Killing Sacred Cows by Garrett B. Gunderson

Gunderson explodes 9 myths that keep people from achieving wealth. Since I agree and have written on most of these topics, I found the book generally useful and smart.

The writing, though, is second rate. And there are some problems. For example, his arguments in support of cashing in 401 (k)s, taking the 10% penalty and tax hit, and then putting the remaining money into a business or real estate are based on unrealistic expectations of return.

He does make a good point when he says that cash flow is more important than net worth. I’ve said as much many times. And I like what he says about velocity of money. With countries, it is the GDP divided by the money supply. With individuals, it is the output divided by the input. In other words, don’t let your money sit for long periods of time in a 401(k), earning – if you are lucky – 8% and deferring pleasure till you are 65. Use it now to create value (and cash flow) for yourself and the rest of the world.