Learn the basics of investing with this approachable guide to the world of finance
Clever Girl Finance: Learn How Investing Works, Grow Your Money is the leading guide for women who seek to learn the basic foundations of personal investing. In a no-nonsense and straightforward style, this book teaches readers:
- Exactly how investing works and what you should be doing, no fancy finance degree required
- How to leverage investing to build long term wealth even on a modest salary
- The key pitfalls to avoid in order to become a successful investor
- How to build a nest egg and invest in your future
- Insights from real-world success stories from other "clever girl investors"
Clever Girl Finance teaches readers the irreplaceable value of investing for long-term financial gain, and the difference between making money and building wealth.
Written for any woman who’s ever sought out an accessible introduction to the world of investing, this book is especially suited to women interested in learning how investing works and taking guided action towards their financial success.
Table of Contents
About the Author xi
Acknowledgments xiii
You are in the Right Place! Get Ready to Become a Clever Girl Investor! xv
How to Use This Book xix
Chapter 1 Adjusting Your Mindset About Investing 1
Why Investing Matters 7
Getting Educated About Investing 9
Women and the Investment Gap: Why It’s More Important Than Ever for Women in Particular to Invest 11
My Investing Story: The Complete Game-Changer for My Finances 15
Chapter 2 How the Stock Market Works 19
What Is the Stock Market? 21
Stock Exchanges in the United States 22
Indices and the Stock Market 23
The Economy and the Stock Market 26
How the Economy Affects Your Portfolio 26
Clever Girl Investor: Meet Jennifer “Jenny” Coombs 30
Chapter 3 Core Investing Concepts: Inflation, Compounding, and the Rule of 72 33
Inflation 36
What Causes Inflation? 37
Inflation in the United States 38
Compounding 39
How Compound Interest Works 40
The Rule of 72 44
Compound Interest, the Rule of 72, and Debt 46
Clever Girl Investor: Meet Cindy E. Zuniga 48
Chapter 4 Preparing to Invest 51
Key Factors to Ensure You’re Prepared to Invest 54
Setting Your Investment Objectives 58
Understanding Risk 59
Mitigating Risk 60
Chapter 5 The Different Types of Stock Market Investments 65
Investing in Stocks 67
Market Capitalization and Stocks 68
Investing in Bonds 70
What to Know About Bonds 70
Should You Buy Individual Stocks and/or Bonds? 73
Investing in Funds 74
Index Funds to Win 76
The Key Benefits of Index Funds 77
Popular Index Funds 79
Chapter 6 Researching Your Investments 83
Things to Look for When Researching Investments 86
Extra Credit: More Investing Terms and Definitions 90
Clever Girl Investor: Meet Adeola Omole 92
Chapter 7 Where and How to Purchase Your Investments 97
Brokerage Firms and Robo-Advisors 99
Working with a Financial Advisor 102
Practicing with Simulation Accounts 103
Trading versus Investing 104
Clever Girl Investor: Meet Jully-Alma Taveras 105
Chapter 8 Investing for Retirement 109
Types of Retirement Investment Accounts 114
What to Do When You Leave Your Employer 122
Tips to Maximize Your Retirement Investments 123
Are You Saving Enough? 126
Investing During Retirement 128
Clever Girl Investor: Meet Faneisha “Fo” Alexander 129
Chapter 9 Simple Investing Strategies 133
The 3-Fund Portfolio Investing Strategy 136
Alternative Investing Strategies: The 1-Fund, 2-Fund, 4-Fund, and 5-Fund Portfolios 139
Clever Girl Investor: Meet Jamila Souffrant 143
Chapter 10 Keeping Your Investments on Target 147
How Does Rebalancing Work? 149
When to Rebalance Your Portfolio 150
A Common Rule of Thumb: 100 Minus Your Age 151
How Often Should You Rebalance Your Portfolio? 151
Target-Date Funds, Robo-Advisors, and Portfolio Rebalancing 152
Letting Go of a Losing Investment 153
Chapter 11 The Deal with Taxes 157
Income Tax and Capital Gains Tax 159
Tax Losses 160
Minimizing Your Tax Obligation 161
Chapter 12 Investing Mistakes and Pitfalls to Avoid 165
Key Investing Mistakes and How to Avoid Them 168
Clever Girl Investor: Meet Regina Byrd 170
In Closing 175
Takeaways to Remember 177
Index 181
