The Dividend Growth Investment Strategy

How to Keep Your Retirement Income Doubling Every Five Years

Don't Buy Mutual Funds or Unit Trusts. That is basically the strong message behind the book. Author and tax-law attorney Roxann Klugman tells you why.

It is amazing how many "experts" will tell you to buy mutual funds or unit trusts whenever you come up to them for investment advice. Scary still is the number of amateurs who seem to have bought this "advice" hook, line and sinker - judging from the number of people owning these financial products today.

The truth is mutual funds exist to benefit the banks and financial institutions only, not you. The only real people laughing all the way to the bank whenever you buy mutual funds is the banker who sold the product to you. The tyical investor is just an instrument to enrich Wall Street. Heart breaking facts that may be hard to swallow.

Consider the following facts. Mutual funds and unit trusts have been consistently under performing the stock market since they existed, and taxes coupled with hidden fees and commissions ensures that the banks are the only ones who truly benefit from your money. Millions of people all over the world, from America to Singapore, would have gained more if they had just left their money in cash, instead of squandering them on unit trusts and mutual funds.

Several calculations exist in the book to show you how this happens. For example, if you pay only a 1% management fee per year to a fund manager to manage your money, at the end of 20 years, the compounding effect of that fee would have eroded 17% off the value from your investment. Given the fact that most banks today charge an average of about 3% in management fees, the erosion on your investment would be even more substantial.

So stop enriching the banks and do the investments yourself. But a little note of caution, the techniques mentioned in this book is not for panicky speculators who sell off their stock at the first signs of trouble. If you do that, then you're no better off than just sending your money to Wall Street for free.

The Dividend Growth Investment Strategy is a discipline for far-thinking investors who can hold their ground despite fluctuating market conditions. These are the investors who will win over the long term, once the compounding effects kick in. Techniques of achieving this is clearly demonstated in the book.

The 290-page hard cover is easy to read with clearly illustrated examples, graphs and calculations to facilitate your understanding. However prior knowledge in basic stock market and financial terms is recommended.