Earlier this year, former LA Times journalist Helaine Olen - who was responsible for their popular Money Makeover series for many years - published a controversial new book entitled "Pound Foolish: Exposing The Dark Side Of The Personal Finance Industry." In the book, Olen tears apart most of the personal finance industry - tracing it from the roots of Sylvia Porter to Jane Bryant Quinn to today's world from Suze Orman and David Bach to Jim Cramer, the MoneyShow, and Robert Kiyosaki's "Rich Dad" series, and showing along the way how the conflicts of interest rife in the industry serve to undermine much of the value personal finance is purported to give.
Although Olen also shines a harsh light on many segments of the financial advisor space as well, the most notable part of the book is not merely that so much of the financial services world is conflicted and acts in its own interests at the expense of consumers, but that the underlying implication that the problems of most Americans are a result of their poor spending habits and failure to get financially educated may be placing too much blame on consumers and too much of an expectation on even the best that personal finance has to offer. Instead, Olen suggests that many of these issues must be viewed in a broader social light, where the struggle of bringing financial planning to the masses may be less about the problems of our industry business models and more about the fact that what financial planning has to offer simply isn't enough to rectify the real world challenges the average American faces.
The kinds of government safety net and paternalistic solutions implied by such concerns are likely unappealing to many planners, but Olen's book is nonetheless a worthwhile read for some fresh perspective on the intersection between what personal finance and financial planning have to offer, and the limits on what they can achieve without perhaps some social and economic reform and government oversight and assistance.