<p><b>Introduction</b><b> 1</b></p> <p>About This Book 1</p> <p>Foolish Assumptions 1</p> <p>Icons Used in This Book 2</p> <p>Beyond the Book 2</p> <p>Where to Go from Here 3</p> <p><b>Book 1: Entering the World of Investing 5</b></p> <p><b>Chapter 1: Exploring Your Investment Choices</b><b> 7</b></p> <p>Getting Started with Investing 8</p> <p>Building Wealth with Ownership Investments 9</p> <p>Entering the stock market 10</p> <p>Owning real estate 10</p> <p>Running a small business 11</p> <p>Generating Income from Lending Investments 12</p> <p>Considering Cash Equivalents 14</p> <p>Steering Clear of Futures and Options 15</p> <p>Counting Out Collectibles 16</p> <p><b>Chapter 2: Weighing Risks and Returns</b><b> 19</b></p> <p>Evaluating Risks 20</p> <p>Market-value risk 21</p> <p>Individual-investment risk 27</p> <p>Purchasing-power risk (aka inflation risk) 30</p> <p>Career risk 32</p> <p>Analysing Returns 32</p> <p>The components of total return 32</p> <p>Savings, high-interest, and money market account returns 34</p> <p>Bond returns 35</p> <p>Stock returns 36</p> <p>Real estate returns 39</p> <p>Small-business returns 40</p> <p>Considering Your Goals 41</p> <p><b>Chapter 3: Getting Your Financial House in Order</b><b> 43</b></p> <p>Establishing an Emergency Reserve 43</p> <p>Evaluating Your Debts 45</p> <p>Conquering consumer debt 45</p> <p>Mitigating your mortgage 46</p> <p>Establishing Your Financial Goals 48</p> <p>Tracking your savings rate 48</p> <p>Determining your investment tastes 49</p> <p>Funding Your Registered Retirement Savings Plan 51</p> <p>Understanding RRSPs 51</p> <p>Gaining tax benefits 52</p> <p>Understanding deductions and contributions 52</p> <p>Starting early for maximum profits 53</p> <p>Taming Your Taxes in Non-Retirement Accounts 54</p> <p>Figuring your tax bracket 54</p> <p>Knowing what’s taxed and when to worry 56</p> <p>Choosing the Right Investment Mix 58</p> <p>Considering your age 59</p> <p>Making the most of your investment options 59</p> <p>Easing into risk: Dollar cost averaging 61</p> <p>Treading Carefully When Investing for University or College 63</p> <p>Making the most out of a Registered Education Savings Plan 64</p> <p>Allocating university investments 66</p> <p>Protecting Your Assets 66</p> <p><b>Book 2: Investing in Stocks 69</b></p> <p><b>Chapter 1: Gathering Information</b><b> 71</b></p> <p>Looking to Stock Exchanges for Answers 72</p> <p>Grasping the Basics of Accounting and Economics 74</p> <p>Accounting for taste and a whole lot more 74</p> <p>Understanding how economics affects stocks 76</p> <p>Staying on Top of Financial News 79</p> <p>Figuring out what a company’s up to 80</p> <p>Discovering what’s new with an industry 80</p> <p>Knowing what’s happening with the economy 80</p> <p>Seeing what politicians and government bureaucrats are doing 81</p> <p>Checking for trends in society, culture, and entertainment 81</p> <p>Reading and Understanding Stock Tables 82</p> <p>52-week high 83</p> <p>52-week low 83</p> <p>Name and symbol 84</p> <p>Dividend 84</p> <p>Volume 84</p> <p>Yield 86</p> <p>P/E 86</p> <p>Day last 87</p> <p>Net change 87</p> <p>Using News about Dividends 87</p> <p>Looking at important dates 87</p> <p>Understanding why certain dates matter 89</p> <p>Evaluating or Ignoring Investment Tips 89</p> <p><b>Chapter 2: Going for Brokers</b><b> 91</b></p> <p>Defining the Broker’s Role 91</p> <p>Distinguishing between Full-Service and Discount Brokers 93</p> <p>At your disposal: Full-service brokers 93</p> <p>Just the basics: Discount brokers 95</p> <p>Choosing a Broker 97</p> <p>Discovering Various Types of Brokerage Accounts 98</p> <p>Cash accounts 98</p> <p>Margin accounts 99</p> <p>Option accounts 99</p> <p>Judging Brokers’ Recommendations 100</p> <p>Understanding basic recommendations 100</p> <p>Asking a few important questions 101</p> <p>Robo-advisors and Fintech 103</p> <p>High tech meets equity investing 103</p> <p>Terminating bad investment decisions with artificial intelligence 104</p> <p>Advantages of an inhuman touch 