Investing 101, Updated and Expanded Edition
Bloomberg
2. Edition August 2008
256 Pages, Softcover
Wiley & Sons Ltd
ISBN:
978-1-57660-307-9
John Wiley & Sons
People wanting basic advice about stocks, bonds, mutual funds,
retirement planning, and tax strategies are often frustrated by
information overload. Picking the right book seems as daunting as
deciding what to do with their savings and investments.
Investing 101: Updated and Expanded removes both
roadblocks, putting people on a path that they can understand and
stick with. Kristof is renowned for taking the mystery and anxiety
out of investing by keeping choices manageable.
Kristof walks readers through the entire investment cycle and
the way they think of their financial lives, rather than presenting
stand-alone concepts like stocks and real estate. This expanded
edition has new information about 529 college savings plans,
annuities, Roth IRAs, reverse mortgages, and why declining markets
can be good for you. It includes a cautionary look at home
mortgages as investments. There's even a portfolio for the lazy
investor.
Kristof's loyal readership and the success of this book's first
edition demonstrate that she understands what's on the minds of
investors as intimately as she knows what's happening in
financial markets.
Winner: Cover and Interior Design, The Bookbinders Guild of
New York/2009 New York Book Show Awards
Introduction xi
1 Fixing Money Problems 2
Finding and fixing the psychological ills that keep us from investing wisely.
2 Risk and Reward 16
The basics about how taking a few risks can reap long-term benefits.
3 The Starting Point 30
How to allocate your assets based on your goals.
4 Diversification 54
Dividing your assets among different investment categories is easier when you think about what different types of investments can do for you, rather than what they are. When you boil things down that way, there are just five investment categories, each of which offers an array of specific investments. Here are the categories and the choices within them.
5 Picking Individual Stocks 86
Using fundamental indicators of value to pick good stocks.
6 Tough Sell 108
How to figure out when it's time to call it quits with an investment.
7 Investing in Bonds 118
Where to put bonds in your portfolio and which bonds to choose.
8 Mutual Funds 126
A primer on mutual funds, from what they are to where to find one that suits your needs.
9 Socially Responsible Investing 150
What socially responsible investing is about and how to find socially conscious mutual funds.
10 Real Estate Investment Trusts 156
REITs allow individuals to invest in commercial real estate to diversify their portfolio and stabilize investment returns.
11 International Investing 162
The basics on investing outside of the United States.
12 Tax-Favored Investing 172
Uncle Sam gives Americans lots of ways to defer taxes while we save. Using these tax-favored vehicles can give your portfolio a boost. Here are your choices and what they can do for you.
13 Starting Small 190
Think you can't invest because you don't have a pile of cash to start? Never fear. There are several choices for people with as little as $20 or $25 a month.
14 The Lazy Investor's Portfolio Planner 198
The quintessential hands-off portfolio for the wise investor with very little time on his hands. You can do well quickly and easily with only a few hours a year.
15 How to Fix Your Broken Records 218
Record keeping is one of the most important--and widely ignored--steps in wise investing. But good records can help you monitor your portfolio and help you determine when to buy and sell. They can also save you a small fortune in taxes.
16 Getting Help 224
Read it all, but still don't want to go it alone? Here's a quick guide on how to hire someone to help you.
Glossary 234
Definitions for commonly used jargon so you can interpret Wall Street speak.
Index 237
Worksheet Reference
Monthly Budget 6
Risk Quiz: How Much Risk Can You Take? 23
College Cost Calculator 48
Is It a Buy 93
Calculating the Tax Implications of Selling Too Soon 116
Picking a Fund That Suits You 143
Determining What You Have.
Cash 201
Income Investments 201
Growth Investments 203
Real Estate 204
Debt 204
Keeping Tabs on Your Investments 221
1 Fixing Money Problems 2
Finding and fixing the psychological ills that keep us from investing wisely.
2 Risk and Reward 16
The basics about how taking a few risks can reap long-term benefits.
3 The Starting Point 30
How to allocate your assets based on your goals.
4 Diversification 54
Dividing your assets among different investment categories is easier when you think about what different types of investments can do for you, rather than what they are. When you boil things down that way, there are just five investment categories, each of which offers an array of specific investments. Here are the categories and the choices within them.
5 Picking Individual Stocks 86
Using fundamental indicators of value to pick good stocks.
6 Tough Sell 108
How to figure out when it's time to call it quits with an investment.
7 Investing in Bonds 118
Where to put bonds in your portfolio and which bonds to choose.
8 Mutual Funds 126
A primer on mutual funds, from what they are to where to find one that suits your needs.
9 Socially Responsible Investing 150
What socially responsible investing is about and how to find socially conscious mutual funds.
10 Real Estate Investment Trusts 156
REITs allow individuals to invest in commercial real estate to diversify their portfolio and stabilize investment returns.
11 International Investing 162
The basics on investing outside of the United States.
12 Tax-Favored Investing 172
Uncle Sam gives Americans lots of ways to defer taxes while we save. Using these tax-favored vehicles can give your portfolio a boost. Here are your choices and what they can do for you.
13 Starting Small 190
Think you can't invest because you don't have a pile of cash to start? Never fear. There are several choices for people with as little as $20 or $25 a month.
14 The Lazy Investor's Portfolio Planner 198
The quintessential hands-off portfolio for the wise investor with very little time on his hands. You can do well quickly and easily with only a few hours a year.
