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