104</p> <p>Exceeding standards 105</p> <p>Checking Out Canadian Robo-advisors 106</p> <p>Not just for millennials 107</p> <p>Asset allocation: What is the robo-advisor investing your money in? 107</p> <p>What to watch for 108</p> <p>Fees 109</p> <p>Putting it all together 110</p> <p><b>Chapter 3: Investing for Long-Term Growth</b><b> 111</b></p> <p>Becoming a Value-Oriented Growth Investor 112</p> <p>Surveying Handy Growth Stock Tips 113</p> <p>Look for leaders in megatrends 114</p> <p>Compare company growth to industry growth 114</p> <p>Consider a company with a strong niche 115</p> <p>Check out a company’s fundamentals 116</p> <p>Evaluate a company’s management 116</p> <p>Notice who’s buying and/or recommending a company’s stock 118</p> <p>Make sure a company continues to do well 119</p> <p>Heed investing lessons from history 121</p> <p>Exploring Small Caps and Speculative Stocks 121</p> <p>Knowing when to avoid IPOs 122</p> <p>Making sure a small cap stock is making money 123</p> <p>Analyzing small cap stocks before investing 123</p> <p><b>Chapter 4: Investing for Income</b><b> 125</b></p> <p>Understanding Income Stocks Basics 126</p> <p>Getting a grip on dividends 126</p> <p>Recognizing who’s well-suited for income 127</p> <p>Assessing the advantages of income stocks 127</p> <p>Digging into the disadvantages of income stocks 128</p> <p>Analysing Income Stocks 130</p> <p>Pinpointing your needs first 130</p> <p>Checking out yield 131</p> <p>Looking at a stock’s payout ratio 133</p> <p>Studying a company’s bond rating 134</p> <p>Diversifying your stocks 135</p> <p>Exploring Some Typical Income Stocks 135</p> <p>Utilities 135</p> <p>Real estate investment trusts (REITs) 136</p> <p>Royalty trusts 138</p> <p><b>Chapter 5: Using Accounting Basics to Choose Winning Stocks</b><b> 139</b></p> <p>Recognizing Value When You See It 140</p> <p>Understanding different types of value 140</p> <p>Putting the pieces together 142</p> <p>Accounting for Value 144</p> <p>Breaking down the balance sheet 144</p> <p>Looking at the income statement 148</p> <p>Tooling around with ratios 153</p> <p><b>Book 3: Investing in Mutual Funds 157</b></p> <p><b>Chapter 1: What is a Mutual Fund?</b><b> 159</b></p> <p>Beginning with Mutual Fund Basics 160</p> <p>The Nitty-Gritty: How a Fund Makes You Money 162</p> <p>Returns: What’s in it for you? 162</p> <p>Returns as a percentage 164</p> <p>How funds can make you rich 166</p> <p>What mutual funds buy 167</p> <p>Checking Out Types of Funds 167</p> <p>Discovering Where to Buy Funds 168</p> <p><b>Chapter 2: Buying and Selling Mutual Funds</b><b> 171</b></p> <p>A Few Reasons to Buy Funds 171</p> <p>Offering safety in numbers: Public scrutiny and accountability 172</p> <p>Putting your eggs in many baskets 175</p> <p>Getting good returns from professional management 176</p> <p>Making investing convenient 177</p> <p>Investing without breaking the bank 177</p> <p>Watching over your investment 178</p> <p>Getting out your money if you need it 178</p> <p>The Perils and Pitfalls of Funds 179</p> <p>Excessive costs 179</p> <p>Style drift: When managers get lost in the jungle 179</p> <p>When bad managers attack 180</p> <p>Vague explanations of poor performance 180</p> <p>Prospectuses that don’t say enough 181</p> <p>Too many funds and too few long-term results 182</p> <p>Load versus No-Load: The Great Divide 182</p> <p>Load funds: The comfort zone 183</p> <p>No-load funds: The direct approach 184</p> <p><b>Chapter 3: Paperwork and Your Rights</b><b> 187</b></p> <p>Signing Up 188</p> <p>Filling in your account (or RRSP) application form 188</p> <p>Getting confirmed 191</p> <p>Prospectuses: Not Always Your Friend 191</p> <p>You’ve been warned 192</p> <p>More charges to look for 194</p> <p>Introducing the Management Report of Fund Performance 195</p> <p>Looking at what goes into an MRFP 195</p> <p>Checking out an MRFP 197</p> <p>Surveying Your Account Statement 200</p> <p>Annual and Semi-Annual Financial Statements (or Annual Reports) 202</p> <p><b>Chapter 4: Investing in Canadian Exchange-Traded