| Foreword |
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xxiii | |
| Introduction |
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1 | (1) |
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What's New in This Edition |
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1 | (1) |
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How This Book Is Different |
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2 | (1) |
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3 | (1) |
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How This Book Is Organized |
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4 | (1) |
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Part I: Mutual Funds: Sharing Risks and Rewards |
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4 | (1) |
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Part II: Establishing a Great Fund Portfolio |
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4 | (1) |
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Part III: Keeping Your Fund Portfolio Current |
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4 | (1) |
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Part IV: Evaluating Information and Advice |
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5 | (1) |
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5 | (1) |
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5 | (1) |
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5 | (1) |
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6 | (1) |
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Part I: Mutual Funds: Sharing Risks and Rewards |
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7 | (126) |
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Making More with Less Risk: The Goal of Investing |
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9 | (16) |
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9 | (1) |
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Making Sense of Investments |
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10 | (3) |
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Lending investments: Interest on your money |
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11 | (1) |
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Ownership investments: More potential profit (and risk) |
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12 | (1) |
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Counting the Major Investment Options |
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13 | (7) |
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Savings and money market accounts |
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13 | (1) |
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14 | (1) |
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15 | (1) |
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15 | (1) |
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16 | (1) |
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17 | (1) |
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18 | (1) |
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18 | (1) |
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19 | (1) |
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Reviewing Important Investing Concepts |
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20 | (5) |
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Getting a return: Why you invest |
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21 | (1) |
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Measuring risks: Investment volatility |
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21 | (2) |
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Diversifying: A smart way to reduce risk |
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23 | (2) |
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Mutual Funds: Advantages and Disadvantages |
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25 | (16) |
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Getting a Grip on Mutual Funds |
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25 | (4) |
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Understanding families and individual funds |
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26 | (2) |
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The sky's (or the ceiling's) the limit: Open-end versus closed-end funds |
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28 | (1) |
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Why Should I? Opting for Mutual Funds |
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29 | (8) |
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Fund managers are well trained |
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29 | (2) |
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Funds save you money and time |
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31 | (2) |
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Fund diversification minimizes your risk |
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33 | (1) |
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Funds undergo regulatory scrutiny |
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34 | (1) |
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You choose your risk level |
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34 | (1) |
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Fund risk of bankruptcy is nil |
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34 | (2) |
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Funds save you from sales sharks |
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36 | (1) |
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You have convenient access to your money |
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36 | (1) |
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37 | (4) |
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38 | (1) |
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Worry about these (but not too much) |
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38 | (3) |
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Evaluating Alternatives to Mutual Funds |
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41 | (16) |
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Choosing Your Own Stocks and Bonds |
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41 | (9) |
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Beware the claims of stock-picking gurus |
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42 | (2) |
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Know the drawbacks of investing in individual securities |
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44 | (2) |
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Get the facts on dividend reinvestment plans for individual stocks |
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46 | (1) |
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Understand the psychology of selecting stocks |
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47 | (3) |
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Pulling the Mask Off Fund Look-Alikes |
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50 | (3) |
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Mimicking closed-end funds: Unit investment trusts |
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50 | (1) |
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Assembling an online package: Customized funds |
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51 | (2) |
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Reviewing Managed Investment Alternatives to Mutual Funds |
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53 | (4) |
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Hefty fees: Wrap (or managed) accounts |
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53 | (2) |
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One-on-one: Private money managers |
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55 | (1) |
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Serious risks with high costs: Hedge funds |
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56 | (1) |
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Fitting Funds into Your Financial Future |
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57 | (18) |
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59 | (5) |
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Pay off your consumer debts |
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59 | (1) |
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Review your insurance coverage |
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60 | (1) |
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Figure out your financial goals |
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60 | (1) |
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Determine how much you're currently saving |
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61 | (1) |
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Examine your current spending and income |
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61 | (1) |
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Maximize tax-deferred retirement account savings |
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62 | (1) |
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Determine your tax bracket |
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62 | (1) |
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Assess the risk you're comfortable with |
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63 | (1) |
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Review current investment holdings |
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64 | (1) |
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Consider other ``investment'' possibilities |
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64 | (1) |
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Accomplishing Your Goals with Mutual Funds |
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64 | (11) |
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The financial pillow --- an emergency reserve |
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65 | (1) |
