If You Can: How Millennials Can Get Rich Slowly

by William J. Bernstein

If You Can is a short, inexpensive e-booklet aimed at getting twenty-somethings with their first 401(k) started on the path to retirement saving and investing.

Genres: Finance, Nonfiction, Personal Finance, Money, Business, Self Help, Economics

50 pages, Kindle Edition

First published March 28, 2014

About the author

William J. Bernstein is an American financial theorist and neurologist. His research is in the field of modern portfolio theory and he has published books for individual investors who wish to manage their own equity portfolios. He lives in Portland, Oregon.

Reviews

[Thijs Niks · Rating 5 out of 5]

Super short, which makes it a great start if you have never read up on investing before. And I like that he ends each chapter with a reading assignment.

Great combination with JL Collins' stock series (Google that).

[Melissa · Rating 4 out of 5]

It's indeed a quick read (though he, reasonably, advises you to read twice), and the author conveys warmth, pragmatism, and even figures without seeming patronizing or pedantic. He also recommends other books to supplement each brief chapter for when/if you are inclined and able, but you really can get started without consulting these as well.

[Gabrielė Bužinskaitė · Rating 4 out of 5]

What a handy booklet for investment beginners! I would recommend it to any person in their twenties, as applying this mindset can save one from costly mistakes. However, certain sections in this book were based purely on USA system and could not apply to Europeans like me. But its great to learn the differences after all!

[Justin Griffin · Rating 1 out of 5]

There is serious misinformation in this book. It does a great job summarizing key principles to financial success for the average person who does not have a plan.

The problem is hurdle 5 claims the financial services industry wants to make you poor and stupid. The author states by the time you read the first four hurdles (12 pages of info) you will know more about finance than the average financial advisor or stockbroker. This is the most ludicrous statement I have ever read.

It also STATES (as if fact) brokers are not skilled professionals, were not required to finish high school, and have no specialized education. As a financial advisor this is incredibly insulting and untrue. In the year 2015 with such a competitive job market good luck finding an advisor or broker without a college degree much less a high school one. I am sure one exists, somewhere, but that would far be an exception to the rule.

Most people in this business graduate in a related field of study, if not finance specifically. As far as specific training goes, any individual in this business has to pass extremely intense certification exams to be certified to offer advice and make sales. A series 7 exam is comparable in difficulty and required study time to the bar exam. It's a 6 hour test. The fact this author states you can read his 12 pages of information and know more is simply not reasonable.

He also claims the brokerage industry is not highly regulated. That could not be farther from the truth. If the average person walked through my office for a day and learned about all the compliance we have to maintain in order to keep our licenses they would be blown away. This is the most tightly regulated industry there is. Do you think the government turns a blind eye to all the personal information we have to protect? From experience, the answer is no.

The author does a terrific job generalizing the entire industry as money hungry people only seeking to transfer your wealth to them. This fits popular media (wolf of Wall Street, Gordon gekko, etc.). The reality of what we do is help people preserve and grow their wealth through coaching and products that they otherwise would not have or understand.

All people regardless of profession are compensated in exchange for providing value. If you don't provide value, you are no longer in business. Why is this industry still around? And why do so many wealthy people have a financial advisor? Are they wealthy because they are stupid? Maybe they are wealthy because they know how to delegate work and trust people to do the things they are not specialists at.

Not everyone needs a financial advisor. But bashing a profession he either had a bad experience with or just doesn't understand is unprofessional of the author.

And turning readers paranoid about seeking financial help could be harmful. Especially given the fact that statistically people are much more likely to achieve financial goals with a coach that holds them accountable than they are on their own.

[Remo · Rating 4 out of 5]

Libro muy corto, casi folleto, que sobre todo da una bibliografía muy interesante para ahorrar metódicamente y llegar a la jubilación con un colchón digno que complemente a la presunta pensión que recibiremos. Tengo pendientes los cinco libros que recomienda. Muy entretenido.

[Anu · Rating 4 out of 5]

William Bernstein is a neurologist that is also a financial theorist. He offers an uncomplicated introduction to retirement planning for millennials in this one. Plus the book has a cool bibliography to boot.

[SWAROOP CHOUGULE · Rating 4 out of 5]

A very short and quick read, though William (the Author) recommends to read it twice. He explains why investing for better future is similar to being fit, one just has to follow simple rules but it's not easy to keep up with those rules. He also clarifies the most common hurdles in order to reach one's goals. I like that he ends each chapter with a reading assignment, which is basically a recommendation for other books to supplement one's understanding of each brief chapter.

[Giorgos · Rating 4 out of 5]

I perused the complimentary PDF, which, despite its brevity, is rich in value. While it primarily delves into specific aspects of the USA, such as retirement plans like Roth IRA and 401k, the majority of the information holds global relevance. It serves as an excellent reference point in my perspective.

The approach of recommending a book at the end of each chapter is something I particularly appreciate. The author appears to have meticulously documented their accumulated knowledge over the years, offering insights into crafting a straightforward and low-maintenance three-fund portfolio that can accrue over time. The fact that this resource is freely accessible underscores the author's altruistic intent to share their expertise and assist young individuals worldwide in achieving financial independence.

