Money Mistakes You Can't Afford to Make : How

An easy-to-follow map for successfully navigating the perils of personal financial planningWhen it comes to their own finances, most people don't know what to do--or what not to do--until it's too late. Money Mistakes You Can't Afford to Make is an easy-to-follow rule book for recognizing and avoiding the ordinary, often-overlooked financial missteps that can ruin the best-laid financial plans, and haunt investors for years.Written by popular U.S. News & World Report editor and columnist Paul Lim, this book covers the most common money management traps. From "mortgaging" your 401(k) to not getting life insurance, it shows readers how to sidestep blunders, or even turn them into positives, by:Planning for specific life events and future needsImplementing necessary strategies for spendingDetermining when to follow fads or stay the course

Paul Lim is a senior editor and personal finance columnist for U.S. News & World Report. He also writes feature articles on a variety of topics, from managing 401(k)s to reducing debt. Previously a staff writer for Money and a columnist for the Los Angeles Times, Lim is a coauthor of If You're Clueless About Accounting and Want to Know More.

Preface

ix

Introduction

1

(12)

MISTAKE #1: SHORTCHANGING YOURSELF

13

(24)

Building Up Savings and Paying Down Debt Money

Mini Mistake: Not Establishing an Emergency Fund

17

(5)

Mini Mistake: Banking in the Market

22

(3)

Mini Mistake: Not Digging Out of Debt

25

(8)

Mini Mistake: Not Automating Your Savings

33

(4)

MISTAKE #2: GETTING FEE'D UP

37

(44)

Saving More by Losing Less to Fees

Mini Mistake: Ignoring Banking Fees

Mini Mistake: Ignoring Investment Fees

MISTAKE #3: NOT KNOWING THE SCORE

81

(22)

Managing Your Credit and Credit Score

Mini Mistake: Not Paying Your Debts On Time

93

(1)

Mini Mistake: Owing Too Much

94

(2)

Mini Mistake: Shortening Your Credit History

96

(1)

Mini Mistake: Seeking Too Much New Credit

97

(1)

Mini Mistake: Maintaining a Poor Mix of Credit

98

(1)

Mini Mistake: Not Checking Your Credit Reports

98

(5)

MISTAKE #4: OVERLOOKING RISKS

103

(36)

Understanding Key Investment Risks

Mini Mistake: Overlooking Risks in Stocks

105

(18)

Mini Mistake: Overlooking Risks in Bond

123

(8)

Mini Mistake: Overlooking Risks in Mutual Funds

131

(8)

MISTAKE #5: REARVIEW INVESTING

139

(22)

Taking a Diversified Approach to Investing

Mini Mistake: Anchoring Expectations to the Past

142

(10)

Mini Mistake: Ignoring Asset Allocation

152

(9)

MISTAKE #6: TRYING TO BEAT THE MARKET

161

(14)

Taking What the Market Give You

Mini Mistake: Overestimating Your Abilities

166

(6)

Mini Mistake: Not Dollar-Cost Averaging

172

(3)

MISTAKE #7: TRYING TO BEAT THE MARKET WITH FUNDS

175

(28)

The Triumph of Indexing

Mini Mistake: Refusing to Be "Average"

190

(9)

Mini Mistake: Indexing Only the S&P 500

199

(4)

MISTAKE #8: INVESTING IN WHAT YOU KNOW

203

(18)

Taking an Arms Length Approach

Mini Mistake: Overestimating Your Circle of Competence

205

(4)

Mini Mistake: Loading Up on Company Stock

209

(12)

MISTAKE #9: UNDERFUNDING YOUR PENSIONS

221

(24)

Taking Full Advantage of Your Retirement

Mini Mistake: Not Putting Enough into Your 401(k)s

223

(11)

Mini Mistake: Taking Too Much Money Out of Your 401(k)s

234

(4)

Mini Mistake: Not Rebalancing Your Retirement Accounts

238

(7)

MISTAKE #10: FAILING TO DO THE RETIREMENT MATH

245

(18)

Calculating What You Need Before You Retire

Mini Mistake: Failing to Consider Safe Withdrawal Rates

252

(11)

Conclusion

263

(4)

Notes

267

(14)

Index

281

What is included with this book?

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.

FREE SHIPPING

Amazon no longer offers textbook rentals. We do!

Money Mistakes You Can't Afford to Make : How to Solve Common Problems and Improve Your Personal Finances

Summary

Author Biography

Table of Contents

Supplemental Materials