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The random walk guide to investing: ten rules for financial success
Author
Publisher
W.W. Norton
Publication Date
[2003]
Edition
First edition.
Language
English
Description
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Table of Contents
From the Book - First edition.
The basics (Fire your investment adviser
Focus on four investment categories
Cash
Bonds
Common stocks (Bubbles in stock prices
The tulip-bulb craze
The south sea bubble
The Internet craze
What lessons should we learn?)
Real estate
Understand the risk/return relationship)
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 savings tips ( Pay yourself first
Find a save moretomorrow plan
Make out a budget
Change a spending habit or two
Think in terms of opportunity costs
Be saving in your spending
Pay off your credit card balance)
Strategies for catching up (Downsize your lifestyle and start saving now
Consider pushing retirement back a few years
Make the most of your home equity)
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 Deposit (CDs)
Internet banks
Treasury Bills
Tax-Exempt Money-Market Funds
Buying insurance
Variable Annuities)
Stiff the tax collector
Individual Retirements Accounts
Roth IRAs
Pension plans (401(k) and 403(b) pension plans
Self employed plans
What can you invest in?)
Priorities in saving for retirement
A caveat
Possible new tax-favored vehicles
Tax-free saving strategies for education (Saving for college : as easy as 529 Education Savings Accounts
Education Savings Bond)
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 temperament)
Never forget that diversity reduces adversity (The benefits of diversification
An investment horror story
The potential crisis in some 401(k) plans
How much diversification is enough?
Do you need to diversify internationally?
Diversifiation also means buying other asset classes
Diversification over time)
Pay yourself, not the piper
Pay off all credit card bills
Look out for mutual fund expenses
Costs matter for all financial products
Don't get wrapped up
Bow to the wisdom of the market (Why the market is smarter than you are
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 (The role of chance
They did it their way
You never know in advance who the winners will be)
Back proven winners : 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
llusion of control
Los aversion
Other psychological pitfalls (Susceptibility to hot tip investing
Gin Rummy behavior
Believing in foolproof schemes)
Ignoring costs
Getting entranced by New Issues)
Taking stock
An investment scorecard
Questions frequently asked about indexing
A summing up.
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More Details
ISBN
9780393058543
039332639
9780393326390
039332639
9780393326390
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