The Little Book of Main Street Money

"A gem from one of the most brilliant minds in personal finance." — Ben Stein, author, actor, TV personality, and New York Times columnist In a financial world gone mad, you still need to manage your money, put your kids through college, and save for retirement. To the rescue comes Jonathan Clements with 21 easy-to-follow rules to help you secure your financial future. Clements has spent a quarter century demystifying Wall Street for ordinary, real people on Main Street, including more than thirteen years as the Wall Street Journal's hugely popular personal-finance columnist. In The Little Book of Main Street Money, Clements brings us back to basics, with commonsense suggestions for intelligent money management. Chock-full of financial guidance that will stand up in any market, the book also reflects a financial philosophy that Clements has developed over a lifetime of watching Wall Street and writing about money—and that is even more important in the current volatile market. From the big picture (home, retirement, financial happiness) to the micro (taxes, inflation, investment costs), he offers clear-cut advice for taking control of your financial life, detailing the strategies needed to thrive in today's tough economic times. The 21 truths outlined throughout this book are a guiding light for everyone, young and old, whether starting out or soon retiring. Each chapter reads like a Clements column—clear, pithy, and feisty. From the obvious to the counterintuitive, the truths will bolster your returns, cut your costs, and give you financial peace of mind. Collectively, the 21 truths show you how to think about your entire financial life—not just stocks and bonds, but your home, your debts, your financial promises to your children, your income-earning ability, and so much more. They will help you not only survive today's treacherous financial terrain, but also prepare you for success tomorrow. Renowned for his spirited writing and shrewd investment guidance, Clements is the sane voice investors need to stay grounded in the midst of so much financial insanity.

Foreword xv Introduction Let the Rebuilding Begin xxi Chapter One Our Finances Are Bigger than a Brokerage Account 1 Chapter Two We Can’t Have It All 11 Chapter Three Money Can Buy Happiness—If We Spend It Carefully 17 Chapter Four Even the Best Investors Need to Be Great Savers 25 Chapter Five Time Is as Valuable as Money 33 Chapter Six No Investment Is Risk-Free 41 Chapter Seven Portfolio Performance: It’s All in the Mix 51 Chapter Eight Stocks Are Worth Something 59 Chapter Nine To Add Wealth, We Need to Overcome the Subtractions 67 Chapter Ten Aiming for Average Is the Only Sure Way to Win 75 Chapter Eleven Wild Investments Can Tame Our Portfolios 93 Chapter Twelve Short-Term Results Matter to Long-Term Investors 105 Chapter Thirteen A Long Life Is a Big Risk 113 Chapter Fourteen Markets May Be Rational, but We Aren’t 121 Chapter Fifteen Our Homes Are a Fine Investment that Won’t Appreciate Much 135 Chapter Sixteen Paying off Debts Could Be Our Best Bond Investment 143 Chapter Seventeen Saving Taxes Can Cost Us Dearly 151 Chapter Eighteen A Tax Deferred Is Extra Money Made 159 Chapter Nineteen Insurance Won’t Make Us Any Money—If We’re Lucky 167 Chapter Twenty Even If We Have a Will, We May Not Get Our Way 175 Chapter Twenty-One Financial Success: It’s About More than Money 181 Conclusion Wall Street? That Isn’t So Far from Main Street 189 Acknowledgments 193