The Elements of Investing: Easy Lessons for Every Investor, Updated Edition

INDEX

A

Accumulated savings, absence, 25–26

Active management, 139

fees for, 140–141

Active managers, performance, 35

Actively managed bond funds, performance, 43

Actively managed mutual funds

annual returns, S&P 500 annual returns (comparison), 36

performance, S&P 500 index performance (contrast), 35

Adams, Scott, 6

Affluence, examination, 3–4

After-tax returns, measurement, 88

AIG, bankruptcy, 54

Allocation ranges, 108–109

Annuities

advantage, 113

fixed-income investments, 113–114

Anxiety reduction, diversity (impact), 100

Asset allocation, 105–107

example, 108–109

ranges, 107–112

selection, 112

Asset allocation, of portfolio, 134

Asset classes

diversification, 55–58, 142

price, decrease, 67–68

risk reduction, 57

Asset types, diversification, 152

Astrologists, impact, 78

AT&T bonds, 147

Australian bonds, 146

Auto insurance

deductibles, 21

shopping technique, 19

B

Baruch, Bernard, 34

Berkshire Hathaway, 42, 49–50

financial meltdown avoidance, 75

portfolio, performance, 75

Bid prices/asked prices, spreads, 37–38, 44

Blue-chip stocks, vs. U.S. bond portfolio, 147

Bogle, John C., 165

Bond diversification strategy, 142–148

Bond index funds

data, 120

investment percentage, 49

usage, 43

Bond prices vs. stock prices, 132

Bonds

addition, 108

diversifier, 148

focus, 103

foreign, 146

funds, performance, 30–31

high yield, 145–146

issuers, financial deficiency, 43

markets, movements, 66

overweighting, 105

portfolios, 148

price, increase, 70

purchase/hold, 30

rate of return, 144–145

tax-exempt, ...