Index

Active investing

Age. See also Time horizon

and asset allocation

expenses associated with

and life expectancy

Annuities

Asset allocation. See also Bootstrap analysis

active investing

age, problems with as rule of thumb

benchmark as

benchmark distinguished

equities. See also Equities

flexible

importance of

passive investing

sectors

static

stock selection

sub-asset allocation

tactical

and time horizon. See also Time horizon

Asset classes

bonds. See Bonds

equities. See Equities

gold

price volatility

real estate

Balance sheet, App. D

Bear markets

benchmark risk

followed by bull market

and importance of broad benchmark

in and out investing

moving out of stocks

and passive investing

and stock returns

volatility risk

Behavioral finance

Benchmarks

bonds

broad benchmarks

and cash flow needs. See Cash flow

changing

described

indexes

as long-term asset allocation decision

outperforming

overview

purpose of

return expectations. See Returns

risk and return characteristics

selecting

sticking with

and time horizon

underperforming

Bond indexes

Bonds

asset allocation. See also Asset allocation

in benchmark

described

versus equities

and inflation

in and out investing

interest as source of cash flow

interest rate risk

junk bonds

municipal bonds

and portfolio survival

risk

US Treasurys

volatility

Bootstrap analysis

Bottom-up investing

Budgets

Buffett, Warren

Bull markets

and beating benchmark

in and out investing

and risk

Business start-ups

Capital preservation

as investment goal

problems with. See also Inflation

Cash flow

and benchmark determination

determining need, App. B, App. C

dividends

expense categories, App. C

future value calculation

and growth

“homegrown dividends,”

income and expenses, App. B

overview

reasonableness of goal, determining

Social Security income

sources of

variability of returns

CDs

Central banks

Certified financial planner (CFP)

Compounding, impact of

inflation

interest

Consumer Price Index (CPI)

Custody of assets

Debunkery (Fisher), App. A

Deflation

Disinflation

Dividends

Dodd-Frank Act

Dow Jones Industrial Average (Dow), App. A

Enron

Entrepreneurs

Equities

asset allocation

versus bonds

dividends

forward looking

growth

and growth goal

narrow categories, investing in

past performance as guide to reasonableness of expected returns

return expectations

sectors

stock prices

stock selection

stocks

unrealistic return expectations

volatility

Estate planning

Exchange rate risk

Exchange-traded funds (ETFs). See also Mutual funds

Fear

Financial advisors (professionals)

certifications

fees and commissions

financial fraud. See Fraud

Monte Carlo simulations. See also Monte Carlo simulation

need for

role of

selecting

working with

Financial plan

Financial planners

certification

fees and commissions

Financial planning

described

as retirement planning

Financial services industry

Fisher, Arthur L.

Fisher, Irving

Forecasting

Fraud

Friedman, Milton

Goals

benchmarking. See Benchmarks

capital preservation

cash flow

constant value, inflation adjusted

growth

growth and cash flow combined

and impact of inflation

increasing the odds of reaching

long-term

nearer-term

overview

realistic

and time horizon. See also Time horizon

unrealistic

Gold

Greed

Growth

and cash flow

equities

as goal

and inflation

need for

underestimating amount needed

and volatility

“Homegrown dividends,”

How to Smell a Rat (Fisher)

Hyperinflation

“I, Pencil” (Read)

In and out investing

Income and expense sheet, App. B

Inflation

adjusting for

and capital preservation

described

expense categories

future value calculation

and growth, need for

impact of

long-term average

and purchasing power

Inflation risk

Innovation

Insurance

Interest, compounded

Interest rate risk

Investment strategy. See also Benchmarks

appropriate strategy, sticking with

and market conditions

and volatility

“It’s different this time” response to historical trends

Junk bonds

Life expectancy

Lifetime investing

importance of

and time horizon. See also Time horizon

Liquidity risk

Madoff, Bernie

Malthus, Thomas

Markets Never Forget (Fisher)

“The Mean-Variance-Optimization Puzzle: Security Portfolios and Food Portfolios” (Fisher and Statman)

Monte Carlo simulation. See also Bootstrap analysis

Moore, Gordon

Moore’s Law

MSCI All-Country World Index (MSCI ACWI)

MSCI USA

MSCI World Index

Municipal bonds

Mutual funds. See also Exchange-traded funds (ETFs)

average investor returns

capital gains taxes

costs

index funds

versus individual securities

in and out investing

Myopic loss aversion

Net worth determination, App. D

Non-liquid assets

The Only Three Questions That Still Count (Fisher)

Opportunity cost

Overconfidence

Passive investing

Political risk

Ponzi schemes. See also Fraud

Portfolio survival

Professionals. See Financial advisors (professionals)

Read, Leonard E.

Real estate

Recessions

Retirement planning, generally

Returns

bonds

expectations

inflation, adjusting for. See under Inflation

overview

past performance as guide to reasonableness

sources of

10% myth

unrealistic expectations

and volatility. See also Volatility

Risk

and behavioral finance

benchmark risk

bonds

bull markets

exchange rate risk

inflation risk

interest rate risk

and investing

liquidity risk

political risk

risk and return characteristics of benchmarks

volatility risk

Saving

calculating amount to save

net worth determination, App. D

overview

for short-term goals

Self-assessment, need for

Skilling, Jeff

S&P 500 index

Specialists, need for

Standard deviation

Stanford, Allen

Statman, Meir

Stock indexes. See also specific indexes

Stocks. See also Equities

and asset allocation. See also Asset allocation

described

dividends

individual stocks versus funds

and innovation, role of

prices

selection of

Tech bubble

Templeton, John

The Ten Roads to Riches (Fisher)

Time horizon

and age

and asset allocation. See also Asset allocation

and benchmarks

described

and goal setting

life expectancy

long time horizons

and opportunity cost

overview

spouse, consideration of

underestimating

Top-down investing

US Treasurys

Volatility

bonds

and capital preservation. See also Capital preservation

equities

equities versus bonds

global versus U.S. stock indexes

and growth

and investment strategy

measuring

and opportunity cost

reaction to

and returns

risk