Part I: Investment Policy in an Uncertain World.
Chapter 1: The Uncertainty of Investing.
Efficient Frontier Models.
Chapter 2: The Investment Policy Statement.
The Foundation of the Investment Plan.
The Need for Plan B.
The Worst Case Should Not Be the Base Case.
Part II: Allocation of Assets.
Chapter 3: Asset Allocation.
The Ability, Willingness, and Need to Take Risk.
When Conflicts Arise.
Chapter 4: Equities.
Equities versus Fixed Income.
U.S. Equity versus International Equity.
Value versus Growth.
Small-Cap versus Large-Cap.
Collateralized Commodity Futures.
Socially Responsible Investing.
Chapter 5: Fixed Income.
Short-Term versus Long-Term Maturities.
The Results at Different Equity Allocations.
Reasons to Reduce Maturity Risk.
Reasons to Increase Maturity Risk.
Short-Term Fixed Income versus TIPS.
Chapter 6: Alternative Investments.
Fixed Income Currency Exposure.
Emerging Market Bonds.
Equity-Indexed Annuities (EIAs).
High-Yield (Junk) Bonds.
Leveraged Buyouts (LBOs).
Master Limited Partnerships.
Mortgage-Backed Securities (MBS).
Precious Metals Equities (PME).
Private Equity (Venture Capital).
Structured Investment Products.
Chapter 7: Liabilities and Asset Allocation.
Prepay the Mortgage or Increase Tax-Advantaged Savings?
Part III: Implementing the Plan.
Chapter 8: Individual Securities or Mutual Funds.
Advantages of Individual Securities.
Separate Account Managers.
Word of Caution.
Fund Selection Criteria.
Chapter 9: Active versus Passive Management.
The Search for the Holy Grail: Why Is Persistent Outperformance so Hard to Find?
The Value of Economic Forecasts.
The Value of Security Analysis.
Buy, Sell, or Hold?
The Tyrannical Nature of an Efficient Market.
The Prudent Investor Rule.
The Benefits of Passive Investing.
Chapter 10: The Asset Location Decision.
Order of Preference.
Balanced and Lifestyle Funds.
Chapter 11: The Care and Maintenance of a Portfolio.
Tax Management Strategies.
Other Tax Management Strategies.
Part IV: The Investment Plan and Financial Security.
Chapter 12: College Savings Plans.
Prepaid Tuition Plans.
Coverdell Education Savings Accounts.
U.S Savings Bonds.
Financial Aid Impact.
Chapter 13: Insurance.
Long-Term Care Insurance.
Chapter 14: IRAs and Retirement/Profit Sharing Plans.
Roth versus Traditional IRA.
What to Do When Retirement Plan Choices Are Poor.
Chapter 15: Social Security.
How Benefits Are Determined.
When to Take Benefits.
Factors to Consider.
Taking Benefits Early.
Is Social Security a Balance Sheet Asset?
File and Suspend Strategy.
Double Dipping Strategy.
Chapter 16: Determining a Safe Withdrawal Rate.
Monte Carlo (MC) Simulations.
In Absence of a Monte Carlo Simulation.
The Safe Withdrawal Rate.
The Sequencing of Withdrawals to Fund Retirement.
Traditional IRA versus Roth IRA.
Chapter 17: Planning Beyond Your Lifetime.
Preparing Your Heirs.
Benefits of Creating a Family Wealth Mission Statement.
Appendix A Effective Diversification in a Three-Factor World.
Appendix B Dollar Cost Averaging.
Appendix C Reverse Mortgages.
Appendix D How to Choose an Adviser You Can Trust.