Introduction 1 About This Book 1 Foolish Assumptions 2 Icons Used in This Book 3 Beyond the Book 3 Where to Go from Here 3 Part 1: Getting Started with Investing 5 Chapter 1: Making Sense of Your Investing Options 7 Growing Your Money in Ownership Investments 7 Sharing in corporate growth and profits: Stocks 8 Profiting from real estate 9 Succeeding in small business 10 Making "riskier" choices: Options, cryptocurrencies, and so on 10 Keeping Money in Lending Investments 10 Understanding Risks and Returns 11 Realizing risks 11 Managing risks 13 Making sense of returns 14 Where to Invest and Get Advice 15 Finding the best fund companies and brokers 15 Finding an acceptable advisor 16 Chapter 2: Using Investments to Accomplish Your Goals 19 Setting and Prioritizing Your Shorter-Term Goals 19 Accumulating a rainy-day fund 20 Saving for large purchases 21 Investing for a small business or home 21 Saving for kids'' higher educational costs 22 Investing short-term money 23 Investing in Retirement Accounts 23 Understanding retirement account perks 23 Grappling with retirement account concerns 24 Taking advantage of retirement accounts 25 Surveying retirement account choices 26 Selecting retirement account investments 29 Assessing Your Risk-Taking Desires 29 Chapter 3: Setting Your Return Expectations 31 Estimating Your Investments'' Returns 32 Money market funds and savings account returns 32 Bond returns 33 Stock returns 34 Real estate returns 35 Small-business returns 36 Compounding Your Returns 36 The value of getting a few extra percent 37 Considering your goals 38 Chapter 4: Minimizing Your Taxes When Investing 39 Understanding Investment Taxes 40 Tracking taxation of investment distributions 40 Determining your tax bracket 41 Highlighting the Tax Cuts and Jobs Act bill .42 Devising tax-reduction strategies 44 Reducing Your Taxes When Selling Investments 45 Weighing nontax issues 45 Tuning in to tax considerations 46 Part 2: Preparing Your Investing Foundation 51 Chapter 5: Laying Out Your Financial Plans 53 First Priorities: Paying Off High-Cost Debt and Building a Safety Reserve 54 Paying off high-cost consumer debt 54 Establishing an emergency reserve 55 What about Paying Down Other Debts? 56 Assessing student loans 56 Considering paying down mortgage debt 58 Sorting Out Your Financial Plans 58 Considering your investment options and desires 59 Assessing your savings rate 60 Investing regularly with dollar cost averaging 61 Knowing the Impact of Investing for College Costs 62 Paying for college 63 Considering educational savings account options 64 Investing money earmarked for college 65 Securing Proper Insurance 65 Chapter 6: Starting Out with Bank and Credit Union Accounts 67 Understanding FDIC Bank Insurance 68 Investing in Banking Account and Savings Vehicles 68 Bank checking accounts and debit cards 69 Savings accounts and certificates of deposit 70 Negotiating with Bankers 71 Feeling Secure with Your Bank 72 Evaluating any bank 72 Protecting yourself when banking online 73 Exploring Alternatives to Bank Accounts 75 Credit union accounts and benefits 75 Brokerage cash management accounts 76 Money market mutual funds 77 Chapter 7: Managing Money Market Funds 79 Defining Money Market Mutual Funds 79 Making sense of the appeal of money market funds 80 Understanding the drawback of money market funds 81 Looking at Money Market Fund Holdings 81 Protecting and Accessing Your Money in Money Funds 83 Protecting your money 83 Accessing your money 83 Using Money Market Funds in Your Investment Plan 84 Shopping for the Best Money Funds 86 Discovering traits of leading money funds 86 Naming good money funds 87 Alternatives to Money Market Mutual Funds 88 Part 3: Investing in Stocks, Bonds, and Funds 91 Chapter 8: Getting Your Slice of Capitalism with Stocks 93 What Are Stocks? 