SCARY BUSINESS

Young’s informative, concise debut offers invaluable guidance on lump-sum investments.

A “Sudden Large Lump Sum,” or SLLS, may come from a real estate or business sale, inheritance, or retirement, but whatever its source, the author cautions that making an investment mistake with an SLLS can be catastrophic. Young’s objective in writing this book is clear; he discusses potential investment vehicles while prudently avoiding specific recommendations, urging readers to instead rely on the counsel of a certified financial planner. The information provided here, however, empowers the consumer to have a broad understanding of investment risks and make sensible, sound decisions about investing. In short, easily comprehensible chapters, the author covers investment basics, such as selecting a financial planner, creating a financial plan, developing an investment portfolio, and coping with bear markets. He also provides useful details about annuities, donor-advised funds, legacy planning, and environmental, social, and governance investing. This latter topic, previously known as socially responsible investing, is especially intriguing. Young offers an intelligent discussion of ESG investing along with a rational, insightful argument for how best to address ESG considerations. Of particular value are the author’s calming voice and pragmatic approach. Some of his observations may seem counterintuitive, but they are based on his extensive experience. For example, on assessing the performance of fund managers at an annual financial review, Young writes, “strange as it may seem—investment results are potentially the worst possible way to select or monitor investment funds….Instead, the focus should be on what investment characteristics a manager brings to the table and why you need them.” The appendix is as useful as the rest of the book. It offers seven important questions to ask when evaluating financial planners.

Provides a solid foundation for making informed decisions about large investments.