Rescue Your Money: How to Invest Your Money During these Tumultuous Times

by Ric Edelman

Overview

In this updated edition of Rescue Your Money, New York Times bestselling author and investment guru Ric Edelman offers no-nonsense, practical advice for how to keep your investments safe in any economic climate.

Everyone knows that the ideal investment strategy is to buy low and sell high. But how do you know what stocks will pay off? And how do you know when it’s the right time to sell? No matter what you hear, there’s no such thing as a sure bet: following fads, listening to the media, and even taking the advice of an investment manager on a roll won’t guarantee a payout. To help you understand how to do it correctly, Edelman shows you the one major goal you should have as you seek investment success; the two major obstacles you’ll encounter; the one big question you’ll have to face; and two basic “truths” that confront—and confound—every investor.

If you’re scared or confused about how to handle your investments and fed up with “advice” from brokers, advisors, and media darlings that has cost you huge sums and placed your financial security at risk, the cure is in your hands. With a cheerful tone that will boost even the most panicked investor’s spirit, Edelman reveals the best investments you can make right now to Rescue Your Money.

Product Details

ISBN-13:	9781501152764
Publisher:	Simon & Schuster
Publication date:	07/19/2016
Edition description:	Reissue
Pages:	208
Sales rank:	634,659
Product dimensions:	5.00(w) x 7.00(h) x 0.70(d)

About the Author

Ric Edelman is among the financial profession’s most influential people according to Investment Advisor, RIABiz and InvestmentNews. Barron’s ranked him three times as the nation’s #1 Independent Financial Advisor and he’s in Research magazine’s Financial Advisor Hall of Fame. Ric is founder of the Digital Assets Council of Financial Professionals and Funding Our Future Coalition and holds two patents for financial product innovation.

Ric is the industry’s top financial educator, for thirty years the award-winning host of his national personal finance radio show. He’s also produced award-winning specials for Public Television, and is a #1 New York Times bestselling author of ten books on personal finance. He taught personal finance for nine years at Georgetown University and is now Distinguished Lecturer at Rowan University, which named its communications school the Ric Edelman College of Communication & Creative Arts in 2020.

Ric and his wife Jean live in Northern Virginia. They are benefactors of the Edelman Center for Nursing at Inova Hospital Foundation, the Edelman Indoor Arena at Northern Virginia Therapeutic Riding Program, and Rowan University’s Edelman Planetarium and Edelman Fossil Park.

Read an Excerpt

Rescue Your Money


When people seek investments, they tend to have one goal in mind: They want to beat the market.

Don’t agree? Then tell me why you compare the performance of your investments with the S&P 500 Stock Index. You’re gauging your success by comparing your investment results with the overall market, as measured by the S&P 500, the Dow Jones Industrial Average, or some other stock-market index. If you’re beating the market, you’re happy. If you’re not, you’re unhappy.

Guess what? Trying to beat the market is the wrong goal.

In fact, that’s a disastrous goal. Taking that approach sets you up for failure.

Why? It’s really very simple. And we need look no further back than 2008 to understand why. In 2008 the S&P 500 lost 38.5%.I 1 If you lost only 30%, congratulations! You beat the market!

Somehow I doubt you (or your spouse) would be thrilled at such news.

Thus we must remember that “beating the market” isn’t the point. In fact, only one thing matters when it comes to investing: achieving financial security. That is your one major goal.

Think about it. The purpose of investing is to help you achieve your goals, whether that means sending your kids to college, retiring comfortably, or caring for aging parents. It’s financial security that matters, not some benchmark that has no relevance to your personal life.

People who focus on the stock market are missing the point. You need to emphasize your goals.

I. The sources for all statistics can be found on page 175.

Table of Contents

Acknowledgments xi

Overview: The Secret to Successful Investing 1

Chapter 1 One Major Goal You Should Have 7

Chapter 2 The Two Major Obstacles That You'll Face 11

Obstacle 1 Taxes 11

Obstacle 2 Inflation Erodes Your Buying Power 14

Why Those Who Invest "Safely" Often Go Broke 16

The Minimum Return You Must Earn 22

Investments That Can Generate the Returns You Need 24

Chapter 3 One Big Question 27

Market Timing - aka Buy Low/Sell High 28

Following the Fads 39

Do You Trust the Media? 44

Not-So-Expert Advice 54

Don't Count On Quality 57

Hot Sectors That Aren't 62

Chapter 4 The Two "Truths" That Prevent You from Investing Successfully 67

Basic Truth 1 Stock Prices Rise and Fall 68

Basic Truth 2 The Stock Market Is Risky, Volatile, and Unpredictable 72

Why You Mustn't Look 76

The Truth About the Two Basic Truths 78

Chapter 5 The Secret 83

It's a Game of Horseshoes, Not a Horse Race 90

Something Else the Media Never Tell You 91

Optimizing Versus Maximizing 96

Chapter 6 The Secret to the Secret 99

Crucial Step 1 Maintain a Long-term Focus 100

Crucial Step 2 Buy Low/Sell High 128

The Penalty If You Fail to Buy Low/Sell High 136

The Right Time to Buy Low/Sell High 137

Rebalancing by Time 138

Rebalancing by Percentage 139

Chapter 7 What If You're Already Retired? 143

Chapter 8 The Most important Part of the Secret 149

Turnover 158

Fees 160

Conclusion 171

Ric's Recipe 174

Notes 175

Index 177