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The golden egg --- investing for retirement |
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66 | (5) |
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The white picket fence --- saving for a home |
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71 | (1) |
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The ivory tower --- saving for college |
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71 | (4) |
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75 | (38) |
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Evaluate Gain-Eating Costs |
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75 | (10) |
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Losing the load: Say no to commission costs |
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76 | (6) |
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Considering a fund's operating expenses |
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82 | (3) |
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Weighing Performance and Risk |
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85 | (5) |
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Star today, also-ran tomorrow |
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85 | (3) |
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Apples to apples: Comparing performance numbers |
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88 | (2) |
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Recognizing Fund Manager and Fund Family Expertise |
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90 | (1) |
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Reading Prospectuses --- the Important Stuff, Anyway |
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91 | (14) |
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92 | (1) |
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93 | (4) |
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97 | (1) |
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Investment objectives and risks |
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97 | (4) |
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101 | (2) |
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103 | (2) |
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105 | (8) |
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Chairman's letter and performance discussion |
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105 | (3) |
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Investment advisor's thoughts |
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108 | (1) |
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Performance and its components |
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108 | (2) |
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110 | (3) |
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Buying Funds from the Best Firms |
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113 | (20) |
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113 | (3) |
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116 | (6) |
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116 | (2) |
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118 | (1) |
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119 | (1) |
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120 | (1) |
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120 | (1) |
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121 | (1) |
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Discount Brokers: Mutual Fund Supermarkets |
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122 | (5) |
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Buying direct versus discount brokers |
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123 | (2) |
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Debunking ``No Transaction Fee'' funds |
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125 | (2) |
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Using the best discount brokers |
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127 | (1) |
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Deciding Whether to Hire an Advisor |
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127 | (6) |
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The wrong reason to hire an advisor |
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128 | (1) |
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The right reasons to hire an advisor |
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128 | (1) |
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Beware of conflicts of interest |
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128 | (1) |
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Your best options for help |
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129 | (2) |
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If you must have a salesperson |
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131 | (2) |
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Part II: Establishing a Great Fund Portfolio |
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133 | (140) |
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Constructing a Fund Portfolio |
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135 | (22) |
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Asset Allocation: An Investment Recipe |
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136 | (5) |
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Allocating to reduce your risks |
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136 | (1) |
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Looking toward your time horizon |
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137 | (4) |
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Taxes: It's What You Keep That Matters |
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141 | (5) |
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Fitting funds to your tax bracket |
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141 | (2) |
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Minimizing your taxes on funds |
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143 | (3) |
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Fund Investing Strategies |
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146 | (4) |
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Timing versus buy-and-hold investing |
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146 | (1) |
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Active versus index (passive) fund managers |
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147 | (3) |
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Putting Your Plans into Action |
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150 | (7) |
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Determining how many funds and families to use |
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150 | (2) |
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Matching fund allocation to your asset allocation |
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152 | (2) |
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Allocating when you don't have much to allocate |
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154 | (1) |
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Investing large amounts: To lump, or to average? |
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154 | (2) |
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Sorting through your existing investments |
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156 | (1) |
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Money Market Funds: Beating the Bank |
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157 | (18) |
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158 | (9) |
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Comparing money funds with bank accounts |
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158 | (2) |
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Finding uses for money funds |
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160 | (1) |
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Refuting common concerns about money funds |
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161 | (3) |
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Seeing which securities money funds invest in |
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164 | (3) |
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Choosing a Great Money Market Fund |
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167 | (3) |
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Understanding why yield and expenses go hand-in-hand |
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167 | (1) |
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Looking at your tax situation |
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168 | (1) |
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Deciding where you want your home base |
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169 | (1) |
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Keeping your investments close to home |
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170 | (1) |
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170 | (1) |
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Finding the Recommended Money Market Funds |
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170 | (5) |
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Taxable money market funds |
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171 | (1) |
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U.S. Treasury money market funds |
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172 | (1) |
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Municipal tax-free money market funds |
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173 | (2) |
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Bond Funds: When Boring Is Beautiful |
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175 | (28) |
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175 | (2) |
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Sizing Up a Bond Fund's Personality |
