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Richard E. Evans - The Smartest Way to Invest: Clue: Its Not With the Wizards of Wall Street

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Richard E. Evans The Smartest Way to Invest: Clue: Its Not With the Wizards of Wall Street
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Get ready to change

the way you invest.

This disruptive book shows that most peopleeven wealthy investorsput their trust in a demonstrably inferior way to invest: actively managed funds and private portfolios. The better way is with index fundsbut not just any index funds. Instead, this book will introduce you to the One-Decision funds, a type of index fund that market data show is the smartest way to invest. Youll also learn:

The 4 basic rules for investment success

Reasons to be wary of 14 other ways to invest

How to eliminate 6 of the 8 kinds of investment risk

15 ways to minimize investment taxes

3 tax-advantaged ways to invest for college

10 ways to optimize your finances in retirement

Why you can be confident about this way to invest

Despite the clear superiority of indexing, about 65 percent of the money in mutual funds is still anchored in actively managed funds, with index funds holding only 35 percent. I hope this book will help to reverse those proportions.

Introduction

Burton G. Malkiel, Chemical Bank Chairmans Professor Emeritus of Economics at Princeton University, former dean of the Yale School of Management, former member of the Presidents Council of Economic Advisors, and investment book author, including A Random Walk Down Wall Street, now in its twelfth edition.

Content

Richard E. Evans, investment advisor and author: His books include Earn More, Sleep Better, Simon & Schuster and The Index Fund Solution, Simon & Schuster. Both books introduced by Burton G. Malkiel and endorsed by John C. Bogle, founder, The Vanguard Group. Mr. Evans has been interviewed on Bloomberg TV, CNBC TV, WFAS TV, SageOnLine, The New York Times, and other media.

Who can profit from this book?

The short answer is, anyone with a significant amount of money in the markets, whether its $10,000 in a 401(k) or similar plan, or $10 million in a private portfolio at a wealth management firm. If your money is not invested as suggested in this book, you may not be getting everything the markets have to offer.

More for your nest egg

The goal of this book is not just to give you interesting and useful information. Its to show how you could earn many thousands of dollars more than with the method youre probably using nowa gain that would give you more money for college, a venture, or a comfortable retirement.

New support for index funds

Although interest in index funds is trending, a lot of people are still not aware that indexing is significantly better than active management. With that point in mind, we will cover the recent evidence that supports indexing as the superior way to invest, including the Introduction by Burton G. Malkiel. Well also take a close look at the One-Decision fundsfive types of funds that deliver the benefits of global indexingand where you can buy them.

