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· 분류 : 외국도서 > 경제경영 > 개인재무관리 > 투자
· ISBN : 9781119894780
· 쪽수 : 384쪽
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Introduction 1
About This Book 2
Conventions Used in This Book 5
What You’re Not to Read 5
Foolish Assumptions 5
How This Book Is Organized 6
Part 1: A Quick Guide to the Fixed-Income Universe 6
Part 2: Bonds of Many Distinct Flavors 6
Part 3: Bonds as Portfolio Cement 7
Part 4: A Manual for Smart Bond Shopping 7
Part 5: Bonds as Good Friends of Retirees 7
Part 6: The Part of Tens 7
Icons Used in This Book 7
Beyond the Book 8
Where to Go from Here 8
Part 1: A Quick Guide to the Fixed-Income Universe 9
Chapter 1: Buying Bonds: In Your Best Interest 11
Understanding What Makes a Bond a Bond 12
Choosing your time frame 13
Picking who you trust to hold your money 14
Recognizing the difference among bonds, stocks, and cryptocurrencies 15
Why Hold Bonds? (Spoiler Alert: It Isn’t to Make You Rich) 16
Identifying the best reason to buy bonds: Diversification 16
Going for the cash 17
Investing in an Era of Low, Low Interest Rates 19
All this fuss about the Fed 20
Real (after-inflation) interest rates matter most 20
Don’t get depressed over depressed rates 21
Introducing the Major Players in the Bond Market 22
Supporting (enabling?) your Uncle Sam with Treasury bonds 22
Collecting corporate debt 23
Demystifying those government and government-like agencies 23
Going cosmopolitan with municipal bonds 24
Buying Solo or Buying in Bulk 26
Picking and choosing individual bonds 26
Going with a bond fund or funds 26
Chapter 2: Constructing Your Portfolio’s Foundation 29
Focusing on Your Objectives 30
Deciding what you want to be when you grow up 31
Picturing your future nest egg 31
Understanding the Rule of 20 (preferably 25) 32
Choosing your investment style 33
Making Your Savings and Investment Selections 34
Saving your money in safety 34
Investing your money with an eye toward growth 36
Understanding Five Major Investment Principles 38
1 Risk and return are two sides of the same coin 38
2 Financial markets are largely efficient 39
3 Diversification is just about the only free lunch you’ll ever get 39
4 Reversion to the mean — it means something 40
5 Investment costs matter — a lot! 41
Chapter 3: A (Mostly) Heroic History of Bonds 43
Reviewing the Triumphs and Failures of Fixed-Income Investing 44
Beating inflation, but not by very much 44
Serving a savoir in times of distress 45
Looking Back Over a Long and (Mostly) Distinguished Past 47
Yielding returns to generations of your forebearers 48
Gleaning some important lessons 49
Realizing How Crucial Bonds Are Today 52
Viewing Recent Developments, Largely for the Better 54
Chapter 4: Interest, Sweet Interest 57
Calculating Rates of Return — Tougher than Deciphering Babylonian 58
Cutting deals 59
Changing hands 59
Embracing the complexity 60
Conducting Three Levels of Research to Judge the Desirability of a Bond 60
Level one: Getting the basic information 61
Level two: Finding out intimate details 63
Level three: Examining the neighborhood 66
Understanding (and Misunderstanding) the Concept of Yield 69
Coupon yield 70
Current yield 70
Yield-to-maturity 70
Yield-to-call 72
Worst-case basis yield 72
The 30-day SEC yield 73
Appreciating Total Return (This Is What Matters Most!) 73
Figuring in capital gains and losses 73
Factoring in reinvestment rates of return 74
Allowing for inflation adjustments 74
Weighing pretax versus posttax 75
Measuring the Volatility of Your Bonds 76
Time frame matters 76
Quality counts 76
The coupon rate matters, too 77
Foreign bonds, added risk 78
Revisiting the Bonds of Babylonia 78
Interest short run, interest long run 79
Interest past, interest future 79
Part 2: Bonds of Many Distinct Flavors 81
