Buying In Bulk Doesn’t Always Save You Money

By Bob Brooks
March 2, 2015

There is the misconception that buying in bulk aways saves you money.  It is that concept that has made companies like Costco and Sam’s very profitable  Kiplinger Magazine put out an article today debunking that notion.  Here were a few examples:

Cereal – You don’t need to buy in bulk to get the best deal on cereal. Just stock up whenever it’s on sale at the supermarket. The sale price for cereal is often less per ounce on smaller boxes at supermarket. For example, a large, 30-ounce box of Kashi Organic cereal usually costs $3 more than two smaller 16.3-ounce boxes (32.6 ounces total) on sale at the supermarket. 

Cooking Oil Cooking oil might seem like a great bulk buy, but it has a shelf life of six months. Unless you’re frying food daily, you might not be able to go through a gallon of vegetable oil before it goes bad.

Liquid Bleach and Detergent Bleach has a shelf life of about six months once you bring it home from the store. After that, its effectiveness naturally degrades. So if you don’t use a lot of bleach, opt for smaller bottles of low-cost generic brands or store brands from the supermarket over bulk-size name-brand bleach.

For the full article, visit:

My Go – To Reading List

By Bob Brooks

February 26, 2015

Through the years, I have interviewed many authors who written some great books.  Then there are the books that I would call the authority on a subject.  Said another way, if you want to learn everything about a certain subject, this is the book to read. 

I wanted to start this list and update as I encounter more books.  So, this week I wanted to start the list


The One Page Financial Plan by Carl Richards 

The vast majority of people don’t plan and set to goals.  There are a number of reasons why this is the case.  First, Carl helps you get through those roadblocks so that you go through the process.  Most importantly, he breaks down the process into an easy to understand plan. 

Most financial plans end up not being very realistic. Carl adds a dose of reality and makes the entire process relatable.  This is the first book of its’ kind that I whole heartedly recommend on the financial planning process. 

Carl is known for his hand drawn illustrations which really work to help the reader get a clearer understanding.  The book is full of his simple sketches.

Carl is a weekly columnist for the New York Times where his weekly Sketch Guy column has run every Monday for over 5 years.

Listen to the interview HERE





The IRS Problem Solver by Dan Pilla

I have known Dan for well over a decade.  Dan is considered one of the foremost authorities on the IRS.  This is by far is best most complete book on dealing with the IRS.  He gives step by step instruction on just any problem or situation you can encounter with the IRS. To listen to the interview with the author, go here.


How to Win Your Tax Audit by Dan Pilla

This is Dan’s latest book.  If you are facing an audit, this is a must read.  You will be prepared to defend and protect yourself after reading this book.  If you want to listen to the interview on this book, go here.




Social Security



Getting Paid to Wait – Brian Doherty

Most people don’t understand how social security works.  This book details everything that you need to know about social security.  There are strategies where you can maximize your social security benefit.  The book goes through every one of them detail by detail.  It also thoroughly answers the biggest question about social security.  When do I take it?  If you want to listen to the interview on this book, go here


Student Loan Debt

Graduation Debt – Reyna Gobel

This is a field that is constantly changing. Reyna Global has written the most complete guide that I have come across.  She goes into great detail on managing student loans and all of the options that are available to get lower interest rates and relief from high payments.   If you want to listen to the interview on this book, go here.



Deceptive Money – Bob Brooks


OK, it might seem a little self-serving to add my book to a list of books that I call authorities on a subject.  The reality is that Deceptive Money covers every single detail that you need to know and understand to get out of debt.  It was written as a how to book and covers everything from dealing with debt collectors to improving your credit score to understanding the game that the credit industry plays with consumers.     

Investing – Trading

Trade Mindfully – Gary Dayton, Psy.D.

I realize that most of my listeners and readers are not trading investments.  However, for those of you who are, this is a must read.  This is all about the psychology of investing and trading.  It will increase your ability to make better decisions and make better trades. Most importantly, it will help you understand yourself when it comes to trading.  Hands down the best book I have encountered on trading. If you would like to listen to the interview, click here.




