Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 74

Free booklet, William Bernstein’s ‘If You Can’

William J. Bernstein is an American investment adviser and financial theorist whose bestselling books include The Birth of Plenty and A Splendid Exchange. His most recent book, Rational Expectations: Asset Allocation for Investing Adults, was recently reviewed in The Economist. He is a principal in the money management firm Efficient Frontier Advisors, a frequent guest columnist for Morningstar, and is often quoted in The Wall Street Journal.

Bernstein has given permission for Cuffelinks to provide a complete copy of his 2014 booklet, ‘If You Can: How Millennials Can Get Rich Slowly’. It is his simple recipe for young people starting on an investing journey. It is linked here:

If You Can: How Millennials Can Get Rich Slowly

Copy this link or use the ‘Share/Save’ button above the article to forward to someone.

Bernstein’s introduction to the booklet is:

For years I've thought about an eleemosynary project to help today's young people invest for retirement because, frankly, there's still hope for them, unlike for most of their Boomer parents. All they'll have to do is to put away 15% of their salaries into a low-cost target fund or a simple three-fund index allocation for 30 to 40 years. Which is pretty much the same as saying that if someone exercises and eats a lot less, he'll lose 30 pounds. Simple, but not easy … The booklet will take only an hour or two to read, it's not a complete solution. It's a roadmap, a pointer in the right direction.”

Bernstein identifies five hurdles to overcome to retire successfully:

  • People spend too much money. If you can't save, you'll die poor
  • You need an adequate understanding of finance and markets
  • Don’t ignore financial history
  • Know yourself. Your biggest enemy is yourself
  • Exercise care in dealing with the financial services industry.

A few notes for an Australian audience:

  • Bernstein talks about retirement vehicles in the US called 401 (k) plans or IRAs (Individual Retirement Accounts). The equivalent in Australia is a person’s superannuation fund account, into which concessional or non-concessional contributions can be made (subject to limits). However, if a young person is saving for a deposit on a house, they need to be aware of the lack of access to superannuation, and consider saving outside superannuation with different tax consequences.
  • Bernstein identifies three different types of funds, but these apply for Americans. An Australian choosing the same funds would have a foreign exchange risk. Possible substitutes are:
    - An S&P/ASX index fund instead of a US total stock index fund
    - An Australian bond fund instead of a US total bond index fund
  • An Australian investor could choose a unit trust, a Listed Investment Company or an ETF depending on their own preference or experience. Following Bernstein’s paper, the third fund would be a global equity fund.

Some comments on Cuffelinks’ perspective

As with all the articles we publish, we are sharing ideas and opinions, but it does not mean we agree with everything. For example, Bernstein is a believer in using index funds and not investing directly or using a broker or a fund manager. While Cuffelinks accepts the merits of index funds, especially for novice investors who cannot identify good stocks or managers, we do not promote one method of investing over another. An investor who believes talented fund managers can be identified should back their judgement, and there is a place for the experienced investor to go direct. We also believe there is an important role for financial advisers to play.

However, we do think Bernstein offers a good introductory text and has many useful ideas worth sharing, including:

“If I had to summarize finance in one sentence, it would go something like this: if you want high returns, you’re going to occasionally have to endure ferocious losses with equanimity, and if you want safety, you’re going to have to endure low returns.”

We welcome your opinion on Bernstein in our comments section.

 

This article and the attached booklet are general in nature and readers should seek their own professional advice before making any financial decisions.

 

RELATED ARTICLES

Financial literacy for older Australians has gone nowhere

Rules can change, but the final score still matters most

banner

Most viewed in recent weeks

Which generation had it toughest?

Each generation believes its economic challenges were uniquely tough - but what does the data say? A closer look reveals a more nuanced, complex story behind the generational hardship debate. 

Maybe it’s time to consider taxing the family home

Australia could unlock smarter investment and greater equity by reforming housing tax concessions. Rethinking exemptions on the family home could benefit most Australians, especially renters and owners of modest homes.

100 Aussies: seven charts on who earns, pays, and owns

The Labor government is talking up tax reform to lift Australia’s ailing economic growth. Before any changes are made, it’s important to know who pays tax, who owns assets, and how much people have in their super for retirement.

The best way to get rich and retire early

This goes through the different options including shares, property and business ownership and declares a winner, as well as outlining the mindset needed to earn enough to never have to work again.

A perfect storm for housing affordability in Australia

Everyone has a theory as to why housing in Australia is so expensive. There are a lot of different factors at play, from skewed migration patterns to banking trends and housing's status as a national obsession.

Chinese steel - building a Sydney Harbour Bridge every 10 minutes

China's steel production, equivalent to building one Sydney Harbour Bridge every 10 minutes, has driven Australia's economic growth. With China's slowdown, what does this mean for Australia's economy and investments?

Latest Updates

Economy

Why we should follow Canada and cut migration

An explosion in low-skilled migration to Australia has depressed wages, killed productivity, and cut rental vacancy rates to near decades-lows. It’s time both sides of politics addressed the issue.

Investing

Simple maths says the AI investment boom ends badly

This AI cycle feels less like a revolution and more like a rerun. Just like fibre in 2000, shale in 2014, and cannabis in 2019, the technology or product is real but the capital cycle will be brutal. Investors beware.

Property

Australian house price speculators: What were you thinking?

Australian housing’s 50-year boom was driven by falling rates and rising borrowing power — not rent or yield. With those drivers exhausted, future returns must reconcile with economic fundamentals. Are we ready?

Shares

ASX reporting season: Room for optimism

Despite mixed ASX results, the market has shown surprising resilience. With rate cuts ahead and economic conditions improving, investors should look beyond short-term noise and position for a potential cyclical upswing.

Property

A Bunnings play without the hefty price tag

BWT Trust has moved to bring management in house. Meanwhile, many of the properties it leases to Bunnings have been repriced to materially higher rents. This has removed two of the key 'snags' holding back the stock.

Investment strategies

Replacing bank hybrids with something similar

With APRA phasing out bank hybrids from 2027, investors must reassess these complex instruments. A synthetic hybrid strategy may offer similar returns but with greater control and clearer understanding of risks.

Shares

Nvidia's CEO is selling. Here's why Aussie investors should care

The magnitude of founder Jensen Huang’s selldown may seem small, but the signal is hard to ignore. When the person with the clearest insight into the company’s future starts cashing out, it’s worth asking why.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.