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Off the Shelf

Self- Improvement in a Bull Market

THE stock market is up, and your home — if you own one — is probably worth more than it was at the real estate market’s nadir. So the odds are that you are feeling a bit better about your financial self these days.

Not so fast, says John J. Vento, an accountant and financial planner.

He contends that you may be giving yourself too much credit in figuring your net worth. Why? You may be including your house as an investment asset, which he says it isn’t, and you probably aren’t factoring in the impact of taxes on your life.

And beyond all that, he says, you aren’t setting your financial objectives high enough. In fact, he argues, your goal should be nothing less than the title of his book: “Financial Independence (Getting to Point X)” (Wiley, $40). That’s the point “at which our savings and investments alone generate enough income to support our chosen lifestyle,” he says, “and allow us to continue to live that lifestyle without having to work for a paycheck.”

It’s an ambitious goal. And unless you are coming into a windfall, there are only two ways to achieve it: maximize the amount of money coming in and minimize what goes out. Mr. Vento suggests that you pursue both strategies aggressively.

To help you limit expenses, the book offers a list of suggestions in an appendix. And this list may offer the oddest juxtaposition of ideas ever to appear in a personal finance book. “Clean out the coils in your refrigerator every six months to keep it running efficiently” appears just before “Buy a home that is affordable to prevent going into debt.” “Learn how to trim your own hair” is listed near “Clear your credit card debt.”

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But the author’s in-depth discussion of taxes is of extreme value. While most personal finance books give this topic short shrift, Mr. Vento shines in this area. He notes that “for just about everyone, taxes are our biggest personal expense by far.”

He offers an in-depth explanation of how to get the most out of tax-advantaged retirement accounts: start early, fund them to the maximum allowed and choose the most aggressive investment options you’re comfortable with. But he also urges you to meet several times a year with a tax professional.

And he offers a very useful primary rule: Set aside money first for long-term goals — like your retirement and your children’s college educations — and determine your standard of living based on what’s left over.

IN light of how good some of us have been feeling lately about our finances, it’s a sobering prescription. So is the subject of another new book, by Lori R. Sackler, a senior vice president at Morgan Stanley Wealth Management (and written with the financial journalist Toddi Gutner).

Ms. Sackler tries to answer one of the most complicated personal-finance questions of all: How do you talk to your family about money? And by talking about money, she means issues as “simple” as getting your spouse to spend less, or as complex as explaining why you want to divide your estate the way you do.

Titled “The M Word: The Money Talk Every Family Needs to Have About Wealth and Their Financial Future” (McGraw-Hill $30), the book lays out a five-step approach:

• Recognize that “every transition point” in life — marriage, having children, changing jobs, etc. — has financial consequences.

• Understand that money discussions with your family usually cause some heartburn, in that they come with significant psychological and emotional components.

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• Prepare extensively for the talk. Have an agenda. Know your goals and who is most likely to be upset.

• Draw on professional experts as needed.

• Be prepared to repeat the previous steps. The odds are that you won’t be able to address everyone’s concerns in one conversation.

The writing is straightforward, and makes a compelling argument for having “the money talk.”

But the book isn’t particularly helpful about what you should be talking about. Yes, everyone’s situation is different, but when the author gives examples — and she provides many — the path is not always as clear as it could be.

Consider this: To help a husband and wife who worry that they won’t leave enough money to their heirs, she recommends creating “an insurance trust typically funded with a guaranteed universal life policy.”

While the book provides a note explaining what the policy is — it’s term insurance coupled with a savings component — it doesn’t explain how the insurance trust works. (It’s generally an irrevocable trust funded exclusively — or in large part — by a life insurance policy.)

Presumably, Ms. Sackler expects you to contact experts to help put such solutions into practice. But given the book’s $30 cover price, and the fact that it takes until Page 143 (out of 238) to explain how to begin having the talk, I hoped for more.

Still, flagging the importance of serious financial discussions with your family is a most worthwhile idea, and, when combined with Mr. Vento’s advice, will help keep you from becoming complacent about your money.

A version of this article appears in print on  , Section BU, Page 21 of the New York edition with the headline: Self-Improvement In a Bull Market. Order Reprints | Today’s Paper | Subscribe

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