Yesterday marked one year of authordom and I’m in the mood to celebrate. The screenshot above was taken exactly a year ago with my book sitting briefly on top of the business book charts on Amazon.
While the sales momentum has slowed down just a wee bit, the topic is as fresh as ever. If you haven’t read my book yet or if you have and would like to give an investor in your life a copy, here’s your chance. All you have to do is answer a question without peeking in the book. Send me the answer at spencerjakabauthor at gmail.com. I will give away three signed copies to three randomly-selected people who get it right. Ready?
Imagine that you and your sibling both receive a large inheritance with the condition that the money be held in trust for 30 years. Your friend is an experienced investor but you aren’t. Your benefactor allows your sibling to invest as he or she sees fit, though only in actively-managed mutual funds and making as many changes as desired, while you have to put the money into a low-cost index fund (60% stocks and 40% bonds, re-balanced annually).
At the end of the 30 years you will almost certainly have more money. According to a 30 year study of investor behavior that I cite in the book, how much more will you have if your sibling is typical?
A. 25% more
B. Twice as much
C. Seven times as much
D. 50 times as much