To Refinance Student Loans In May 2022
        • Best Student Loan Repayment Plans
        • Best Student Loan Refinancing Bonuses And Promotional Offers
        • Student Loan Forgiveness Programs (The Complete List)
        • The Full List Of Student Loan Forgiveness Programs By State
        • Public Service Loan Forgiveness (PSLF)
        • Top Student Loan Scams
        • Average Student Loan Monthly Payment
        • Average Student Loan Debt By Year
      • Reviews

        • Credible Review
        • Splash Review
        • Ascent Review
        • Citizens Bank Review
        • Commonbond Review
        • Earnest Review
        • ELFI Review
        • Laurel Road Review
        • LendKey Review
        • SoFi Review
  • Investing
      • How To Start

        • How To Start Investing in High School
        • How To Start Investing In College
        • How To Start Investing In Your Twenties For 22 – 29 Year Olds
        • How To Start Investing In Your 30s For 30 – 39 Year Olds
        • How To Start Investing With $100 Or Less
        • How To Give Kids The Gift Of Stock
        • What Is Dividend Growth Investing
        • IRA Rollover Chart
      • Tools + Accounts

        • Best Online Stock Brokers
        • The Best Traditional And Roth IRA Accounts
        • The Best Robo-Advisors
        • The Best Investing Apps
        • The Best Places to Trade Options
        • The Best Places To Open A Health Savings Account
        • The Best Solo 401k Providers
        • The Best Self-Directed IRA Providers
        • Best Cryptocurrency Exchanges
      • Reviews

        • Vanguard Review
        • Fidelity Review 2022: Still One Of The Best Online Brokers
        • M1 Finance Review
        • TD Ameritrade Review
        • Charles Schwab Review
        • Robinhood Review
        • Webull Review
        • Betterment Review
        • Wealthfront Review
  • Earn More Money
      • Extra Income

        • 15 Best Side Hustles You Can Start Earning With Now
        • Side Hustle Ideas: 50+ Ways To Make Money Fast
        • 100+ Real And Honest Ways To Make Money In College
        • 80 Ways To Make Money From Home (In Your Pajamas)
        • 5 Quick Money Making Ideas (That Take Less Than 1 Hour)
        • 10 Interesting Ways You Can Make Money Driving
        • High-Paying Side Gigs That Earn $1,000 or More Per Month
        • The 10 Best Money-Making Apps
        • Paid Surveys: Earn Money For Giving Your Opinion Online
        • 10 Crazy Ways To Make $10,000 You’ve Never Heard Of
      • Build Wealth

        • 35 Passive Income Ideas You Can Use to Build Real Wealth
        • 3 Ways To Make $50,000 Per Year Without Working With Passive Income
        • How To Become A Real Estate Investor With Just $500
        • 15 Best Online Business Ideas
        • How to Create Streams of Passive Income on a Limited Budget
        • Residual Income: 7 Super Smart Ways to Build It
        • The Most Common Multiple Income Streams
        • How To Become A Real Estate Mogul With Only $10,000
      • Reviews

        • Fundrise Review
        • RealtyMogul Review
        • FarmTogether Review
        • AcreTrader Review
        • Swagbucks Review
        • Survey Junkie Review
        • TopCashback Review
        • DoorDash Review
  • Personal Finance
      • Banking

        • Best High Yield Savings Accounts Of May 2022
        • Best Money Market Accounts Of May 2022
        • 10 Best Free Checking Accounts In May 2022
        • The Best Bank CD Rates Of May 2022
        • 10 Best Business Checking Accounts In May 2022
        • The Best Online Banks Of May 2022
        • 5 Best Credit Unions Nationwide of May 2022
        • Best College Student Checking Accounts In May 2022
      • Insurance

        • Best Life Insurance Companies
        • Renters Insurance
        • Car Insurance
        • Pet Insurance
        • Umbrella Insurance
        • Disability Insurance
        • Tuition Insurance
        • Travel Insurance
      • Credit Tools

        • Best Budgeting Apps
        • Cash Advance Apps
        • How To Get A Free Credit Score Report
        • The Best Credit Monitoring Services
        • Debt Settlement: Inside The Secret World
        • Credit Repair Explained: Should You Pay For Help?
        • Best Personal Loan Companies And Lenders
        • Online Loan Companies To Borrow From Home
      • Tax

        • Best Tax Software
        • Free Tax Software
        • IRS Tax Refund Calendar
        • Common IRS Questions and Errors
        • Federal Tax Brackets
        • Capital Gains Tax Brackets
        • 401k Contribution Limits
        • IRA Contribution Limits
        • HSA Contribution Limits
  • Forum
  • Search
Home » Book Reviews » Money for the Rest of Us | Learn How To Invest Like A Pro

Money for the Rest of Us | Learn How To Invest Like A Pro

Updated: April 20, 2021 By Teresa Stack Hunter

Tweet
Share
Share
Pin
Email

At The College Investor, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners. This doesn’t influence our evaluations or reviews. Our opinions are our own. Learn more here.Advertiser Disclosure

There are thousands of financial products and services out there, and we believe in helping you understand which is best for you, how it works, and will it actually help you achieve your financial goals. We're proud of our content and guidance, and the information we provide is objective, independent, and free.

