The Morgan Stanley/Dean Witter Guide to Personal Investing

by Gardiner, Robert M.

• ISBN13: 9780452281219
• ISBN10: 0452281210
• Edition: Revised
• Format: Paperback
• Copyright: 1999-09-01
• Publisher: Plume

Summary

From one of the most respected names in the investment community, this revised edition of The Morgan Stanley Dean Witter Guide to Personal Investing is the authoritative guide to increasing the earning power of financial resources. Robert Gardiner, former chairman and CEO of Dean Witter, offers advice on a range of topics for short- and long-term investors--from brokers, mutual funds, 401(k)s, and online strategies to stocks, bonds, bank certificates, real estate, and insurance. This completely revised and updated edition answers the most important investment questions and will give readers the confidence to be in control of their financial future.

Author Biography

Robert Gardiner, former chairman and CEO of Dean Witter Financial Services Group, continues as a senior advisor to Morgan Stanley Dean Witter. He has also served as chairman of the National Association of Securities Dealers, vice-chairman of the New York Stock Exchange, and chairman of the Securities Industry Association. He lives in New Jersey and Florida.

Table of Contents

Preface	p. xi
The Slow Road to Riches	p. 1
Drifting Along	p. 1
There Is No Santa Claus	p. 2
The Impossible Quest	p. 4
The Power of Compound Interest	p. 6
Investing vs. Playing the Lottery	p. 7
Getting Started	p. 9
Your Current Investment Program	p. 9
Your Current Assets (Hidden and Otherwise)	p. 12
Accumulating Something to Invest	p. 16
The Importance of Starting Now	p. 19
Setting Goals--and Reaching Them	p. 21
The Importance of Goals	p. 21
Where Do You Stand?	p. 23
The Perils of "Pocket Accounting"	p. 24
Thinking About Retirement	p. 27
The 401(k) Revolution	p. 28
The IRA Lives	p. 32
Other Retirement Plans	p. 33
Eight Steps to Investment Success	p. 35
Seeking Help	p. 38
The Fallible Experts	p. 38
The Unpredictable Market	p. 41
Selecting a Financial Advisor	p. 44
The Broker-Client Relationship	p. 51
Your Investment Program--Basic Choices	p. 54
The Elusive Perfect Investment	p. 54
"Lending" Investments vs. "Owning" Investments	p. 59
Market Risk in Fixed-Income Investments	p. 62
U.S. Treasury Securities	p. 64
Certificates of Deposit (CDs)	p. 65
Corporate Bonds	p. 66
"High-Yield" or "Junk" Bonds	p. 68
Convertible Bonds	p. 69
Municipal Bonds	p. 70
Zero Coupon Bonds	p. 70
Mortgage-Backed Securities	p. 72
International Bonds	p. 74
Debt vs. Equity Investments	p. 75
Preferred Stocks	p. 75
Gold and Silver	p. 76
Collectibles	p. 78
Choosing Investment Vehicles	p. 79
Mutual Funds	p. 80
Unit Investment Trusts	p. 82
Annuities	p. 83
Hiring an Investment Manager	p. 85
Putting It All Together	p. 86
The Need to Diversify	p. 87
The Stock Market	p. 89
The Long-term View	p. 89
Don't "Play" the Market	p. 93
Picking Stocks	p. 96
What Is a Stock Worth?	p. 99
The Blue Chip Option	p. 103
Mutual Funds	p. 105
Hope, Boredom, Greed, and Fear	p. 106
Real Estate	p. 110
Is Real Estate for You?	p. 110
The Appeal of Homeownership	p. 112
House Shopping	p. 115
Mortgages	p. 119
Choosing a Lender	p. 121
Home Equity Loans	p. 123
"Real" Real Estate Investments	p. 125
"Hands-on" Real Estate	p. 125
Rental Income	p. 128
Tax Breaks	p. 129
Leverage and Appreciation	p. 129
"Hands-off" Real Estate Investments	p. 132
Real Estate Investment Trusts (REITs)	p. 132
Limited Partnerships	p. 133
Real Estate vs. Other Investments	p. 135
Life Insurance	p. 136
Principles of Insurance	p. 136
How Much Do You Need?	p. 138
Your Insurance Options	p. 142
Term Insurance	p. 142
Whole Life Insurance	p. 145
Universal Life Insurance	p. 146
Insurance vs. Investing on Your Own	p. 149
High-Risk Investments	p. 151
Who Can Afford to Make Risky Investments?	p. 151
High-Risk Stocks	p. 155
High-Risk Trading Strategies	p. 157
Buying on Margin	p. 159
Selling Short	p. 160
Derivatives	p. 162
Stock Options	p. 164
Stock Index Options	p. 166
Futures	p. 167
For Rocket Scientists Only	p. 169
Beware of Swindles	p. 170
Managing Your Portfolio	p. 172
Getting Richer	p. 172
Diversification by Type, or Asset Allocation	p. 173
Diversification over Time	p. 175
The Virtues of Patience	p. 179
Weeding the Garden	p. 181
Measuring Performance	p. 182
Moving Toward Your Goal	p. 186
The Economic Facts of Life	p. 188
The Individual and the Economy	p. 188
The Specter of Inflation	p. 190
The Globalization of Economic Life	p. 197
The Upward Trend	p. 201
Index	p. 205
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