Chapter 5: US Treasury Bonds: As Safe as Safe Can Be 83
Investing with Uncle Sam in Myriad Ways 84
Savings bonds as gifts or small investments 85
Treasury bills, notes, and bonds for more serious investing 90
Treasury inflation-protected securities (TIPS) 91
Easing Your Fears of Default 93
Deciding Whether, When, and How to Invest in Treasuries 94
Figuring out whether you want Treasuries 94
Picking your own maturity 97
Adding in some inflation protection 99
Entering the Treasury Marketplace 99
Buying direct or through a broker 100
Choosing a new or used bond 101
Tapping Treasuries through mutual funds and exchange-traded funds 102
Chapter 6: Getting Down to Business: Corporate Bonds 103
Why Invest in These Sometimes Pains-in-the-Butt? 104
Comparing corporate bonds to Treasuries 104
Considering historical returns 106
Getting Moody: The Crucial Credit Ratings 107
Revisiting your ABCs 108
Gauging the risk of default 110
Special Considerations for Investing in Corporate Debt 111
Calculating callability 112
Coveting convertibility 112
Reversing convertibility —imagine that 113
Appreciating High Yield for What It Is 114
Anticipating good times ahead 114
Preparing for the bad times 115
Investing in high yields judiciously 115
Chapter 7: Powerful and a Tad Mysterious: Agency Bonds 117
Identifying the Bond Issuers 118
Slurping up your alphabet soup 118
Separating federal agency bonds from GSEs 119
Sizing up the government’s actual commitment 120
Introducing the agency biggies 120
Comparing and Contrasting Agency Bonds 125
Eyeing default risks, yields, markups, and more 125
Weighing taxation matters 126
Discos, floaters, and step-ups 127
Banking Your Money on Other People’s Mortgages 127
Bathing in the mortgage pool 128
Deciding whether to invest in the housing market 128
Considering Agencies for Your Portfolio 129
Chapter 8: (Practically) Tax-Free: Municipal Bonds 131
Appreciating the Purpose and Power of Munis 132
Sizing up the muni market 133
Comparing and contrasting with other bonds 133
Delighting in the diversification of municipals 134
Knowing That All Cities (Bridges or Ports) Are Not Created Equal 136
Dealing with the rare default 136
Enjoying low risk 137
Choosing from a vast array of possibilities 138
Consulting the Taxman 139
Bringing your bracket to bear 140
Singling out your home state 141
Matching munis to the appropriate accounts 142
Recognizing Why This Chapter Is Titled “(Practically) Tax-Free: Municipal Bonds” 142
Reckoning with the AMT tax 143
Capping your capital gains 143
Introducing the fully taxable muni 144
Buying Munis Made Easier 144
Chapter 9: International Bonds and Other Seemingly Exotic Offerings 147
Traveling Abroad for Fixed Income 148
Dipping into developed-world bonds 148
Embracing the bonds of emerging-market nations 152
Bond Investing with a Conscience 155
Having faith in church bonds 155
Adhering to Islamic law: Introducing sukuk 157
Sustainability-linked bonds 158
Playing with Bond Fire: Potentially Risky Bond Offerings 161
Rocking with Bowie Bonds 161
Cashing in on catastrophe bonds 162
Dealing in death 162
Dancing in the Flames: Derivatives and Default Bond Products 163
Daring to delve into derivatives 163
Banking on losses with defaulted bond issues 164
Catching a fallen angel 166
Evaluating Exchange-traded Notes 167
What are they? 167
Should you invest? 168
Part 3: Bonds as Portfolio Cement 169
Chapter 10: Return, Risk, and Realism 171
Searching, Searching, Searching for the Elusive Free Lunch 172
Making a killing in CDs yeah, right 172
Defining risk and return 173
Appreciating Bonds’ Risk Characteristics 173
Interest rate risk 174
Inflation risk 175
Reinvestment risk 176
Default risk 176
Downgrade risk 177
Tax risk 178
Fear-of-missing-out (FOMO) risk 178
Regarding all these risks 179
Reckoning on the Return You’ll Most Likely See 181
