The Elements of Investing

Seize control of your financial future with rock-solid advice from two of the world's leading investment expertsInvestors today are bombarded with conflicting advice about how to handle the increasingly volatile stock market. From pronouncements of the "death of diversification" to the supposed virtues of crypto, investors can be forgiven for being thoroughly confused.It's time to return to the basics. In the 10th Anniversary Edition of The Elements of Investing: Easy Lessons for Every Investor, investment legends Burton G. Malkiel and Charles D. Ellis deliver straightforward, digestible lessons in the investment rules and principles you need to follow to mitigate risk and realize long-term success in the markets.Divided into six essential elements of investing, this concise book will teach you how to:* Focus on the long-term and ignore short-term market fluctuations and movements* Use employer-sponsored plans to supercharge your savings and returns and minimize your taxes* Understand crucial investment subjects, like diversification, rebalancing, dollar-cost averaging, and indexingSo, forget the flavor of the week. Stick with the timeless and invaluable advice followed by the world's most successful retail investors.

Preface to Anniversary Edition xiForeword to Original Edition xvForeword to the Anniversary Edition xixIntroduction xxiIt All Starts with Saving 1I. Save 3First Do No Harm 5Start Saving Early: Time is Money 6The Amazing Rule of 72 7Savvy Savings 11Small Savings Tips 14Big Ways to Save 15Let the Government Help You Save 17Own Your Home 18How Do I Catch Up? 19II. Index 23Nobody Knows More Than the Market 24The Index Fund Solution 27Don't Some Beat the Market? 29Index Bonds 33Index Internationally 34Index Funds Have Big Advantages 36One Warning 37Confession 39III. Diversify 41Diversify Across Asset Classes 43Diversify Across Markets 46Diversify Over Time 47Rebalance 51IV. Avoid Blunders 57Overconfidence 59Beware of Mr. Market 61The Penalty of Timing 65More Mistakes 66Minimize Costs 67V. Keep It Simple 71Review of Basic Rules 72Asset Allocation 79Asset Allocation Ranges 81Investing in Retirement 85Getting Specific 86VI. Timeless Lessons for Troubled Times 95Volatility and Dollar-Cost Averaging 97Diversification is Still a Time-Honored Strategy to Reduce Risk 99Rebalancing 101Diversification and Rebalancing Together 103Index at Least the Core of Your Portfolio 104Fine-Tuning a Bond Diversification Strategy 107A Final Thought 111A Super Simple Summary: KISS Investing 113Appendix: Save on Taxes Legally 115Individual Retirement Accounts (IRAs) 115Roth IRAs 117Pension Plans 118Tax-Advantaged Saving for Education 120Recommended Reading 123Acknowledgments 125About the Authors 127Index 129