How to Manage a Windfall Successfully

Chapter 15 - How to Manage a Windfall Successfully

I didn’t expect it, but one of my favorite pieces of advice appeared in this book: if you get a huge windfall, put it in a short term investment for six months and just think about it and plan carefully what you’re going to do with it.

This is also a situation where you really should have a professional help you, as you’ve just jumped into a completely different investment category and lots of things are available to you.

http://www.thesimpledollar.com/2007/03/14/the-bogleheads-guide-to-investing-chapters-9-16/


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The Bogleheads’ Guide to Investing: Overview
The Bogleheads’ Guide to Investing: Chapters 17 - 23
The Bogleheads’ Guide to Investing: Chapters 9 - 16


The Bogleheads’ Guide to Investing is a very detailed “starter manual” for conservative investors. The principles in this book are very fundamentally sound, but are not going to be the foundation for any “get rich quick” scheme.

Before you decide whether or not this is a good book for you, you need to ask yourself what your general investment goals really are.

If your goal is to have a shot at getting rich quickly with a lot of risk mixed in, I don’t recommend this book. You’re better off reading something like Jim Cramer’s Real Money, which is an excellent book for people who are willing to take on some significant risk and dabble in individual stock investment (and even that is fairly moderate risk compared to some investments).

On the other hand, if you’re planning on investing for the purpose of building a stable, lifelong economic backbone, I couldn’t recommend this book more highly. It’s a well-conceived explanation, from top to bottom, of an investment philosophy that will create a life full of steady gains and sustainable wealth.

http://www.thesimpledollar.com/2007/03/16/the-bogleheads-guide-to-investing-buy-or-dont-buy/