Wealth of Experience

The most respected mutual fund company in the world-The Vanguard Group-presents a fresh approach to investment guidance by having real investors talk about what has worked and what hasn't worked for them during their personal investment journeys. Real Investors on What Works and What Doesn'tis a straightforward book that offers a comprehensive overview of personal finance, savings, retirement investing, and much more from the perspective of "ordinary" investors who have real-world experience with these investment issues.

Practical advice for investors from investors
Presenting a fresh approach to investment guidance, Wealth of Experience is built on real investors' stories about what has worked-and what hasn't worked-for them during their personal investment journeys. The Vanguard Group, one of the world's most respected investment companies, asked hundreds of investors who have succeeded in accumulating real wealth to explain how they've gone about it. Their personal accounts make this a one-in-a-kind book with extraordinary insights on saving, investing, and managing money from "ordinary investors" for their peers. Wealth of Experience has straightforward, battle-tested advice on investing for retirement, learning about finance, and managing money. The invaluable guidance from experienced fellow investors can help readers avoid major financial pitfalls and learn from mistakes others have made. Vanguard's research confirmed its long-held belief that individual investors-sometimes derided on Wall Street as unsophisticated-are a savvy and capable group. This book proves that their collective wisdom is as valuable as any "expert" advice.
The Vanguard Group (based in Valley Forge, PA) is the world's second-largest mutual fund company with 15 million shareholders and $600 billion in assets under management. Vanguard pioneered low-cost index mutual funds, and distinguished itself as a champion of superior client service and low investor costs. Andrew Clarke is a senior financial writer at The Vanguard Group. Before joining Vanguard, he worked for Morningstar, Inc. , the investment research firm. Mr. Clarke is a Chartered Financial Analyst. Jack Brennan is the Chairman and Chief Executive Officer of The Vanguard Group. A graduate of Dartmouth College, Mr. Brennan received a master's degree in business administration from Harvard Business School.

Foreword vii
Acknowledgments xi
Introduction xiii
Chapter 1: Save Your Money 1
Chapter 2: Plan for the Future 15
Chapter 3: Learn the Secrets of Success 31
Chapter 4: Diversify Your Assets 49
Chapter 5: Select Your Investments 71
Chapter 6: Avoid Self-Destructive Moves 91
Chapter 7: Assess Your Progress 109
Chapter 8: Keep Your Costs Low 125
Chapter 9: Be Smart About Taxes 139
Chapter 10: Create Your Investing Legacy 155
Chapter 11: Adopt Productive Habits and Attitudes 175
Chapter 12: Follow the Eight Commandments 187
Notes 193
Glossary 197
Index 211