Index

Numbers

  • 401(k) plans
    • covering education costs with, 63
    • defined, 26
    • employee benefits and, 235
    • owning business and, 208
  • 403(b) plans, 26

A

  • AAA-rated bonds, 113
  • Acorns, 142
  • actively managed funds, 128
  • adjustable-rate mortgages (ARMs)
    • analyzing adjustments, 185–186
    • assessing interest rate, 184
    • avoiding negative amortization, 186
    • indexes, 185
    • overview, 179–180
    • start rate of, 184
  • adjusted gross income (AGI), 24
  • adjustment cap, 185–186
  • advertising
    • funds and, 126
    • investments and, 230–231
    • one's business, 206
  • advertorials, 230
  • advice from investment experts, 233–234
  • advisors
    • finding, 16–17
    • funds and, 148
  • affiliates, 230
  • Affordable Care Act (Obamacare)
    • health insurance and, 251–253, 256–258
    • history of, 249
    • tax rate and, 40
  • agents, real estate
    • buying without, 193
    • commission of, 157, 198
    • overview, 191–194
    • selling without, 199
  • AGI (adjusted gross income), 24
  • allocation, asset
    • defined, 131–132
    • overview, 27
  • amenities
    • land and, 171
    • overview, 165–166
  • amortization, avoiding negative, 186
  • angel investors, 209–210
  • annuities
    • overview, 28–29, 223–224
    • withdrawing and, 29
  • apartments, 164
  • application fees, 187
  • appraisals
  • appreciation
    • ownership investments, 239
    • profit from, 197
    • real estate
      • costs, 157–158
      • land, 171
      • market indicators, 173–174
      • overview, 168
      • potential, 170
      • residential housing, 170
    • stock prices, 97
    • taxes and, 15
  • apprenticeships, 23
  • apps
    • for investing
      • alternatives to, 245
      • dangers of, 244
      • free trading, 150, 246
      • fund providers, 247
      • investment brokerage firms, 247
      • real estate, 247
      • researching, 244
      • reviewing data, 246
      • small business, 247
    • for personal finances, 245–246
  • ARMs (adjustable-rate mortgages)
    • analyzing adjustments, 185–186
    • assessing interest rate, 184
    • avoiding negative amortization, 186
    • indexes, 185
    • overview, 179–180
    • start rate of, 184
  • assessing
    • debt, 162
    • employment in communities, 173
    • interest rates, 184
    • real estate markets, 173–174
    • savings rate, 60–61
  • asset allocation
    • defined, 131–132
    • overview, 27
  • asset management accounts, 76–77
  • average cost method, 48
  • avoiding negative amortization, 186

B

  • Bacon, Peter W., 61
  • balanced funds, 136–137
  • balloon loans, 180
  • bank accounts
    • alternatives to, 75–77
    • brokerage cash management accounts, 76–77
    • certificates of deposit, 70–71
    • checking accounts, 69–70
    • credit union accounts, 75–76
    • debit cards, 69–70
    • FDIC, 32, 68
    • investing in, 68–71
    • money market mutual funds, 77
    • savings accounts
      • for education, 64–65
      • investing in, 70–71
      • returns on, 32–33
      • yield of, 70
    • transferring money from, 84
  • Bankrate, 189
  • banks. See also bank accounts
    • charging points, 182–183
    • evaluating, 72–73
    • feeling secure with, 72–75
    • interest rates and, 14
    • negotiating with, 71–72
    • paying interest, 14
    • protecting oneself online, 73–75
    • risks in, 68
  • BBB-rated bonds, 113
  • Better Business Bureau (BBB), 214
  • Betterment, 142
  • Biden, Joe, 253
  • Bitcoin, 219–220
  • bond funds
    • individual bonds vs., 120
    • recommended, 137–141
  • bonds
    • bond funds vs. individual bonds, 120
    • combining stocks with, 136–137
    • diversifying and, 46, 120
    • evaluating, 122
    • finding uses for, 115
    • guaranteed-investment contracts and, 117–118
    • interest rates and, 11, 14, 114, 120–122, 137–139
    • investing in
      • non-Treasury individual bonds, 121–122
      • overview, 119–122
      • reasons for, 109–110
      • Treasury bonds, 120–121
    • issuers, 110–112, 138
    • lending investments vs., 116–119
    • maturities, 113–114
    • maturity of, 113–114, 137
    • overview, 110–114
    • private mortgages and, 118–119
    • returns on, 33
    • risk in, 113
    • taxes and, 40, 44
    • Treasury bonds
      • interest rates on, 111–114
      • investing in, 120–121
      • as short-term bond fund, 139–141
    • using in portfolio, 114–119
  • boosting credit score, 177–178
  • bootstrapping, 208–209
  • brackets, tax
    • balanced funds and, 136–137
    • determining, 41–42
    • money market funds and, 80
  • brokerage cash management accounts, 76–77
  • brokerage firms
    • Charles Schwab
      • cash management accounts and, 76
      • ETFs and, 133
      • overview, 147
      • reports by, 106
    • ETrade, 76
    • Fidelity
      • bond funds and, 141
      • cash management accounts and, 76
      • funds and, 135–137
      • gold and, 217
      • overview, 147
    • iShares, 133
    • Morningstar
    • recommended, 247
    • stock picking and, 105–106
    • T. Rowe Price, 135–137, 147
    • T.D. Ameritrade, 76, 147
    • Vanguard
      • bond funds and, 140–141
      • cash management accounts and, 76
      • ETFs and, 133
      • funds and, 135–137, 148
      • gold and, 217
      • index funds and, 129
      • overview, 147
      • website, 235
  • brokerage managed accounts, 143–144
  • brokers, 145–148
    • conflicts of interest, 102
    • costs of, 151
    • investment
      • apps for, 247
      • costs of, 151
      • discount brokers, 145–148
      • online, 149–152
      • service quality of, 151–152
    • mortgage, 188
    • online, 149–152
    • overview, 15–16
  • budgets, real estate and, 160–163
  • building permits, 173
  • Bureau of Labor Statistics, 173
  • business-concept definition, 205
  • buying
    • collectibles, 222–223
    • real estate, 156–159, 193
    • small businesses, 210–211
    • stocks, 100–101

