From Piggybank to Portfolio

Brian Perry

Description

"Mr. Perry offers an excellent overview of today's many different investment vehicles and types of assets, provides a user-friendly step-by-step plan for how to start and maintain a portfolio. The writing is clear and delightfully free of jargon." - Carsten Kowalczyk, Ph.D., The Fletcher School of Law and Diplomacy, Tufts University, and School of Economics and Management, University of Aarhus. From compounding, which Einstein called "the most powerful force in the universe," to investor motivation and asset allocation, money manager and CFA Brian Perry has put together an easy-to-understand primer for those heretofore inexperienced in financial matters. His comprehensive guidebook is perfect for the student just starting out in the workplace as well as for those who, at any age, have been previously uninterested in the basic tenets of investing and wealth creation. Written with a keen teacher's voice, From Piggybank to Portfolio deserves a place on every financial newbie's desk. In From Piggybank to Portfolio you will: Learn to focus on compound interest, "the most powerful force in the universe" Get simple, clear-cut instructions on how to invest Get on the path to a secure financial future Learn the one-stop solution to structuring an investment programIncludes sample portfolios, a summary of the basic rules to remember, and a risk tolerance questionnaire.

Sujets

• Personal finance

Informations

• Publié par: First Edition Design Publishing
• Date de parution: 20 mai 2015
• Nombre de lectures: 0
• EAN13: 9781622878789
• Langue: English

Extrait

FROM PIGGYBANK TO PORTFOLIO

A Financial Roadmap for New Investors

Brian Perry, CFA
“Mr. Perry offers an excellent overview of today’s many different investment vehicles and types of assets, provides a user-friendly step-by-step plan for how to start and maintain a portfolio. The writing is clear and delightfully free of jargon.” – Carsten Kowalczyk, Ph.D., The Fletcher School of Law and Diplomacy, Tufts University, and School of Economics and Management, University of Aarhus.

From compounding, which Einstein called “the most powerful force in the universe,” to investor motivation and asset allocation, money manager and CFA Brian Perry has put together an easy-to-understand primer for those heretofore inexperienced in financial matters. His comprehensive guidebook is perfect for the student just starting out in the workplace as well as for those who, at any age, have been previously uninterested in the basic tenets of investing and wealth creation. Written with a keen teacher’s voice, From Piggybank to Portfolio deserves a place on every financial newbie’s desk.

In From Piggybank to Portfolio you will:
· Learn to focus on compound interest, “the most powerful force in the universe”
· Get simple, clear-cut instructions on how to invest
· Get on the path to a secure financial future
· Learn the one-stop solution to structuring an investment program

Includes sample portfolios, a summary of the basic rules to remember, and a risk tolerance questionnaire.
From Piggybank to Portfolio: A Financial Roadmap for New Investors
Copyright ©2015 Brian Perry

ISBN 978-1622-878-78-9 EBOOK

April 2015

Published and Distributed by
First Edition Design Publishing, Inc.
P.O. Box 20217, Sarasota, FL 34276-3217
www.firsteditiondesignpublishing.com



ALL RIGHTS RESERVED. No part of this book publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means ─ electronic, mechanical, photo-copy, recording, or any other ─ except brief quotation in reviews, without the prior permission of the author or publisher.

Although the author and publisher have made every effort to ensure that the information in this book was correct at press time, the author and publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause.
To the memory of my father , William Perry,
and to my wife, Kristi, and my mother, Valerie.
Without your love, support, and sacrifice none of this would have been possible .
Acknowledgments

This book represents the accumulation of the knowledge and experience I have gained over the course of my schooling and my career . As such, I am grateful for the interactions I have enjoyed with my professional colleagues, professors, and fellow students over the past three decades.
Any successes I have had are largely due to the people in my life so I'd like to take this opportunity to say thank you to J ennifer and Christina, the two best sisters anyone could ever hope for. Thanks also to my family and friends everywhere, including (but certainly not limited to) Cindy and Bob Parducci,
Patty Zelek, Grandpa Zelek, all the cousins (you know who you are), Humphrey Bohan, the Perrys, Jerry and Debby Tucker, and Sean and Corrine Tucker (and all the Tuckers). To everyone not listed here, please know that you are in my thoughts and in my heart. Thank you also to my recently departed best friend, Mozart Perry, wingman extraordinaire, who kept me sane and made me smile while I completed this book; you lit up my life.
I'd also like to send a special note of thanks to all the military members, police officers, fire fighters, and any others who work in dangerous occupations to keep us safe. Thanks also to all the teachers out there working hard to build a better tomorrow.
Finally, an extra special thank you to my wife, Kristi, without whose love, support, and encouragement I could never have completed this book . To my mother, Valerie, whose love and support kept me (barely) on the right path all these years, and to my father, William Perry, who was tragically killed in the line of duty on December 22, 1980. I love you guys.
Table of Contents

