Millionaire Teacher: Grow Financially Free With These Simple Rules

 

David Brown is an Internet sensation. 

A few years ago, the longhaired British rapper recorded a song on youtube.  Don’t Stay In School.  About 12 million people have watched it.

The title was a hook. He’s a smart guy.  He rocked his British A levels.  He has a university degree.  But the 20 something artist has a beef with public schools.  For one, they don’t teach about money.  He was singing my tune.

My book, Millionaire Teacher, was published in 2011.  In the U.S., on November 2011, it hit #1 on Amazon.com in three different categories:  Personal Finance, Stock Market Investing and Business and Investing.  I just completed the second edition.  It’s available on Amazon

It was translated into languages that I certainly never expected, including Thai, Korean, Simplified Chinese and Traditional Chinese.  

The lessons, I think, are timeless.  Set a savings goal, track your spending and invest the money like Warren Buffett’s wife.  I explain how to do that. A slew of Nobel Economic Prize winners recommend the same investment strategy. 

It takes just a few minutes a year.  You don’t have to know anything about the stock market.  You don’t have to follow stock market news.  But you will beat most investment professionals.  Mountains of data say that’s true.

Does that sound silly?  It isn’t. If you read my book, have a computer handy.  Challenge what I write.  Check out my references.  Look up what peer-reviewed financial academic studies say.  Here’s what you’ll ask yourself:  Why didn’t anyone teach me this before?  Why isn’t this in school?

I ask myself those questions too–almost every single day.

 The financial service industry wants you to buy certain types of products.  I ask you to avoid them.  Warren Buffett does too.  Leagues of Economic Nobel Prize winners say the same thing.   They recommend that you invest in low-cost index funds.  But such products are flies in the caviar for most financial advisors. 

But people are getting smarter, so the industry is changing. New and better investment products are starting to kick tradition in the knee.  Some new firms are saying, “Hey, people are getting smarter.  They won’t get conned forever. Let’s offer something better.” 

These firms are often called Robo-Advisors. All you need to do is send them your money.  They’ll build low cost portfolios of index funds, much as I describe in my book.  These investment firms exist in the United States, Canada, Asia and Europe.  My book’s new edition provides a ‘who’s who?’ list.

For those who would prefer to DIY, I explain how to do it.  Vanguard has spread beyond the United States.  That means investment options, for DIY investors, have also improved a lot. 

Here are a few other things that the new book includes:

  1. I show why some brokers lie. It’s more than a conflict of interest.  Something happens in their brains.
  2. I answer the question, “If you receive a windfall, should you invest it all at once, or should you dollar-cost average the money over time?”
  3. I show how to buy an ETF, including screen shots of the process.
  4. I explain why you shouldn’t buy a currency-hedged ETF. These are really common.  But it’s better to avoid them.
  5. I prove that Donald Trump would have been richer if he bought index funds with his $500 million back in 1982. He could have spent millions of dollars every year and done zero  And it would have made him billions of dollars richer than he is right now.
  6. I explain why a family should never lease cars. Doing so is a $1 million decision.
  7. I prove that young people should prefer to see their stock investments sag, instead of rising right away. The chart that I show is absolutely shocking.
  8. I prove that investors in actively managed funds don’t get close to earning the posted returns of the funds they own. Index fund investors, in contrast, do far better.  This isn’t about the tyranny of fees.  There’s a psychological twist.
  9. I also explored the topic of smart beta funds. If you decide to use them, can you really beat the market?
  10. I’ve written for magazines.  But I want to show why you should never pay attention to their “Top Funds To Buy!” lists.  I had some fun with this!

 


Here’s what the experts say about Millionaire Teacher (2nd edition)

 

Contrary to financial services industry mythology, saving and investing for your future doesn’t have to be difficult. You’ll learn just how easy it can be in Andrew Hallam’s Millionaire Teacher. With 9 simple rules, he gives you easy, step-by-step instructions. Follow them and you’ll be on your way to a successful (and possibly early) retirement.”

Scott Burns
 U.S. Syndicated Finance Columnist 

 

 

In Millionaire Teacher, Andrew Hallam shows how the son of a mechanic who became a high school teacher could become a financially independent millionaire by following a few simple, albeit difficult to follow, common sense rules. If more young people followed his advice, it would be a richer, more stable world.

Michael O’Higgins
Author, Beating the Dow, Beating The Dow With Bonds, O’Higgins Asset Management, Inc.