C

  • calculations by lenders, 161–163
  • call options
    • drawbacks to, 215–216
    • overview, 10
  • calling bonds, 120, 122
  • capital gains
    • from collectibles, 218
    • defined, 40
    • from gold, 218
    • selling investments and, 48
  • capitalization, 134
  • career and technical education (CTE), 23
  • career risk, 13
  • Carlson, Bob, 218
  • cash flow
    • estimating, 174
    • overview, 170
  • cash-value life insurance, 224–225
  • catastrophic risk, 166
  • certificates of deposit (CDs)
    • ARM index, 185
    • interest rates on, 82
    • money market funds and, 82
    • overview, 32–33, 70–71
    • taxes and, 71
    • Treasury bonds and, 111
  • certified financial planners (CFPs), 17
  • CFAs (Chartered Financial Analysts)
    • as credential, 125
    • as qualification for advisors, 17
  • CFPs (certified financial planners), 17
  • Charles Schwab
    • cash management accounts and, 76
    • ETFs and, 133
    • overview, 147
    • reports by, 106
  • Chartered Financial Analysts (CFAs)
    • credential, 125
    • qualification for advisors, 17
  • checking accounts
    • money market funds, 85
    • overview, 69–70
  • checks
    • accessing money with, 83–84
    • money market funds and, 80–81
  • child tax credit, 42
  • COBRA (Consolidated Omnibus Budget Reconciliation Act), 251
  • collectibles
    • capital gains from, 218
    • investing in, 220–223
  • College Board CSS Profile application, 64
  • college minimum viable products (MVPs), 22
  • commercial paper, 82
  • commercial real estate, 172
  • commissions
    • defined, 128
    • hedge funds, 144
    • investments with high, 235
    • lenders, 187
    • mortgage brokers, 188
    • negotiating, 198
    • no-load funds, 104, 128
    • real estate agents, 157, 198
    • trading, 130
    • UITs, 143
  • communities
    • assessing employment in, 173
    • researching, 165–166
  • company-based retirement plans, 26–28
  • compounding returns, 36–38
  • condominiums
    • appreciation of, 170
    • overview, 164
  • conflicts of interest
    • affiliates, 230
    • brokers, 102
    • commissions, 191–192
    • health insurance agents, 256
    • investment banking firms, 101
  • Consolidated Omnibus Budget Reconciliation Act (COBRA), 251
  • consumer debt
    • affecting mortgage qualifications, 178
    • assessing, 162
    • paying, 54–58
    • saving money and, 21
  • convertible bonds, 111
  • cooperatives, 164
  • co-payments, 254–255
  • CorporateInformation website, 235
  • corporations
    • bonds and, 111
    • profits of, 95–96
  • cost basis of shares, 47–48
  • costs
    • appreciation of real estate and, 157–158
    • brokers, 151
    • collectibles, 222
    • exchange-traded funds, 104
    • funds, 127–128
    • mortgages, 157
    • real estate, 157–158
    • withdrawing for education, 65
  • credit report charge, 187
  • credit score, boosting, 177–178
  • credit union accounts, 75–76
  • crime, 166
  • cryptocurrencies
    • dangers of, 218–220
    • overview, 10
  • CTE (career and technical education), 23
  • custodians, 125

D

  • day trading
    • defined, 102–103
    • leveraged ETFs and, 130–131
  • DCA (dollar cost averaging), 61–62
  • deals, negotiating, 194–198
  • debit cards
    • money market funds and, 84
    • overview, 69–70
  • debt
    • affecting mortgage qualifications, 178
    • consumer, 21, 54–58, 162
    • government, 82
    • interest rates on, 54
    • mortgages, 58
    • student loans, 56–57
  • decision making, 239–240
  • deductibles
    • defined, 251
    • overview, 254–255
  • depreciation, of land, 171
  • disability insurance, 66
  • discount brokers, 145–148
  • diversifying
    • bonds, 46, 120
    • defined, 8
    • exchange-traded funds, 104
    • funds, 124
    • portfolio, 115
    • reducing risk by, 13
    • stocks, 34
  • dividends
    • defined, 15
    • earning, 80
    • return of principal as, 139
    • stocks paying, 97
    • taxes on, 138
  • DJIA (Dow Jones Industrial Average), 97–98
  • doctors, selecting, 254
  • Dodge & Cox
    • bond funds and, 140
    • website, 135–137
  • dollar cost averaging (DCA), 61–62
  • Doubleline Total Return, 140
  • Dow, Charles, 97
  • Dow Jones Industrial Average (DJIA), 97–98
  • down payments
    • buying businesses, 210
    • determining, 160–161
    • income and, 179
    • interest rates and, 161
    • lowering, 177
    • strategies for paying, 176–177
  • downline, 213
  • duration, 137

