J.D. Joyce - The Story of Rich

Additional Praise for The Story of Rich

Joyce nicely weaves together the joy and difficulties of family life while educating readers on financial decisions.

Wayne Bohannon, CEO, Air Liquide Healthcare America

I thought the book did great job of capturing the emotion of Richs retirement and selling his business.

Bob Gardner, former president, Texas Mortgage Bankers Association

Money managers will want to give this book to their new clients and probably some existing clients, so they can experience Richs investment journey.

Henry Houston, former board chairman, Rosetta Resources, Inc.

I found the novel captivating and well written without sacrificing the quality of the financial planning advice.

Richard C. Johnson, former managing partner, Baker Botts LLP (retired)

Remarkably insightful book! As a passionate running coach and marathoner, I appreciate the parallels J.D. draws between investing and training for a marathon. Thanks, J.D., for proposing a fresh, new way to manage my financial life.

Debbie Mercer, director, USA FIT

Investment planning is intimidating to most. The Story of Rich demystifies these principles in a relatable way. Those thinking about their financial future should get to know Rich Viva.

David A. Miller, chief financial officer, Valencia Group

A stimulating read for any investor who wants to expand his or her knowledge.

Carroll W. Phillips, CPA

Copyright 2012 by John David (J.D.) Joyce. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Joyce, J. D., 1967

The story of rich : a financial fable of wealth and reason during uncertain times / J.D. Joyce with Matt Joyce

p. cm.

Includes bibliographical references and index.

ISBN 978-1-118-39014-6 (cloth); ISBN 978-1-118-42192-5 (ebk);

ISBN 978-1-118-43427-7 (ebk); ISBN 978-1-118-41778-2 (ebk)

1. Investments. 2. Wealth. I. Joyce, Matt, 1977 II. Title.

HG4515.J69 2012

332.024dc23

2012017379

To my familyRobyn, Allyson, and Ashley. The three of you give me a reason to smile. God has truly blessed me.

To my private clients, many of whom I consider friends. You make work meaningful and each day fun.

Foreword

The business schools at Northwestern University and The University of Chicago have teamed up to calculate and publish a Financial Trust Index. In March 2009, just after the Index was started, only 13 percent of people surveyed had trust in the stock market. This wasnt a surpriseit was the rock-bottom of the financial crisis. Across the country and around the world, couples were sitting down, reviewing their financial statements, and saying well, at least we have each other. From a financial perspective, it seemed like there would soon be nothing else left.

At the other extreme, in 1999, at the height of the dot-com Nasdaq stock market boom, the Chicago/Northwestern Index did not exist. But if it had, the survey would probably have found that at least 75 percent of the country trusted the stock market. Remember those television commercials about money coming out of the wazoo and tow truck drivers buying their own personal islands? Real people were quitting their jobs to become day traders. Everyone could get rich trading stocks or so many thought.

Isnt this interesting? The stock market crashed in early 2000, just when everyone thought getting rich was easy. And then, in March 2009, at the very bottom of the crisis, when no one thought stocks were safe, the market stopped going down, turned around, and climbed by 100 percent in two years.

In other words, if you find yourself going with the flow and agreeing with the masses, you may be making a huge mistake. In my 30 years of forecasting, speaking, and writing about the economy, what I have learned is that most people buy high and sell low. When people are left to their own devices, most go with the flow and allow their emotions to take over. This is obviously a huge mistake.

Markets go through cycles, and those cycles generate volatility in emotions. It is the volatility in emotions, not the volatility in markets, that makes successful investing so difficult. Thats why a financial advisor is so important and why this book is essential. Not that any financial advisor has the magical power to know when the market is high and when the market is low, but because a well-grounded financial advisor who understands your specific needs can keep you from making major mistakes. Good financial advisors are worth their weight in gold, and this book, if you take time to understand its nuances, is worth its weight in platinum. I am so glad J.D. Joyce took the time to write it.

Successful doctors, contractors, and small business owners doing everything from baking great scones, to growing tasty strawberries, to making duck calls for hunters are all really, really good at what they do. If they werent, they wouldnt be successful. Teachers, nurses, and landscapers are really, really good at what they do to. Nuances, tricks of the trade, and just plain old experience are things that cannot be taught easily and cant be bought. They come with hard work, thought, and just plain old time in the saddle. As we get older, we understand this more and more.

So if we understand this about carpentry, winemaking, and dentistry, why do so many people think that they can handle their financial needs without help? Isnt this like trying to perform surgery on yourself or program your own computer? Im not saying it cant be done, but removing your own gall bladder while under anesthesia seems like it would be very hard to do.