But we do have to make money to pay our team and keep this website running! Our partners compensate us. TheCollegeInvestor.com has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The College Investor does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with).

For more information and a complete list of our advertising partners, please check out our full Advertising Disclosure. TheCollegeInvestor.com strives to keep its information accurate and up to date. The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product's website. All products and services are presented without warranty.

Money for the Rest of Us

Author J. David Stein educates and inspires his readers with Money for the Rest of Us, informing them that they needn’t be experts to excel at investing.

The goal of Stein’s book is to encourage readers to step back and analyze investment opportunities, by using his 10-question framework to increase the odds of succeeding at investing.

Check out the book on Amazon here >>


Money For The Rest Of Us Book

Quick Summary

  • Learn from a pro about how to invest
  • Create an investment framework to understand how to build a portfolio
  • Know how the stock market and investments work
BUY THE BOOK
Table of Contents
Overall Summary
Chapter Summary
Chapter 1: What Is It?
Chapter 2: Is It Investing, Speculating, or Gambling?
Chapter 3: What Is the Upside?
Chapter 4: What Is the Down Side?
Chapter 5: Who Is on the Other Side of the Trade?
Chapter 6: What Is the Investment Vehicle?
Chapter 7: What Does It Take to Be Successful?
Chapter 8: Who Is Getting a Cut?
Chapter 9: How Does It Impact Your Portfolio?
Chapter 10: Should You Invest?
About the Author
Final Thoughts

Overall Summary

Through pragmatic moves and sound advice, Money for the Rest of Us is a guide to sidestep many of the common and costly investing mistakes. Even for those already focused and disciplined in saving for retirement, Stein reiterates the importance of navigating the complex matters of investing with rules of thumb to further grow wealth.

Stein presents the material in a straightforward way that works for both beginners and more seasoned investors alike. The book is very approachable, with Stein regularly offering up examples of what not to do, as a way to keep this investment book grounded and authentic.

Chapter Summary

Chapter 1: What Is It?

When just starting out as an investment strategist, Stein explained how naivety and a lack of understanding undermined his portfolio goals.

As a result of his early experiences, he created the 10-question roadmap. The thought behind it is that by slowing down and putting in the due diligence necessary, readers will have a better chance at making solid investment choices.

Stein puts it this way: If you are unable to explain an investment to a family member or friend in a way that the person can understand, then you shouldn’t invest. It is such a simple rule to understand and follow, and one that could save millions of investors from overstepping and acting too quickly when investing.

By better understanding the math and very real emotions surrounding the investment process, an investor will be in a stronger position to make better choices and decisions.

Chapter 2: Is It Investing, Speculating, or Gambling?

Stein explains how investing in things like real estate and stocks involve a cash flow component, and have positive expected returns. Given the high likelihood of turning a profit, investments should represent 90% of a portfolio.

Speculations, on the other hand, are assets where the outcome is highly unpredictable, and there is viable disagreement as to where the price will land in the end. So think gold and oil, or art and collectibles. Stein recommends holding no more than 10% of one’s portfolio in speculations, with 90% or more in investments.

Gambling should not be counted on for any expected returns, and Stein says it should only be considered for sheer entertainment value. Given that the odds are stacked against any investor that moves forward with a gamble, there should be no assumption of gain or profit. Stein reiterates the importance that an investment discipline of answering specific questions has on ensuring we are not gambling due to our lack of knowledge.

Chapter 3: What Is the Upside?

Stein explains that using historical returns to estimate expected returns from an asset class is dangerous, given that the circumstances are always changing.

Stein stresses the importance of using rules of thumb to determine an investment’s expected return. These simple patterns that everyone can follow without the need of expertise are based on cash flow, cash flow growth, and the potential change in what investors pay for the cash flow in the future.

He explains how when an individual stock generates an extremely high return, it is because the cash flow increased rapidly or investors were willing to pay much more for existing cash flow. Whereas, a diversified basket of stocks will rarely exceed double-digits over the long term because the cash flow can’t exceed the growth rate of the overall economy.

The risk of bonds due to the fluctuating interest rates in both the short and intermediate terms, with a greater price decline as interest rates rise, is also covered. So is applying common sense via the rules of thumb for estimating investment returns, as a way to avoid the pitfalls of chasing fad investment opportunities.

Chapter 4: What Is the Down Side?

