If you can e-mail me the text for Chapter 6 and provide some independent evidence on why index funds win, I will be happy to purchase this book. The biggest hole in index fund logic is that it cannot exist without active management. Actively managed investments drive market efficiency and therefore create market capitalization weighted indices. It’s amazing how blindly people accept academic research papers and their conclusions. Of course mutual funds don’t beat cap weighted indices on average, the only way that would be possible is if institutional separate accounts, hedge funds, and retail accounts in aggregate had inferior performance GROSS of the average expense ratio. Index funds are a great tool for investors not willing to put the time and effort into thoroughly researching actively managed investment options.

A couple things that are really minor and just nitpicky because that’s how I am:
Actually, I’ll preface it with the disclaimer that I haven’t read the book in its entirety, just briefly skimmed it and stopped mostly for the nice graphs and charts.

Ok here we go…both things have to do with the graph on page 23 regarding what $1000 is worth after investing from 1928-2008…
1) The graph is a little misleading because it’s not a semilog graph.
2) The $91,893 stated there is in 1928 dollars, correct? I just thought that was interesting.

The book does look great, very simple, and easy to understand. I hope many of my friends read it and greatly improve their chances of retirement!

However, what is really needed is a “simple”-type book on how to “dis-accumulate” once one hits retirement. I personally plan to use the 4% SWR once my wife retires. I have used various on-line calculators, as well as doing the math “by hand” with a pocket calculator, and it appears that a very modest real rate of return of 1% (average yield minus inflation) will enable a 4% SWR to last between 28 and 29 years. However, the literature is all over the map on SWRs. I read one paper authored by several Stanford-affiliated academics (referenced on the Boglehead Wiki) and my eyes glazed over. There are so many issues we face as retirees: annuities, SWRs, Medicare and related expenses (how much will that “supplemental” insurance cost and should I buy it or risk the 20% Part B co-pay?), bonds versus CDs, I could go on and on. I’d love a link to such a book (if it exists and isn’t peddled by some entity pushing a product).

But is it effective? Does it provide the protection that’s needed when the markets tumble?

If you know anyone else who might benefit from it, please feel free to share it with them.

I hope your readers find it helpful!