[Maria · Rating 5 out of 5]

This little pamphlet is a must-read for everyone, not just young people who are starting out in their first job or people who are just starting to save money. It gives the basics in readable, easy-to-understand language. Bernstein isn't trying to sell a magic formula or hype a risky investment product. Saving money is boring and takes time and patience and a willingness to be a contrarian. But it's not hard to do or difficult to understand. Bernstein gets it, and he knows how to explain it well.

[Rosa · Rating 2 out of 5]

A straight to the point guide if you already know about investment terms. If you are completely novice this isn't for you. There are quite a few contradictions: such as his love for Vanguard - yet his disdain for mutual funds and his recommendation for putting 25% of your income in your 401K - which most likely in a mutual fund and not an index fund. There's a lot of "what if" scenarios that go unanswered because this book lacks depth and explanations.

[Dennis Sell · Rating 4 out of 5]

Not the first time I’ve read this or the last. Now time for some of the suggested readings mentioned in the booklet.

In addition to the useful content, the author comes across as a great guy

[Caroline Graham · Rating 5 out of 5]

Every millennial should read in my opinion. If you don’t learn the basics of managing your own money then others will be happy to do it for you (for a fee! & when you calculate the compound interest of those fees over the span of 30+ yrs you might as well just educate yourself and save the money you’d pay a financial adviser), but there’s no reason that everyone shouldn’t be able to learn the basics of investing and money management on their own. With great resources like this available, you don’t even need a degree to start building an excellent foundation.

The best, most concise & accessible (easy to understand) advice I’ve read on investing if you are wanting to learn the basics and become more financially savvy. The associated/recommended readings he includes are also excellent.

[Antariksa · Rating 4 out of 5]

A really short read on how and how not to invest which takes just about one hour to finish (although it comes with a caveat). The writer outlined five hurdles of investing that every young person should avoid. Reading this booklet kind of feels special to me since the advice starts on what to do with investments at 25 years old, which is my current age. He he.

I like most of the bits of advice and warnings Bernstein offered, such as that humans are not particularly good at investments because they suck at long-term planning. However, as with any book about finance, we must take his advice with a grain of salt. As another reviewer pointed out, his inconsistency shows when he wrote against mutual funds yet at the same time told readers to invest in 401(K), which invests the money into (partly) mutual funds.

In short, we should never trust 100% of any financial advice. However, this book has more amount of believable advice than almost any other finance book.

[Pamy Nguyễn · Rating 5 out of 5]

The quickest way to retire in a good and relaxed way is by reading this book.
It takes me about a year and a half to struggle in finding a way to manage my savings account. And I can not believe it's here. So short and so condensed.
It's good to find such a great book in such a short time.

[Pola · Rating 4 out of 5]

I think I could not yet give a full review since this is subjected to re-reading and doing the section assignments. Will get back to it once this was re-read.

Crash course on investing, insightful though!

[Darin Shreves · Rating 5 out of 5]

A quick 16-page .pdf book packed with info and further reading. An interesting read that added some new-to-me explanations and perspectives about the investing fundamentals.

[Jakub · Rating 5 out of 5]

Short. To the point. After 10 years still relevant for every gen Y and Z (except the last chapter but that's because it is focused on US pension system).

[Brett Leyde · Rating 5 out of 5]

helpful and practical get-started guide for retirement savings.

[Barry · Rating 4 out of 5]

A great little introduction to investing by one of my favorite financial writers — along with Jack Bogle. Not everyone is going to have the interest to get through his “Four Pillars of Investing” or “The Intelligent Asset Allocator,” so this gives the basics that everyone needs to know, as well as what to avoid. I think I’m going to have each of my kids read this.

[David Petersen · Rating 5 out of 5]

Really well written. Succinct and to the point. Really covers the basics well.

[Kaleb Rogers · Rating 5 out of 5]

Having just finished the dramatic 'Rich Dad, Poor Dad," I have also been perusing reddit for some more grounded personal financial advice. The subreddit r/financialindependence suggested this quick read to get one on the right track. I found this book to be very straightforward and earnest. The tone of the book feels as if Bernstein actually wishes the best to the reader, and his disdain for those that work in the financial industry is a definite plus. I'm glad I took the hour to read it and will surely be reading some of the many 'assigned readings' he portrays in the book!

[Temuulen · Rating 4 out of 5]

Simple, concise, clear.

[Ingrid · Rating 4 out of 5]

Didn't realize how short of a book this was. Took about 40 minutes to get through while taking notes. None of this information is new to someone who's read a basic investment book before, but its bite-sized review of asset allocation, the importance of investing and saving early, and the do's and don'ts of navigating a misinformed financial world are helpful nonetheless.

