It's About More Than the Money: Investment Wisdom for Building a Better Life

Cover......Page 1
Table of Contents......Page 8
Acknowledgments......Page 15
About the Author......Page 17
Introduction......Page 18
Chapter 1 Rules Are Essential, but They Do Not Guarantee a Win......Page 22
 Evaluate the Investment Rules You Followed......Page 25
 Get Back in the Game......Page 26
Chapter 2 Focus Your Predictions on What You Can Control: Your Priorities......Page 30
Chapter 3 Let Go of What Might Have Been......Page 38
 Step 1: Learn to Recognize the “What Might Have Been” in Your Language......Page 39
 Step 2: See It for What It Really Is......Page 40
  Notice What Factors Are and Are Not in Your Control......Page 42
  Learn from Your Mistakes and Change for the Next Time......Page 43
  Take Full Responsibility......Page 45
 Option 1: Blame Others......Page 48
 Option 2: Take Responsibility......Page 50
 A Master Plan for Your Life......Page 52
  Look at the Path from Where You Are Now to Where You Want to Be......Page 53
  Map Out a Strategy......Page 54
  Take Responsibility for the Master Plan......Page 55
Chapter 5 Do What You Know and Recognize What You Don’t Know......Page 56
Chapter 6 Have Investment Rules That Work for You......Page 62
 Rule #2: I Must Understand the Degree to Which My Investments Are Truly Liquid......Page 63
 Rule #3: My Investments Should Be Completely Transparent......Page 64
 Rule #5: I Must Understand How I Am Paying for Investment Advice, Services, and Products......Page 65
 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......Page 66
Chapter 7 The Time to Have the Fire Drill Is Not in the Middle of the Fire......Page 72
 Communication with Advisors......Page 73
 Wills and Estate Planning......Page 75
 Protection of Spouses and Gifting to Children and Charitable Interests......Page 76
 Asset Allocation and Investment Strategy......Page 77
Chapter 8 The Best Advice Is Sometimes About What Not to Do......Page 84
 Investing with Friends......Page 86
 Overextending Your Borrowing......Page 87
 Living the Consequences of Someone Else’s Choices......Page 90
 Getting Attached to Things and Not Wanting to Sell......Page 91
 You Could Misplace It......Page 96
 You Could Gamble It Away......Page 97
 Holding on While Getting Ahead......Page 98
Chapter 10 Know What You Want to Accomplish......Page 104
 Capital Preservation......Page 105
 Income......Page 106
 Income with Growth......Page 107
 Aggressive Growth......Page 108
Chapter 11 Be Clear About What You Have and What You Don’t Have......Page 114
Chapter 12 Expect to Pay a Price—Either Now or Later—for the Choices You Make About Handling Your Money......Page 120
 2. Determine Your Time Frame for Financial Independence......Page 121
 3. Adjust the Income Figure for Future Inflation......Page 122
 4. Calculate the Ending Balance You Need to Support the Inflated Income Figure......Page 125
 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......Page 126
 7. Subtract the Difference Between What You Need for Your Ending Balance and What You Have Now......Page 127
 8. Calculate the Amount You Need to Save Each Year—for Your Designated Time Frame—to Close the Gap and Potentially Achieve Financial Independence......Page 128
 9. Develop an Asset Allocation Plan......Page 130
 Paying Now......Page 132
 Paying Later......Page 133
 Making the Choice......Page 136
Chapter 13 Know the Essence of Your Advisor’s Brand......Page 138
 Option 1: Ask the Advisor Directly About the Brand......Page 141
 Option 3: Meet Several Advisors to Compare Their Brands......Page 142
 Option 4: Recognize and Respect Your Gut Reaction......Page 143
 Option 5: Know the Brand You Want......Page 144
 Option 6: Live It......Page 145
Chapter 14 Does Your Advisor Care Deeply About You?......Page 146
Chapter 15 Expect to Be Taken Care Of......Page 158
 Ask for It......Page 162
 Know If You Are Getting It......Page 164
Chapter 16 The Investor’s Perception Is the True Reality......Page 168
Chapter 17 Crises Are Like Little Gifts......Page 176
 Crises Force You to Examine Your Behavior......Page 177
 It’s Foolish to Waste a Good Crisis......Page 178
 Crises Give You a Chance to Gain Objectivity......Page 179
 Crises Give You an Opportunity to Enhance Communication with the Important Players......Page 181
 Crises Force You to Reevaluate Your Priorities......Page 182
Chapter 18 The Most Valuable Things in Life Do Not Involve Currency......Page 186
 Paula and Maureen......Page 187
  Elliott......Page 188
  Tom......Page 191
Chapter 19 Find the Courage You Need to Have Integrity......Page 196
Chapter 20 There’s an Entire Economy in What We Consume and Waste......Page 206
Chapter 21 Make It Happen......Page 216
 Choose Your Financial Advisor Deliberately and Carefully......Page 217
 Take Responsibility......Page 218
 Be Strong......Page 219
 Keep Your Eye on the Big Picture......Page 220
 Make It Happen......Page 221
 Review of Step 3: Adjusting Your Monthly Financial Needs for 3% Inflation over 25 Years......Page 222
 Review of Step 6: Calculating the Future Value of $250,000 Today After 25 Years of Returns at a Rate of 7%......Page 223
 Review of Step 8: Calculating the Amount You Will Need to Save Annually for 25 Years to Close the Retirement Investment Gap......Page 224
 B......Page 226
 E......Page 227
 G......Page 228
 L......Page 229
 P......Page 230
 V......Page 231
 X-Y-Z......Page 232