Is Your Broker’s Recommendation in your Best Interest?

By Bob Brooks
February 25, 2015

Well of course your broker/advisor has your best interest at heart….right?  Aren’t there laws that protect the individual investor?  Well, actually, not really.  It depends on the type of advisor.

To understand the level of protection you have as an investor, you have to understand two standards.  There are fiduciary responsibility and suitability standards.  The fiduciary standard is the highest standard for an advisor and carries the highest responsibility.  This states that the advisor is required to do what is right for the client.  Securities regulations states that advisors who are part of Registered Investment Advisory firms (fee based firms) are fiduciaries for their clients.   

Commissioned brokers/advisors are not required to meet that standard.  They are only required to make recommendations that are considered suitable.  Suitability is a much easier standard to obtain.  This is where the rub comes. 

Take for example Jack and his client Bill.  Investment Product A and Investment Product B are both suitable for Bill.  Jack, the investment advisor, makes 7% on investment Product B and only 3% on Investment Product A.  Jack knows that the fees are lower on Investment Product A and that the return probability is better.  Yet, he convinces himself that Investment B is better and he gets the higher commission.  Since both investment products are suitable and since Jack doesn’t have fiduciary standards to meet, the only thing keeping Jack from the higher commissions is his conscience versus a requirement.

To be fair, suitability standards do weed out some transactions that are clearly in the best interest of the advisor versus the client.  This is not to say that commissioned advisors are inherently bad and recommending products based on commission size.  Unfortunately, when introducing these higher commission products to advisors, the industry does a pretty good job of convincing the advisor community that they are doing the right thing and getting paid handsomely for doing so.  It removes the need for the advisor to go through the ethical Q and A in their mind.  You commissioned based advisor that you want is one that holds themselves to fiduciary standards even though the law does not require it.  Fortunately, there are many out there who do. 

So what is the moral of the story?  First, investors need to be aware of these two standards.  Second, this just emphasizes that investors need to be extremely careful with who they select to help them on the journey of investing. 

Regulators are currently fighting with the industry to change the rules and make ALL advisors fall under the fiduciary standard.  However, as long as the industry has deep pockets and lobbyists in the pockets of lawmakers, it is going to be an uphill fight. 

What is Your Risk Level? Find Out for Free

By Bob Brooks

February 18, 2015

I believe that understanding your Prudent Money DNA when it comes to risk is critical to long-term success with investments. In fact, I am addressing it thoroughly in my latest book that I am writing. So, I want to make you an offer.

In order to thoroughly research this idea of risk and Prudent Money DNA, I need real time research. So, I created a very quick questionnaire that helps identify your Prudent Money DNA when it comes to risk.

So, if you take a few moments to answer the survey as well as give me any feedback on questions you don’t understand, I am happy to offer this as a ministry resource and send you a written analysis of your risk assessment. This will tell me your tendencies and what could influence your decision making in the future. Understanding your tendencies will help you make better financial decisions.

Further, I will include your financial strengths and weaknesses. It is important to be aware of them. This information will also help you analyze whether or not you are taking too much risk with your retirement money.

From all of this research and your feedback, I can make this writing project a better resource and help further the cause of prudent stewardship.

Just go to this link and fill out the information. It won’t take very long. Incidentally, the only reason we ask for your phone number is in the event we aren’t able to connect with you via email.


Your Prudent Money DNA – A Strength or a Liability

By Bob Brooks

February 17, 2015

There is a psychology that lies underneath investing.  In fact, psychology influences everything when it comes to money and investing.  Why do we make the decisions that we make?  Why do we react either with fear or greed?  Why do we hang onto investment losers?  Everyone has an investment DNA.  At the heart of that DNA is our ability to interpret risk. 

In step 2 of my 5 step approach, I talk about evaluating your strengths and weaknesses and discovering your Prudent Money DNA.  A lot of that has to do with how we interpret risk.  This ability can either be a strength or a weakness.

Some of the key questions:

How do you react to losses and gains?

Most people don’t know that there is such a thing as acceptable losses.  Further you might have a few investments that are losing money in your portfolio and it makes no sense to sell them while there are extremely profitable ones in your portfolio that should be sold.  Do you ever see a gain and experience disappointment?  