All in all, this was an okay book. Deservedly 4 stars for its intended audience and for summarizing in 16 pages what other books take 200 to do. Even at only 16 pages though, I felt some of what was written was pure filler, or not what I would recommend someone of my age group do. For example, keeping a 33/33/33 portfolio. I think millenials in their early 20s and 30s would be done a great disservice by keeping their stock ratios sooo low. And the author doesn't explain why that ratio specifically (even though you can take a guess, nothing about finance should be a "guess"). There's also a part of the ebook where the author tries to throw in math to explain how the nominal rate and real stock return rates (adjusted for inflation) impact your portfolio, but there's no basis for that math, and halfway into the ebook, there's no reference to nominal and real rates anyways. So yeah.


That's why for millenials and Gen Z'ers that want a detailed account of the simple portfolio and investing method that Bernstein provides, I personally recommend reading Alan Roth's "How A Second Grader Beats Wall Street." Fortunately Bernstein already recommends Roth's, but only after reading a slew of other finance books. Eh, skip. Then go and read "The Boglehead's Guide to Investing" which is inspired by the methods of the pioneer of index fund management Jack Bogle himself.

Here's also a breakdown of my notes:

Summary Notes:

-95% of what happens in finance is random noise but humans like to make patterns out of things
-You are only person in charge of your financial future
-Save 15% of income in 401k or other investing profile and invest in my current three fund portfolio in equal ratio (33/33/33) of US Stock Index Funds, Total Market Stock Index Funds, and US Bond Index Funds.
-Save another 15% of income for savings

How to invest properly:

1.PAY OFF DEBT FIRST

2.Max out employer match on investing accounts in order of:

A)401(k) employer match
-Assess expense ratios. If >1.0%, only up to employer match. If ≤.5%, put as much money as possible
B)Roth (max contribution)
C)Other taxable savings account

3.Once per year, re-balance 33/33/33 portfolio. Avoid selling stocks in taxable account (incurs gains tax)

4.Build 6-month Emergency Fund in T-bills, CDs, or money market accounts, and put in a taxable account.

Key Terms:

Stock - ownership stock in company. RISKIER than bond (That’s why owners HAVE TO pay out BONDS first)
Bond - loan to company



Book recommendations:

Suggestion: Read this ebook first, then come back a 2nd time and read through the recommended readings. Est time length = 1 year while on your financial journey.


The Millionaire next Door
Common Sense on Mutual Funds
Devil Take the Hindmost
The Great Depression: A Diary
Your Money and Your Brain
How A Second Grader Beats Wall Street
All About Asset Allocation

[Eva · Rating 5 out of 5]

Short one. Good one. Read it.

After you do, here's the reading list, from the book:


Hurdle No1: "People spend too much money"
Thomas Stanley and William Danko’s The Millionaire Next Door
Hurdle No2: "Understanding of what finance is all about"
Jack Bogle’s Common Sense on Mutual Funds
Hurdle No3: "Learning the basic financial and market history"
Devil Take the Hindmost by Edward Chancellor
The Great Depression: A Diary, by Benjamin Roth
Hurdle No4: "Overcoming your biggest enemy - yourself"
Your Money and Your Brain, by the Wall Street Journal’s Jason Zweig
Hurdle No5: "Recognize the monsters"
same as Hurdle No2
Nuts and Bolts
Allan Roth’s How a Second Grader Beats Wall Street and Rick Ferri’s All About Asset Allocation

Link to excel sheet mentioned, Hurdle No2: www.efficientfrontier.com/files/savin...


Enjoy!

[Grant · Rating 2 out of 5]

Very US-centric, indeed. It wouldn't have taken Bernstein that much more work to add the information for at least Canada, too. For example, the US 401(k) is, basically, the Canadian RRSP. Pointing out these equivalencies would have been useful. Bernstein's advice to do equal weighting to US stocks, international stocks and US bonds is probably too simplistic. There is no discussion of the different philosophies around bond allocation, for example (age-10, age-20, etc.) And you'll likely want a larger allocation to US stocks vs. international, especially if you're American or Canadian. There's also something about Bernstein's writing style that doesn't make me too excited to read his other books. But anyway, yes, lots of solid advice in this eBook and his overall investment philosophy of avoiding financial planners + buying low-cost ETF index funds + doing occasional asset allocation rebalancing + staying in the market long-term is a good one, I think (hope?).

[Brady Salz · Rating 4 out of 5]

I loathe all self-help books because they drag out a two page essay into a two hundred page book that's really only applicable for a certain subset of people. And for some reason, the author(s) feel a need to be condescending the entire time.

This one avoids all of that. Short (~15 pages), to the point, with clear references and guidelines. Despite being a financial guide, the biggest take-away is "trust no one in finance". You shouldn't read things that just confirm your priors, but this one felt good. I am hesitantly giving the author the benefit of the doubt and trying the rest of their recommendations!

[Helen · Rating 4 out of 5]

A quick read that gives an overview for younger generation to start building their nest egg. Gives a list of books to read to further their knowledge as well. I found it helpful, overall, as the author keeps it to a pretty basic level.

[Mike Shi · Rating 4 out of 5]

Already knew most of the basic principles, still a good quick read to refresh and confirm.

[Ryan · Rating 4 out of 5]

Great primer on investing

[Oscar Gallardo Huizar]

Step 1: Pay debt
Step 2: While doing that, save on 401K
Step 3: Invest
Step 4: Read more books haha