Overview (potential use on the back cover)
“Blueprint for DIY Investing” (the ‘working title’) is a book about simple stock-market strategies for everyday people that smash the so-called investing pro’s using ETFs while spending less time managing a strategy than it takes to watch just one half hour TV sitcom each week.
“Blueprint for DIY Investing” is a nonfiction book devised to empower and skill everyday mum & dad investors, from 18 to 80+, with 10 thousand to 5 million dollars to invest in the financial markets.
Every year around 80%, or more, of mutual funds, where most mum & dad investors’ retirement money resides directly or indirectly, do worse than the S&P500 or their respective benchmark indices. This is a researched fact according to the S&P Dow Jones SPIVA© Scorecard.
And the kicker is that the 20% odd that do better in any given period are NOT the same mutual funds that have outperformed from previous years’, meaning that picking a mutual fund in advance that will consistently even match, let alone outperform, the market benchmark over more than six to seven years is a near impossible task.
In a nutshell, by leaving their money in a default 401k or equivalent retirement fund most lose the opportunity of achieving a better retirement with many hundreds of thousands of dollars more.
The simple investing solutions in “Blueprint for DIY Investing”” are the culmination of nearly 25 years of Gary Stone’s stock market investing, researching, reading, being mentored, mentoring others, and listening to investors’ long term investing requirements of all ages with varying amounts to invest. The ambit of Gary Stone’s investing knowledge, experience, insights and skills have formed the basis for researching and moulding simple investment solutions using ETFs to meet these requirements.
Large mutual funds’ ongoing underperformance are exposed in the book and everyday people will be shown how to better secure their financial future by dong better than the so-called pro's by at least 4% compounded per annum which could mean multiple hundreds of thousands of dollars more retirement nest egg accumulated for them over many years rather than relying on under-performing mutual funds where the majority of retirement nest-eggs are invested.
For decades the “investing brotherhood" of managed/mutual fund institutions has preyed on the financially uneducated everyday investor and brainwashed them into believing that the stock market cannot be timed.
They have used incomplete misrepresentations to pull the wool over the eyes of mum-and-dad investors to try to convince them that the only way to win in the stock market is by "time in the market" and hence that long term buy and hold of their mutual fund is the only way to grow capital. Such a misrepresentation will be exposed in this book and a pillar myth of the mutual fund industry will be bust once and for all, right up-front, to prove how they use sneaky ill-founded tactics to convince you of their ways and try to sway you from doing it yourself.
Percentage based commissions and fees motivate them to make their fund as big as possible to maximize the absolute amount they are paid. Over the years the combined force of this "investing brotherhood" has benefited from keeping everyday investors financially confused and then used powerful marketing to get these investors to hand over their investing dollars to them to invest on the everyday investor’s behalf.
Sure, uncertainty caused by the ups and downs of the financial markets and all the jargon and huge learning curve required to become investing literate provide plenty of ammo for the "investing brotherhood" to shoot at everyday investors.
Time in the market via buy & hold, risk management through diversification, dollar cost averaging, professional portfolio management, streamlined administration, accountability and transparency through regulation and others are some of their catch cries.
For example, dollar cost averaging justifies buying falling prices. Why buy something that is falling in value? This is the exact opposite to what an investor should do but some simple sleight of hand arithmetic can seem logical to an investor who has spent very little preparation time on investing. Yes, logical arithmetically but not logical from a stock market price movement perspective.
I have seen ‘buy and hold’ defined this way: “buy a stock and/or a mutual fund portfolio with a broker/money manager/investment advisor and hold it until the next major bear market when the value of the money will be greatly decreased and then sell because you won't have the mental fortitude to continue holding.”
It is certainty that another bear market of the ilk of the 2008 bear market, or worse, will come. Some day. When? Nobody knows. Not knowing when is the risk. But knowing that it will come, why would anybody in their right mind use a buy and hold investing approach in the stock market?
You see, mutual funds have to buy and hold because they can't sell their entire holding and go into cash. But YOU can. It's your greatest advantage, but only if you decide to take control of your investing future and discover how to do it yourself (DIY).
This book will provide you with simple strategies to do it yourself. Simple strategies that you can learn in a few hours and spend less time each week managing and executing that it takes to watch a 1/2 hour TV sitcom.
Other mutual funds myths will be busted and disadvantages exposed as will the advantages of being an agile, nimble, savvy do it yourself investor with a strategy and a plan. This is what each of us should become. This is what you should become, this is what you will become by reading this book and then executing the simple strategies enclosed herein.
Of course this won't apply to 100% of investors. I know that. Some will be sceptical, some apathetic. Some will say that it is just not for them. Most will justify what they are doing will achieve their goals, which of course most won’t know until their final years on the planet. But if, by writing this book and providing the necessary tools, I can get a few to become enlightened and empowered about investing a far better way with far better returns, then over a lifetime of investing maybe a few more lives can be changed for the better.