You manage your own money. You understand the basics of investing and diversifying your portfolio. Now it’s time to invest like a pro for greater profitswith investment expert David Stein, host of the popular weekly podcast, “Money for the Rest of Us.” He’s created a unique ten-question template that makes it easy for individual investors like you to:
• Invest more confidently
• Feel less overwhelmed
• Build a stronger portfolio
• Avoid costly mistakes
• Plan and save for retirement
Despite what many people believe, you don’t need to be an expert to be a successful investor. With Stein as your personal money mentor, you’ll learn how to make smarter, more informed decisions that can help reduce your risk and increase your gains by following a few simple rules for analyzing any investment. This is how the professionals grow their wealth and how you can, too. This is Money for the Rest of Us.
|Publisher:||McGraw-Hill Professional Publishing|
|Product dimensions:||6.10(w) x 8.90(h) x 1.10(d)|
About the Author
Table of ContentsACKNOWLEDGMENTS
Making Investment Mistakes Is Normal
You Are a Portfolio Manager
A Different Kind of Investing Book
What You Will Learn
1 WHAT IS IT?
If We Can’t Explain an Investment, Then We Shouldn’t Invest
The Primary Reason to Buy an Individual Stock
If You Can’t Explain It, Don’t Invest
Who Is Selling It?
We May Not Know as Much as We Think
Dealing with Unknowns
Complex Adaptive Systems
Reacting to Available Information
Why Accurately Predicting the Future Is So Difficult
Investing on the Leading Edge of the Present
The Math and Emotion of Investing
An Investing Framework
2 IS IT INVESTING, SPECULATING, OR GAMBLING?
A Simple Filter for Segmenting the Investing Universe
What Is Investing?
What Is Speculating?
Attempting to Day-Trade
What Is Gambling?
3 WHAT IS THE UPSIDE?
Rules of Thumb for Estimating Investment Returns
A Flawed Financial Plan
Rules of Thumb
Estimating Bond Returns
Estimating Stock Returns
How to Estimate Returns in Your Portfolio
A More Reasonable Financial Plan
4 WHAT IS THE DOWNSIDE?
Rules of Thumb for Evaluating Risk
Navigating the Global Financial Crisis
What Is Risk?
Maximum Drawdowns and Recoveries
The Potential Devastating Impact of Large Portfolio Losses
Why Assets Fall in Price
How to Manage Risk in Your Portfolio
5 WHO IS ON THE OTHER SIDE OF THE TRADE?
Evaluating What the Seller Knows About an Investment
With Whom Are You Trading?
Financial Markets Are Increasingly More Competitive
Active Manager Underperformance
Are Markets Efficient?
How to Balance Active and Passive Investing in Your Portfolio
6 WHAT IS THE INVESTMENT VEHICLE?
Evaluating Exchange-Traded Funds, Mutual Funds,
and Other Investment Securities
Applying the Investment Framework
Evaluating Investment Vehicles
7 WHAT DOES IT TAKE TO BE SUCCESSFUL?
Identifying What Drives Investment Outcomes
Multiple Return Drivers
8 WHO IS GETTING A CUT?
Managing Fees and Taxes
Types of Investment Expenses
Managing Investment Fees
Retaining a Financial Advisor
Rebalancing Your Portfolio
Inflation and Asset Allocation
How to Manage Investment Costs in Your Portfolio
9 HOW DOES IT IMPACT YOUR PORTFOLIO?
Asset Allocation Using Modern Portfolio Theory
The Asset Garden Approach to Asset Allocation
International Stocks and Bonds
How to Allocate Assets in Your Portfolio
An Alternative Approach
10 SHOULD YOU INVEST?
Applying the Investment Framework
Market Timing Versus Risk Management
Socially Responsible Investing
Piecemeal Portfolio Managers