Calculating fixed-income returns: Easier said than done 181
Looking back at history: An imperfect but useful guide 182
Investing in bonds despite their lackluster returns 184
Finding Your Risk-Return Sweet Spot 187
Allocating your portfolio correctly 187
Tailoring a portfolio just for you 187
Chapter 11: The Art and Science of Portfolio-Building 189
Mixing and Matching Your Various Investments 190
Dreaming of limited correlation 190
Seeking zig and zag with Modern Portfolio Theory 192
Translating theory into reality 192
Appreciating Bonds’ Dual Role: Diversifier and Ultimate Safety Net 194
Protecting yourself from perfect storms 194
Eyeing a centuries-old track record 195
Recognizing Voodoo Science 197
Comparing actively managed funds to index funds 197
Forecasting the future — and getting it wrong 198
Ignoring the hype 199
Chapter 12: Slicing the Pie: How Much Should Be in Bonds? 201
Why the Bond Percentage Question Isn’t As Simple As Pie 202
Minimizing volatility 203
Maximizing return 204
Peering into the Future 205
Estimating how much you’ll need 206
Assessing your time frame 206
Factoring in some good rules 206
Recognizing yourself in a few case studies 207
Noticing the Many Shades of Gray in Your Portfolio 212
Bonds of many flavors 213
Stocks of all sizes and sorts 213
Other fixed income: Annuities 214
Other equity: Commodities and real estate 215
Making Sure That Your Portfolio Remains in Balance 216
Tweaking your holdings to temper risk 217
Savoring the rebalancing bonus 217
Scheduling your portfolio rebalance 218
Chapter 13: Making Your Preliminary Bond Choices 219
Reviewing the Rationale behind Bonds 220
Making your initial selection 220
Following a few rules 221
Sizing Up Your Need for Fixed-Income Diversification 222
Diversifying by maturity 222
Diversifying by type of issuer 222
Diversifying by risk-and-return potential 223
Diversifying away managerial risk 224
Weighing Diversification versus Complication 225
Keeping it simple with balanced funds (for people with less than $2,000) 225
Moving beyond the basic (for people with $2,000 to $4,000) 225
Branching out (with $4,000 or more) 226
Finding the Perfect Bond Portfolio Fit 226
Case studies in bond ownership 226
Seeking out the more exotic offerings 232
Part 4: A Manual for Smart Bond Shopping 233
Chapter 14: Planning Your Bond Buys and Sells 235
Discovering the Brave New World of Bonds 236
Finding fabulously frugal funds 236
Dealing in individual bonds without forking over a fortune 237
Deciding Whether to Go with Bond Funds or Individual Bonds 239
Calculating the advantages of funds 239
Considering whether individual bonds or bond funds make more sense 241
Is Now the Time to Buy Bonds? 246
Predicting the future of interest rates yeah, right 247
Paying too much attention to the yield curve 248
Adhering — or not — to dollar-cost averaging 249
Choosing between Taxable and Tax-Advantaged Retirement Accounts 250
Positioning your investments for minimal taxation 250
Factoring in the early-withdrawal penalties and such 252
Chapter 15: Diving (Carefully!) into the Individual Bond Marketplace 253
Navigating Today’s Bond Market 254
Getting some welcome transparency 255
Ushering in a new beginning 255
Dealing with Brokers and Other Financial Professionals 256
Identifying the role of the dealer 257
Do you need a broker or agent at all? 258
Selecting the right broker or agent 259
Checking the dealer’s numbers 259
Hiring a financial planner 261
Doing It Yourself Online 262
If you’re looking to buy 263
If you’re looking to sell 264
Perfecting the Art of Laddering 265
Protecting you from interest rate flux 265
Tinkering with your time frame 266
Discount bonds or premium bonds? 268
Buying and Selling an Individual Bond: My Own Journey 269
Chapter 16: Choosing Bond Funds Wisely 273