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177 | (7) |
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Maturity: Counting the years until you get your principal back |
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177 | (1) |
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Duration: Measuring interest rate risk |
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178 | (2) |
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Credit quality: Determining whether a bond fund is dependable |
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180 | (1) |
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Issuer: Knowing who you're lending to |
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181 | (1) |
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Management: Considering the passive or active type |
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182 | (1) |
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Inflation-indexed Treasury bonds |
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183 | (1) |
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184 | (6) |
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Why you might (and might not) want to invest in bond funds |
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184 | (1) |
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How to pick a bond fund with an outcome you'll enjoy |
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185 | (4) |
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Considering tax-free income |
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189 | (1) |
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190 | (7) |
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190 | (2) |
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Intermediate-term bond funds |
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192 | (3) |
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195 | (2) |
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Exploring Alternatives to Bond Funds |
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197 | (6) |
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198 | (1) |
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199 | (2) |
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Guaranteed-investment contracts |
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201 | (1) |
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201 | (2) |
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Stock Funds: Meeting Your Longer-Term Needs |
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203 | (28) |
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The Stock Market: A Place to Grow Your Money |
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204 | (3) |
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205 | (2) |
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Add regularly to your stock investments |
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207 | (1) |
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Going the Mutual Fund Route: Stocks in Funds |
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207 | (5) |
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Reducing risk and increasing returns |
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207 | (2) |
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Making money: How they do it |
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209 | (1) |
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Seeing your stock fund choices |
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209 | (3) |
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The Best Stock Funds Worth Investing In |
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212 | (16) |
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Mixing it up: Recommended hybrid funds |
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212 | (5) |
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Letting computers do the dirty work: Recommended index funds |
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217 | (2) |
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Keeping it local: Recommended U.S.-focused stock funds |
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219 | (3) |
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Loading up the boat: Recommended international funds |
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222 | (3) |
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Expanding your horizon: Recommended global stock funds |
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225 | (1) |
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One of a kind: Recommended specialty funds |
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226 | (2) |
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Matching Morals to Investments: Socially Responsible Funds |
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228 | (3) |
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Evil is in the eye of the beholder |
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229 | (1) |
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Ways to express your social concerns |
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230 | (1) |
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Working It Out: Sample Portfolios |
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231 | (24) |
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232 | (9) |
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Starting from square one: Melinda |
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232 | (2) |
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Silencing student loans: Stacey the student |
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234 | (1) |
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Living month to month with debt: Mobile Mark |
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235 | (2) |
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Competing goals: Gina and George |
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237 | (3) |
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Wanting lots and lotsa money: Pat and Chris |
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240 | (1) |
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Changing Goals and Starting Over |
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241 | (8) |
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Funding education: The Waltons |
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241 | (2) |
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Rolling over (but not playing dead): Cathy |
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243 | (1) |
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Wishing for higher interest rates: Nell, the near retiree |
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244 | (2) |
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Lovin' retirement: Noel and Patricia |
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246 | (3) |
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Dealing with a Mountain of Moola |
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249 | (3) |
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He's in the money: Cash-rich Chuck |
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249 | (1) |
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250 | (2) |
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252 | (3) |
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Applications, Transfers, and Other Useful Forms |
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255 | (18) |
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Taking the Nonretirement Account Route |
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255 | (9) |
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Filling in the blanks: Application basics |
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256 | (4) |
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Buying into discount brokerage accounts |
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260 | (4) |
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Heading South: Retirement Accounts |
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264 | (7) |
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Retirement account applications |
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264 | (3) |
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What to do before transferring accounts |
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267 | (3) |
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Filling out transfer forms |
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270 | (1) |
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271 | (1) |
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Finding Help for a Smoking Brain |
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272 | (1) |
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Part III: Keeping Your Fund Portfolio Current |
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273 | (46) |
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Evaluating Your Funds and Adjusting Your Portfolio |
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275 | (18) |
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Deciphering Your Fund Statement |
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276 | (3) |
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Trade date or date of transaction |
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276 | (1) |
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276 | (1) |
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277 | (1) |
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Share price or price per share |
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277 | (1) |
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Share amount or shares transacted |
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278 | (1) |
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Shares owned or share balance |
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278 | (1) |
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278 | (1) |
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Interpreting Discount Brokerage Firm Statements |
