The Honest Advisor: Investing: Learn What the Experts Aren’t Telling You and Invest with More Confidence Than Ever

By: Christopher D. Munchhof
Publisher: Monk House Publishing, LLC
Publication Date: August 30, 2024
ISBN: 979-8-9909574-1-1
Reviewed by: Douglas C. MacLeod, Jr.
Review Date: August 8, 2024

Christopher D. Munchhof’s helpful new book The Honest Advisor: Investing: Learn What the Experts Aren’t Telling You and Invest with More Confidence Than Ever is an excellent how-to guide for those not wanting to get hornswoggled out of their life savings. Starting off with tragic anecdotes of suicides, sicknesses and a brief historical context of securities fraud (the GOAT himself, Gregor MacGregor), Munchhof sets out to figuratively open the eyes of those who want to invest smartly in their families’ futures, but do not have the wherewithal or the savvy to recognize con artists and their money-making schemes when they see them. This book, thus, is a guide to building what Munchhof calls an “investment philosophy” that his readers can put into effect immediately and will work for them, rather than against them.

Munchhof’s first endeavor is to provide a comprehensive and horrifying overview of the different types of investment scams one can get trapped into: affinity fraud (targets groups); the Ponzi scheme; the all-too-common pyramid scheme; pump and dump schemes; promissory notes; microcap frauds; precious metals and coins; advance fee fraud; prime bank investments; high-yield investment programs; and regulatory protections. While there are agencies that can protect you from fraudsters, like the SEC, the SIPC, and the FDIC; however, with new legislation and regulations come innovative ways for criminals to manipulate the system to ensure your money ends up in their hands rather than yours. So, what does Munchhof suggest: Among other pieces of vital information, protect yourself by making sure you do your research, because the only way your money is going to be safe is if you keep it safe. Munchhof’s work is impressive because he places emphasis on the concept of self-control, which is unfortunately uncommon in his profession; he claims potential and seasoned investors should have complete control over their assets, because it becomes very easy to take advantage of those willing to hand over just about anything to their advisors or to sham investment firms. It is this thesis that makes Munchhof’s book unique. He claims he will be honest and, based on the content provided, he is; or, at the very least, he is persuasive in his argument. At one moment in the book, he writes: “Keep learning.” It is this short but profound statement that drives the rest of the book, which is meant to be part of that educational process.

As academic as The Honest Advisor: Investing is meant to be, Munchhof’s style of writing is conversational and accessible. He does speak in technical terms on occasion but just enough to show his smarts in the subject matter. Most of the work, however, is plainly written to ensure audiences are reading intently and carefully. He even provides an accommodating summary at the end of each chapter to help readers who may not have understood the material presented earlier. Munchhof makes something considered stressful, the subject of saving money, into something positive and hopefully lucrative for his readers. Even his chapter titles are witty, an example being “A Particular Set of Skills,” which speaks to the techniques financial advisors use to get the sale. Munchhof is more like a magician than an advisor, slyly exposing how the tricks-of-the-trade are performed, by all sorts of brokers and sales representatives, to a slack-jawed audience ready to hand off their earnings. Like Bernie Madoff, he is “The Wizard,” but instead of being unintentionally exposed as a hustler, Munchhof deliberately shows readers what is behind the curtain so they are not manipulated or taken advantage of while living or when dead.

Much of the rest of The Honest Advisor: Investing is the writer’s attempt to educate readers on such items as: types of investments one should make (stocks, bonds, mutual funds, etc.); financial terminology one should know; classic investments one should consider (like real estate, gold and commodities) as well as alternative investments likely to be lucrative (like cryptocurrencies, peer-to-peer lending, crowdfunding, use of robo-advisors, etc.); lessons and insights learned when the bubble burst in the past and strategies one should take if such a thing was to happen again; trading tips; and, building one’s portfolio. Throughout the work, Munchhof is thorough and specific about his goal, which is to turn readers into literate investors, and he makes sure that no gold brick goes unturned. Every chapter provides lengthy amounts of content, which admittedly could be daunting and confusing for novices, even with the easy-going prose; but, overall, gives one a sense that readers have complete agency over how their money is invested. There are ways to save yourself from being scammed, and taking Munchhof’s advice is certainly a fine and easy way to achieve that goal.

Quill says: The Honest Advisor: Investing is a key text for readers who want to invest but are nervous to do so.

For more information on The Honest Advisor: Investing, please visit the author’s website at: www.christophermunchhof.com.