15 How to Fix Your Broken Records 218
Record keeping is one of the most important--and widely ignored--steps in wise investing. But good records can help you monitor your portfolio and help you determine when to buy and sell. They can also save you a small fortune in taxes.
16 Getting Help 224
Read it all, but still don't want to go it alone? Here's a quick guide on how to hire someone to help you.
Glossary 234
Definitions for commonly used jargon so you can interpret Wall Street speak.
Index 237
Worksheet Reference
Monthly Budget 6
Risk Quiz: How Much Risk Can You Take? 23
College Cost Calculator 48
Is It a Buy 93
Calculating the Tax Implications of Selling Too Soon 116
Picking a Fund That Suits You 143
Determining What You Have.
Cash 201
Income Investments 201
Growth Investments 203
Real Estate 204
Debt 204
Keeping Tabs on Your Investments 221
Praise for the first edition:
"Investing 101 by Kathy Kristof is a reader-friendly
introduction to the basics of investing and personal finance. . . .
If I had to suggest a book on investing and personal finance to an
absolute beginner, it would be Investing 101."
(BookPage)
"... [an] excellent primer about investing. Investors will
get a clearer idea of how markets work and what you can
realistically expect from your retirement funds." (The Boston
Globe)
"Kristof's down-to-earth style and clear prose gives her writing
a decidedly user-friendly quality. . . . The vast majority of us
worker drones who haven't yet made complete sense of things will
find Investing 101 an easy way to get started." (Miami
Herald)
"Not only is this book more simple and straightforward than the
typical book on investing, it's also more humorous and personal."
(Today's Librarian)
"Investing 101 is a sensible, well-written, and
comprehensive guide to investor options. I learned much from this
book and am certain you can too."
--Stephen Brobeck, Executive Director, Consumer
Federation of America
Praise for the first edition:
"In Investing 101, Kathy Kristof skillfully guides the
novice investor, step-by-step, along the path to investment
success. It's an ideal primer for anyone who wants to enter the
financial world and would like a helping hand."
Myron Kandel, Founding Financial Editor, CNN
"Too many of us give too little thought to the underpinnings of
investing: how much risk to shoulder, when to sell, etc. Kathy
Kristof explains these basics in language we all can understand.
Investing 101 is sure to become a great reference guide for
novices and longtime investors alike."
--Steve Dinnen, Personal Finance Columnist, The
Des Moines Register
"Kathy Kristof knows investing inside and out. She can take even
the most complicated information and make it easy to
understand--and entertaining."
--Ilyce R. Glink, National Syndicated Columnist, Author
of 100 Questions You Should Ask about Your Personal
Finances
"If you're just getting started in the investing world, this is
the book you need. Kathy Kristof's smart, sensible advice
demystifies the markets and shows you exactly what you need to know
to achieve your financial goals. Investing 101 offers a road
map to financial success without gimmicks or secret
formulas--and it's a whole lot of fun to read, besides."
--Liz Pulliam Weston, Personal Finance Columnist,
Los Angeles Times
"Investing 101 by Kathy Kristof is a reader-friendly
introduction to the basics of investing and personal finance. . . .
If I had to suggest a book on investing and personal finance to an
absolute beginner, it would be Investing 101."
(BookPage)
"... [an] excellent primer about investing. Investors will
get a clearer idea of how markets work and what you can
realistically expect from your retirement funds." (The Boston
Globe)
"Kristof's down-to-earth style and clear prose gives her writing
a decidedly user-friendly quality. . . . The vast majority of us
worker drones who haven't yet made complete sense of things will
find Investing 101 an easy way to get started." (Miami
Herald)
"Not only is this book more simple and straightforward than the
typical book on investing, it's also more humorous and personal."
(Today's Librarian)
"Investing 101 is a sensible, well-written, and
comprehensive guide to investor options. I learned much from this
book and am certain you can too."
--Stephen Brobeck, Executive Director, Consumer
Federation of America
Praise for the first edition:
"In Investing 101, Kathy Kristof skillfully guides the
novice investor, step-by-step, along the path to investment
success. It's an ideal primer for anyone who wants to enter the
financial world and would like a helping hand."
Myron Kandel, Founding Financial Editor, CNN
"Too many of us give too little thought to the underpinnings of
investing: how much risk to shoulder, when to sell, etc. Kathy
Kristof explains these basics in language we all can understand.
Investing 101 is sure to become a great reference guide for
novices and longtime investors alike."
--Steve Dinnen, Personal Finance Columnist, The
Des Moines Register
"Kathy Kristof knows investing inside and out. She can take even
the most complicated information and make it easy to
understand--and entertaining."
--Ilyce R. Glink, National Syndicated Columnist, Author
of 100 Questions You Should Ask about Your Personal
Finances
"If you're just getting started in the investing world, this is
the book you need. Kathy Kristof's smart, sensible advice
demystifies the markets and shows you exactly what you need to know
to achieve your financial goals. Investing 101 offers a road
map to financial success without gimmicks or secret
formulas--and it's a whole lot of fun to read, besides."
--Liz Pulliam Weston, Personal Finance Columnist,
Los Angeles Times
Los Angeles Times business writer Kathy Kristof is nationally known for her weekly syndicated personal finance column, which reaches forty million readers online and in more than fifty major newspapers. She is a sought-after lecturer at investment conferences and appears regularly on radio and television.