E

  • EAFE (MSCI Europe, Australasia, and Far East), 99
  • early-withdrawal penalties, 70–71
  • earning
    • defined, 95
    • dividends, 80
    • with stocks, 95–97
  • earnings calls, 107
  • economic growth, stocks and, 35
  • education
    • apprenticeships, 23
    • career and technical education, 23
    • college minimum viable products, 259–260
    • continuing, 202
    • cost of, 62–65
    • covering costs of, 63
    • financial aid and, 63–65
    • last-mile programs, 22
    • paying for, 63–64
    • savings account for, 64–65
    • staffing firms, 23
    • trade schools, 23
    • vocational schools, 23
    • withdrawing for, 65
  • effective yield, 122
  • electric fund transfers, 84
  • emergency funds
    • establishing, 55
    • money market funds and, 85
    • overview, 20–21
  • employee benefits, 235
  • employment in communities, 173
  • entrepreneuring at company, 204
  • Equifax, 177
  • equity
    • borrowing against, 55, 63, 190
    • calculating, 27
  • escrow services, 196–197
  • estate planning, 66
  • estimating returns, 32–36
  • ETFs (exchange-traded funds)
    • investing in, 103–104, 133
    • overview, 129–131
    • Standard & Poor's 500 and, 130
  • ETrade, 76
  • evaluating
    • banks, 72–73
    • bonds, 122
    • investments, 45–46
    • real estate market, 173–174
  • exchange-traded funds (ETFs)
    • investing in, 103–104, 133
    • overview, 129–131
    • Standard & Poor's 500 and, 130
  • executive summary, 205
  • expenses
    • investments with, 239
    • reducing, 207
  • Experian, 177

F

  • FAFSA (Free Application for Federal Student Aid), 63–64
  • Federal Deposit Insurance Corporation (FDIC)
    • bank accounts and, 32
    • banks covered by, 72–73
    • money market funds and, 77
    • overview, 68
  • Federal Emergency Management Agency (FEMA), 166
  • federal marginal income tax rate, 41
  • Federal Reserve, 120–121
  • Federal Trade Commission, 178
  • Fidelity
    • bond funds and, 141
    • cash management accounts and, 76
    • funds and, 135–137
    • gold and, 217
    • overview, 147
  • FIFO (first-in-first-out) method, 47
  • financial aid, 63–65
  • financial goals
    • long-term vs. short-term, 21–22
    • prioritizing, 19–23
    • real estate and, 156–157
    • retirement accounts and
      • annuities, 28–29
      • benefits of, 23–24
      • company-based plans, 26–28
      • individual accounts, 28
      • options for, 26–29
      • overview, 23
      • problems with, 24–25
      • selecting, 29
      • spending and, 25–26
    • returns and, 38
    • risks and, 29–30
    • saving money and, 20–23
    • setting, 19–23
    • taxes and, 45–46
  • financial independence, 23
  • financial projections
    • real estate, 174
    • small businesses, 206
  • financing
    • real estate
      • achieving loan approval, 176
      • assessing risks, 181–182
      • boosting credit score, 177–178
      • importance of, 175
      • keeping mortgages, 182
      • low appraisals, 178
      • mortgages, 179–183, 187
      • refinancing, 189–190
    • small businesses, 55, 208–210
  • first-in-first-out (FIFO) method, 47
  • fixed-rate mortgages, 179–183
  • flexible spending accounts, 259–260
  • folios, 142
  • Form ADV (Uniform Application for Investment Adviser Registration), 17
  • 401(k) plans
    • covering education costs with, 63
    • defined, 26
    • employee benefits and, 235
    • owning business and, 208
  • 403(b) plans, 26
  • franchises, 212–213
  • FRED (St. Louis Federal Reserve Economic Data)
  • Free Application for Federal Student Aid (FAFSA), 63–64
  • free trading, 246
  • fully indexed rate, 184
  • fundamentals, 99
  • funds
    • actively and passively managed, 128
    • advisors and, 148
    • alternatives to, 142–144
    • apps for, 247
    • balanced, 136–137
    • benefits of, 124–126
    • bond funds
      • individual bonds vs., 120
      • recommended, 137–141
      • reducing taxes, 44
    • brokerage managed accounts, 143–144
    • combining stocks and bonds with, 136–137
    • cost of, 127–128
    • creating, 142
    • creating and managing portfolio, 131–132
    • dangers of yield-chasing, 138–139
    • emergency fund, 20–21, 55, 85
    • examining fund management experience, 127
    • exchange-traded funds
      • investing in, 103–104, 133
      • overview, 129–131
      • Standard & Poor's 500 and, 130
    • hedge funds
      • investing through, 105
      • overview, 144
    • importance of performance, 126–127
    • index funds, 44, 128–129
    • international stock funds, 135–136
    • money market funds
      • alternatives to, 88–89
      • benefits of, 80–81
      • drawbacks of, 81
      • emergency fund and, 55
      • FDIC and, 77
      • investing with, 84–85
      • money in, 83–84
      • overview, 79–81
      • recommended, 87–88
      • reducing taxes, 44
      • returns on, 32–33
      • traits of, 86–87
    • overview, 123–124
    • returns on, 126–131
    • risk in, 126–127
    • robo advisors and, 142–143
    • stock funds, 134–136
      • picking, 134–136
      • reducing taxes, 44
    • unit investment trusts and, 143

G

  • GasBuddy app, 245
  • Geological Survey, 166
  • GICs (guaranteed-investment contracts), 116–118
  • gold
    • overview, 216–218
    • returns on, 37, 217
  • Goodbudget app, 245
  • government debt, 82
  • grants, 63
  • growing money, 115
  • growth stocks, 134
  • guaranteed-investment contracts (GICs), 116–118
  • gurus
    • claims of, 233–234
    • following, 103