Stein covers volatility in simple and straightforward terms in Money for the Rest of Us. Given what is at stake for an investor, understanding the measures that can gauge how a security or asset class deviates from its expected or average return is critical. The greater the volatility, the greater the likelihood the investment will lose money moving forward.

Stein explains that volatility tends to cluster, with periods of relative calm in the financial markets, followed by waves of turbulence. So while it is impossible to avoid losses at all costs, the focus when evaluating an investment’s downside should be in avoiding irreparable financial harm.

Money for the Rest of Us encourages investors to keep an objective approach to determining an investment’s downside. Looking at historic declines, as well as how long an investment took to recoup its value, needs to be weighed and balanced. And of course, changes in interest rates and economic growth prospects also need to be taken into serious consideration regarding market volatility.

Chapter 5: Who Is on the Other Side of the Trade?

Stein dives deep into the importance of identifying counterparty risk by answering the very important question of, “Who is on the other side of the trade?”

Stein also explains the ins and outs of portfolio and risk management, and how actively allocating to the most compelling areas of the market in terms of the expected return and valuation works.

Chapter 6: What Is the Investment Vehicle?

An investment vehicle is a product that is used to bring positive returns. Some examples of investment vehicles include individual stocks, bonds, real estate, and mutual funds.

Stein explains that the attributes of an investment vehicle include the expected return and risk of the financial move. Investment vehicles can be low-risk like with bonds, or they can carry a higher risk — think stocks.

Chapter 7: What Does It Take to Be Successful?

According to Stein, the best way to see the bigger picture of our investment strategy is by using rules of thumb. This offers a broader view of the various investment opportunities with regard to their potential return, risk, and return drivers. He adds that return drivers explain why investments have positive expected returns.

The simplest way to harvest those returns, according to Stein, is through the use of mutual funds or ETFs.

Stein explains how an investment’s outcome is determined by the underlying drivers of performance. He says investors should look to dependable return drivers, such as income, cash flow growth, individual effort, and investments bought at attractive prices. By allocating most of one’s capital to investments with dependable return drivers, the odds of successful outcomes increase.

Chapter 8: Who Is Getting a Cut?

Money for the Rest of Us breaks down the basics of investment expenses, and explains the fees involved with trading costs, as well as advisory and administrative fees.

Stein points out that given how the fees cut into an investor’s returns, it is important to make sure that the benefits received are worth it. And if the benefits are not worth the fees, he says there are always lower-cost options available.

He also makes clear that a good financial advisor will provide perspective and collaborate with you — so important, given that you are making decisions that will impact your future financial growth. A trustworthy and ethical advisor will be upfront on their fees, and will not promise things they can’t deliver — like a promise to outperform the market.

Chapter 9: How Does It Impact Your Portfolio?

Stein stresses the importance of making portfolio decisions based on the kind of financial harm that an extreme event would have on your lifestyle. Paying attention to what a major decline in the stock market would do to the security of your family’s well-being is far more critical than the gains an investment may make in the end.

Individual investors should rely on the rules of thumb, and not fixate on arriving at the perfect investment picks for a portfolio. Instead, focus on diversification with a base of mixed stocks and cash — because they will react differently to the same economic event, therefore bringing a level of stability.

Chapter 10: Should You Invest?

The 10-question framework informs and encourages analysis of different investment strategies, so that by the end of the book, Stein hopes that his readers have clarity about what to do. The reality is that by the last chapter, the reader should be well on their way to a better understanding of how to analyze the many aspects of investing.

Stein covers dollar-cost averaging and how to invest a large sum — like an inheritance, bonus, or buyout. He also stresses the importance of considering the expected upside (like its ability to exceed the rate of inflation) as well as the downside of an investment.

Socially responsible investing — that is, making investment decisions based on your moral or ethical values — is discussed, with Stein explaining the importance of making sure a new investment aligns with your personal values.

About the Author

J. David Stein is an author as well as the host of the personal finance podcast, Money For the Rest of Us. Prior to launching his podcast, Stein advised and managed assets for institutions and planners.

He was the chief investment strategist and the chief portfolio strategist at Fund Evaluation Group, LLC, an investment advisory firm of $70 billion, where he co-headed the 21-person research group. He also co-founded the firm’s asset management division of $2.2 billion, where he developed its investment philosophy and process, and was the lead portfolio manager.

Stein served numerous not-for-profit institutions, where he assisted the boards and staff in overseeing billions of dollars in endowment assets.

Final Thoughts

Money for the Rest of Us really drives home the importance of taking a step back to analyze and assess all aspects of an opportunity before deciding to move forward with an investment.

Stein keeps things real, and does a great job of explaining the many lessons he learned over a lifetime of investing.

By simplifying the all-important first steps, and walking his readers through different financial scenarios and examples, he makes the 10-question framework both approachable and manageable.