Defining the Basic Kinds of Funds 274
Mining a multitude of mutual funds 275
Establishing a position in exchange-traded funds 276
Considering an alternative: Closed-end funds 278
Understanding unit investment trusts 279
Knowing What Matters Most in Choosing a Bond Fund of Any Sort 280
Selecting your fund based on its components and their characteristics 280
Pruning out the underperformers 280
Laying down the law on loads 281
Sniffing out false promises 281
My Picks for Some of the Best Bond Funds 282
Short-term, high-quality bond funds 283
Intermediate-term Treasury bond funds 286
(Mostly) high-quality corporate bond funds 287
Junk city: Corporate high-yield funds 288
Agency bond funds 290
Municipal bond funds: Taxes be damned 291
Taxable Muni Bonds 292
Global and International bond funds 293
Emerging market bond funds 294
All-in-one bond funds 295
Instant-Ladder, Defined-Maturity Bond Funds (Government, Corporate, Municipal) 298
All-in-one bond and stock funds 298
Target-retirement date funds (otherwise known as life-cycle funds) 300
Part 5: Bonds as Good Friends of Retirees 303
Chapter 17: Satisfying Your Need for Steady Cash 305
Reaping the Rewards of Your Investments 306
Aiming for freedom 306
Estimating your target portfolio 307
Lining up your bucks 308
Finding Interesting Sources of Interest 308
Certificates of deposit (CDs) 309
Mining the many money market funds 309
Banking on online savings accounts 311
Considering the predictability of an annuity 311
Hocking your home with a reverse mortgage 313
Recognizing that Stocks Can Be Cash Cows, Too 313
Focusing on stocks with sock-o dividends 314
Realizing gain with real estate investment trusts (REITs) 315
Taking a middle ground with preferred stock 316
Introducing a Vastly Better Way to Create Cash Flow: Portfolio Rebalancing 316
Buying low and selling high 318
Rolling bond interest back in 320
Dealing with realities 320
Chapter 18: Ensuring Financial Security in Old Age 321
Looking Ahead to Many Years of Possible Portfolio Withdrawals 322
Knowing Where the Real Danger Lies: The Risk of Being Too Conservative 323
Considering an aggressive approach 323
Easing back toward your comfort zone 324
Setting your default at 60/40 324
Allowing for adjustments to suit the times 325
Choosing my own and your ultimate ratio 326
Calculating How Much You Can Safely Tap 328
Revisiting risk, return, and realistic expectations 328
Basing your retirement on clear thinking 329
Making the Most Use of Uncle Sam’s Gifts 330
Minimizing income is the name of the game 330
Lowering your tax bracket through smart withdrawals 331
Part 6: The Part of Tens 333
Chapter 19: Ten Most Common Misconceptions about Bonds 335
A Bond “Selling for 100” Costs $100 335
Buying a Bond at a Discount Is Better Than Paying a Premium, Duh 336
A Bond Paying X% Today Will Pocket You X% Over the Life of the Bond 336
Rising Interest Rates Are Good (or Bad) for Bondholders 337
Certain Bonds, Such as Treasuries, Are Completely Safe 338
Bonds Are a Retiree’s Best Friend 338
Individual Bonds Are Usually a Better Deal than Bond Funds 338
Municipal Bonds Are Free of Taxation 339
A Discount Broker Sells Bonds Cheaper 339
The Big Risk in Bonds Is the Risk of the Issuer Defaulting 340
Chapter 20: Ten Mistakes Bond Investors Need to Avoid 341
Allowing the Broker to Churn You 341
Not Taking Advantage of TRACE 342
Choosing a Bond Fund Based on Short-Term Performance 342
Not Looking Closely Enough at a Bond Fund’s Expenses 343
Going Through a Broker to Buy Treasuries 343
Counting Too Much on High-Yield Bonds 343
Paying Too Much Attention to the Yield Curve 344
Buying Bonds That Are Too Complicated 345
Ignoring Inflation and Taxation 345
Relying Too Heavily on Bonds in Retirement 345
Appendix: Helpful Web Resources For Successful Bond Investing 347
Index 353
