markets go completely nuts—dropping by 20 percent or more—it’s a good idea to take advantage of it if you can.

it’s better to diversify and go with the total international stock market index (if you want foreign exposure). Within it, you’ll have exposure to older world economies such as England, France, and Germany, as well as the younger, fast-growing economies of China, India, Brazil, and Thailand. Just remember to rebalance. If the international stock ma

Smart investors don’t do that. They add money to their investments every month. They rebalance once a year.

My lessons are simple. For Americans (as an example), I recommended a US stock index, an international stock index, and a US bond market index. Investors should add money every month. Ignore investment forecasts. Rebalance once a year to maintain a constant allocation.

If you’re considering purchasing a home, double the interest rate and figure out if you could still afford the payments. If you can, then you can afford the home.

Each trading day, stocks fluctuate. Anyone buying an index fund can place an order to purchase such a fund. They pay the closing price at the end of the trading day. ETFs are different. They trade on a stock exchange, much like individual stocks. Theoretically (although this would be foolish) a trader could buy and sell them throughout the day. An

The surest way to grow rich over time is to start by spending a lot less than you make. If you can alter your perspective to be satisfied with what you have, then you won’t be as tempted to blow your earnings. You’ll be able to invest money over long periods of time, and thanks to the compounding miracles of the stock market, even middle-class wage

Gordon was keen to take control of his finances. He opened an account with DBS Vickers in Singapore to build a portfolio of low cost ETFs. But he doesn’t know where he wants to retire. Su’s family is in Singapore. Gordon’s family is in Canada. They own a piece of land in Hawaii. For that reason, Gordon thought it would be prudent to split his asset

Introducing the Couch Potato Portfolio