Investing All-in-One For Dummies (eBook)
John Wiley & Sons (Verlag)
978-1-119-87305-1 (ISBN)
Make the most of your investment portfolio with a mix of assets from stocks to real estate to cryptocurrency
There's nothing more satisfying than seeing the balance of a financial account grow month over month. But before that can happen, you need to know the best places to invest your money. Who can you trust for solid, reliable investing advice?
Investing All-in-One For Dummies offers sound guidance for investors at every level. Whether you're stumped by stocks, baffled by bonds, mystified about mutual funds, or curious about cryptocurrency, this book gives you a solid foundation in those investing concepts and many others. After reading the expert advice and considering your risk tolerance and timeline, you can confidently choose the best investments for your financial goals.
Containing advice from 10 different Dummies investing guides, Investing All-in-One For Dummies shows you how to:
- Set short- and long-term investing goals, invest to minimize your tax hit, and develop an investing strategy using a mix of investment vehicles
- Decide when to buy, hold, or sell an investment
- Choose the right mix of stocks, bonds, and mutual funds to create a diversified portfolio
- Identify real estate investment opportunities and find the capital to make purchases
- Execute trades through an online broker instead of using a traditional investment firm
- Evaluate modern investing trends like cryptocurrency and environmental, social, and governance (ESG) investing
For anyone who wants to dip their toes into the markets or who tends to leave their investment decisions in the hands of someone else, Investing All-in-One For Dummies is the must-read resource when you're ready to make informed decisions and pick solid investments for your financial future.
Make the most of your investment portfolio with a mix of assets from stocks to real estate to cryptocurrency There s nothing more satisfying than seeing the balance of a financial account grow month over month. But before that can happen, you need to know the best places to invest your money. Who can you trust for solid, reliable investing advice? Investing All-in-One For Dummies offers sound guidance for investors at every level. Whether you re stumped by stocks, baffled by bonds, mystified about mutual funds, or curious about cryptocurrency, this book gives you a solid foundation in those investing concepts and many others. After reading the expert advice and considering your risk tolerance and timeline, you can confidently choose the best investments for your financial goals. Containing advice from 10 different Dummies investing guides, Investing All-in-One For Dummies shows you how to: Set short- and long-term investing goals, invest to minimize your tax hit, and develop an investing strategy using a mix of investment vehicles Decide when to buy, hold, or sell an investment Choose the right mix of stocks, bonds, and mutual funds to create a diversified portfolio Identify real estate investment opportunities and find the capital to make purchases Execute trades through an online broker instead of using a traditional investment firm Evaluate modern investing trends like cryptocurrency and environmental, social, and governance (ESG) investingFor anyone who wants to dip their toes into the markets or who tends to leave their investment decisions in the hands of someone else, Investing All-in-One For Dummies is the must-read resource when you re ready to make informed decisions and pick solid investments for your financial future.
Eric Tyson is a veteran Dummies author of numerous bestselling books in the investing and personal finance space. Paul Mladjenovic is a Certified Financial Planner and the bestselling author of Stock Investing For Dummies. Kiana Danial is an investment consultant and trainer and the author of Cryptocurrency Investing For Dummies. Russell Wild is the author or coauthor of nearly two dozen books, including ETFs For Dummies. Matt Krantz is a nationally known financial journalist and the author of Online Investing For Dummies. Robert Griswold is a successful real estate investor and property manager and the co-author of Real Estate Investing For Dummies. Steven Gormley is a celebrated expert in the legal marijuana sector and author of Investing in Cannabis For Dummies. Brendan Bradley is a financial market professional and the author of ESG Investing For Dummies.
