First of all – what’s NOT in the book.
This is not a get-rich-quick scheme. It takes many years of patient investing to build real wealth. The plan is designed for people who want to build wealth over their whole lives. The “time horizon” for the plan is 30 to 50 years. Although the plan is primarily designed for people starting out with just $1 per day, it can also be used for people who are can start with a lump sum, and a shorter term time horizon in mind (say 10 years).
The plan doesn’t use any tricks or complex products. There are no seminars, courses, or trading systems you need to buy. The plan doesn’t contain any brilliant new ideas which people won’t find anywhere else.
The book does NOT contain grand promises to reveal things like:
§ the ‘seven secrets of success’, or
§ the ‘three hidden principles’ or
§ the ‘nine magic keys to wealth’ or
§ the ‘ten things wealthy people know that you don’t’,
§ or anything so dramatic.
There are no such things in real life.
This plan to build real long term wealth is based on some very old and very simple ideas and virtually anybody can do it. The investment products used in the plan are relatively simple, low cost, tax effective low-maintenance products which are available to virtually everybody – including very small investors.
Book Table of Contents:
Part 1 – On Your Marks
Chapter 1 – Giving your kids $1million each
1.1 The plan
1.2 The hard parts of the plan
1.3 The rules
1.4 As the kids grow up
1.5 Paying back out loan
1.6 The kids won’t learn this at school
1.7 What does ‘wealth’ mean?
1.8 How much is ‘wealthy’?
1.9 Key Points
Part 2 – Get Ready
Chapter 2 – Finding $1 per day
2.1 Bringing up kids is expensive
2.2 Government assistance
2.3 Parents’ commitment for the first 10-15 years
2.4 Loose change
2.5 The drinks are on us
2.6 Smoking
2.7 Gambling
2.8 Salary deductions and direct debits
2.9 Budgets
2.10 Grandparents – do it for your grandkids
2.11 Time to set goals
2.12 Key points
Part 3 – Get Set
Chapter 3 – Getting started
3.1 What about paying off our debts first?
3.2 In whose name should accounts be opened?
3.3 One parent or both parents?
3.4 Trustee and beneficiary
3.5 Tax on kids
3.6 Tax file numbers for kids
3.7 Cash account
3.8 Cash accounts that work with the plan
3.9 Cash account tests
3.10 Interest rates
3.11 Opening the cash account
3.12 Bank statements
3.13 Online broker account
3.14 Online broker account and cash account combinations that work
3.15 Opening the online broker account
3.16 Key points
Chapter 4 – Investment basics
4.1 Ready to invest
4.2 Inflation
4.3 Tax
4.4 Capital and Income
4.5 Investment returns
4.6 Compounding
4.7 Prove that the $1 per day plan really works
4.8 Risk
4.9 Main types of investments
4.10 Other types of investments
4.11 Investing versus trading
4.12 Key points
Part 4 – Go!
Chapter 5 – Company shares
5.1 Shares
5.2 Dividends
5.3 Choose from many companies
5.4 Investment returns from shares
5.5 Investing in shares while the fund is still small
5.6 Managed share funds
5.7 Financial planners
5.8 Index funds
5.9 Are active managed funds worth all the fees?
5.10 Full-service stockbrokers
5.11 Exchange traded funds
5.12 Listed investment companies
5.13 Direct shares
5.14 International shares
5.15 Shares – summary of the plan
5.16 Buying investments on the ASX
5.17 What happens after you buy shares?
5.18 How often should you check the share price?
5.19 Key points
Chapter 6 – Property
6.1 Property
6.2 Property versus shares
6.3 Listed property funds and trusts
6.4 The main listed property trusts
6.5 Investment returns from property
6.6 Investing in both shares and property
6.7 Tax benefits of property
6.8 Unlisted property funds and trusts
6.9 Key points
Chapter 7 – How the fund grows over time
7.1 Year 1 – under $500
7.2 Years 2 to 5 - $500 to $3,000
7.3 Years 6 to 10 - $3,000 to $10,000
7.4 Years 11 to 20 - $10,000 to $30,000
7.5 Years 21 to 30 - $30,000 to $100,000
7.6 Years 31 onwards – the race to $1million
7.7 Risks involved in the plan
7.8 Key points
Chapter 8 – Handing the plan over to the kids
8.1 When should we tell the kids?
8.2 Introducing the $1 per day plan to the kids
8.3 Lesson 1
8.4 Lesson 2
8.5 Lesson 3
8.6 Lesson 4
8.7 Lesson 5
8.8 Lesson 6
8.9 Lesson 7
8.10 Child’s commitment and goals
8.11 Child’s ongoing involvement
8.12 Key points
Chapter 9 – Where to find out more
9.1 Drowning in a sea of information
9.2 Useful books
9.3 Information services
9.4 Key points
Glossary
Index
Sample Pages:
Examples of how the book helps readers put the plan into practice -
1. It is full of tables and charts to illustrate key points: Eg:
2. There are several quizzes and exercises for the kids to get involved in – to make learning interesting. For example:
3. It includes step by step guidance to help readers actually put the plan into place. Eg:
4. The book is very practical – it spells out products and names individual products and investments which can work with the plan. Eg.
5. There are also several practical tools – like charts and tables that readers can use to help implement and keep track of the plan. Eg:
