Investing For Dummies. Eric Tyson
Чтение книги онлайн.
Читать онлайн книгу Investing For Dummies - Eric Tyson страница 10
Название: Investing For Dummies
Автор: Eric Tyson
Издательство: John Wiley & Sons Limited
Жанр: Личные финансы
isbn: 9781119716518
isbn:
438 445
Introduction
With each new edition of this investing guide, I find that the core investment philosophy I discuss within it has stood the tests of time and changing market forces.
During the financial crisis of 2008, things got scary. Large Wall Street firms were going under, stock prices were plummeting, and layoffs and unemployment rates were soaring. And all this was happening in the midst of the 2008 presidential election. Talk of another Great Depression was in the air. In fact, polls showed a majority of Americans feared that another depression was actually happening. Housing prices were dropping sharply in most communities, and more and more properties were ending up in foreclosure.
Investing didn’t seem so fun anymore. However, even though the downturn was the worst in decades, it had similarities to prior downturns, and people who kept their sense of perspective and followed my advice have enjoyed tremendous returns since the market bottom.
Now, fast forward to 2020. The United States was enjoying one of the longest continuous periods of economic expansion and the unemployment rate had sunk to a 50-year low. Stock prices continued to rise to new highs despite periodic setbacks. And then the coronavirus upset the good times and quickly reminded us that investing involves risks and sharp price declines, often when least expected.
I know from working with people of modest and immodest economic means that they increase their wealth by doing the following:
Living within their means and systematically saving and investing money, ideally in a tax-favored manner
Buying and holding a globally diversified portfolio of stocks
Building their own small business
Investing in real estate
This book explains each of these wealth boosters in detail. Equally, if not more important, however, is the information I provide to help you understand and choose investments compatible with your personal and financial goals.
About This Book
The best investment vehicles for building wealth — stocks, real estate, and small business — haven’t changed. But you still need money to play in the investment world. Like the first edition of Investing For Dummies, the ninth edition of this national bestseller includes complete coverage of these wealth-building investments as well as other common investments, such as bonds. Here are the biggest changes in this edition:
I’ve updated the data and examples in this book to provide you the latest insights and analyses. Having trouble comprehending whether the Federal Reserve’s interest rate policy will impact the stock market? Curious about how tax law changes may impact your investment strategies? Worried what impact the election will have on the economy and financial markets? Confused with the increasing array of retirement account savings options such as individual 401(k)s and Roth 401(k)s? Seeking a way to invest in stocks without exposing yourself to the tremendous risks experienced during the 2008 financial crisis or the 2020 coronavirus downturn? Curious about what an exchange-traded fund (ETF) or hedge fund is and whether you should invest in one? Wondering why people are talking about cryptocurrencies like Bitcoin and whether you should consider them? Contemplating using an online broker that is advertising “free” trading? Weighing whether and where to invest in real estate given current market conditions? Wondering what the best ways are to invest globally? Having trouble making sense of various economic indicators and what they mean to your investment strategy? You can find the answers to these questions and many more in this edition.
I offer more information on investing resources. With the tremendous growth in websites, software, apps, publications, media outlets, and other sources of investing advice and information, you’re probably overwhelmed in choosing among the numerous investing research tools and resources. Equally problematic is figuring out who you can trust — and who you need to ignore. So many pundits and prognosticators claim excellent track records for their past predictions, but who, really, can you believe? I explain how to evaluate the quality of current investment tools and resources, and I provide tips on deciding who to listen to and who to tune out.
To build wealth, you don’t need a fancy college or graduate-school degree, and you don’t need a rich dad (or mom), biological or adopted! What you do need is a desire to read and practice the many simple yet powerful lessons and strategies in this book.
Seriously, investing intelligently isn’t rocket science. By all means, if you’re dealing with a complicated, atypical issue, get quality professional help. But educate yourself first. Hiring someone can be risky if you’re financially challenged. If you do decide to hire someone, you’ll be much better prepared if you educate yourself. Doing so can also help you focus your questions and assess that person’s competence.
Foolish Assumptions
Every book is written with a certain reader in mind, and this book is no different. Here are some assumptions I made about you:
You may have some investments, but you’re looking to develop a full-scale investment plan.
You’d like to strengthen your portfolio.
You want to evaluate your investment advisor’s or broker’s advice.
You have a company-sponsored investment plan, like a 401(k), and you’re looking to make some decisions or roll it over into a new plan.
If one or more of these descriptions sound familiar, you’ve come to the right place.
Icons Used in This Book
Throughout this book, icons help guide you through the maze of suggestions, solutions, and cautions. I hope the following images make your journey through investment strategies smoother.