Introduction 1
Book 1: Getting Started with Investing 5
Chapter 1: Exploring Your Investment Choices 7
Chapter 2: Weighing Risks and Returns 17
Chapter 3: The Workings of Stock and Bond Markets 37
Book 2: Investing in Your 20s and 30s 49
Chapter 1: Using Investments to Accomplish Your Goals 51
Chapter 2: Minimizing Your Taxes When Investing 61
Chapter 3: Laying Out Your Financial Plans 71
Chapter 4: Starting Out with Bank and Credit Union Accounts 85
Book 3: Checking Out Stock Investing 97
Chapter 1: Gathering Information on Stocks 99
Chapter 2: Investing for Long-Term Growth 117
Chapter 3: Investing for Income and Cash Flow 127
Chapter 4: Using Basic Accounting to Choose Winning Stocks 141
Book 4: Looking at Bond Investing 159
Chapter 1: Bond Fundamentals 161
Chapter 2: All about the Interest 177
Chapter 3: Checking Out Types of Bonds 197
Chapter 4: Investing (Carefully!) in Individual Bonds 213
Chapter 5: Picking a Bond Fund That Will Serve You for Life 225
Book 5: Moving on to Mutual Funds and Exchange-Traded Funds 233
Chapter 1: Considering Mutual Funds' Pros and Cons 235
Chapter 2: Finding the Best Mutual Funds 251
Chapter 3: Buying Mutual Funds from the Best Firms 267
Chapter 4: What the Heck Is an ETF, Anyway? 279
Chapter 5: Risk Control, Diversification, and Other Things to Know about ETFs 301
Book 6: Investing Online 313
Chapter 1: Getting Ready for Online Investing 315
Chapter 2: Getting Your Device Ready for Online Investing 325
Chapter 3: Connecting with an Online Broker 347
Chapter 4: Entering and Executing Trades 371
Book 7: Introducing Fundamental Analysis 383
Chapter 1: Understanding Fundamental Analysis 385
Chapter 2: Getting Up to Speed with Fundamental Analysis 395
Chapter 3: Gaining an Edge with Fundamental Analysis 413
Chapter 4: Getting Your Hands on Fundamental Data 431
Book 8: Investing in Real Estate 449
Chapter 1: Evaluating Real Estate as an Investment 451
Chapter 2: Covering Common Real Estate Investments 469
Chapter 3: Identifying Sources of Capital 489
Chapter 4: Location, Location, Value 497
Book 9: Investing in Trends 527
Chapter 1: Taking the Nickel Tour of Cannabis Investing 529
Chapter 2: The Political, Cultural, and Regulatory Landscape of Cannabis Investing 545
Chapter 3: What Is a Cryptocurrency? 563
Chapter 4: How Cryptocurrencies Work 573
Chapter 5: Entering the World of ESG Investing 585
Index 601
Chapter 1
Exploring Your Investment Choices
IN THIS CHAPTER
Defining investing
Seeing how stocks and real estate build long-term wealth
Understanding the role of lending investments and cash equivalents
Knowing where to invest and get advice
In many parts of the world, life’s basic necessities — food, clothing, shelter, healthcare, and taxes — consume the entirety of people’s meager earnings. Although some Americans do truly struggle for basic necessities, the bigger problem for other Americans is that they consider just about everything — eating out, driving new cars, hopping on airplanes for vacation — to be a necessity.
This book is here to help you recognize that investing — that is, putting your money to work for you — is a necessity. If you want to accomplish important personal and financial goals, such as owning a home, starting your own business, helping your kids through college (and spending more time with them when they’re young), retiring comfortably, and so on, you must know how to invest well.
It’s been said, and too often quoted, that the only certainties in life are death and taxes. You can add one more to these two certainties: being confused by and ignorant about investing. Because investing is a confounding activity, you may be tempted to look with envious eyes at those people in the world who appear to be savvy with money and investing. Keep in mind that everyone starts with the same level of financial knowledge: none! No one was born knowing this stuff! The only difference between those who know and those who don’t is that those who know have either devoted their time and energy to acquiring useful knowledge about the investment world or have had their parents instill a good base of investing knowledge.
Getting Started with Investing
Before the rest of this chapter discusses the major investing alternatives, this section starts with something that’s quite basic yet important. What exactly does “investing” mean? Simply stated, investing means you have money put away for future use.
You can choose from tens of thousands of stocks, bonds, mutual funds, exchange-traded funds, and other investments. Unfortunately for the novice, and even for the experts who are honest with you, knowing the name of the investment is just the tip of the iceberg. Underneath each of these investments lurks a veritable mountain of details.
If you wanted to and had the ability to quit your day job, you could make a full-time endeavor out of analyzing economic trends and financial statements and talking to business employees, customers, suppliers, and so on. However, you shouldn’t be scared away from investing just because some people do it on a full-time basis. Making wise investments need not take a lot of your time. If you know where to get high-quality information and you purchase well-managed investments, you can leave the investment management to the best experts. Then you can do the work that you’re best at and have more free time for the things you really enjoy doing.
An important part of making wise investments is knowing when you have enough information to do things well on your own versus when you should hire others. For example, foreign stock markets are generally more difficult to research and understand than domestic markets. Thus, when investing overseas, hiring a good money manager, such as through a mutual or exchange-traded fund, makes more sense than going to all the time, trouble, and expense of picking individual international stocks.
This book is here to give you the information you need to make your way through the complex investment world. The rest of this chapter clears a path so you can identify the major investments, understand the strengths and weaknesses of each, and get information on seeking advice.
Building Wealth with Ownership Investments
If you want your money to grow faster than the rate of inflation over the long term and you don’t mind a bit of a roller-coaster ride from time to time in your investments’ values, ownership investments are for you. Ownership investments are those investments where you own an interest in some company or other asset (such as stock or real estate) that has the ability to generate revenue and profits.
Observing how the world’s richest have built their wealth is enlightening. Not surprisingly, many of the champions of wealth around the globe gained their fortunes largely through owning a piece (or all) of a successful company that they (or others) built.
In addition to owning their own businesses, many well-to-do people have built their nest eggs by investing in real estate and the stock market. With softening housing prices in many regions in the late 2000s, some folks newer to the real estate world incorrectly believe that real estate is a loser, not a long-term winner. Likewise, the stock market goes through down periods but does well over the long term. (See Chapter 2 in Book 1 for the scoop on investment risks and returns.)
And, of course, some people come into wealth through an inheritance. Even if your parents are among the rare wealthy ones and you expect them to pass on big bucks to you, you need to know how to invest that money intelligently.
If you understand and are comfortable with the risks and take sensible steps to diversify (you don’t put all your investment eggs in the same basket), ownership investments are the key to building wealth. For most folks to accomplish typical longer-term financial goals, such as retiring, the money that they save and invest needs to grow at a healthy clip. If you dump all your money in bank accounts that pay little if any interest, you’re more likely to fall short of your goals.
Not everyone needs to make their money grow, of course. Suppose that you inherit a significant sum and/or maintain a restrained standard of living and work well into your old age simply because you enjoy doing so. In this situation, you may not need to take the risks involved with a potentially faster-growth investment. You may be more comfortable with safer investments, such as paying off your mortgage faster than necessary.
Entering the stock market
Stocks, which are shares of ownership in a company, are an example of an ownership investment. If you want to share in the growth and profits of companies like Skechers (footwear), you can! You simply buy shares of their stock through a brokerage firm. However, even if Skechers makes money in the future, you can’t guarantee that the value of its stock will increase.
Some companies today sell their stock directly to investors, allowing you to bypass brokers. You can also invest in stocks via a stock mutual fund (or an exchange-traded fund), where a fund manager decides which individual stocks to include in the fund.
You don’t need an MBA or a PhD to make money in the stock market. If you can practice some simple lessons, such as making regular and systematic investments and investing in proven companies and funds while minimizing your investment expenses and taxes, you should make decent returns in the long term.
However, you shouldn’t expect that you can “beat the markets,” and you certainly are not likely to beat the best professional money managers at their own full-time game. This book shows you time-proven, non-gimmicky methods to make your money grow in the stock market as well as in other financial markets. Books 3 and 5 explain more about stocks and mutual funds.
Owning real estate
People of varying economic means build wealth by investing in real estate. Owning and managing real estate is like running a small business. You need to satisfy customers (tenants), manage your costs, keep an eye on the competition, and so on. Some methods of real estate investing require more time than others, but many are proven ways to build wealth.
John, who works for a city government, and his wife, Linda, a computer analyst, have built several million dollars in investment real estate equity (the difference between the property’s market value and debts owed) over the decades. “Our parents owned rental property, and we could see what it could do for you by providing income and building wealth,” says John. Investing in real estate also appealed to John and Linda because they didn’t know anything about the stock market, so they wanted to stay away from it. The idea of leverage — making money with borrowed money — on real estate also appealed to them.
John and Linda bought their first property, a duplex, when their combined income was just $35,000 per year. Every time they moved to a new home, they kept the prior one and converted it to a rental. Now in their 50s, John and Linda own seven pieces of investment real estate and are multimillionaires. “It’s like a second retirement, having thousands in monthly income from the real estate,” says John.
John readily admits that rental real estate has its hassles. “We haven’t enjoyed getting some calls in the middle of the night, but now we have a property manager who can help with this when we’re not available. It’s also sometimes a pain finding new tenants,” he says.
Overall, John and Linda figure that they’ve been well rewarded for the time they spent and the money...
| Erscheint lt. Verlag | 25.3.2022 |
|---|---|
| Sprache | englisch |
| Themenwelt | Sachbuch/Ratgeber ► Beruf / Finanzen / Recht / Wirtschaft ► Geld / Bank / Börse |
| Recht / Steuern ► Wirtschaftsrecht | |
| Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung | |
| Schlagworte | beginning investing • bond investing • Cryptocurrency Investing • crypto investing • Diversification • ESG investing • Finance & Investments • Finanz- u. Anlagewesen • investing basics • investing for beginners • Investing Fundamentals • Investition • Investments & Securities • Kapitalanlage • Kapitalanlagen u. Wertpapiere • Portfolio • real estate investing • Reit • retirement investing • stock investing |
| ISBN-10 | 1-119-87305-3 / 1119873053 |
| ISBN-13 | 978-1-119-87305-1 / 9781119873051 |
| Haben Sie eine Frage zum Produkt? |
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