The Smartest Investment Book Youll Ever Read

Solin hit the basics of investing, but left out a few key steps in the entire process:

1. Living below your means so you have money to save and invest.

2. Use automatic savings method where you pay yourself first like 401K's.

3. Determine your asset allocation plan.

4. Adjust your asset allocation slightly to a less risky portfolio as you go through life.

5. Use low cost index funds to minimize expenses and maximize returns.

6. Determine your actual living expenses right before you retire so you can more accurately your retirement expenses.......and therefore the income you need to retire......versus using the 70% to 80% income replacement ratio rule-of-thumb when you get close to retirement

7. Don't withdraw more than a 4% inflation adjusted amount during retirement from your portfolio.

8. Rebalance your portfolio annually

All-in-all, a very easy to read book which does an excellent job of educating and justifying the advantages of index fund investing. Actually a pretty good job considering the author is an attorney!