A common sense, non-technical guide to the basics of investing that’s a must for those who don’t know where to start.
Fort Worth, TX (WiredPRNews.com)—Author Eric Tyson makes understanding 401(k)s, mutual funds, stocks and bonds easy and entertaining in Investing for Dummies.
Tyson makes the usually dry topic of finance come alive with real-life examples and occasional humor. He explains why your time horizon is essential in weighing investment risks and rewards. Saving, by automatic payroll deductions, is an excellent way to force yourself to save and invest without even thinking about it.
Balance and diversity are essential factors in choosing investments, according to Tyson. If your assets are spread out among international, domestic, growth, value and blend, your portfolio will be protected against big losses when the certain parts of the markets drop.
Doing your homework is another task emphasized by the author. Understand why a particular investment is a good fit in your portfolio and what the annualized return on investment is likely to be over the time period.
Fees are another thing that the book warns about. The more you buy and sell, the more fees you’ll have to pay. This can eat away at any capital gains that you’ve made and it another reason why most investors should minimize the buying and selling of investment vehicles.
Other good excellent books on investing are the Wall Street Journal Complete Money and Investing Guidebook and the Wall Street Journal Personal Finance Guidebook. Check out the finance page of Yahoo.com News and the business page of Google.com News for up to the minute business and finance information.