About the Author xi Acknowledgments xiii You are in the Right Place! Get Ready to Become a Clever Girl Investor! xv How to Use This Book xix Chapter 1 Adjusting Your Mindset About Investing 1 Why Investing Matters 7 Getting Educated About Investing 9 Women and the Investment Gap: Why It's More Important Than Ever for Women in Particular to Invest 11 My Investing Story: The Complete Game-Changer for My Finances 15 Chapter 2 How the Stock Market Works 19 What Is the Stock Market? 21 Stock Exchanges in the United States 22 Indices and the Stock Market 23 The Economy and the Stock Market 26 How the Economy Affects Your Portfolio 26 Clever Girl Investor: Meet Jennifer "Jenny" Coombs 30 Chapter 3 Core Investing Concepts: Inflation, Compounding, and the Rule of 72 33 Inflation 36 What Causes Inflation? 37 Inflation in the United States 38 Compounding 39 How Compound Interest Works 40 The Rule of 72 44 Compound Interest, the Rule of 72, and Debt 46 Clever Girl Investor: Meet Cindy E. Zuniga 48 Chapter 4 Preparing to Invest 51 Key Factors to Ensure You're Prepared to Invest 54 Setting Your Investment Objectives 58 Understanding Risk 59 Mitigating Risk 60 Chapter 5 The Different Types of Stock Market Investments 65 Investing in Stocks 67 Market Capitalization and Stocks 68 Investing in Bonds 70 What to Know About Bonds 70 Should You Buy Individual Stocks and/or Bonds? 73 Investing in Funds 74 Index Funds to Win 76 The Key Benefits of Index Funds 77 Popular Index Funds 79 Chapter 6 Researching Your Investments 83 Things to Look for When Researching Investments 86 Extra Credit: More Investing Terms and Definitions 90 Clever Girl Investor: Meet Adeola Omole 92 Chapter 7 Where and How to Purchase Your Investments 97 Brokerage Firms and Robo-Advisors 99 Working with a Financial Advisor 102 Practicing with Simulation Accounts 103 Trading versus Investing 104 Clever Girl Investor: Meet Jully-Alma Taveras 105 Chapter 8 Investing for Retirement 109 Types of Retirement Investment Accounts 114 What to Do When You Leave Your Employer 122 Tips to Maximize Your Retirement Investments 123 Are You Saving Enough? 126 Investing During Retirement 128 Clever Girl Investor: Meet Faneisha "Fo" Alexander 129 Chapter 9 Simple Investing Strategies 133 The 3-Fund Portfolio Investing Strategy 136 Alternative Investing Strategies: The 1-Fund, 2-Fund, 4-Fund, and 5-Fund Portfolios 139 Clever Girl Investor: Meet Jamila Souffrant 143 Chapter 10 Keeping Your Investments on Target 147 How Does Rebalancing Work? 149 When to Rebalance Your Portfolio 150 A Common Rule of Thumb: 100 Minus Your Age 151 How Often Should You Rebalance Your Portfolio? 151 Target-Date Funds, Robo-Advisors, and Portfolio Rebalancing 152 Letting Go of a Losing Investment 153 Chapter 11 The Deal with Taxes 157 Income Tax and Capital Gains Tax 159 Tax Losses 160 Minimizing Your Tax Obligation 161 Chapter 12 Investing Mistakes and Pitfalls to Avoid 165 Key Investing Mistakes and How to Avoid Them 168 Clever Girl Investor: Meet Regina Byrd 170 In Closing 175 Takeaways to Remember 177 Index 181.