Eric Tyson - Investing For Dummies, 6th Edition

Business & Economics/Personal Finance/Investing

6th Edition

Making Everything Easier!

6th Edition

Get sound guidance

Open the book and find:

and proven investing

In

Time-tested investment strategies

advice from Eric Tyson

Help on choosing investments

that match your goals

Investing For Dummies arms novice investors with Eric Tysons

v

time-tested advice, recommendations, and the latest insights

The 411 on investing in gold and

e

and strategies to wisely invest in todays market. Youll get commodities

coverage of all aspects of investing, including how to develop

Investing

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What economic indicators are

and manage a portfolio; invest in stocks, bonds, mutual funds, (and how they work)

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and real estate; open a small business; and understand the

How tax law changes affect your

in

critical tax implications of your investing decisions.

investment strategy

Investing 101 get a crash course on what investments are, how

Practical tips for investing in a

each type is different from the others, and what you can reasonably

g

down market

expect to earn from them

Ways to overcome common

Get street smart (Wall Street, that is) understand what the

psychological investment

financial markets are, how you can participate in them without

obstacles

losing your head, and ways you can use them to start growing

your fortune

Be your own boss discover the benefits of starting a small

business or stay behind the scenes and try your hand at investing

in someone elses small venture

Learn to:

Know your sources find out why many investment gurus arent

really experts and get a trusted list of resources and authorities

Develop and manage a portfolio

worth listening to

Go to Dummies.com

for videos, step-by-step examples,

Invest in stocks, bonds, mutual

how-to articles, or to shop!

funds, and real estate

Open a small business

$21.99 US / $25.99 CN / 16.99 UK

Eric Tyson, MBA, is an internationally acclaimed and bestselling personal ISBN 978-0-470-90545-6

finance author, lecturer, and adviser. He is dedicated to teaching people to manage their money better and to successfully direct their own investments.

Eric Tyson, MBA

Bestselling author of Personal Finance For Tyson

Dummies and Mutual Funds For Dummies

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20 Rules for Successful Investing

Saving is a prerequisite to investing. Unless you have wealthy, benevolent relatives, living within your means and saving money are prerequisites to investing and building wealth.

Know the three best wealth-building investments. People of all economic means make their money grow in ownership assets stocks, real estate, and small business where you share in the success and profitability of the asset.

Be realistic about expected returns. Over the long term, 9 to 10

percent per year is about right for ownership investments (such as stocks and real estate). If you run a small business, you can earn higher returns and even become a multimillionaire, but years of hard work and insight are required.

Think long term. Because ownership investments are riskier (more volatile), you must keep a long-term perspective when investing in them. Dont invest money in such investments unless you plan to hold them for a minimum of five years, and preferably a decade or longer.

Match the time frame to the investment. Selecting good investments for yourself involves matching the time frame you have to the riskiness of the investment. For example, for money that you expect to use within the next year, focus on safe investments, such as money market funds.

Invest your longer-term money mostly in wealth-building investments.

Diversify. Diversification is a powerful investment concept that helps you to reduce the risk of holding more aggressive investments.

Diversifying simply means that you should hold a variety of investments that dont move in tandem in different market environments.

For example, if you invest in stocks, invest worldwide, not just in the U.S. market. You can further diversify by investing in real estate.

Look at the big picture first. Understand your overall financial situation and how wise investments fit within it. Before you invest, examine your debt obligations, tax situation, ability to fund retirement accounts, and insurance coverage.

Ignore the minutiae. Dont feel mystified by or feel the need to follow the short-term gyrations of the financial markets. Ultimately, the prices of stocks, bonds, and other financial instruments are determined by supply and demand, which are influenced by thousands of external issues and millions of investors expectations and fears.