Personal Investing: The Missing Manual (Paperback)

Bonnie Biafore, Amy E. Buttell, Carol Fabbri

  • 出版商: O'Reilly
  • 出版日期: 2010-06-22
  • 定價: $770
  • 售價: 2.6$199
  • 語言: 英文
  • 頁數: 252
  • 裝訂: Paperback
  • ISBN: 1449381782
  • ISBN-13: 9781449381783
  • 立即出貨 (庫存 < 3)

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商品描述

Did your investments take a hit in the recession? You're not alone. Between 2007 and mid-year 2009, the average 401K lost 31% of its value. Ouch. It's time to take control of your investments with Personal Investing: The Missing Manual. Financial experts agree that with the right guidance, consumers can make investments better than many professionals. This lively and easy-to-understand guide gives you the confidence, tools, and insight you need to evaluate financial products and make smart investments that target success over the long term.

You'll learn how to set long-term goals for critical, high-cost events such as retirement, your children's education, and future health care needs. Then you'll learn what types of investments will best help you achieve those goals. In step-by-step fashion, this book shows you how to research mutual funds, stocks, bonds, and other financial products to create a portfolio of diversified investments.

  • Get crystal-clear, practical advice from personal finance expert Bonnie Biafore, author of Missing Manuals on the Quicken personal-finance program and QuickBooks business finance program
  • Understand why you need to invest -- Biafore shows you how savings accounts simply won't outpace inflation or give you the returns you need for long-term goals
  • Learn how to evaluate and buy traditional investments, such as stocks, bonds, and mutual funds
  • Discover lesser-known investments, such as index funds and exchange-traded funds, which cost you less and provide more tax advantages
  • Choose the best funds offered by your employer for your 401K, and learn how to get the greatest tax advantages


How Investing Makes Your Money Work Harder

With inflation’s 3.41% price increases compounding year after year, figuring your expenses produces some galactic numbers. Sadly, you can’t choose whether to accept the compounding of inflation. But what if you could use compounding to inflate the money you save? It turns out that you can, by investing your money and reinvesting all your earnings. You can choose the compounding of the returns you earn on your money, so it’s important to understand just how powerful this strategy is. True, investment returns aren’t as steady as the inflation rate. Some years are better than others, and some years are downright dogs. But for now, assume that your investments increase 7% each year (that’s the return most financial planners tell their clients they can expect on a diversified investment portfolio). Say you seed a retirement account with $10,000, as the table below shows. If you earn 7% the first year, you’ll have $10,700 at the end of the year. The second year, you earn $749 (7% on $10,700) and end up with $11,449. If you earn 7% each year for 40 years (from the time you start working until you retire), you’d have almost $150,000! That’s $140,000 of earnings on a single $10,000 investment.



On the other hand, what if you invested $10,000 and earned 7%, but withdrew each year’s earnings? (That return is called simple interest, because you earn the same amount on your original investment each year.) You’d earn $700 each year for 40 years, for total earnings of $28,000 on your original $10,000 investment. By letting your investment returns compound, your total earnings are five times what you’d earn with simple interest. The graph below shows how your nest egg grows like wildfire when you let your earnings compound.



Compounding is a powerful force, even when the rate is small, as you’ve seen with inflation. But this technique really shines when you earn higher returns, like the 7% from a diversified portfolio, and give your portfolio time to mature. The graph below shows how a $10,000 nest egg grows when you put your money in diversified investments, bonds, money market funds, and savings accounts. Compare the line for inflation to see how investing can help you beat the steady rise in prices. You can see how investments start to take off after 15 years. That’s compounding at work, and that’s why it’s important to start investing for long-term goals as early as you can.



Investing for the Long Term

Although well-diversified investing works like magic when you give it time, it doesn’t make sense for short-term goals. That’s because you have to accept some risk to earn higher returns. Investments in the stock market can decrease during a single year--and do so every several years. The good news is that the risk of losing money decreases the longer you keep your money invested (think decades). During recessions, the stock market can really tank, like the almost 50% drop it suffered in 2001. You wouldn’t want to see half your nest egg go away the year before you retire. However, since 1929, the average annual return on stocks is more than 11% despite battering from the Great Depression and several recessions. Besides, a diversified portfolio isn’t invested solely in the stock market, as you’ll learn in Chapter 9. By investing in stocks, bonds, and real estate, you won’t see drops as big as the ones for stocks alone. Chapters 9, 10, and 11 also tell you how to move money that you need in the next few years into ultrasafe savings so it’s around when you need it. Lots of folks would rather be certain of having a small amount of money than worry about whether a large nest egg might falter right when they need it. You might think that putting money into a guaranteed money market account means you won’t lose money. Think again. If your money doesn’t keep up with inflation, you lose buying power, which is the same as losing money.

商品描述(中文翻譯)

在經濟衰退中,你的投資是否受到了打擊?你並不孤單。在2007年到2009年年中期間,平均401K的價值下跌了31%。痛苦啊。現在是時候通過《個人投資:缺失的手冊》來掌控你的投資了。金融專家一致認為,只要有正確的指導,消費者可以比許多專業人士做出更好的投資。這本生動且易於理解的指南將為你提供自信、工具和洞察力,幫助你評估金融產品並做出長期成功的明智投資。

你將學習如何為重要的高成本事件(如退休、子女教育和未來醫療需求)設定長期目標。然後,你將學習哪些投資類型能最好地幫助你實現這些目標。這本書將逐步向你展示如何研究共同基金、股票、債券和其他金融產品,以建立一個多元化投資組合。

從個人理財專家Bonnie Biafore(《Quicken個人理財程序》和《QuickBooks商業財務程序》的Missing Manuals作者)獲得清晰明確的實用建議。

了解為什麼你需要投資——Biafore將向你展示,儲蓄帳戶無法超越通脹或為你實現長期目標所需的回報。

學習如何評估和購買傳統投資,如股票、債券和共同基金。

發現較少人知道的投資,如指數基金和交易所交易基金,這些投資成本更低且提供更多的稅收優勢。

為你的401K選擇雇主提供的最佳基金,並學習如何獲得最大的稅收優勢。

投資如何讓你的錢更有效運作

通脹每年以3.41%的價格上漲,計算你的開支會得到一些天文數字。可悲的是,你無法選擇是否接受通脹的複利。但如果你能利用複利來增加你的儲蓄呢?事實證明,你可以通過投資你的錢並重新投資所有收益來實現這一點。你可以選擇在你的錢上獲得的回報的複利,所以了解這個策略有多麼強大是很重要的。確實,投資回報並不像通脹率那樣穩定。有些年份比其他年份好,有些年份甚至很差。但現在,假設你的投資每年增長7%(這是大多數理財顧問告訴客戶他們可以在多元化投資組合上期望的回報)。假設你用1萬美元種植一個退休帳戶,如下表所示。如果你第一年賺取7%,一年結束時你將有1萬700美元。第二年,你賺取749美元(7%乘以1萬700美元),最終獲得1萬1449美元。如果你在40年內每年賺取7%(從你開始工作到退休),你將擁有近15萬美元!這是單筆1萬美元投資的14萬美元收益。

另一方面,如果你投資1萬美元並賺取7%,但每年提取每年的收益呢?(這種回報被稱為簡單利息,因為你每年在原始投資上賺取相同的金額。)你將在40年內每年賺取700美元,總收益為2,800美元。通過讓你的投資回報複利,你的總收益是簡單利息的五倍。下面的圖表顯示了當你讓你的收益複利時,你的儲蓄如何像野火一樣增長。