Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School
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The incredible story of how a schoolteacher built a million-dollar portfolio, and how you can too Most people wouldn't expect a schoolteacher to amass a million-dollar investment account. But Andrew Hallam did so, long before the typical retirement age. And now, with Millionaire Teacher, he wants to show you how to follow in his footsteps. With lively humor and the simple clarity you'd expect from a gifted educator, Hallam demonstrates how average people can build wealth in the stock market by shunning the investment products peddled by most financial advisors and avoiding the get-rich-quicker products concocted by an ever widening, self-serving industry.
Using low cost index funds, coupled with a philosophy in line with the one that made Warren Buffett a multi-billionaire, Hallam guides readers to understand how the stock and bond markets really work, arming you with a psychological advantage when markets fall.
- Shows why young investors should hope for stock market crashes if they want to get rich
- Explains how you can spend just 60 minutes a year on your investments, never open a financial paper, avoid investment news, and still leave most professional investors in the dust
- Promotes a unique new investment methodology that combines low cost index funds and a Warren Buffett-esque investment philosophy
Millionaire Teacher explains how anyone can learn the ABCs of personal finance and strengthen their financial position.
than the brokers suffering from conflicts of interest at your neighborhood Merrill Lynch, Edward Jones, or Raymond James offices. The typical financial planner won’t want you knowing this, but a dream team of Economic Nobel Laureates clarifies that advisers and individuals who think they can beat the stock market indexes are likely to be wrong time after time. They’re just not going to do it. It’s just not going to happen.4 Daniel Kahneman, 2002 Nobel Prize in Economics, when asked about
data, investment researchers Robert Arnott, Andrew Berkin, and Jia Ye tracked 195 actively managed funds, before reporting that the funds had a 17% mortality rate. According to the article they published with the Journal of Portfolio Management in 2000 called “How Well Have Taxable Investors Been Served in the 1980s and 1990s?” 33 of the 195 funds they tracked disappeared between 1979 and 1999.12 No one can predict which funds are going to survive and which won’t. The odds of picking an actively
mutual funds. Table 3.2 The World’s Actively Managed Stock Market Mutual Fund Fees Source: “Mutual Fund Fees Around The World,” Oxford University Press, 200831 Country Total Estimated Expenses, Including Sales Costs Ranking of Least Expensive to Most Expensive Actively Managed Funds Netherlands 0.82% #1 Australia 1.41% #2 Sweden 1.51% #3 United States 1.53% #4 Belgium 1.76% #5 Denmark 1.85% #6 France 1.88% #7 Finland 1.91% #8 Germany 1.97% #9 Switzerland 2.03% #10 Austria 2.26% #11
concept, suggesting that you can split your money in the allocations as shown in Table 6.3. MoneySense tracks this portfolio online.5 Table 6.3 The Global Couch Potato Portfolio Index Percentage in Each Identifying Ticker Symbol International Stock Market Index 20% XIN Canadian Stock Market Index 20% XIC U.S. Stock Market Index 20% XSP Canadian Bond Market Index 40% XBB At the end of each year, Keith looked at his account’s allocation. Each of his indexes performed slightly differently.
joined a group of fellow school teachers who pooled some of their money into an investment club. We started out as a rudderless boat. Thinking we were smart, we watched the economic news, subscribed to stock-picking newsletters, followed financial websites, read The Wall Street Journal and listened to “experts” on television. And like most people who follow the manic depressive, schizophrenic news of the investment media, our account got hammered. But then we became Warren Buffett disciples.