Investing For Dummies

The best-selling investing guide offers new information, new insights, and new perspectives

There's nothing better than having your money make more money--and getting to that place isn't as complicated as you've been led to believe. With some common sense, careful planning, and the right advice, you too can watch your money accumulate like it's growing on trees.

In the Ninth Edition of Investing for Dummies, best-selling author and nationally renowned personal finance expert Eric Tyson shows you how to make your money work for you with rock-solid advice that's stood the test of time. Steering clear of flashy get-rich-quick schemes, Tyson offers a slow-and-steady approach that can work for everyone from young professionals just starting their careers to baby boomers who want to bulk up their nest eggs just before retirement.

In the book, you will:

• Get started with investing by exploring your investment choices, weighing risk vs. return, and get your financial house in order
• Discover the parts that stocks, bonds, real estate, and small business can play in your portfolio
• Learn to choose the right periodicals, radio, tv, and web resources that keep you informed and help you avoid the hype

With updated coverage of new developments like the Tax Cuts and Jobs Act and their impact on investments, along with the growing trend amongst brokers toward zero- and low-fee stock trades, the Ninth Edition of Investing For Dummies is the latest can't-miss guide to investing your money like a boss.

Auteur

Eric Tyson, MBA, is a financial counselor, syndicated columnist, and the author of bestselling For Dummies books on personal finance, taxes, home buying, and investing.

Contenu
Introduction 1

About This Book 2

Foolish Assumptions 3

Icons Used in This Book 3

Beyond the Book 4

Where to Go from Here 4

Part 1: Getting Started with Investing 5

Chapter 1: Exploring Your Investment Choices 7

Getting Started with Investing 8

Building Wealth with Ownership Investments 9

Entering the stock market 10

Owning real estate 10

Running a small business 11

Generating Income from Lending Investments 13

Considering Cash Equivalents 14

Steering Clear of Futures and Options 15

Passing Up Precious Metals 17

Getting Clobbered in Currencies and Cryptocurrencies 18

Counting Out Collectibles 20

Chapter 2: Weighing Risks and Returns 25

Evaluating Risks 26

Market-value risk 27

Individual-investment risk 32

Purchasing-power risk (also known as inflation risk) 34

Career risk 36

Analyzing Returns 37

The components of total return 37

Savings and money market account returns 39

Bond returns 40

Stock returns 41

Real estate returns 43

Small-business returns 44

Considering Your Goals 45

Chapter 3: Getting Your Financial House in Order 47

Establishing an Emergency Reserve 48

Evaluating Your Debts 50

Conquering consumer debt 50

Mitigating your mortgage 51

Establishing Your Financial Goals 53

Tracking your savings rate 53

Determining your investment tastes 56

Funding Your Retirement Accounts 56

Gaining tax benefits 56

Starting your savings sooner 57

Checking out retirement account options 61

Choosing retirement account investments 63

Taming Your Taxes in Non-Retirement Accounts 64

Figuring out your tax bracket 64

Knowing what's taxed and when to worry 65

Choosing the Right Investment Mix 67

Considering your age 67

Making the most of your investment options 68

Easing into risk: Dollar cost averaging 69

Treading Carefully When Investing for College 71

Education Savings Accounts 72

Section 529 plans 73

Allocating college investments 73

Protecting Your Assets 75

Part 2: Stocks, Bonds, and Wall Street 77

Chapter 4: The Workings of Stock and Bond Markets 79

How Companies Raise Money through the Financial Markets 79

Deciding whether to issue stocks or bonds 80

Taking a company public: Understanding IPOs 81

Understanding Financial Markets and Economics 84

Driving stock prices through earnings 84

Weighing whether markets are efficient 85

Moving the market: Interest rates, inflation, and the Federal Reserve 86

Chapter 5: Building Wealth with Stocks 93

Taking Stock of How You Make Money 94

Defining The Market 94

Looking at major stock market indexes 95

Counting reasons to use indexes 98

Stock-Buying Methods 98

Buying stocks via mutual funds and exchange-traded funds 99

Using hedge funds 100

Selecting individual stocks yourself 101

Spotting the Right Times to Buy and Sell 102

Calculating price-earnings ratios 103

Citing times of speculative excess 104

Buying more when stocks are on sale 111

Avoiding Problematic Stock-Buying Practices 114

Beware of broker conflicts of interest 114

Don't short-term trade or try to time the market 115

Be wary of gurus 117

Shun penny stocks 119

The Keys to Stock Market Success 120 **Chapter 6: Investigating and Purch...