Foreword xv

Introduction xix

RULE 1 Spend Like You Want to Grow Rich 1

The Hippocratic Rule of Wealth 2

Can You See the Road When You’re Driving? 6

One of the Savviest Guys I Ever Met?And His View on Buying Cars 8

Careful Home Purchases 11

Millionaire Handouts 13

How Did I Become a Millionaire? 14

Looking to the Future 17

RULE 2 Use the Greatest Investment Ally You Have 19

Compound Interest?The World’s Most Powerful Financial Concept 21

The Bohemian Millionaire?The Best of Historical-Based Fiction 23

Gifting Money to Yourself 26

When You Defi nitely Shouldn’t Invest 28

How and Why Stocks Rise in Value 28

RULE 3 Small Percentages Pack Big Punches 33

With Training, the Average Fifth Grader Can Take on Wall Street 34

Financial Experts Backing the Irrefutable 35

What Causes Experts to Shake Their Heads 38

When the Best Funds Turn Malignant 41

Reality Check 46

Who’s Arguing against Indexes? 55

RULE 4 Conquer the Enemy in the Mirror 61

When a 10 Percent Gain Isn’t a 10 Percent Gain 61

It’s Not Timing the Market that Matters; It’s Time in the Market 64

On Stocks . . . What You Really Should Have Learned in School 67

Internet Madness and the Damage It Caused 72

Taking Advantage of Fear and Greed 75

Opportunities after Chaos 78

RULE 5 Build Mountains of Money with a Responsible Portfolio 85

What Are Bonds? 86

Profi ting from Panic? Stock Market Crash 2008?2009 90

Having a Foreign Affair 92

Introducing the Couch Potato Portfolio 94

Combinations of Stocks and Bonds Can Have Powerful Returns 97

RULE 6 Sample a “Round-the-World” Ticket to Indexing 101

Indexing in the United States?An American Father of Triplets 101

Indexing In Canada? A Landscaper Wins by Pruning Costs 108

Indexing in Singapore? A Couple Builds a Tiger’s Portfolio in the Lion City 114

Indexing in Australia? Winning with an American Weapon 119

The Next Step 121

RULE 7 Peek Inside A Pilferer’s Playbook 125

How Will Most Financial Advisers Fight You? 125

The Totem Pole View 132

Is Government Action Required? 134

RULE 8 Avoid Seduction 139

Confession Time 139

Investment Newsletters and Their Track Records 143

High-Yielding Bonds Called “Junk” 147

Fast-Growing Markets Can Make Bad Investments 147

Gold Isn’t an Investment 149

What You Need to Know about Investment Magazines 150

Hedge Funds? The Rich Stealing from the Rich 153

RULE 9 The 10% Stock-Picking Solution . . . If You Really Can’t Help Yourself 157

Using Warren Buffett 158

Commit to the Stocks You Buy 159

Stocks with Staying Power 164

Selling Stocks 174

The Nine Rules of Wealth Checklist 179

Index 181