 

 

“Andrew Hallam’s Millionaire Teacher is full of wisdom and wit – a combination that makes the book an easy read. This is not another writer’s set of opinions, this is an evidence-based project and draws on the wisdom of many Nobel Laureate winners. Their work is translated and distilled into easily understandable chapters. The basic principles espoused in the book should be required educative reading for every investor.”

Ben Sherwood
Director for and on behalf of Satis Asset Management Ltd,  Principal, Hillier Hopkins LLP

 

 

“There are lots of books on personal finance but blessed few that discuss the topic with wit and even fewer that do so with soul. Andrew Hallam’s second edition of Millionaire Teacher is to my mind the best. Read it. You’ll be entertained. You’ll also be richer in every sense.”

Ian McGugan
 The Globe and Mail

 

 

“Andrew is a rare breed. He makes complex financial topics easy to understand for the masses, but his in-depth knowledge also ensures that even the most well-versed can learn a thing or two. Whether you’re a millennial, approaching retirement, or already retired, his second edition of Millionaire Teacher is a must-read for anyone looking to take control of their finances.”

Jason Heath
 CFP, Fee-Only Financial Planner, Financial Post and MoneySense columnist

 

 

“The first edition of Millionaire Teacher had a huge readership because Andrew Hallam writes with such passion and conviction. This new edition deserves to reach an even larger audience. Andrew brings years of wisdom to his discussion of smart saving and simple, low-cost investing. Readers who follow this teacher’s advice will retire at the top of their class.”

Dan Bortolotti
CFP, CIM, associate portfolio manager at PWL Capital, and creator of the Canadian Couch Potato blog

 

 

“Millionaire Teacher, Second Edition is packed with humor, solid evidence, and advice. It might be the clearest and most engaging investment book that has ever been written!”

Sam Instone
Founder and chief executive of AES International

 

 

“While there are scads of fine books on passive investing for US residents, until Andrew Hallam came along, non–US investors were left to the tender mercies of  local brokers, advisors, and investment companies that serviced their clients in the same way that John Dillinger serviced banks. If you’re in that boat and you’ve just come across Millionaire Teacher, Second Edition, consider yourself lucky: read, enjoy, and fatten up your portfolio!”

William J. Bernstein
Author of A Splendid Exchange and The Investor’s Manifesto

 

 

“Andrew Hallam’s second edition of Millionaire Teacher is perfect for novice investors. He recommends the right kind of investment products. He also demonstrates a strong awareness of how human emotions can sabotage even the best-laid plan. Hallam does a great job showing how to avoid this trap, whether you choose to invest on your own or you hire an advisory fi rm to build you a portfolio of index funds.”

Larry Swedroe
Author of Your Complete Guide to Factor-Based Investing, and principal and director of research, The Buckingham Family of Financial Services

 

 

“Billionaire teacher Warren Buffett and millionaire teacher Andrew Hallam offer you the same advice and guarantee: invest in low-fee and low-tax index funds on a regular basis over your lifetime, and you too will be financially independent.”

Robert P. Miles
Warren Buffett scholar, and author of Warren Buffett Wealth and The Warren Buffett CEO

 

 

“If investing were a religion, the second edition of Millionaire Teacher would be the Holy Grail. Everyone with a pulse should read this book! I’m confident your time and effort will be rewarded.”

Sonny Wadera
MBA financial security advisor, Kelson Financial

 

 

“This is a must-read book for any first-time investor. Andrew Hallam helps build the framework for those looking to build real wealth. Hallam’s simple, yet powerful, lessons of ‘start young, spend less, do your homework, and keep costs low cannot be overstated.”

Ryan A. Hughes
Founder and portfolio manager, Bull Oak Capital

 

 

“This book provides some great and simple guidelines for people who are serious about building and protecting their wealth. The principles provided are an excellent roadmap to financial security and peace of mind.”

Richard E. Reyes
CFP, The Financial Quarterback TM, Wealth and Business Planning Group, LLC, Maitland, FL

 

 

“Millionaire Teacher, Second Edition is one of those must-read books for both novice and experienced investors. Through experience and humor, the author identifies an approach that’s in the best interest of investors, and he provides the evidence to back it up. Understand what you spend. Save and invest monthly into a well-diversified portfolio of index funds. Ignore the investment industry ‘noise,’ and manage your own emotions. This book offers the reader a clear path to prosperity!”

