Investing Made Simple · Investing in Index Funds Explained in 100 Pages or Less by Piper, Mike -- Read -- Imperial Library of Trantor

Index

Half Title Why is there a light bulb on the cover? Title Page A note on the data used Disclaimer Dedication Your Feedback is Appreciated! Table of Contents Introduction: Investing is Not Complicated. Part One: The Basics

1. The Building Blocks

What’s a stock? What’s a bond? What’s a mutual fund?

2. Types of Accounts

Taxable accounts Traditional IRAs Roth IRAs 401(k)s and 403(b)s Roth 401(k) accounts Which one should I invest in? 401(k) rollovers

3. Risk and Return

More risk can mean more reward. It’s called “risk” for a reason.

4. How to Know How Much You Need

Determine your spending needs. Multiply by 25. What about inflation?

Part Two: Constructing a Portfolio

5. Don’t Bother Picking Stocks.

Why not pick stocks? Invest in mutual funds instead. But they told me it was easy!

6. Index Funds Win.

Index funds Actively managed funds lose. Why index funds win Why not pick a hot fund? Not all index funds are low-cost. When index funds aren’t an option

7. Asset Allocation and Risk Tolerance

Determinants of risk tolerance Stocks vs. bonds U.S. vs. international Rebalancing

8. Putting the Pieces Together

A basic sample portfolio A not-so-basic sample portfolio

9. Exchange-Traded Funds (ETFs)

Comparing expenses More important considerations

10. Target Retirement Funds

Advantages Disadvantages Pick based on risk

Part Three: Stay out of Trouble

11. Think Long-Term.

Don’t peek (very often). Why you can be confident about owning the market Beware of bull markets as well.

12. How to Find a Good Financial Advisor

Do you need a financial advisor? Commissions vs. fees Remember: Index funds win.

13. Automate Your Investing.

Beat laziness (with no effort!) Nothing is ever left over. Minimize the need to peek.

14. Beware the Hot Fund.

Is it purely luck? When a company has 200 funds… What about risk? What about recommendations from unbiased sources?

15. Turn Off the Television.

A competition for attention “Experts” on TV Just turn it off.

16. Steer Clear of Stock-Picking Newsletters.

Superstar investors? Check the fine print. What did the subscribers earn? Reduce your costs: Unsubscribe.

Conclusion – Keep It Simple. Appendix: Helpful Online Resources About the Author Also by Mike Piper Other Recommended Reading End Notes