Dear Reader,

Think of sports: a football game, a round of golf, a tennis match, a basketball game. Or think of a play, or an opera. Now think of the halfway mark in that event -- halftime, or the midpoint in the match, when things can look good or downright dismal. Or think of intermission, when everyone's in the foyer, talking about what will happen next. Everyone takes a breather, and the feeling in the air can be pretty electric, because everyone's wondering the same thing: What's going to happen in the second half?

We have a similar point in our lives, a sort of halftime, or intermission -- a time when we find ourselves wondering about the second half. The age differs from person to person. For some it comes in their late forties; for others it's in their early fifties, or maybe it's a few years away from either of those. It's somewhere in what we hope will be the middle of our lives.

When we reach that age, we feel different. We may sense a change coming and we want to pause and to think about what we've accomplished, and what we still hope to do. It's a time when we've come to know ourselves well. We know who we are and who we aren't, what we like and what turns us off. We've suffered some losses, both business and personal, and there really is some truth to the cliché: we're not just older -- we really are wiser.

And what that age represents, whether it's 47 or 57 or somewhere in between, is the beginning of the second half of our lives. It's a time to stop for a moment and ask a very basic but crucial question: What do I want for the second half of my life?

Maybe you know exactly what you want; you've had it all planned out for years. Or maybe you've never thought about it much; you just can't imagine yourself as "older." Or maybe you just want to keep doing what you're doing because you love what you do, and you don't plan to retire. I include myself in that category: I am fortunate in that I am passionate about my work, and I have no plans whatsoever to retire fully.

But I do think about what I want in this second half of my life. I want to give back some of what I've received. I want to pass on what I've learned about investing. I want to help my kids as they negotiate young adulthood and even middle age, and I want to cheer on my grandkids as they attempt new things. I want to support my favorite charities, and to spend more time on the things I care about most.

So what does all this have to do with investing? A lot. A sound investing strategy is what gives you the means and the courage to do what you want.

The issues involved in planning for the second half of your life may seem daunting. I've heard people say they can't wait to retire, but they can't imagine not having a paycheck and they don't know how and when to change their investments as they age. But it can be done. It has to be done, because while getting older isn't a bad thing, being unprepared for it is. And by not understanding the financial part of your future, you sabotage yourself and you limit your choices.

And that's what this book is about: helping you determine what you can do now to improve the quality of the second half of your life. It's about spending some time on understanding where you are financially and where you want to go, so that the second half of your life can be as fulfilling as you hope it will be.

If you find the whole concept of financial planning intimidating or frightening, be assured that you're not alone. But also be assured that you can do this. Planning for your future isn't rocket science; it's simply a process that involves paying attention and sticking with it. You also need a road map, and that's what this book is. Little by little, chapter by chapter, you'll learn how to figure out what you're starting with, and how to estimate what you want to end up with. You'll learn how to choose the kinds of investments that are best suited to your needs and temperament, and you'll learn how to manage your portfolio in the second half of your life. None of this is magic; it just takes commitment.

So start today, maybe even right now. Take control of the second half of your life. Dream about it, wonder about it, think boldly about what you want. And take the first step, which is usually the hardest. Once you get started, the satisfaction you feel will keep you going. But don't delay in your preparations. The best is yet to come.

Sincerely,

Charles R. Schwab