| |
| |
| How to Use This Book | |
| |
| |
| Acknowledgments | |
| |
| |
| Foreword | |
| |
| |
| Preface | |
| |
| |
| Your Income, Expenses--and Debt | |
| |
| |
| |
| Do not use a home equity line of credit as a substitute for cash reserves | |
| |
| |
| |
| Never pick the money fund offering higher interest rates than everyone else | |
| |
| |
| |
| Never accept a new job just to get a higher salary | |
| |
| |
| |
| You must prevent your credit record from becoming too good | |
| |
| |
| |
| If you want to avoid financial failure, watch the pennies you spend--not the dollars | |
| |
| |
| |
| Stop spending money on things that fall in value | |
| |
| |
| |
| You must cut your debt load by 33%--to break even | |
| |
| |
| |
| Observe the New Rules for surviving the holidays | |
| |
| |
| The New Rules Regarding College Planning | |
| |
| |
| |
| Do not save money in a child's name | |
| |
| |
| |
| Never participate in college tuition prepayment plans | |
| |
| |
| |
| Apply the economic principle of ROI to choose a college | |
| |
| |
| |
| Negotiate college costs and financial aid packages like you would the price of a new car | |
| |
| |
| |
| Recognize that college is no longer necessarily the road to financial success | |
| |
| |
| Mortgages, Home Ownership, and Real Estate | |
| |
| |
| |
| Forget about buying a condo | |
| |
| |
| |
| Forget about a "starter" home | |
| |
| |
| |
| Never rent real estate you'd rather sell | |
| |
| |
| |
| Trying to sell your house? Use range pricing | |
| |
| |
| |
| If you're the seller, accept a lower price | |
| |
| |
| |
| If you're the buyer, raise your offer | |
| |
| |
| |
| Stop thinking that your home is the best investment you'll ever make | |
| |
| |
| |
| Never own your home outright. Instead, get a big 30-year mortgage, and never pay it off--regardless of your age and income | |
| |
| |
| |
| When seeking a mortgage, use the old qualifying rules | |
| |
| |
| |
| Learn the role mortgages play in your efforts to achieve financial success | |
| |
| |
| |
| Don't assume paying points is a bad thing | |
| |
| |
| |
| Do not hold your next real estate settlement at the end of the month | |
| |
| |
| The New Investment Strategies | |
| |
| |
| |
| Don't refuse to sell assets merely because they have dropped in value | |
| |
| |
| |
| Stop trying to be right, Part 1 | |
| |
| |
| |
| Stop trying to be right, Part 2 | |
| |
| |
| |
| Stop keeping score | |
| |
| |
| |
| Know when it's time to stop climbing the mountain | |
| |
| |
| |
| Stop focusing on safety, and start focusing on performance | |
| |
| |
| |
| Avoid the "Dogs of the Dow Theory"--the newest bad idea from the personal finance press | |
| |
| |
| |
| Pay no attention to the Dow Jones Industrial Average | |
| |
| |
| |
| ... and discover the Wilshire 5000 | |
| |
| |
| |
| Focus on tomorrow when reading today's news | |
| |
| |
| |
| Stay away from SandP 500 Index Funds | |
| |
| |
| |
| ... and never choose investments merely because you think they will be profitable | |
| |
| |
| |
| Learn what "risk" really means | |
| |
| |
| |
| Learn how to hedge your bets | |
| |
| |
| |
| Investing is no longer winner-take-all. Change your strategy accordingly | |
| |
| |
| |
| Stop trying to achieve investment success through stock-picking | |
| |
| |
| |
| Be aware of diversification's evil twin | |
| |
| |
| |
| Recognize that investment success is based on time, not timing | |
| |
| |
| |
| Stop taking this diversification stuff too literally | |
| |
| |
| |
| Put away the Fortune 500, and start studying the Forbes 400 | |
| |
| |
| |
| Market timing is dead. Beware of style selection, for it will suffer the same fate | |
| |
| |
| |
| Stop looking for tips. Seek education instead | |
| |
| |
| |
| Avoid the government's new inflation-adjusted bonds | |
| |
| |
| |
| Derivatives are here to stay, so get used to them | |
| |
| |
| |
| Stop participating in Dividend Reinvestment Plans | |
| |
| |
| |
| Stop paying commissions and choose Asset Management Fees instead | |
| |
| |
| |
| ... and realize why stockbrokers soon will be extinct | |
| |
| |
| |
| Learn how to spot the new scam artists | |
| |
| |
| Your Family, Money, and the Law | |
| |
| |
| |
| Talk with your kids about your will | |
| |
| |
| |
| Talk with your parents about your inheritance | |
| |
| |
| |
| Start giving money to your kids now. Don't wait until you've died | |
| |
| |
| |
| Make sure your heirs know how investments work before they inherit them | |
| |
| |
| |
| Do not name minor children as beneficiaries of your life insurance policies | |
| |
| |
| |
| Do not own your own life insurance policies | |
| |
| |
| |
| Do not title assets jointly between generations | |
| |
| |
| |
| Follow the New Rules that let you skip probate quickly and easily | |
| |
| |
| |
| Forget about getting married. Focus instead on being married | |
| |
| |
| |
| If you're getting married or are newly married, get ready for a whole set of New Rules | |
| |
| |
| |
| Stop giving your children an allowance | |
| |
| |
| |
| If you have money or kids, you should sign a prenuptial agreement before you (re)marry | |
| |
| |
| |
| If you are facing divorce, you must now focus your attention on the money, not your emotions | |
| |
| |
| |
| Want to transfer assets to your kids? Don't ask your advisor for help | |
| |
| |
| |
| Do not turn to lawyers for financial advice | |
| |
| |
| The New Tax Rules | |
| |
| |
| |
| Don't refuse to sell appreciated assets merely because you don't want to pay taxes | |
| |
| |
| |
| Stop thinking you know what's in the current tax code | |
| |
| |
| |
| The time to do your taxes is now June 1, not April 15 | |
| |
| |
| |
| Determine if you need to make estimated quarterly tax payments | |
| |
| |
| |
| Don't count on the flat tax | |
| |
| |
| |
| You won't be in a lower tax bracket when you retire | |
| |
| |
| |
| Do not make tax-motivated investment decisions | |
| |
| |
| |
| Stop investing in municipal bonds | |
| |
| |
| |
| For the most powerful anti-tax investment available, turn to variable annuities | |
| |
| |
| |
| Never add money to a Non-Deductible IRA | |
| |
| |
| |
| Do not turn to tax preparers for financial planning advice | |
| |
| |
| The New Insurance Rules | |
| |
| |
| |
| Never buy life insurance on your children | |
| |
| |
| |
| Never buy life insurance for investment purposes | |
| |
| |
| |
| Stop worrying about long-term care costs--and start taking action | |
| |
| |
| |
| Stop thinking that group insurance is the best way to solve your insurance needs | |
| |
| |
| |
| Stop taking financial advice from insurance agents | |
| |
| |
| The New Rules of Retirement | |
| |
| |
| |
| Take maximum advantage of your company retirement plan | |
| |
| |
| |
| Place 100% of your company retirement plan exclusively into stocks | |
| |
| |
| |
| You must now watch over your employer's shoulder, to make sure your company retirement plan is safe | |
| |
| |
| |
| From now on, when you leave a company, take the money with you | |
| |
| |
| |
| Retirement, the most awasome social innovation of the 20th century, will not exist in the 21st century. Plan accordingly | |
| |
| |
| Index | |