The Only Guide You’ll Ever Need for the Right Financial Plan: Managing Your Wealth, Risk, and Investments Book

Preface.

Acknowledgments.

PART I: INVESTMENT POLICY IN AN UNCERTAIN WORLD.

Chapter 1 The Uncertainty of Investing.

Efficient Frontier Models.

Chapter 2 The Investment Policy Statement.

The Foundation of the Investment Plan.

PART II: ASSET ALLOCATION.

Chapter 3 Asset Allocation.

The Ability, Willingness, and Need to Take Risk.

When Conflicts Arise.

Risk Factors.

Chapter 4 Equities.

Equities versus Fixed Income.

U.S. Equity versus International Equity.

Emerging Markets.

Value versus Growth.

Real Estate.

Your Home.

Collateralized Commodity Futures (CCF).

Socially Responsible Investing (SRI).

Chapter 5 Fixed Income.

Credit Quality.

Short-Term versus Long-Term Maturities.

Municipal Bonds.

Inflation-Protected Securities.

Short-Term Fixed Income versus TIPS.

Chapter 6 Alternative Investments.

Convertible Bonds: Not Recommended.

Covered Calls: Not Recommended.

Fixed-Income Currency Exposure: Generally Not Recommended.

EE Bonds: Recommended.

Emerging Market Bonds: Not Recommended.

Equity-Indexed Annuities (EIAs): Not Recommended.

Gold: Not Recommended.

Hedge Funds: Not Recommended.

High-Yield (Junk) Bonds: Not Recommended.

Leveraged Buyouts (LBOs): Not Recommended.

Leveraged Funds: Not Recommended.

Master Limited Partnerships (MLPs): Not Recommended.

Mortgage-Backed Securities (MBS): Not Recommended.

Precious Metals Equities (PME): Not Recommended.

Preferred Stocks: Not Recommended.

Private Equity (Venture Capital): Not Recommended.

Stable-Value Funds: Generally Not Recommended.

Structured Investment Products: Not Recommended.

Variable Annuities: Not Recommended.

Chapter 7 Liabilities and Asset Allocation.

Mortgages.

Prepay the Mortgage or Increase Tax-Advantaged Savings?

Other Liabilities.

PART III: IMPLEMETNING THE PLAN.

Chapter 8 Individual Securities or Mutual Funds.

Convenience.

Diversification.

Size Matters.

Advantages of Individual Securities.

Separate Account Managers.

A Word of Caution.

Summary.

Chapter 9 Active versus Passive Management.

The Evidence.

The Search for the Holy Grail: Why Is Persistent Outperformance so Hard to Find?

The Value of Economic Forecasts.

The Value of Security Analysis.

Buy, Sell, or Hold?

The Tyrannical Nature of an Efficient Market.

The Prudent Investor Rule.

The Benefits of Passive Investing.

Summary.

Chapter 10 The Asset Location Decision.

Exceptions.

Order of Preference.

Additional Considerations.

Advanced Concept.

Balanced and Lifestyle Funds.

Chapter 11 The Care and Maintenance of a Portfolio.

Rebalancing.

Tax Management Strategies.

Final Considerations.

PART IV: THE INVESTMENT PLAN AND FINANCIAL SECURITY.

Chapter 12 College Savings Plans.

529 Plans.

Coverdell Education Savings Accounts.

Custodial Accounts.

U.S Savings Bonds.

Financial Aid Impact.

Chapter 13 Insurance.

Risk Management.

Payout Annuities.

Long-Term Care Insurance (LTCI).

Life Settlements.

Chapter 14 IRAs and Retirement/Profit Sharing Plans.

Roth versus Traditional IRA.

Five key Facts.

What to Do When Retirement Plan Choices Are Poor.

IRA Conversions.

Chapter 15 Social Security.

Is Social Security a Balance Sheet Asset?

Double Dipping Strategy.

Chapter 16 Determining a Safe Withdrawal Rate.

Monte Carlo (MC) Simulations.

In Absence of an MC Simulator.

The Sequence of Withdrawals to Fund Retirement.

Chapter 17 Planning Beyond Your Lifetime.

Estate Planning.

Preparing Your Heirs.

Conclusion.

Appendix A Effective Diversification in a Three-Factor World.

Appendix B Dollar Cost Averaging.

Appendix C Reverse Mortgages.

Appendix D How to Choose an Adviser You Can Trust.

Notes.

Glossary.

Index.