The Random Walk Guide to Investing

0.0

The Essential First Book For Any Investor Burton G. Malkiel’s informative, irreverent, and gimmick-free approach to investing–first explained in his million-copy bestseller A Random Walk Down Wall Street–has been the first place investors turn to both understand the market and use it to their advantage. The Random Walk Guide to Investing distills this time-tested approach into ten rules: Rules 1 - Start saving now, not later Rules 2 - Keep a steady course: the only sure road to wealth is regular savings Rules 3 - Don’t be caught empty-handed: insurance and cash reserves Rules 4 - Stiff the tax collector Rules 5 - Match your asset mix to your investment personality Rules 6 - Never forget that diversity reduces adversity Rules 7 - Pay yourself, not the piper Rules 8 - Bow to the wisdom of the market Rules 9 - Back proven winners: model portfolios of index funds Rules 10- Don’t be your own worst enemy: avoid stupid investor tricks Concise but indispensable, The Random Walk Guide to Investing is ideal for anyone stating a portfolio, rebuilding after the dot-com and telecom crashes, or simply looking for reassurance in the puzzling world of personal finance. About The Author Burton G. Malkiel is the Chemical Bank Chairman’s Professor of Economics at Princeton University and the author of A Random Walk Down Wall Street. Table of Contents Part One: The Basics: Fire your investment adviser Focus on four investment categories Cash Bonds Common Stock Real Estate Understand the Risk/Return relationship Part Two: The Rules: Start saving now, not later: Time is money Returns throughout U.S. History The Miracle of Compound Interest The Million-Dollar Difference Keep a steady course: The only sure road to wealth is regular savings Savvy Saving Tips Strategies for Catching Up Retirement Planning The Millionaire Next Door Don’t be caught Empty-Handed: Insurance and Cash Reserves Establishing a Cash Reserve Money-Market Mutual Funds Bank Certificates of Deposits Internet Banks Treasury Bills Tax-Exempt Money-Market Funds Buying Insurance Variable Annuities Stiff the Tax Collector Individual Retirement Accounts Roth IRAs Pension Plans Priorities in Saving for Retirement A Caveat Possible New Tax-Favored Vehicles Tax-Free Savings Strategies for education The Best Tax Strategy of All Match your asset mix to your investment personality: How to allocate your assets A Reminder: Risk and Return Again Your Time Horizon Your Capacity for Risk Your Temperament Rebalancing, or keeping an Even Temperature Never forget that diversity reduces adversity The Benefits of Diversification An Investment Horror Story The Potential Crises in Some 401(k) Plans How Much Diversification is Enough? Do you need to diversify Internationally? Diversification also means buying other assets classes Diversification over time Pay yourself, not the piper Pay off al Credit Card bills Look out for manual Fund Expenses Cost matters for all financial products Don’t get wrapped up Bow to the wisdom of the market Why the market is smarter than you Being smarter doesn’t always mean being smart Timing isn’t everything Why do most professionals get C’s? But Don’t some active managers beat the Market every year Managers who deserve an A Back proven winner: Model portfolios of index funds The Index advantage But not all Index Funds are alike Exchange Traded Funds Indexing works for bonds, Real Estate, and Other Asset Classes What Index and what funds should be chosen? A Life-Cycle guide to Asset Allocation Don’t be your own worst enemy: Avoid stupid investor tricks Overconfidence Herding Illusion control Loss Aversion Other psychological pitfalls Ignoring Costs Getting entranced by new issues Part Three: Taking stock: An investment scorecard Questions frequently asked about Indexing A Summing up.