Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School
2nd Edition Published January 2017
The first edition of my book, Millionaire Teacher, was published in 2011.
In the U.S., on November 2011, it hit #1 on Amazon.com in three different categories: Personal Finance, Stock Market Investing and Business and Investing.
It was translated into languages that I certainly never expected, including Thai, Korean, Simplified Chinese and Traditional Chinese.
The lessons, I think, are timeless. Set a savings goal, track your spending and invest the money like Warren Buffett’s wife. I explain how to do that. A slew of Nobel Economic Prize winners recommend the same investment strategy.
It takes just a few minutes a year. You don’t have to know anything about the stock market. You don’t have to follow stock market news. But you will beat most investment professionals. Mountains of data say that’s true.
Does that sound silly? It isn’t. If you read my book, have a computer handy. Challenge what I write. Check out my references. Look up what peer-reviewed financial academic studies say. Here’s what you’ll ask yourself: Why didn’t anyone teach me this before? Why isn’t this in school?
I ask myself those questions too–almost every single day.
The financial service industry wants you to buy certain types of products. I ask you to avoid them. Warren Buffett does too. Leagues of Economic Nobel Prize winners say the same thing. They recommend that you invest in low-cost index funds. But such products are flies in the caviar for most financial advisors.
But people are getting smarter, so the industry is changing. New and better investment products are starting to kick tradition in the knee. Some new firms are saying, “Hey, people are getting smarter. They won’t get conned forever. Let’s offer something better.”
These firms are often called Robo-Advisors. All you need to do is send them your money. They’ll build low cost portfolios of index funds, much as I describe in my book. These investment firms exist in the United States, Canada, Asia and Europe. My book’s new edition provides a ‘who’s who?’ list.
For those who would prefer to DIY, I explain how to do it. Vanguard has spread beyond the United States. That means investment options, for DIY investors, have also improved a lot.
Here are a few other things that the new book includes:
- I show why some brokers lie. It’s more than a conflict of interest. Something happens in their brains.
- I answer the question, “If you receive a windfall, should you invest it all at once, or should you dollar-cost average the money over time?”
- I show how to buy an ETF, including screen shots of the process.
- I explain why you shouldn’t buy a currency-hedged ETF. These are really common. But it’s better to avoid them.
- I prove that Donald Trump would have been richer if he bought index funds with his $500 million back in 1982. He could have spent millions of dollars every year and done zero And it would have made him billions of dollars richer than he is right now.
- I explain why a family should never lease cars. Doing so is a $1 million decision.
- I prove that young people should prefer to see their stock investments sag, instead of rising right away. The chart that I show is absolutely shocking.
- I prove that investors in actively managed funds don’t get close to earning the posted returns of the funds they own. Index fund investors, in contrast, do far better. This isn’t about the tyranny of fees. There’s a psychological twist.
- I also explored the topic of smart beta funds. If you decide to use them, can you really beat the market?
- I’ve written for magazines. But I want to show why you should never pay attention to their “Top Funds To Buy!” lists. I had some fun with this!