Do you look at results with your investments in terms of percentages or dollars?

This is a key question.  You can only effectively evaluate your progress with investments by looking at your investments in terms of percentages.  Dollar gains and losses are only key one time of year.  Percentages are important every day.  By strictly looking at results in terms of dollars, you could be coming away with the wrong interpretation. 

How do you know if the risk you are taking is ultimately effective? 

You might be making money hand over fist and at the same time taking the wrong kind of risk. 

How often do you evaluate your investments?

If you say daily, you need a very high tolerance for risk.  Without the right Prudent Money DNA, daily checking of your investments will create emotional investors.  Evaluation of investments should only occur 4 times a year. 

Do you ignore your investments?

The most conservative investment in the world could turn into an aggressive investment simply because you are ignoring it.  

These questions are just a sampling of the information you need to know about yourself to determine your Prudent Money DNA. Your ability to understand your Prudent Money DNA is either going to help you or hurt you.  Beyond starting this series to help you, I am also going to roll out a Prudent Money DNA Survey.  

This will be a free resource where you can answer these questions and a written analysis will be sent out to you. This analysis will outline potential weaknesses, help you be aware of them, and resources to strengthen your understanding.  

A dramatic shift could be ahead in the investment world. Those who understand their Prudent Money DNA will whether that storm much better than those who do not. 

The 5 Step Plan for Financial Success and why People Aren’t Successful

By Bob Brooks

February 12, 2015

Through hosting the radio show and advising people, I have had the opportunity to see what works and what does not work when it comes to money.  Due to that history, I have developed what I feel is a 5 step plan that would serve anyone willing to follow it.  The process involves prioritizing, evaluating, planning, implementing, and monitoring.

(1)   Prioritize

Most people whether loosely or clearly defined have goals.  It could run the gambit between sending your child to college to getting out of debt to retiring someday. 

Unfortunately, success is not achieved because of two key mistakes.  First, goals are not clearly defined.  They aren’t goals.  They are wishes.  Second, the biggest mistake that most people make is not having a system of priorities in place.  The emphasis on particular goals ebbs and flows with the seasons of your life.  Understanding this is critical.

(2)   Evaluate

Once clear and defined goals are set and prioritized, the next step is determining where you are in relation to accomplishing those goals.  It is critical to understand where the gaps and weaknesses are in your financial situation that would prevent you from accomplishing those goals.

Unfortunately, success is not achieved because the process is rushed.  ALL weaknesses and gaps have to be flushed out and accounted for.  

(3)   Plan

After understanding where you are, now you have to figure out the strategies to fix those gaps and eliminate the weaknesses.  This is a process.  There are a tremendous amount of options that can be implemented. 

Unfortunately, success is not achieved because the often times the wrong options are selected and it sets the person up to fail.  It has to be a fit from a risk and implementation standpoint.

(4) Implement

You have done all of the work, now it is time to implement. 

Unfortunately, success is not achieved because believe it or not, more and more people will take the trouble to go through steps 1 through 3 and not take the step of implementation.  For a number of reasons, procrastinations will set in.  The main reason this happens is that step 1 did not create a compelling vision.  Step 1 has to be powerful and motivating enough to inspire one to act.

(5)   Monitor

Once 1-4 is in place, a monitoring system is implemented to insure #1 is achieved.  This might be the most critical step in the process.  If you don’t monitor your progress, you don’t know if you are on track or not.  A strong monitoring system will help you know when you have to make changes. 

Unfortunately, maybe the most critical component is a step rarely taken.  It takes discipline and a small investment of time to chart your progress.  I can only chalk it up to human nature. However, this is why so very few achieve financial success. 

With my financial advisement practice, I can take you through this process.  The initial assessment is always at no cost and can be done over the phone or in person. After we have done a general assessment of your situation, then you can decide if my solutions are valid enough to work in a client/advisor relationship.  Be confident that you are on track.   For once, get some advice and some solutions.  Feel free to email me or call me at 972-386-0384.

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