Foreword by John C. Bogle The Bogleheads' Guide to Investing second edition by Mel Lindauer, Taylor Larimore, Michael Leboeuf

Foreword by John C. Bogle The Bogleheads' Guide to Investing second edition by Mel Lindauer, Taylor Larimore, Michael Leboeuf

Part I
Essentials of Successful Investing

Chapter One
Choose a Sound Financial Lifestyle
Drive-in banks were established so most of the cars today could see their
real owners.
—E. Joseph Grossman
It’s an old statistic that has held very consistent over time. Take 100 young
Americans starting out at age 25. By age 65, one will be rich and four will be
financially independent. The remaining 95 will reach the traditional
retirement age unable to self-sustain the lifestyle to which they have become
accustomed.
Without assistance from government programs such as Social Security,
Medicare, and Medicaid, many would literally starve. And if you are
harboring dreams of the government providing you with a full and prosperous
retirement, it’s time to wake up. Although the government won’t let you
starve, it’s not committed to making your golden years golden. That’s up to
you. A lifestyle totally based on government handouts has always been
uncomfortable at best.
With 76 million baby boomers in or nearing retirement, it could get a whole
lot worse.
We live in the richest country in world history. Our wealth is enormous and
growing. Yet only 5 percent of us manage to become financially independent
by age 65. Why is this? More often than not, the answer lies in what we
choose to do with the money that comes into our lives.
WHAT’S YOUR FINANCIAL LIFESTYLE?
Although you might not be aware of it, you have chosen the financial lifestyle
that you currently live. For purposes of simplicity, let’s look at three common
financial lifestyles lived by three different couples. As you read about each
lifestyle, you will likely be reminded of people you know. But the most
important question is, “Which financial lifestyle is closest to yours?”
The Borrowers
“Forget about tomorrow, let’s live for today.” That’s the creed of Bill and
Betty Borrower. It’s a financial lifestyle literally built on a house of cards—
credit cards. To the Borrowers, paying cash for almost anything is unheard of.

Foreword by John C. Bogle The Bogleheads' Guide to Investing second edition by Mel Lindauer, Taylor Larimore, Michael Leboeuf