Investing For Dummies, 7th Edition

Introduction

During the financial crisis of 2008, things got scary. Large Wall Street firms were going under, stock prices were plummeting, and layoffs and unemployment rates were soaring. And all this was happening in the midst of the 2008 presidential election. Talk of another Great Depression was in the air. In fact, polls showed a majority of Americans feared that another depression was actually happening. Housing prices were dropping sharply in most communities, and more and more properties were ending up in foreclosure.

Investing didn’t seem so fun anymore. However, even though the downturn was the worst in decades, it had similarities to prior downturns, and people who kept their sense of perspective have enjoyed tremendous returns since the market bottom.

I know from working with people of modest and immodest economic means that the time-tested ways they increase their wealth are by doing the following:

• Living within their means and systematically saving and investing money, ideally in a tax-favored manner
• Buying and holding a diversified portfolio of stocks
• Building their own small business
• Investing in real estate

This book explains each of these wealth boosters in detail. Equally if not more important, however, is the information I provide to help you understand and choose investments compatible with your personal and financial goals.

About This Book

The best investment vehicles for building wealth — stocks, real estate, and small business — haven’t changed. But ...