When JPMorgan Chase & Co. drew a backlash in April for a tweet that argued that Americans weren’t saving because they buy fancy coffee, eat out and take cabs too much, Warren joined in, tweeting that it was actually because they lost their “jobs/homes/savings but gave you a $25b bailout.”
She was also a strong advocate for the fiduciary rule, an Obama-era requirement that brokers working on retirement accounts put customers’ interests first when, say, choosing among plans that offer them a commission. A federal court later struck the fiduciary rule down, and a looser “best interest” standard replaced it.
Dennis Shirshikov, a financial analyst at Fit Small Business, teaches a course on the banking system at Queens College in New York. He often suggests the book to students who ask him for personal financial advice.
“You should definitely be honest with yourselves,” he said. “If you enjoy going to Starbucks, there’s no financial police that is going to come and arrest you.”
Sparkman said that giving herself permission to spend money on small luxuries made the book more appealing to her.
“You’re not going to do the financial equivalent of binge-eating under Elizabeth Warren’s plan,” she said.
Ross Gerber, president and chief executive officer of wealth management firm Gerber Kawasaki, said Warren appears to follow her own financial advice. After looking over the financial disclosure forms she was required to file as a presidential candidate, he pointed out that she had maximized her retirement savings and invested in low-cost mutual funds.
“I was impressed,” he said. “She did exactly what we advise clients to do who are teachers like her. She saves very aggressively and she doesn’t live a lavish lifestyle,” he added. “She owns broad-based and well-diversified mutual funds.”
“I wouldn’t call her a risk taker, but it’s a very prudent strategy,” Gerber said.
This article was provided by Bloomberg News.