94 How (and Why) You Can Make Money with Stocks 95 Understanding the importance of corporate profits 95 Making sense of how you profit with stocks 96 Timing Your Stock Buying and Selling 97 Following market indexes 97 Using price/earnings ratios to value stocks 99 Avoiding temptations and hype 100 Getting past the gloom 101 Sidestepping common investing minefields 102 Highlighting How to Invest in Stocks 103 Investing in stock mutual funds and exchange-traded funds 103 Picking your own stocks 104 Maximizing Your Stock Market Returns 108 Chapter 9: Securing Investment Income and Principal with Bonds 109 Defining Bonds 110 Understanding bond issuers 110 Considering credit (default) risk 113 Making sense of bond maturities 113 Using Bonds in a Portfolio 114 Finding uses for bonds 115 Comparing other lending investments with bonds 116 How and Where to Invest in Bonds 119 Choosing between bond funds and individual bonds 120 Investing in Treasury bonds 120 Investing in non-Treasury individual bonds 121 Evaluating individual bonds you currently hold 122 Chapter 10: Fund Investing: Mutual Funds and Exchange-Traded Funds 123 Understanding the Advantages of Funds 124 Maximizing Your Chances for Fund Investing Success 126 Understanding the importance of performance and risk 126 Examining fund management experience 127 Keeping costs down 127 Understanding and using index funds 128 Understanding exchange-traded funds: Index funds that trade 129 Creating and Managing a Fund Portfolio 131 Identifying the Best Mutual Funds and ETFs 133 Investing in the best ETFs 133 Picking the best stock funds 134 Balancing your act: Funds that combine stocks and bonds 136 Finding the best bond funds 137 Considering Alternatives to Investing in Funds 142 Creating your own fund 142 Robo advisors 142 Unit investment trusts 143 Brokerage managed accounts 143 Hedge funds for the wealthier 144 Chapter 11: Understanding Investment Brokers 145 Getting Your Money''s Worth: Discount Brokers 145 Assessing the high-commission salespeople''s arguments 146 Selecting a discount broker 147 Checking Out Online Brokers 149 Considering "free" online trades 149 Examining your online trading motives 150 Taking other costs into account 151 Looking at service quality 151 Listing the best online brokers 152 Part 4: Investing in Real Estate, Small Business, and Other Investments 153 Chapter 12: Seeking Shelter and Appreciation in Real Estate 155 Comparing Owning a Home to Renting 156 Weighing financial considerations 156 Considering costs and your time frame 157 Deciding when to buy 158 Figuring Your Home-Buying Budget 160 Getting your financial house in order 160 Determining your down payment 160 Doing lenders'' calculations 161 Shopping for Your Home 163 Understanding your housing options 164 Researching communities 165 Checking out and valuing a home 166 Investing in Investment Real Estate 167 Understanding real estate investment''s appeal 168 Sizing up real estate investment options 169 Conducting real estate investing research 172 Chapter 13: Financing and Putting Together Real Estate Investment Deals 175 Financing Your Real Estate Deals 175 Achieving loan approval 176 Debating fixed-rate versus adjustable-rate mortgages 179 Deciding between fixed and adjustable mortgages 181 Finding your best fixed-rate mortgage 182 Landing an appropriate adjustable-rate mortgage 183 Understanding other mortgage fees 187 Finding the best lenders 187 Refinancing for a better deal 189 Working with Real Estate Agents 191 Recognizing agent conflicts of interest 191 Selecting a good agent 192 Putting Your Deal Together 194 Negotiating basics 194 Inspecting the property 195 Shopping for title insurance and escrow services 196 Selling Real Estate 197 Negotiating real estate agents'' contracts 197 Selling without an agent 199 Chapter 14: Taking Your Talents to the Small-Business Arena 201 Investing in Your Career 202 Deciding to Start Your Own Business 203 Weighing your options 203 Entrepreneuring at a company 204 Turning a Business Idea into Reality 204 Drawing up your business plan 204 Plotting to leave your job 207 Financing your business 208 Considering Small-Business Investment Options 210 Buying an existing business 210 Investing in someone else''s business 211 Looking at franchises 212 Beware the pitfalls of multilevel marketing companie 213 Chapter 15:.