H

  • Harbor Capital Appreciation, 135
  • health insurance
    • agents for, 256
    • benefits of, 254–255
    • importance of, 250–253
    • Obamacare and, 251–253, 256–258
    • plans, 253–255
    • policies, 255–256
    • rejection, 258–259
    • selection of doctors and hospitals, 254
    • shopping for, 255–259
    • small businesses and, 207–208
    • tax reductions and, 259–260
    • transitioning coverage, 250–251
  • health maintenance organizations (HMOs), 254
  • health savings accounts (HSAs)
    • Obamacare and, 257
    • qualifying for, 208
    • recommendations on, 66
    • as tax-reduction strategy, 44, 259–260
    • withdrawing from, 44, 208
  • healthcare reimbursement accounts, 258–260
  • hedge funds
    • investing through, 105
    • overview, 144
  • HMOs (health maintenance organizations), 254
  • holdings, minimizing, 13
  • home equity loans, 190
  • homes, single-family
    • appreciation of, 170
    • overview, 164
  • hospitals, selecting, 254
  • HSAs (health savings accounts)
    • Obamacare and, 257
    • qualifying for, 208
    • recommendations on, 66
    • as tax-reduction strategy, 44, 259–260
    • withdrawing from, 44, 208
  • HSH Associates, 189
  • Hulbert Financial Digest, 234
  • hype
    • dangers of, 232–233
    • revolving around stocks, 100–101

I

  • income
    • from real estate, 168
    • saving percentage of, 237–238
  • index (interest rate formula), 184
  • index funds
    • defined, 44
    • overview, 128–129
  • indexes
    • adjustable-rate mortgages and, 185
    • Dow Jones Industrial Average, 97–98
    • MSCI Europe, Australasia, and Far East, 99
    • Russell 2000, 98
    • Standard & Poor's 500, 98, 130
    • Wilshire 5000, 98
  • individual bonds, bond funds vs., 120
  • Individual Retirement Accounts (IRAs)
    • annuities and, 28–29, 223–224
    • benefits of, 23–24
    • company-based plans, 26–28
    • freelancers, 28
    • individual accounts, 28
    • nonretirement accounts vs., 26
    • options for, 26–29
    • overview, 23, 28
    • problems with, 24–25
    • reducing taxes, 44
    • selecting, 29
    • spending and, 25–26
    • withdrawing from, 21–22, 24–25
  • individual-investment risk, 12
  • inflation
    • affecting returns, 33
    • defined, 12
    • gold and, 216–217
    • ownership investments and, 8
    • renting and, 157
  • initial public offerings (IPOs), 94–95
  • inspecting properties, 195–196
  • insurance
    • cash-value life insurance, 224–225
    • health insurance
      • benefits of, 254–255
      • importance of, 250–253
      • Obamacare and, 251–253, 256–258
      • plans, 253–255
      • policies, 255–256
      • rejection, 258–259
      • savings account for, 259–260
      • selection of doctors and hospitals, 254
      • shopping for, 255–259
      • small businesses and, 207–208
      • tax reductions and, 259–260
      • transitioning coverage, 250–251
    • health savings accounts, 259–260
    • life insurance, 208
    • long-term disability insurance, 208
    • private mortgage insurance, 160–161, 176
    • securing, 65–66
    • term life insurance, 224
    • title insurance, 157, 196–197
  • interest rates
    • assessing future, 184
    • balloon loans, 180
    • banks and, 14
    • bond maturities, 137
    • bonds, 11, 14, 114, 120–122, 137–139
    • certificates of deposit, 70, 82
    • changes in, 185
    • debt and, 54
    • down payments and, 161
    • FDIC, 68–72
    • fluctuating, 181
    • guaranteed-investment contracts, 117
    • home equity loans, 190
    • land, 171
    • money market funds, 77, 80–82
    • mortgages, 58, 179–184
    • P/E ratio, 99
    • predicting, 185
    • refinancing, 189–190
    • risk and, 118–119
    • student loans, 56–57
    • Treasury bonds, 111–114
  • intermediate-term bonds, 114
  • Internal Revenue Service (IRS)
    • gold investments and, 218
    • identifying shares and, 47
    • losses and, 49
  • international bonds, 112
  • international funds, 134–136
  • investing
    • apps for
      • alternatives to, 245
      • dangers of, 244
      • free trading, 150, 246
      • fund providers, 247
      • investment brokerage firms, 247
      • real estate, 247
      • researching, 244
      • reviewing data, 246
      • small business, 247
    • in bank accounts, 68–71
    • in bonds
      • overview, 119–122
      • reasons for, 109–110
    • in career, 202–203
    • in hedge funds, 105
    • in land, 170–172
    • in money market funds, 84–85
    • in oneself and others, 241
    • in real estate, 45
    • researching before, 238–239
    • in savings accounts, 70–71
    • in small businesses, 45, 211
    • in stocks
      • overview, 103–107
      • reasons against, 101–102
  • investment banking firms, conflicts of interest, 101
  • investment brokers
    • apps for, 247
    • costs of, 151
    • discount brokers, 145–148
    • online, 149–152
    • service quality of, 151–152
  • investment distributions, tracking taxation of, 40
  • investments
    • advisors and, 16–17
    • annuities, 223–224
    • brokers and, 15–16
    • call options, 10, 215–216
    • cash-value life insurance, 224–225
    • collectibles, 220–223
    • considering options for, 59–60
    • cryptocurrencies, 10, 218–220
    • dollar cost averaging, 61–62
    • evaluating, 45–46
    • gold, 216–218
    • with high commissions and expenses, 239
    • hype and, 232–233
    • large-profit, 48
    • lending, 10–11
    • liquid, 12
    • ownership, 7–10, 239
    • real estate, 9
    • resources for, 15–17
      • advice from experts, 233–234
      • educating oneself about, 229–230
      • free information, 230
      • influence of advertising, 230–231
      • newsletters, 234
      • quality of, 231, 240
      • recommended, 234–235
      • researching, 232
    • returns and, 14–15
    • reviewing, 45–46
    • risks and, 11–15
    • selling, 45–49
    • small businesses, 10
    • stocks, 8–9
    • taxes on, 40–45
  • IPOs (initial public offerings), 94–95
  • IRAs (Individual Retirement Accounts)
    • annuities and, 28–29, 223–224
    • benefits of, 23–24
    • company-based plans, 26–28
    • freelancers, 28
    • individual accounts, 28
    • nonretirement accounts vs., 26
    • options for, 26–29
    • overview, 23, 28
    • problems with, 24–25
    • reducing taxes, 44
    • selecting, 29
    • spending and, 25–26
    • withdrawing from, 21–22, 24–25
  • IRS (Internal Revenue Service)
    • gold investments and, 218
    • identifying shares and, 47
    • losses and, 49
  • iShares, 133
  • issuers, bond, 110–112, 138

