Book Review: Welcome to the Poorhouse

One of the things that has become rather apparent as we’ve muddled through this recession, caused by a financial crisis, is that the system is designed to protect big financial institutions, and does very little to protect ordinary consumers who are often caught in the crossfire — even if they are doing what they’ve been told is the “right” thing to do. Retirement expert Jane White offers a historical view of the financial situation, as well as insight into what you can do to shore up your own retirement, in her forthcoming book, America, Welcome to the Poorhouse: What YOU must do to protect your financial future, and the reform we need.

This book made very interesting, albeit depressing, reading. An inside look at the way politicians are in bed with the big financial companies, Poorhouse provides you with a front-row seat to the causes of our current financial problems as a country and as individuals. White unflinchingly looks at the way both parties have enacted “reforms” that have done very little reforming — and in some cases made things worse for consumers. She also offers a look at the “advice” we have been given with regard to 401k retirement plans, home ownership and college education, and why even those who try to do what’s right end up in financial trouble when they attempt to do what’s right and responsible, but are stymied by a lack of good information.

But the book is more than an indictment of our institutions and politicians. It also includes a number of reforms that might actually work, and what you can do to join other consumers to lobby for reform. (Be forewarned: Some of the proposed reforms in the book are a bit radical, and some the more conservative-leaning will find them unacceptable. I think they’re great, but others will disagree. However, most of the book offers information that anyone can appreciate.) White also includes practical advice about what you should do in the meantime to salvage your financial future. White offers rules about saving for retirement, tips for getting a mortgage that you can afford and paying it off quickly, and ideas on rethinking the way you pay for college. There is also a helpful section aimed at helping you create an action plan to get out of debt.

In the end, Welcome to the Poorhouse is an interesting read. It will open your eyes to the history behind our current system, and why it is the way it is. And it also provides you with actionable information that you can use to improve your own financial situation.