Table of Contents
Acknowledgments ix
Chapter 1: What? Me? Retire? 1
The Imagined Dichotomy 3
Two Goals … and Some Non-Goals 4
Definitions and a Pencil 9
Start Immediately. Now. Right Away 13
Plan Your Prosperity 14
Chapter 2: My Goals Are … What? 17
Why Is This So Hard? 20
Your Investing Goals, Simply 24
Potential Pitfall: Capital Preservation and Growth 26
Inflation’s Insidious Impact 29
Three Percent, Compounded 35
Chapter 3: The Secret Code—Asset Allocation or Benchmark? 37
Benchmark—A Road Map and Measuring Stick 40
Picking a Benchmark 42
The Big Decision—Asset Allocation 45
Potential Pitfall: Age Doesn’t Equal Asset Allocation 49
Benchmark Versus Asset Allocation—What’s the Difference? 50
Chapter 4: Time Horizon—Longer Than You Think 59
Potential Pitfall: Ignoring Opportunity Cost 62
Time Horizon—What Is It? 64
Time Horizon and Benchmark 68
Chapter 5: What’s in a Return? 73
Growth Defi ned 77
The Past as a Guide? 81
Gordon Moore and Endless Innovation 90
Potential Pitfall: Unrealistic Expectations 92
Chapter 6: Getting That Cash Flow 97
Potential Pitfall—The All High-Dividend Portfolio 100
How Much Do You Need? 103
Monte Carlo—Not Just a Casino 107
Let’s Get Bootstrapping 109
Chapter 7: Can I Get There? 117
How Much Do You Have? 120
A Savings Plan 123
Chapter 8: Putting It All Together 131
To Benchmark or Not to Benchmark 134
State Your Goals 136
Know Where You Are 137
Picking an Appropriate Benchmark 138
Finding Professional Help 140
Avoid Being a Fraud Victim 143
And You’re Off! 143
Appendix A: All Hail the Mighty Dow 145
Appendix B: Cash Flow Versus Expenses 155
Appendix C: Expense Categories 161
Appendix D: Personal Balance Sheet 165
Notes 169
About the Authors 173
Index 175
