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When The New York Times reviewed The Smartest Investment Book You'll Ever Read, the headline was "A Stubborn Insistence On One Way To Invest." The reviewer went on to somewhat begrudgingly concede that "it is clear he is on to something."

Actually, I am only partly guilty. I do not believe there is only one way to invest. I do believe there is only one way to invest intelligently. Here it is:

1. Determine your asset allocation. You can do this by taking a free risk capacity survey. There are many of them on the internet. I admit to a bias for the one at the web site for my book.

2. Buy three low cost index funds from Vanguard.

• - The Total Stock Market Index Fund (VTSMX). Put 70% of the amount allocated to equities in this fund.
  
  
• - The Total International Stock Index Fund (VGTSX). Put 30% of the amount allocated to equities in this fund.
  
  
• - The Total Bond Index Fund (VBMFX). Put 100% of the amount allocated to bonds in this fund.

3. Rebalance your portfolio once or twice a year to keep your asset allocation intact or to change it if your investment objectives or tolerance for risk have changed.

That's it. You are done.

Depending on your asset allocation, the long term average annual returns of these portfolios have ranged from 9.06% to 10.86%. The portfolios with the highest allocation of equities have yielded the highest returns.