Money For The Rest Of Us Book Review
  • Easy To Read
  • Useful or Helpful
  • Story Telling
Overall
4.7
  • Get The Book
Teresa Stack Hunter
Teresa Stack Hunter

Teresa Stack Hunter is a freelance writer with two decades of journalistic expertise, and earned dozens of bylines with Thrive Global, The Reston Times, The Washington Citizen and The Kent County News. Teresa also worked as a writer-editor for The Department of Treasury, where she had the great honor of serving Under Secretary of Enforcement Ronald K. Noble, and his equally impressive replacement, Under Secretary of Enforcement Raymond W. Kelly. She holds a B.A. in Communications from Marymount University.

Money for the Rest of Us | Learn How To Invest Like A Pro
Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.
Subscribe
Connect with
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
0 Comments
Inline Feedbacks
View all comments

Primary Sidebar

Robert Farrington

Hi! My Name is

America's Millennial Money Expert

Welcome to The College Investor. We're here to help you escape student loan debt so you can start investing and building wealth for the future

Our expert guides, reviews, and more are designed to help you achieve your financial goals.

Want to learn more? See what's in my wallet.

As Featured In

Social Media

Popular Posts

Side Hustling

Side Hustle Ideas: 50+ Ways To Make Money Fast

Best Side Hustles

15 Best Side Hustles You Can Start Earning With Now

Make Money From Home

80 Ways To Make Money From Home (In Your Pajamas)

Crazy Ways To Make $10,000

10 Crazy Ways To Make $10,000 You’ve Never Heard Of

Make $50,000 Per Year

3 Ways To Make $50,000 Per Year Without Working With Passive Income

Student Loan Scams

Top Student Loan Scams

Net Worth of Millennials

The Average Net Worth Of Millennials By Age

Ways To Get Student Loan Forgiveness

Student Loan Forgiveness Programs (The Complete List)

Passive Income Ideas

35 Passive Income Ideas You Can Use to Build Real Wealth

529 Plan By Age

How Much Should You Have In A 529 Plan By Age

Ultimate Guides

529 Plan Guide

529 Plans: The Ultimate Guide To College Savings Plans

Student Loans and Financial Aid By State

Student Loan And Financial Aid Programs By State

Student Loan Advice

The Definitive Guide To Student Loan Debt: Everything To Know About Your Loans

Student Loan Forgiveness By State

The Full List Of Student Loan Forgiveness Programs By State

newretirement

How to Start Saving Now: The College Graduate’s Guide to Saving for Retirement

Latest Research

Institutional Merit Grants

Who Gets Institutional Merit Grants At Private Colleges?

Resume Student Loan Payments

Survey: Even With Higher Expenses, Most Student Loan Borrowers Are Ready To Resume Payments

Support From Parents Survey

64% Of Millennials Receive Support From Their Parents

undermatching at selective colleges

Undermatching: Why Do Smart Low-Income Students Not Enroll In Selective Colleges?

How Much Americans Pay To File Their Taxes

How Much Americans Pay To File Their Taxes

Footer

Banking

  • 10 Best Free Checking Accounts In May 2022
  • The Best Online Banks Of May 2022
  • The Best Bank CD Rates Of May 2022
  • Best Money Market Accounts Of May 2022
  • Best High Yield Savings Accounts Of May 2022
  • Best High-Yield Checking Accounts Of May 2022
  • The Best Bank Bonus Offers
  • The Best Business Checking Accounts

Investing

  • Best Online Stock Brokers In 2022 (According To Readers)
  • Best Brokerage and Investing Bonus Offers In May 2022
  • The Best Places To Open An HSA (Health Savings Account)
  • 5 Best Investing Apps With Free Stock Trading
  • How To Buy Stocks Online For Free
  • The Best Robo-Advisors Of 2022
  • The Best Self-Directed IRA Providers
  • The Best Traditional And Roth IRA Accounts Of 2022
  • Comparing The Most Popular Solo 401k Options
  • Top 3 Automatic Investment Apps Of 2022

Student Loans

  • Best Places To Refinance Student Loans In May 2022
  • Best Private Student Loans Of May 2022
  • How To Find The Best Student Loans And Rates
  • Best Student Loan Refinancing Bonuses And Promotional Offers

Insurance

  • The Top 10 Online Life Insurance Companies
  • The Ultimate Guide To Renters Insurance – Everything You Need To Know
  • The Cheapest Car Insurance For College Students

Connect

  • Contact Us
  • Advertise
  • Press & Media

About

  • About
  • Our Team
  • Podcast
  • Editorial Guidelines
  • How We Make Money
  • Archives

Social

Copyright © 2022 · The College Investor · Privacy Policy ·Terms of Service · DO NOT Sell My Personal Information

wpDiscuz