J

  • Jones, Eddie, 97

K

  • Kaiser Family Foundation, 253
  • Kovel, Ralph, 222
  • Kovel, Terry, 222

L

  • land
    • interest rates on, 171
    • investing in, 170–172
  • large-profit investments, 48
  • last-mile programs, 22
  • lenders
    • amortization and, 186
    • calculations by, 161–163
    • charging fees, 187
    • communicating with, 177
    • shopping for, 187–189
  • lending investments
    • bonds
      • bond funds vs. individual bonds, 120
      • combining stocks with, 136–137
      • compared to other lending investments, 116–119
      • diversifying and, 46, 120
      • evaluating, 122
      • finding uses for, 115
      • guaranteed-investment contracts and, 117–118
      • interest rates and, 11, 14, 114, 120–122, 137–139
      • investing in, 109–110, 119–122
      • issuers, 110–112, 138
      • maturity of, 113–114, 137
      • overview, 110–114
      • private mortgages and, 118–119
      • returns on, 33
      • risk in, 113
      • taxes and, 40, 44
      • Treasury bonds, 111–114, 120–121, 139–141
      • using in portfolio, 114–119
    • certificates of deposit
      • ARM index, 185
      • interest rates on, 82
      • money market funds and, 82
      • overview, 32–33, 70–71
      • taxes and, 71
      • Treasury bonds and, 111
    • money market funds
      • alternatives to, 88–89
      • benefits of, 80–81
      • comparisons between, 82
      • drawbacks of, 81
      • emergency fund and, 55
      • FDIC, 77
      • investing with, 84–85
      • money in, 83–84
      • overview, 79–81
      • recommended, 87–88
      • reducing taxes, 44
      • returns on, 32–33
      • traits of, 86–87
    • overview, 10–11
    • risks in, 11
    • savings accounts
      • for education, 64–65
      • investing in, 70–71
      • returns on, 32–33
      • yield of, 70
  • leverage, 168
  • leveraged ETFs, 130–131
  • liability insurance, 66
  • LIBOR (London Interbank Offered Rate Index), 185
  • life insurance
    • cash-value life insurance, 224–225
    • overview, 208
    • recommendations on, 66
    • term life insurance, 224
  • lifetime cap
    • adjustable-rate mortgages and, 186
    • defined, 181
  • liquidity
    • lack of, 143
    • risk of, 12
  • listings of properties, 173
  • living expenses, 20–21
  • loads, 128
  • loans
    • achieving approval for, 176
    • balloon loans, 180
    • home equity loans, 190
    • small business loans, 209
  • London Interbank Offered Rate Index (LIBOR), 185
  • long-term bonds, 114
  • long-term disability insurance (LTD), 208
  • low appraisals, 178
  • lower-rated bonds, 113
  • LTD (long-term disability insurance), 208

M

  • Madoff, Bernie, 144
  • MAGI (modified adjusted gross income), 252
  • Malkiel, Burton G., 235
  • margins, 184
  • market orders, 149
  • markets
    • indexes for, 97–99
    • real estate, 173–174
    • timing, 101, 130
    • understanding, 205
  • market-value risk, 12
  • markup costs, 222
  • master of business administration (MBA), 17
  • maturities, bonds
    • categories of, 137
    • overview, 113–114
  • MBA (master of business administration), 17
  • medical health insurance, 66
  • medical information file, 258
  • MLS (multiple listing service), 198–199
  • modified adjusted gross income (MAGI), 252
  • money
    • accessing, 83–84
    • earning with stocks, 95–97
    • growing, 115
    • investing, 65
    • money market funds, 83–84
    • protecting, 83
    • saving, 20–23, 85
    • transferring, 84
  • money market funds
    • alternatives to, 88–89
    • benefits of, 80–81
    • drawbacks of, 81
    • emergency fund and, 55
    • FDIC, 77
    • holdings, 81–82
    • investing with, 84–85
    • money in, 83–84
    • overview, 79–81
    • recommended, 87–88
    • reducing taxes, 44
    • returns on, 32–33
    • traits of, 86–87
  • money market mutual funds, 77
  • Morningstar
  • mortgages
    • adjustable-rate
      • analyzing adjustments, 185–186
      • assessing interest rate, 184
      • avoiding negative amortization, 186
      • indexes, 185
      • overview, 179–180
      • start rate of, 184
    • bonds and, 118–119
    • brokers for, 188
    • combining, 182
    • cost of, 157
    • fees regarding, 187
    • fixed-rate, 179, 182–183
    • interest, 58
    • interest rates, 58
    • keeping, 182
    • paying, 58
    • private, 118–119
    • second, 118–119
    • subprime, 121
  • moving expenses, 157
  • MSCI Europe, Australasia, and Far East (EAFE), 99
  • multilevel marketing companies, 213–214
  • multiple listing service (MLS), 198–199
  • municipal bonds, 111
  • mutual funds, 103
  • MVPs (college minimum viable products), 22

