This book grew out of a series of letters I wrote to my daughter about various topics—mostly money and investing—that she wasn’t quite ready to hear at the time.

Understanding money is critical, as it is the most powerful tool we have for navigating the complex world we’ve created.

"But Dad," she once said, "I know money is important. I just don’t want to spend my life thinking about it." That was an eye-opener. I happen to love this stuff, but most people have better things to do with their valuable time—building bridges, curing diseases, negotiating treaties, climbing mountains, creating technologies, teaching children, or running businesses.

Unfortunately, a benign neglect of financial matters leaves you vulnerable to the charlatans of the financial world—people who make investing seem infinitely complex. They do this because complexity is more profitable for them and more costly for us, effectively driving us right into their waiting arms.

Here is an essential truth: Complex investments exist solely to generate profit for those who create and sell them. Not only are they more expensive for the investor, but they are also less effective.

The simple approach I developed for her—and which I now share with you—is not only easy to understand and implement, but it is also more powerful than the alternatives.