Richard E. Evans: author's other books


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Get ready to change the way you invest.
This disruptive book shows that most peopleeven wealthy investorsput their trust in a demonstrably inferior way to invest: actively managed funds and private portfolios.
The better way is with index fundsbut not just any index funds. Instead, this book will introduce you to the One-Decision funds, a type of index fund that market data show is the smartest way to invest. Youll also learn:
The 4 basic rules for investment success
Reasons to be wary of 14 other ways to invest
How to eliminate 6 of the 8 kinds of investment risk
15 ways to minimize investment taxes
3 tax-advantaged ways to invest for college
10 ways to optimize your finances in retirement
Why you can be confident about this way to invest
Despite the clear superiority of indexing, about 65 percent of the money in mutual funds is still anchored in actively managed funds, with index funds holding only 35 percent. I hope this book will help to reverse those proportions.
Introduction
Burton G. Malkiel, Chemical Bank Chairmans Professor Emeritus of Economics at Princeton University, former dean of the Yale School of Management, former member of the Presidents Council of Economic Advisors, and investment book author, including A Random Walk Down Wall Street, now in its twelfth edition.
Content
Richard E. Evans, investment advisor and author: Earn More, Sleep Better, Simon & Schuster. The Index Fund Solution, Simon & Schuster. Both books introduced by Burton G. Malkiel and endorsed by John C. Bogle, founder, The Vanguard Group. Mr. Evans has been interviewed on Bloomberg TV, CNBC TV, WFAS TV, SageOnLine, The New York Times, and other media.
Who can profit from this book?
The short answer is, anyone with a significant amount of money in the markets, whether its $10,000 in a 401(k) or similar plan, or $10 million in a private portfolio at a wealth management firm. If your money is not invested as suggested in this book, you may not be getting everything the markets have to offer.
More for your nest egg
The goal of this book is not just to give you interesting and useful information. Its to show how you could earn many thousands of dollars more than with the method youre probably using nowa gain that would give you more money for college, a venture, or a comfortable retirement.
New support for index funds
Although interest in index funds is trending, a lot of people are still not aware that indexing is significantly better than active management. With that point in mind, we will cover the recent evidence that supports indexing as the superior way to invest, including the Introduction by Burton G. Malkiel. Well also take a close look at the One-Decision fundsfive types of funds that deliver the benefits of global indexingand where you can buy them.
Regarding source citations: The author regards footnotes as interruptions to a useful flow of thought. Sources are cited in the running text of the book.
Richard E. Evans, 2018
Picture 1
Disclaimer: The content of this book is for information only. It should not be misconstrued as investment advice. In no way does this information represent a recommendation to buy or sell specific securities of any kind.
Copyright 2018 Richard E. Evans
All rights reserved, including the right of
reproduction in whole or in part in any form
Manufactured in the United States of America
10 9 8 7 6 5 4 3 2 1
Library of Congress Cataloging-in-Publication Data
Evans, Richard E. 1942
The Smartest Way to Invest
2018
ISBN: 978-1-5439355-1-6
BOOKS BY BURTON G. MALKIEL
A Random Walk Down Wall Street
Elements of Investing
(with Charles D. Ellis)
The Random Walk Guide to Investing
From Wall Street to the Great Wall
(with Patricia A. Taylor, Jianping Mei, Rui Yang)
Global Bargain Hunting
(with Jianping Mei)
Equity Portfolio Construction
To Faith,
my sine qua non
R.E.E.
ACKNOWLEDGMENTS
John C. Bogle, founder of The Vanguard Group, former Chairman of the Vanguard Group, creator of the first and still the largest public index mutual fund, prolific author of investment books on the advantages of index funds.
Burton G. Malkiel, Chemical Bank Chairmans Professor Emeritus of Economics at Princeton University, former dean of the Yale School of Management, former member of the Presidents Council of Economic Advisors, and investment book author, including A Random Walk Down Wall Street.
I thank them both for their inspirational and practical leadership in showing the world how to invest at lower cost and with greater success.
Richard E. Evans
Dallas, Texas
CONTENTS
A disruptive book. Most people use an inferior way to invest. Who can profit from this book. The potential for a bigger nest egg. Smart ways to finance retirement and college, while minimizing taxes.
by Burton G. Malkiel
Burton G. Malkiel, Princeton professor and author of A Random Walk Down Wall Street, reinforces and adds to the central ideas and data in this book.
Strong assertions require proof before action. Data rules. Nine ways indexing beats active management, including higher returns.
A method that requires predicting the future versus one that does not. Owning all of a stock or bond market superior to owning a small part.
How active management understates costs. Quantifying the impact of All-In costs. Apparent number of market-beaters far greater than real number.
Investors as their own worst enemy. The (very) high cost of over-reacting to market action. The beauty of buy and hold.
The doubtful premise of active management. The short case for indexing: common sense, expert opinions, and extensive data.
Compelling sales pitches diminished by high cost, under-performance, high taxes, and failure to sustain above-market performance.
The extreme difficulty of identifying future market- beaters. Misleading track records. Why winners turn into losers.
Two actively managed funds out of 2,862 after five years. None after six years. A hair-thin hope cut short by market reality.
Eight principles that promote success, no matter how you invest.
The 90-year return. The best response to plunges and leaps in the markets. The role of corporate earnings. Results far ahead of housing, gold, and bonds.
Shoring up a portfolio when stocks go south. Providing bond diversification. Corporates versus Treasuries versus municipals.
There are at least eight kinds of investment risk. Six can be eliminated; two can be significantly reduced.
Strong evidence indicates four vital steps for optimal long-term results. Replacing the S&P 500 as the leading stock benchmark.
Five to six types of index funds that provide global diversification and the potential for superior long-term results. The nine advantages. In tune with the times.
14 other ways to invest reviewed, including speculative Bitcoins, with reasons to be wary of each.
Points to ponder when adding actively managed funds to a core of index funds. Seven steps that may help to promote success.
The value of financial and investment planning. The questions that must be answered. Invest on your own? Or hire a planner? What to expect.
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