N

  • National Credit Union Administration (NCUA), 76
  • National Federation of Independent Business, 43
  • NCUA (National Credit Union Administration), 76
  • negotiating
    • with banks, 71–72
    • collectibles, 223
    • commission, 198
    • deals, 194–198
    • with sellers, 178
    • skills of real estate agent, 193
  • net price calculator (NPC), 64
  • network companies, 213
  • no-load funds
    • defined, 104
    • as method to lower costs, 128
  • non-ownership investments, 8
  • nonretirement accounts, 26
  • non-Treasury individual bonds, 121–122
  • NPC (net price calculator), 64

O

  • Oakmark International and Global, 136
  • Obama, Barack, 249, 251
  • Obamacare (Patient Protection and Affordable Care Act)
    • health insurance and, 251–253, 256–258
    • history of, 249
    • tax rate and, 40
  • objectives, defining, 205
  • online banking, 73–75
  • online brokers, 149–152
  • online trading, 149–150
  • open-choice plans, 254
  • overseas funds, 134
  • overspending, 245
  • ownership investments
    • appreciation of, 239
    • overview, 7–10
    • small businesses
      • apps for, 247
      • buying, 210–211
      • entrepreneuring at company, 204
      • financial projections of, 206
      • financing, 55, 208–210
      • franchises and, 212–213
      • investing in, 45, 211
      • investing in career, 202–203
      • money market funds for, 85
      • multilevel marketing companies and, 213–214
      • options for, 203–204, 210–214
      • overview, 10
      • planning for, 204–207
      • quitting current job, 207–208
      • returns on, 36
      • starting, 203–204
      • taxes on, 43
    • stocks
      • avoiding temptations when buying and selling, 100–101
      • call options and, 215–216
      • combining bonds with, 136–137
      • diversifying and, 34
      • earning money with, 95–97
      • economic growth and, 35
      • emergency fund and, 55
      • exchange-traded funds and, 103–104
      • following market indexes, 97–99
      • hype regarding, 100–101
      • importance of corporate profits, 95–96
      • investing in, 103–107
      • not investing in, 101–102
      • overview, 8–9, 94–95
      • P/E ratio to value, 99–100
      • picking, 104–107
      • problems with, 102–103
      • profiting from, 96–97
      • researching individual, 105–107
      • returns on, 9, 34–35, 37–38, 107–108
      • stock mutual funds and, 103–104

P

  • Parent Loans for Undergraduate Students (PLUS), 63
  • passively managed funds, 128
  • Patient Protection and Affordable Care Act (Obamacare)
    • health insurance and, 251–253, 256–258
    • history of, 249
    • tax rate and, 40
  • paying
    • dividends, 97
    • down payments, 176–177
    • for education, 63–64
    • interest, banks, 14
  • P/E (price/earnings) ratio, 99–100
  • penalties for early-withdrawal, 70–71
  • performance of funds, 126–127
  • personal finances
    • apps for, 245–246
    • assessing savings rate, 60–61
    • considering investment options, 59–60
    • debt and, 54–58
    • decision making and, 239–240
    • education costs affecting, 62–65
    • establishing emergency fund, 55
    • insurance, 65–66
    • investing with dollar cost averaging, 61–62
    • mortgages and, 58
    • planning out, 58–62
    • student loans and, 56–57
  • personal financial specialists (PFSs), 17
  • picking stocks, 104–107
  • planning for small businesses, 204–207
  • plans, health insurance, 253–255
  • PLUS (Parent Loans for Undergraduate Students), 63
  • PMI (private mortgage insurance)
    • defined, 176
    • down payments and, 160–161
  • points, 182
  • policies, health insurance, 255–256
  • Ponzi schemes, 144
  • portfolio
    • creating, 131–132
    • diversifying, 46, 115
    • losses in, 49
    • managing, 131–132
    • using bonds in, 114–119
  • PPOs (preferred provider organizations), 254
  • precious metals, 216–218
  • preferred provider organizations (PPOs), 254
  • price appreciation, 97
  • price/earnings (P/E) ratio, 99–100
  • private mortgage insurance (PMI)
    • defined, 176
    • down payments and, 160–161
  • processing fees, 187
  • profit
    • from appreciation, 197
    • from stocks, 96–97
  • properties
    • developing, 171
    • down payments and, 177
    • inspecting, 195–196
    • listings of, 173
    • managing, 167
    • taxes on, 166
    • valuing, 174
  • prospectuses, 235
  • protecting money, 83
  • purchasing-power risk, 12
  • pyramid schemes, 214

