Millionaire Teacher 2e – The Nine Rules of Wealth You Should Have Learned in School

Acknowledgments xiii
<p>Introduction 1</p>
<p>RULE 1 Spend Like You Want to Grow Rich 5</p>
<p>The Hippocratic Rule of Wealth 6</p>
<p>Can You See the Road When You re Driving? 10</p>
<p>One of the Savviest Guys I Ever Met And His View on Buying Cars 13</p>
<p>Careful Home Purchases 19</p>
<p>Millionaire Handouts 20</p>
<p>How Did I Become a Millionaire? 21</p>
<p>Looking to the Future 24</p>
<p>RULE 2 Use the Greatest Investment Ally You Have 27</p>
<p>Compound Interest The World s Most Powerful Financial Concept 29</p>
<p>The Bohemian Millionaire The Best of Historical–Based Fiction 31</p>
<p>Gifting Money to Yourself 34</p>
<p>When You Definitely Shouldn t Invest 36</p>
<p>How and Why Stocks Rise in Value 36</p>
<p>RULE 3 Small Fees Pack Big Punches 43</p>
<p>With Training, the Average Fifth Grader Can Take on Wall Street 44</p>
<p>Financial Experts Backing the Irrefutable 45</p>
<p>What Causes Experts to Shake Their Heads 49</p>
<p>When the Best Funds Turn Malignant 51</p>
<p>Reality Check 58</p>
<p>When Best Mutual Fund Lists Can Strip You Naked 61</p>
<p>What s Under the Hood of an Index Fund? 69</p>
<p>Captain America Calls for Government Action 70</p>
<p>Who s Arguing against Indexes? 72</p>
<p>RULE 4 Conquer the Enemy in the Mirror 81</p>
<p>When a 10 Percent Gain Isn t a 10 Percent Gain 81</p>
<p>Are Index Fund Investors Smarter? 86</p>
<p>It s Not Timing the Market That Matters; It s Time in the Market 88</p>
<p>On Stocks . . . What You Really Should Have Learned in School 90</p>
<p>Internet Madness and the Damage It Caused 96</p>
<p>Taking Advantage of Fear and Greed 99</p>
<p>Young People Should Salivate When Stocks Sputter 101</p>
<p>Opportunities after Chaos 103</p>
<p>RULE 5 Build Mountains of Money with a Responsible Portfolio 111</p>
<p>What Are Bonds? 112</p>
<p>Profiting from Panic Stock Market Crash, 2008 2009 116</p>
<p>Having a Foreign Affair 118</p>
<p>Introducing the Couch Potato Portfolio 120</p>
<p>Combinations of Stocks and Bonds Can Have Powerful Returns 123</p>
<p>RULE 6 Sample a Round–the–World Ticket to Indexing 129</p>
<p>What s the Difference between an Index Fund and an ETF? 129</p>
<p>Indexing in the United States An American Father of Triplets 135</p>
<p>Indexing in Canada 142</p>
<p>A Canadian Couch Potato Strips Down Costs 145</p>
<p>Indexing in Great Britain 148</p>
<p>Indexing in Australia Winning with an American Weapon 151</p>
<p>Indexing in Singapore 153</p>
<p>The Next Step 157</p>
<p>RULE 7 No, You Don t Have to Invest on Your Own 161</p>
<p>Are You Wired Like a Buddha? 162</p>
<p>How Does the Average Index Investor Underperform the Index? 163</p>
<p>Intelligent Investing for Americans 165</p>
<p>Intelligent Investing Firms for Canadians 172</p>
<p>Intelligent Investing Firms for British Investors 179</p>
<p>Intelligent Investing Firms for Australians 183</p>
<p>Intelligent Investment Firms in Singapore 185</p>
<p>Don t Ask about Another Lover 186</p>
<p>RULE 8 Peek inside a Pilferer s Playbook 189</p>
<p>How Will Most Financial Advisers Fight You? 189</p>
<p>The Totem Pole View 197</p>
<p>Is Government Action Required? 200</p>
<p>RULE 9 Avoid Seduction 205</p>
<p>Confession Time 205</p>
<p>Investment Newsletters and Their Track Records 210</p>
<p>High–Yielding Bonds Called Junk 213</p>
<p>Fast–Growing Markets Can Make Bad Investments 214</p>
<p>Gold Isn t an Investment 216</p>
<p>What You Need to Know about Investment Magazines 216</p>
<p>Hedge Funds The Rich Stealing from the Rich 219</p>
<p>Don t Buy a Currency–Hedged Stock Market ETF 223</p>
<p>Beware of the Smart Beta Promise 225</p>
<p>Don t Jump Heavily into Small–Cap Stocks 226</p>
<p>Conclusion 231</p>
<p>About the Author 233</p>
<p>Index 235</p>