Chris Turnbull
Portfolio manager, Index House

 

 

“Managing one’s financial life doesn’t have to be rocket science. We have been living below our means and investing simply long before it became popular. Retired almost three decades now, we have been traveling the world, taking advantage of great weather, food, culture, and lifestyle. Andrew Hallam hits upon understandable and basic points that can make you wealthy too, and uses plain English, not fancy jargon, to get his message across.”

Billy and Akaisha Kaderli,
RetireEarlyLifestyle.com (Free Newsletter)

 

 

“As an industry veteran of more than 20 years, I know all too well how the financial services industry exploits people. But if you read Andrew’s enjoyable book and follow his straightforward suggestions, you can simplify your life and save an amazing amount of money for you and your family!”

Mark Zoril
AIF, and founder of PlanVision

 

 

“Mr. Hallam teaches what you don’t learn in school—how to be rich. He built a $1 million portfolio before he was 40 years old. With his nine rules of wealth he shows how you can, too. I recommend Millionaire Teacher, Second Edition. Class is in session.”

Robin Speziale
Author of Market Masters

 

 

“Millionaire Teacher, Second Edition provides such smart and simple investing advice that it should be required reading for every investor. Using analogies and humor mixed with hard data, Andrew Hallam spells out an investing strategy that will outperform the vast majority of professional money managers—and with less than an hour a year of portfolio maintenance. How brilliant is that?!”

Joe Snyder
CIM®, and product analyst, Tangerine Investments
Andrew Hallam

Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (Wiley 2011) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use.

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6 Responses

  1. toony says:

    Looking forward to reading the new additions – no doubt this edition will be a roaring success as well! 🙂

    I was reading the local online finance paper and rolling my eyes when I came across the article “Revolutionize your finances in 2017 with these books”. Was expecting the usual financial pron/clickbait books (ie. “Hot stocks/funds to get into for 2017” etc) instead of proper financial education.

    However, I was pleasantly surprise to see the list also had great education titles from the likes of Jane Quinn and yourself Andrew!

    Your book made #8 on the list 😉
    http://www.thenational.ae/business/personal-finance/revolutionize-your-finances-in-2017-with-these-books#8

    Getting a great reputation as a financial educator in the middle east due to this blog and the millionaire/expat books 🙂

  2. Jonathan says:

    Andrew,

    The second addition is great! Thanks for all the updates. Can’t wait to geek out over the new content with my friends when we start back to school on Monday!

    Jonathan

  3. Mitch says:

    Thank you for writing and publishing again, Andrew!

    I got a copy of the first edition recently at a local bookstore in Singapore (recommended by Finance blogger Paula) and just purchased the Kindle ebook – 2nd edition.

    I read the first 3 chapters several times before proceeding to next few chapters.
    Still on it.

    Your prose is great, and very encouraging, more importantly what I’ve struggled to understand for years, I learned well from your book.

    Thank you very much and I do think you should make your books available whereever you speak. 🙂

    I hope you speak in Singapore soon!
    Thank YOU for making ‘teaching humanity about personal finance’ one of your missions in life.

  4. Carmen says:

    Hi Andrew,

    Thank you for the help – I was able to finally purchase Kindle editions of both your books.

    I read the expats one first, and confess to feeling overwhelmed and befuddled by the time I finished it. Then I remembered that in a year I’m repatriating to Canada and breathed easier. lol

    I then read the teacher book (I’m a teacher) in one sitting and what a revelation it turned out to be. For the first time in my life it made finance make sense to me and left me feeling empowered to *gasp* invest!

    Thanks to your clear and vivid explanations, I now know what type of portfolio I want. I am, however, still fuzzy on the investment vehicle I should use.

    At the end of next year, I’ll be leaving teaching (and Kuwait) and returning (probably permanently) to Canada and a relatively stress-free job. I will be debt-free (bye bye massive student loans), and with approximately 40,000 CAD in savings.

    What I’m stumped by is where to stash that cash. Tangerine offers the lovely Index packages, while WealthBar offers the ETF ones. TFSAs are also tempting since they can be invested (not just parked money) and are totally tax-free, whereas RRSPs are taxable down the road. A chequing account with a wee bit of interest is better than nothing, but a high-interest savings account seems pointless when investing in bonds, for instance, gives such better returns.

    So I’m torn. I’ll turn 40 the summer after I return to Canada, and I know that I’ll never earn in a high income bracket, and despite knowing that I’ll invest regularly in indexes for the rest of my days, I have no idea how to prioritize the tempting options discussed in your book.

    Any advice?

  5. Jane Silverthorne says:

    I am currently in Canada. Where can I get a copy of “Millionaire Teacher” in Korean?

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