R

  • Random Walk Down Wall Street, A (Malkiel), 235
  • real estate
    • appreciation of
      • costs, 157–158
      • market indicators, 173–174
      • overview, 168
      • potential, 170
    • apps for, 247
    • assessing consumer debt, 162
    • assessing market, 173–174
    • benefits of, 168–169
    • budget and, 160–163
    • buying
      • renting vs., 156–159
      • without agents, 193
    • calculations by lenders, 161–163
    • commercial, 172
    • communities and, 165–166, 173
    • conducting research regarding, 172–174
    • conflicts of interest with, 191–192
    • costs of, 157–158
    • down payments, 160–161, 176–177, 179
    • escrow services and, 196–197
    • evaluating market, 173–174
    • financial considerations, 156–157
    • financial projections, 174
    • financing
      • achieving loan approval, 176
      • adjustable-rate mortgages, 183–186
      • assessing risks, 181–182
      • boosting credit score, 177–178
      • difference between types of mortgages, 179–182
      • fixed-rate mortgages, 182–183
      • importance of, 175
      • keeping mortgages, 182
      • low appraisals, 178
      • mortgage fees, 187
      • refinancing, 189–190
    • inspecting properties, 195–196
    • investing in, 45
    • land, 170–172
    • lenders and, 187–189
    • negotiating deals, 194–198
    • options for, 164–165, 169–172
    • overview, 9
    • Realtor app, 247
    • residential, 169–170
    • returns on, 35–38
    • selling, 197–199
    • shopping for, 163–167
    • taxes on, 162–163
    • title insurance and, 196–197
    • valuing houses, 166–167
    • valuing property, 174
  • real estate agents
    • commission of, 157
    • overview, 191–194
    • selling without, 199
  • real estate investment trusts (REITs)
    • overview, 169
    • taxes and, 47
  • real returns, 33
  • realizing risks, 11–13
  • Realtor.com
  • reducing taxes, 45–49
  • refinancing, 189–190
  • REITs (real estate investment trusts)
    • overview, 169
    • taxes and, 47
  • rental rates, 174
  • renting vs. buying houses, 156–159
  • residential housing, 169–170
  • resources for investments
    • advice from experts, 233–234
    • danger of free information, 230
    • educating oneself about, 229–230
    • influence of advertising in, 230–231
    • newsletters, 234
    • quality of, 231, 240
    • recommended, 234–235
    • researching, 232
  • restricted-choice plans, 254
  • retirement
    • accounts for, 24
    • age of, 27
    • saving plan for, 208, 238
  • returns
    • bonds, 33
    • calculating, 14
    • call options, 216
    • collectibles, 221–222
    • compounding, 36–38
    • estimating, 32–36
    • financial goals and, 38
    • funds, 126–131
    • gold, 37, 217
    • hedge funds, 144
    • inflation affecting, 33
    • money market funds, 32–33
    • overview, 14–15
    • precious metals, 217
    • principal as dividends, 139
    • real estate, 35–38
    • savings accounts, 32–33
    • small businesses, 36
    • stocks
      • average, 9
      • maximizing, 108
      • overview, 34–38
      • picking, 107
    • taxes on, 15
  • reviewing data, 246
  • risks
    • assessing, 29–30
    • banks, 68
    • bonds, 113
    • career risk, 13
    • funds, 126–127
    • hedge funds, 144
    • individual-investment risk, 12
    • interest rates, 118–119
    • interest rates and, 118–119
    • lending investments, 11
    • liquidity risk, 12
    • managing, 13–14
    • market-value risk, 12
    • overview, 11–15
    • purchasing-power risk, 12
    • real estate, 166
    • realizing, 11–13
    • reducing, 13
    • refinancing, 190
    • stocks, 95
  • robo advisors, 142–143
  • Roth 401(k) plans, 26
  • Roth IRAs, 28–29, 224
  • Russell 2000, 98

S

  • S&P (Standard & Poor's) 500
    • exchange-traded funds and, 130
    • overview, 98
  • sales load, 128
  • saving
    • money
      • assessing rate of, 60–61
      • financial goals and, 20–23
      • money market funds and, 85
    • percentage of income, 237–238
  • savings accounts
    • for education, 64–65
    • health savings accounts
      • Obamacare and, 257
      • qualifying for, 208
      • recommendations on, 66
      • as tax-reduction strategy, 44, 259–260
      • withdrawing from, 44, 208
    • investing in, 70–71
    • returns on, 32–33
    • yield of, 70
  • SBA (Small Business Administration), 209
  • schools, 166
  • SCORE (Service Corps of Retired Executives) consulting services, 209
  • SEC (Securities and Exchange Commission)
    • advisors and, 17
    • on free trading, 150
    • fund companies supplying yield, 138
    • as resource, 235
    • website, 106
  • second mortgages, 117
  • Section 529 plans, 64–65
  • securities, 15
  • Securities and Exchange Commission (SEC)
    • advisors and, 17
    • on free trading, 150
    • fund companies supplying yield, 138
    • as resource, 235
    • website, 106
  • Securities Investor Protection Corporation (SIPC), 152
  • selecting doctors and hospitals, 254
  • selling
    • investments, 45–49
    • real estate, 197–199
    • stocks, 100–101
  • SEP-IRAs (Simplified Employee Pension-Individual Retirement Accounts)
    • defined, 28
    • overview, 208
  • Service Corps of Retired Executives (SCORE) consulting services, 209
  • service quality of investment brokers, 151–152
  • shares
    • determining cost basis of, 47–48
    • identifying, 47
  • shopping for real estate, 163–167
  • ShopSavvy app, 246
  • short-term bonds, 114
  • Siegel, Jeremy
  • silver, 216–217
  • Simplified Employee Pension-Individual Retirement Accounts (SEP-IRAs)
    • defined, 28
    • overview, 208
  • single-family homes
    • appreciation of, 170
    • overview, 164
  • SIPC (Securities Investor Protection Corporation), 152
  • six months' living expenses, 20
  • Small Business Administration (SBA), 209
  • small businesses
    • apps for, 247
    • buying, 210–211
    • entrepreneuring at company, 204
    • financial projections of, 206
    • financing, 55, 208–210
    • franchises and, 212–213
    • investing in, 45, 211
    • investing in career, 202–203
    • money market funds for, 85
    • multilevel marketing companies and, 213–214
    • options for, 203–204, 210–214
    • overview, 10
    • planning for, 204–207
    • quitting current job, 207–208
    • returns on, 36
    • starting, 203–204
    • taxes on, 43
  • Social Security, 27
  • SoFi, 142
  • spending
    • controlling, 245–246
    • reducing, 60–61
    • retirement accounts and, 25–26
  • spread, 150–151
  • St. Louis Federal Reserve Economic Data (FRED)
  • staffing firms, 23
  • Standard & Poor's (S&P) 500
    • exchange-traded funds and, 130
    • overview, 98
  • start rate of adjustable-rate (ARMs) mortgages, 184
  • starting small businesses, 203–204
  • stock funds
    • picking, 134–136
    • reducing taxes, 44
  • stock mutual funds, 103–104
  • stocks
    • avoiding temptations when buying and selling, 100–101
    • call options and, 215–216
    • combining bonds with, 136–137
    • diversifying and, 34
    • earning money with, 95–97
    • economic growth and, 35
    • emergency fund and, 55
    • exchange-traded funds and, 103–104
    • following market indexes, 97–99
    • hype regarding, 100–101
    • importance of corporate profits, 95–96
    • investing in, 103–107
    • not investing in, 101–102
    • overview, 8–9, 94–95
    • P/E ratio to value, 99–100
    • picking, 104–107
    • problems with, 102–103
    • profiting from, 96–97
    • researching, 105–107
    • returns on, 34–35
      • average, 9
      • compounding, 37–38
      • maximizing, 108
      • picking, 107
    • stock mutual funds and, 103–104
  • Stocks for the Long Run (Siegel), 235
  • student loans
    • assessing, 56–57
    • covering education costs with, 63
    • interest rates on, 56–57
    • taxes and, 56
  • subprime mortgages, 121

