MONEY Master the Game: 7 Simple Steps to Financial Freedom (103 page)

asset allocation in,
see
asset allocation

balanced,
381
–82,
384
,
398
,
412

diversity in,
see
diversification

rebalancing,
358
,
359
–62,
363
,
393
n,
402
,
613

60/40,
399

see also
investments

portfolio theory,
297
,
379
,
469

possibilities,
245

posture, improving,
197

poverty,
596
–98,
599

Powell, Colin,
xxvii

Preisano, Michael,
115

present bias,
66

priming,
584
–85

Prince, Bob,
387

private placement life insurance (PPLI),
443
–48

accessing money in,
446
–47

investment management,
446

probabilities,
361

probate, avoiding,
448

Protégé Partners,
95
,
487

Pure Alpha,
375
–76,
397

Qantas,
318

quality of life,
37
,
292
,
538
,
576
,
577
,
580
–82,
583

questions, wording of,
40

Quinn, Jane Bryant,
92

Ramsey, Dave,
254

Random Walk Down Wall Street, A
(Malkiel),
49
,
96
–97

Rattner, Steven,
550

real estate:

and financial meltdown,
313
–14,
514
–15,
516
–18

first trust deeds,
286
,
312
–13

investment in,
283
–86,
308
,
323

residential real estate loan,
312
–14

real estate investment trusts (REITs),
286
,
323
,
328
,
473

rebalancing,
358
,
359
–62,
363
,
393
n,
402
,
613

redemption fee,
115

Redstone, Sumner,
34

registered investment advisor (RIA),
126

repetition,
42

residential real estate loan,
312
–14

retirement:

automatic savings for,
64
–65

being unprepared for,
90
–91

contribution limits,
156

financial advisors for,
126
–27

401(k)s,
see
401
(k)s

individual management of,
140

inertia in planning for,
40

investment in mutual funds,
93
,
110
,
114
,
141

IRAs,
93
,
110
,
148

money needed for,
32
,
210
–11

and moving to another place,
288

outliving your money in,
32
,
421

pensions,
34
–35,
86

quality of life in,
37
,
538

saving for,
37

sequence of returns in,
412

and Social Security,
31
–32,
34

and target-date funds,
158
,
159
,
162
–63

and technology,
410

retirement communities, investment in,
284
–86,
308

Retirement Savings Drain, The
(Hiltonsmith),
109

retooling,
264
,
265
–66

return on investment,
116
–20,
281
–86

actual returns,
119
,
414

asset allocation,
282
–83

asymmetric risk/reward,
281
–82

average returns,
116
–18,
119
,
415

diversification,
276
,
282
,
297

dollar-weighted returns,
118
–19,
121

doubling your money,
283
,
284

maximizing,
379

sequence of returns,
412

time-weighted returns,
118
–19,
121

reversion to the mean,
321
,
471

Richest Man in Babylon, The
(Clason),
69

Riley, Theresa,
597

risk aversion,
400
–401

Risk/Growth Bucket,
321
–39

and asset allocation,
326
,
336
–39,
612

being prepared to lose,
321

collectibles,
324

commodities,
324

currencies,
324

diversification,
325
–26

equities,
322
–23

factors to consider,
331
–36

high-yield (junk) bonds,
323

real estate,
323

structured notes,
324
–25

riskless return,
174

Risk Parity,
390

risk/reward,
172
–82

and asset allocation,
159
,
326
,
336
–39,
383

asymmetric,
25
,
173
,
174
,
180
,
281
–82,
283
,
456
,
486
,
493
–94,
515
–16,
535
–36

and balance,
382
–83,
390

diversification,
297
,
300
,
379
,
383
,
456
,
472
–73

market-linked CDs,
178
–79

market timing,
296

Risk/Growth Bucket,
321
–39

security as subjective concept,
314
–15

Security/Peace of Mind Bucket,
301
–20

security selection,
296

structured notes,
176
–78

risk tolerance,
331
,
332
–36,
399
–401

Robbins, Bonnie Pearl,
284

Robbins, Tony:

final words of advice,
607

interviews with masters,
453
–55;
see also specific names

story of poverty to wealth,
602
–6

Robin Hood Foundation,
16
,
489

robotics,
562

Rockefeller, John D.,
595

Roethke, Theodore,
557

Rogoff, Kenneth,
520

Rohn, Jim,
42
,
246
,
260
–62,
263
,
266
,
585

role model,
206

Rolling Stones,
34

Roman Empire, annuities in,
167

Roosevelt, Eleanor,
212

Roosevelt, Franklin D.,
31
,
269
,
409