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279 | (1) |
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279 | (1) |
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Account transaction details |
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279 | (1) |
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Assessing Your Funds' Returns |
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280 | (9) |
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Getting a panoramic view: Total return |
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280 | (2) |
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Focusing on the misleading share price |
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282 | (2) |
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Figuring your total return (in your sleep!) |
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284 | (1) |
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Assessing your funds' performance |
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285 | (4) |
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Deciding Whether to Sell, Hold, or Buy More |
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289 | (2) |
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290 | (1) |
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Dealing with fund company consolidations |
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290 | (1) |
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291 | (2) |
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The Taxing Side of Mutual Funds |
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293 | (16) |
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Mutual Fund Distributions Form: 1099-DIV |
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294 | (4) |
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Box 1a: Total ordinary dividends |
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295 | (1) |
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Box 1b: Qualified dividends |
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296 | (1) |
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Box 2a: Total capital gains distributions |
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296 | (1) |
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Box 3: Nontaxable distributions |
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296 | (1) |
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Box 4: Federal income tax withheld |
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297 | (1) |
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297 | (1) |
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When You Sell Your Mutual Fund Shares |
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298 | (6) |
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Introducing the ``basis'' basics |
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299 | (1) |
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Accounting for your basis |
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300 | (2) |
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Deciding when to take your tax lumps or deductions |
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302 | (1) |
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Looking at fund sales reports: Form 1099-B |
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303 | (1) |
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Getting help: When you don't know how much you paid for a fund |
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303 | (1) |
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Retirement Fund Withdrawals and Form 1099-R |
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304 | (5) |
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Minimizing taxes and avoiding penalties |
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304 | (2) |
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Making sense of Form 1099-R for IRAs |
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306 | (1) |
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Withdrawing from non-IRA accounts |
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307 | (1) |
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Understanding form 1099-R for non-IRAs |
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308 | (1) |
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Common Fund Problems and How to Fix Them |
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309 | (10) |
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Playing the Telephone Game |
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309 | (1) |
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Dealing with Messed-Up Deposits and Purchases |
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310 | (1) |
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Specifying Funds to Buy at Discount Brokers |
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311 | (1) |
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Making Deposits in a Flash |
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312 | (1) |
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Verifying Receipt of Deposits |
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312 | (1) |
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Transferring Money in a Hurry |
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313 | (1) |
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Losing Checks in the Mail |
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314 | (1) |
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Changing Options After You Open Your Account |
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314 | (1) |
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Making Sense of Your Statements and Profits |
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315 | (1) |
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315 | (1) |
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Finding Funds You Forgot to Move with You |
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315 | (1) |
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Untangling Account Transfer Snags |
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316 | (1) |
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Eliminating Fund Marketing Solicitations |
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317 | (1) |
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Digging Out from under All Those Statements |
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318 | (1) |
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Getting Older Account Statements |
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318 | (1) |
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Part IV: Evaluating Information and Advice |
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319 | (24) |
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Fund Ratings and Forecasters |
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321 | (14) |
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321 | (5) |
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Looking into market timing and crystal balls |
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322 | (1) |
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Keeping them honest and providing new fodder: The Hulbert Financial Digest |
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323 | (1) |
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Using bogus rankings, token awards, and mystery testimonials |
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323 | (1) |
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Pitching a product: Filler and ads in newsletter form |
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324 | (1) |
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Investment newsletter Hall of Shame |
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325 | (1) |
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Mutual Confusion: Misuse of Fund Ratings |
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326 | (2) |
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Getting in on the Good Stuff |
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328 | (7) |
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328 | (4) |
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332 | (3) |
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Harnessing Your Computer's Power |
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335 | (8) |
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It's All in the Computer: Software |
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336 | (2) |
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Getting-and-staying-organized software |
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336 | (1) |
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Investment research software |
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337 | (1) |
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Entering Cyberspace: Internet Sites |
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338 | (5) |
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Investment Company Institute |
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340 | (1) |
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341 | (1) |
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341 | (1) |
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341 | (1) |
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U.S. Securities and Exchange Commission |
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342 | (1) |
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342 | (1) |
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343 | (18) |
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Ten Common Fund Investing Mistakes and How to Avoid Them |
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345 | (4) |
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Ten Fund Investing Fears to Conquer |
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349 | (4) |
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Ten Tips on Hiring a Financial Advisor |
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353 | (8) |
| Appendix |
|
361 | (2) |
| Index |
|
363 | |
Other versions by this Author
