It's about more than the money: investment wisdom for building a better life

Acknowledgments

About the Author

Introduction

Chapter 1. Rules Are Essential, but They Do Not Guarantee a Win

Evaluate the Investment Rules you Followed

Examine How Well You Followed the Rules

Get Back in the Game

Chapter 2. Focus Your Predictions on What You Can Control: Your Priorities

Chapter 3. Let Go of What Might Have Been

Step 1. Learn to Recognize the "What Might Have Been" in Your Language

Step 2. See It for What It Really Is

Step 3. Eliminate the "What Might Have Been" from Your Language

Notice What Factors Are and Are Not in Your Control

Learn from Your Mistakes and Change for the Next Time

Take Full Responsibility

Chapter 4. Take Responsibility

Option 1. Blame Others

Option 2. Take Responsibility

A Master Plan for Your Life

Get the Bigger Picture for Your Life

Look at the Path from Where You Are Now to Where You Want to Be

Map Out a Strategy

Take Responsibility for the Master Plan

Chapter 5. Do What You Know and Recognize What You Don't Know

Chapter 6. Have Investment Rules That Work for You

Rule #1. As the Investor, I must Understand what I own

Rule #2 I Must Understand the Degree to Which My Investments Are Truly Liquid

Rule #3. My Investments Should Be Completely Transparent

Rule #4. My Investments Must Be Audited by Federal Regulators and/or an Independent Third Party

Rule #5. I Must Understand How I Am Paying for Investment Advice, Services, and Products

Rule #6. I Have Personally Investigated the Character of the People with Whom I Associate and Do Business. I Did Not Delegate This Critical Responsibility to a Third Party

Chapter 7. The Time to Have the Fire Drill Is Not in the Middle of the Fire

Communication with Advisors

Wills and Estate Planning

Tax Planning

Protection of Spouses and Gifting to Children and Charitable Interests

Asset Allocation and Investment Strategy

Chapter 8. The Best Advice Is Sometimes About What Not to Do

Investing with Friends

Overextending Your Borrowing

Living the Consequences of Someone Else's Choices

Getting Attached to Things and Not Wanting to Sell

Chapter 9. Appreciate the Value of Holding on to What You Have

You Could Misplace It

You Could Waste It

You Could Lose It in the Financial Markets

You Could Have It Stolen from You

You Could Gamble It Away

You Could Give It Away

You Could Lend It and Not Get Repaid

Holding on While Getting Ahead

Chapter 10. Know What You Want to Accomplish

Capital Preservation

Income

Income with Growth

Growth

Aggressive Growth

Chapter 11. Be Clear About What You Have and What You Don't Have

Chapter 12. Expect to Pay a Price-Either Now or Later-for the Choices You Make About Handling Your Money

1. Estimate Your Desired Income in Today's Dollars

2. Determine Your Time Frame for Financial Independence

3. Adjust the Income Figure for Future Inflation

4. Calculate the Ending Balance You Need to Support the Inflated Income Figure

5. Estimate Your Starting Balance Using Liquid Assets and Possibly Adding Other Assets That Are Soon to Become Liquid

6. Estimate the Future Value of Your Current Assets, Using a Rate of Return That Is Realistic Based on Your Investment Portfolio and Asset Allocation

7. Subtract the Difference Between What You Need for Your Ending Balance and What You Have Now

8. Calculate the Amount You Need to Save Each Year-for Your Designated Time Frame-to Close the Gap and Potentially Achieve Financial Independence

9. Develop an Asset Allocation Plan

Paying Now

Paying Later

Making the Choice

Chapter 13. Know the Essence of Your Advisor's Brand

Option 1. Ask the Advisor Directly About the Brand

Option 2. Ask Other People About the Advisor's Brand

Option 3. Meet Several Advisors to Compare Their Brands

Option 4. Recognize and Respect Your Gut Reaction

Option 5. Know the Brand You Want

Option 6. Live It

Chapter 14. Does your Advisor Care Deeply About You?

Chapter 15. Expect to Be Taken Care Of

Recognize What Is Important to You

Ask for It

Know If You Are Getting It

Chapter 16. The Investor's Perception Is the True Reality

Chapter 17. Crises are Like Little Gifts

Crises Force You to Examine Your Behavior

It's Foolish to Waste a Good Crisis

Crises Give You a Chance to Gain Objectivity

Crises Give You an Opportunity to Enhance Communication with the Important Players

Crises Force You to Reevaluate Your Priorities

Chapter 18. The Most Valuable Things in Life Do Not Involve Currency

Paula and Maureen

Elliott

Tom

Chapter 19. Find the Courage You Need to Have Integrity

Chapter 20. There's an Entire Economy in What We Consume and Waste

Chapter 21. Make It Happen

Respect Rules, but Appreciate Them for What They Are

Choose Your Financial Advisor Deliberately and Carefully

Take Responsibility

Plan

Be Strong

Keep Your Eye on the Big Picture

Make It Happen

Appendix: Formulas Used for Chapter 12 Calculations

Review of Step 3: Adjusting Your Monthly Financial Needs for 3% Inflation over 25 Years

Review of Step 4: Calculating the Capital Investment Value Needed to Generate the $15,700 Monthly Draw ($188,000 Annually) Needed 25 Years from Now

Review of Step 6: Calculating the Future Value of $250,000 Today After 25 Years of Returns at a Rate of 7%

Review of Step 7: Calculating the Asset Gap Needing to Be Filled by Savings and Investment Returns over the Next 25 Years

Review of Step 8: Calculating the Amount You Will Need to Save Annually for 25 Years to Close the Retirement Investment Gap

Index