Introduction

PART 1 Deciding to Invest
Chapter 1 The Good News: Who Wants To Be A Millionaire?
Chapter 2 The Bad News: Four Potential Problems
Chapter 3 You Can Do It!
Chapter 4 Do You Believe In Magic? (The Most Powerful Force in the Universe)
Chapter 5 What to Do If You Think You're Too Old (Or Too Young)
Chapter 6 Explaining the Financial Crisis
Chapter 7 Crisis Equals Opportunity (Why This is a Great Time to Move from Piggybank to Portfolio)

PART 2 Preparing to Invest
Chapter 8 Pay Yourself First
Chapter 9 Investing for Retirement
Chapter 10 Saving for a Sunny Day (Investing for the Good Things in Life)
Chapter 11 Choosing Your Financial Partners (And Making Sure They Aren't People Like Bernie Madoff)

PART 3 Learning to Invest
Chapter 12 Basic Rules of Investing
Chapter 13 Investment Vehicles
Chapter 14 Asset Classes: Stocks
Chapter 15 Global Investing
Chapter 16 Asset Allocation & Diversification

PART 4 Taking Action to Invest
Chapter 17 Step by Step

Appendices
A. Rules to Remember
B. Risk Tolerance Questionnaire
C. Sample Portfolios

Selected Glossary
Introduction

How do you want to li v e later on in life? W ould you like to live like a Rockefeller, or does the thought of a life similar to one of the less fortunate characters in a Dickens novel (say Bob Cratchit before Scrooge has his epiphany) sound appealing to you ? Your mindset regarding your finances will determine to a large extent whether you are sailing on your own yacht or you are scraping barnacles off someone else's yacht (perhaps as a second or third job) later on in life .
Finan c ial mindsets develop slowly over the course of our lives. Oftentimes we become victims to harmful patterns that began when we were kids. For instance, when we are ver y y oung, man y of us receive our first piggybank . As we receive allowances, birthday gifts, or money from the tooth fairy we deposit some of it into that piggybank . Then we contentedly go on our wa y, knowing that the mone y in the bank is safe and will be there when we need it .
But as we grow older, we see more and more commercials with more and more things that we just have to have. There are times when we have enough money to pay for these things , but in some instances we are forced to reach into our piggybank in order to finance part of our purchases. For some of us, this becomes a lifelong habit-when we see something we have to have, we dip into our savings in order to pay for it. Over time, we consistently spend more than we ear n , and our piggybank sits on our shelf, empty and collecting dust.
Sometimes though, events occur that make us rea l ize just how important it is that we save more than we spend and that we make sure we always have a l ittle extra cash in our piggybank . The recent financial crisis is one of these events. Never before has it been so apparent that one of the keys to long-term happiness is to consistently save and invest a little bit o f mo n ey in order to build for the future. This book w i ll demonstrate how individuals can rebuild their proverbial piggybanks. Even more importantly, you wil l learn how to move beyond a piggybank and how to b u i l d a true investment portfolio.
Spending less than you earn and saving for a rainy day is the key to a secure future . However, there are simple, time-tested, effective techniques that this book will teach that, when consistently used, will allow an ind i v i dual to move beyond a piggybank to an i nvestment portfolio. While restocking your pigg y bank will provide you with a sec ur e future, building an investment portfolio will provide you with a prosperous future.
Let's face it, we all know that money isn ' t the key to happiness, but not having money and constantly worrying about how to pay the bil l s can lead to a miserable existence. Reading this book and utilizing the tools I provide will rebuild y our piggybank , construct a true investment portfolio , and can help you avoid financial difficulties later on down the road. Doing so will free up a lot more time for you to focus on the good thing s i n life .
The events of the financial crisis and recession have frightened many people, and the dishonorable actions of certain financial professionals have increased the general unease that man y ordinar y people feel to w ard financial markets and matters . These feelings are perfectly natural, but they shouldn't stop you from preparing for a be t ter financial future . In fact , as this book w ill demonstrate , per i ods of economic and financial turmoil often provi d e some of the greatest investment opportunities of our lif e times . After all, who doesn ' t love bu y ing something w hen it ' s on s a le ?
If you are new to in v e s ting , ju s t beginning to make prepar a tions for your financial future, or rebuilding y our finances following a difficult period , thi s might
be the book for you. There are several obstacles that may have prevented you from taking the first steps toward securing your financial future. You may have avoided contributing to your employer's retirement plan because you felt overwhelmed by the variety of choices available. You may have wanted to begin but haven't felt like you had enough money to get started. The fear of making a mistake in y our investments and looking foolish may have stopped you in the past. Or , maybe you suspect that your w ealth is not growing as quickly as it should due to the exorbitant fees and expenses your current investment providers are charging you. Regardless of the situation, this book will help.
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