CONTENTS

About the Author

Title Page

Copyright

Dedication

Acknowledgments

A Note on Performance Calculations

Introduction: Financial Floundering

CHAPTER ONE: Why Markets Baffle Us

The Zero-Validity Environment

Coin Toss Forecasting

Evidence of Inability

Paging Peter Perfect

What We Think versus What Is Real

Executive Summary of This Chapter

CHAPTER TWO: Harnessing Fluctuation

The 3 Percent Signal

Volatility Is Opportunity

Retreat to the Index

Nudging the Coin Toss Line

Reactive Rebalancing

Executive Summary of This Chapter

CHAPTER THREE: Setting a Performance Goal

What’s a Good Performance?

Gauging Fluctuations Against Our Goal

Executive Summary of This Chapter

CHAPTER FOUR: What Investments to Use

Small Companies for Growth

Bonds for Safety

The Performance Advantage

Beating the Heroic Holding

Beating Dollar-Cost Averaging

30 Down, Stick Around

Variations on the Plan

Executive Summary of This Chapter

CHAPTER FIVE: Managing Money in the Plan

Starting with a Large Cash Balance

Your Living, Breathing Bond Balance

Keep a Bottom-Buying Account

Adjusting Your Bond Balance as You Grow Older

Pulling It All Together

Executive Summary of This Chapter

CHAPTER SIX: The Plan in Action

The Quarterly Procedure

Little Expenses Are a Big Deal

Tax Considerations

Individual Retirement Accounts

Typical Brokerage Accounts

Employer Retirement Accounts

The Plan Works Where You Work

Executive Summary of This Chapter

CHAPTER SEVEN: The Life of the Plan

The Setup

Year 1

Year 2

Years 3–7

Years 8–9

Years 10–13

Analysis

Executive Summary of This Chapter

CHAPTER EIGHT: Happy Signaling

Appendix 1: Mark’s Plan

Appendix 2: Tools

Appendix 3: Rights and Permissions

Appendix 4: The Kelly Letter

Index