Didn't realize how short of a book this was. Took about 40 minutes to get through while taking notes. None of this information is new to someone who's read a basic investment book before, but its bite-sized review of asset allocation, the importance of investing and saving early, and the do's and don'ts of navigating a misinformed financial world are helpful nonetheless.

All in all, this was an okay book. Deservedly 4 stars for its intended audience and for summarizing in 16 pages what other books take 200 to do. Even at only 16 pages though, I felt some of what was written was pure filler, or not what I would recommend someone of my age group do. For example, keeping a 33/33/33 portfolio. I think millenials in their early 20s and 30s would be done a great disservice by keeping their stock ratios sooo low. And the author doesn't explain why that ratio specifically (even though you can take a guess, nothing about finance should be a "guess"). There's also a part of the ebook where the author tries to throw in math to explain how the nominal rate and real stock return rates (adjusted for inflation) impact your portfolio, but there's no basis for that math, and halfway into the ebook, there's no reference to nominal and real rates anyways. So yeah.


That's why for millenials and Gen Z'ers that want a detailed account of the simple portfolio and investing method that Bernstein provides, I personally recommend reading Alan Roth's "How A Second Grader Beats Wall Street." Fortunately Bernstein already recommends Roth's, but only after reading a slew of other finance books. Eh, skip. Then go and read "The Boglehead's Guide to Investing" which is inspired by the methods of the pioneer of index fund management Jack Bogle himself.

Here's also a breakdown of my notes:

Summary Notes:

-95% of what happens in finance is random noise but humans like to make patterns out of things
-You are only person in charge of your financial future
-Save 15% of income in 401k or other investing profile and invest in my current three fund portfolio in equal ratio (33/33/33) of US Stock Index Funds, Total Market Stock Index Funds, and US Bond Index Funds.
-Save another 15% of income for savings

How to invest properly:

1.PAY OFF DEBT FIRST

2.Max out employer match on investing accounts in order of:

A)401(k) employer match
-Assess expense ratios. If >1.0%, only up to employer match. If ≤.5%, put as much money as possible
B)Roth (max contribution)
C)Other taxable savings account

3.Once per year, re-balance 33/33/33 portfolio. Avoid selling stocks in taxable account (incurs gains tax)

4.Build 6-month Emergency Fund in T-bills, CDs, or money market accounts, and put in a taxable account.

Key Terms:

Stock - ownership stock in company. RISKIER than bond (That’s why owners HAVE TO pay out BONDS first)
Bond - loan to company



Book recommendations:

Suggestion: Read this ebook first, then come back a 2nd time and read through the recommended readings. Est time length = 1 year while on your financial journey.

• The Millionaire next Door

Common Sense on Mutual Funds
Devil Take the Hindmost
The Great Depression: A Diary
Your Money and Your Brain
How A Second Grader Beats Wall Street
All About Asset Allocation