Author: Eric Tyson, MBA
Publisher: Wiley, 410 pages
Book Review by Ramu Nakliba
In Investing for Dummies, Eric Tyson shows the ordinary, inexperienced person not only how to invest money in intangibles such as mutual funds, stocks and bonds, but also investing in tangibles such as real estate properties.
He shows you how to develop a portfolio of the intangibles and manage it for long-term gain, minimizing the taxes due not only while holding these assets but also when selling them. Tyson should know. He is also the author of Personal Finance for Dummies and Mutual Funds for Dummies.
And, if you’re bent on taking the plunge into business, he guides on this course of action. As a business owner, you get deeper into investing. You’re not only investing your money but also investing your time and efforts into becoming a business owner, for the rewards of profit it entices you with. He shows you how to open and run a small business profitably.
Tyson discusses, among other topics: time-tested investment strategies, knowing your expectations and finding matching investments, investing in precious metals and commodities, how economic indicators affect different types of assets and firms, what to do in down and up markets, how to invest wisely when your emotions color your thinking, and how to take advantages of tax laws to maximize your returns.
He touches upon important investment factors such looking at the big picture – what you aim to accomplish – and knowing the correct time frame for a particular investment. He emphasizes the importance of saving your money as a starting point in your wealth-building strategy (all too often, easily –acquired money is lost quickly). He emphasizes the importance of doing your homework first.
He also shows you how to diversify your investments and allocate your assets in such a way that you do not get hit big if much of your money is into a single asset class.
All in all, this is a well-balanced and thorough work by someone in the know on the very broad subject of investing.
