The Daily Dow
Thursday, October 2, 1997
by Robert Sheard

LEXINGTON, KY. (Oct. 02, 1997) -- Since beginning as a writer for the Motley Fool, I've read scores of investment books. Almost every one (even the one I myself am writing) focuses on how to invest what you already have. But what most Americans really need to make that kind of advice especially useful is to have a general education in financial planning in place before they begin to invest. Unfortunately, the American educational system isn't doing the job.

This week, I re-read one of my favorite books, David Chilton's The Wealthy Barber. If you haven't read this one (and you're not going to find an easier read), pick it up immediately. (We even sell it in our FoolMart if you want to have it sent to you.)

Chilton covers all of the basic financial planning topics most of us only know about in the vaguest of terms. He covers a savings plan that really works (not those agonizing monthly budgets no one can stick to). He covers the need for wills and proper life insurance (and how to decide if you need insurance and how much). He analyzes various retirement account options (although the Roth IRA is too new to be covered here). He discusses real estate, especially as it concerns the purchase of your primary residence. And he even covers investments and some aspects of income taxes.

All of his advice is understandable and tremendously Foolish. The only reservation I have, of course, is that Chilton recommends investing in equity mutual funds rather than individual stocks. When you're reading this book, then, simply substitute "Foolish stocks" or "Dow Approach" every time he writes "mutual funds" and it's an ideal introduction to basic financial planning. If you follow the advice in Chilton's book and invest using Foolish techniques, it's impossible for you not to create tremendous wealth. And it's just not that hard. Just do it, Fool!

(c) Copyright 1997, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. ________________________________

Stock  Change   Last
--------------------
T    +   1/4   44.31
GM   +1        67.94
CHV  +1 13/16  85.00
MMM  +1  3/4   94.25

           Day   Month    Year
                  Day   Month   Year
        FOOL-4   +1.35%   1.35%  17.74%
        DJIA     +0.88%   0.88%  24.30%
        S&P 500  +0.86%   0.86%  28.98%
        NASDAQ   +0.27%   0.27%  30.93%

    Rec'd   #  Security     In At       Now    Change
   1/2/97  153 Chevron       65.00     85.00    30.77%
   1/2/97  179 Gen. Motor    55.75     67.94    21.86%
   1/2/97  120 3M            83.00     94.25    13.55%
   1/2/97  479 AT&T          41.75     44.31     6.14%


    Rec'd   #  Security     In At     Value    Change
   1/2/97  153 Chevron     9945.00  13005.00  $3060.00
   1/2/97  179 Gen. Motor  9979.25  12160.81  $2181.56
   1/2/97  120 3M          9960.00  11310.00  $1350.00
   1/2/97  479 AT&T       19998.25  21225.69  $1227.44


                             CASH   $1167.51
                            TOTAL  $58869.01