I picked up this book on the recommendation of a reader and I am glad I did. The author, John Lawrence Reynolds, delivers a scathing criticism of the investment industry in Canada for being more interested in lining its pockets than its fiduciary responsibility towards the average investor. The subtitle of the book Why Almost Everybody But You Gets Rich on Your RRSP is an excellent summary of the author’s thesis.
Mr. Reynolds begins each chapter of the book with a real-life, often tragic tale of average investors exploited by mutual fund salespeople, brokers, banks, media gurus, financial advisors or scam artists and then finding the industry fighting compensation attempts every step of the way. Meanwhile, regulatory agencies in Canada, unlike those south of the border, do not carry a big stick and even the criminal justice system is far too tolerant of white-collar crime. The author’s outrage at the industry tactics drips from every page of the book.
The author also spells out how average investors can invest for themselves using the Couch Potato Portfolio and suggestions for avoiding fraud. If you invest in mutual funds or have a financial advisor or stockbroker you owe it to yourself to read this book. As the author says, “You Are David, They Are Goliath and You Don’t Have a Slingshot”.