T

  • T. Rowe Price
    • funds and, 135–137
    • overview, 147
  • tax brackets
    • balanced funds and, 136–137
    • determining, 41–42
    • money market funds and, 80
  • Tax Cuts and Jobs Act, 42–44, 162–163
  • taxes
    • annuities, 224
    • appreciation and, 15
    • balanced funds, 136–137
    • bonds, 40, 44
    • certificates of deposit, 71
    • collectibles, 218
    • dividends, 138
    • exchange-traded funds, 104
    • financial goals and, 45–46
    • gold, 218
    • health insurance, 259–260
    • home equity loans, 190
    • investments, 40–45
    • land, 171
    • large-profit investments, 48
    • losses in portfolio, 49
    • money market funds, 80
    • properties, 166
    • real estate, 162–163
    • reducing, 44–49
    • retirement accounts lowering, 24
    • returns, 15
    • shares, 47–48
    • student loans, 56–57
    • Tax Cuts and Jobs Act bill, 42–44
    • tracking distributions, 40
  • T-bills (Treasury bills)
    • ARM index, 185
    • overview, 32–33
    • taxes on, 40
  • T.D. Ameritrade, 76, 147
  • tenants, 170
  • term life insurance, 224
  • three months' living expenses, 20
  • timing markets
    • dangers of, 130
    • difficulty of, 101
  • TIPS (Treasury Inflation-Protected Securities), 112
  • title insurance
    • as expense, 157
    • shopping for, 196–197
  • Tollsmart Toll Calculator app, 246
  • townhomes
    • appreciation of, 170
    • overview, 164
  • tracking taxation of investment distributions, 40
  • trade schools, 23
  • trading
  • transfers, 84
  • transitioning coverage of health insurance, 250–251
  • TransUnion, 177
  • Treasury bills (T-bills)
    • ARM index, 185
    • overview, 32–33
    • taxes on, 40
  • Treasury bonds
    • interest rates on, 111–114
    • investing in, 120–121
    • overview, 111
    • as short-term bond fund, 139–141
  • Treasury Inflation-Protected Securities (TIPS), 112
  • Trump, Donald, 249
  • Truth in Savings Disclosure, 73
  • Tweedy, 136
  • twelve months' living expenses, 21
  • Tyson, Eric, 235

U

  • UITs (unit investment trusts), 143
  • Uniform Application for Investment Adviser Registration (Form ADV), 17
  • unit investment trusts (UITs), 143
  • Unsubsidized Stafford Loans, 63
  • U.S. stock funds, 134–135

V

  • vacancy rates, 173
  • Value Line
  • value stocks, 134
  • valuing
    • houses, 166–167
    • property, 174
  • Vanguard
    • bond funds and, 140–141
    • cash management accounts and, 76
    • ETFs and, 133
    • funds and, 135–137, 148
    • gold and, 217
    • index funds and, 129
    • overview, 147
    • website, 235
  • vocational schools, 23

W

  • waivers of expenses, 139
  • wash sale rule, 49
  • Waze app, 246
  • WealthFront, 142
  • Williams, Richard E., 61
  • Wilshire 5000, 98
  • wiring, 84
  • withdrawing
    • annuities and, 29
    • automatic plan for, 84
    • certificates of deposit and, 32–33
    • for education costs, 65
    • from health savings accounts, 44, 208
    • from Individual Retirement Accounts, 21–22, 24–25
    • penalties for, 70–71
    • from Roth IRA, 28–29, 224
    • before T-bill matures, 32–33
  • wrap accounts, 143–144

Y

  • yield
    • certificates of deposit, 71
    • chart for, 114
    • dangers of chasing, 138–139
    • defined, 14
    • effective, 122
    • guaranteed-investment contracts, 117
    • money market funds, 80
    • savings accounts, 70
    • Securities and Exchange Commission and, 138
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