Funds</b><b> 205</b></p> <p>Comparing Exchange-Traded Funds and Mutual Funds 206</p> <p>The differences 206</p> <p>The similarities 207</p> <p>Choosing an Exchange-Traded Fund 208</p> <p>Main types of ETFs 208</p> <p>Bearish ETFs 212</p> <p>Taking Note of Indexes 213</p> <p><b>Chapter 5: Beyond Mutual Funds </b><b>217</b></p> <p>The Good Old GIC: You Know Where You Sleep 218</p> <p>Types of GICs 219</p> <p>Finding the best rates 220</p> <p>Checking out the benefits of GICs 221</p> <p>Watching out for inflation 221</p> <p>Bonds and Strip Bonds 222</p> <p>Considering bond alternatives 223</p> <p>Investing directly in bonds 223</p> <p>Stocks: Thrills, Spills, and Twisted Wreckage 224</p> <p>Going with index funds 224</p> <p>Buying individual stocks 226</p> <p>Taking a wilder ride with stock alternatives 227</p> <p>Income Trusts: No Longer the Taxpayer’s Best Friend 228</p> <p>Recalling income trust mania 228</p> <p>Clamping down on income trusts 228</p> <p>Considering investing in income trusts 229</p> <p>Managed Products: A Fee Circus 230</p> <p><b>Book 4: Investing in Precious Metals 233</b></p> <p><b>Chapter 1: Beginning with the Benefits and Risks of Metals</b><b> 235</b></p> <p>Protecting Your Portfolio Against Inflation 235</p> <p>Precious metals against the dollar 236</p> <p>Diversification against all currencies 236</p> <p>Seeing Benefits for Investors 237</p> <p>Safe haven 237</p> <p>Privacy 238</p> <p>Inflation hedge 238</p> <p>Dollar hedge 239</p> <p>Confiscation protection 239</p> <p>Liquidity 240</p> <p>Portfolio diversification 240</p> <p>Checking Out Benefits for Traders and Speculators 241</p> <p>Supply and demand 241</p> <p>Huge gains potential 242</p> <p>Trading versus speculating 243</p> <p>The benefits of speculating 243</p> <p>Recognizing the Risks of Precious Metals 244</p> <p>Distinguishing types of risk 244</p> <p>Minimizing your risk 248</p> <p>Risk management tools 251</p> <p>Weighing risk against return 252</p> <p><b>Chapter 2: Going for the Gold</b><b> 253</b></p> <p>Gold: The Ancient Metal of Kings 254</p> <p>Reviewing Recent Trends in Gold 255</p> <p>Explaining all the bull 255</p> <p>Telling the tale of the tape: Gold versus other investments 256</p> <p>Assuring gold’s success 258</p> <p>Securing a Safe Haven from the Coming Storm 259</p> <p>Comparing monetary and price inflation 259</p> <p>Watching the dollar 260</p> <p>Buying and owning gold 260</p> <p>Checking Out the Gold Market 261</p> <p>Gold market data and information 261</p> <p>Industrial supply and demand 262</p> <p>Investment demand 263</p> <p>Central banks 264</p> <p>Meeting a Few Gold Bugs 265</p> <p>Digging into Other Gold Investing Resources 266</p> <p><b>Chapter 3: Discovering the Secret of Silver</b><b> 267</b></p> <p>Understanding the Hybrid Potentials of Silver 267</p> <p>Monetary uses for silver 268</p> <p>Industrial uses for silver 268</p> <p>Researching Silver 270</p> <p>Sources of data 270</p> <p>Sources of informed opinion 271</p> <p>Owning Silver 271</p> <p>Physical silver 271</p> <p>Paper silver 272</p> <p>Focusing on Silver’s Compelling Future 273</p> <p>Looking at the Legends of Silver 274</p> <p>Jerome Smith 274</p> <p>Ted Butler 274</p> <p>David Morgan 275</p> <p><b>Book 5: Day Trading 277</b></p> <p><b>Chapter 1: Waking Up to Day Trading</b><b> 279</b></p> <p>It’s All in a Day’s Work 280</p> <p>Speculating, not hedging 281</p> <p>Understanding zero-sum markets 281</p> <p>Keeping the discipline: Closing out each night 282</p> <p>Committing to Trading as a Business 283</p> <p>Trading part-time: An okay idea if done right 283</p> <p>Trading as a hobby: A bad idea 284</p> <p>Working with a Small Number of Assets 285</p> <p>Managing your positions 286</p> <p>Focusing your attention 286</p> <p>A Few Personality Traits of Successful Day Traders 287</p> <p>Independence 287</p> <p>Quick-wittedness 288</p> <p>Decisiveness 289</p> <p>What Day Trading is Not 289</p> <p>It’s not investing 290</p> <p>But it’s not gambling 290</p> <p>It’s hardly guaranteed 291</p> <p>But it’s not exactly dangerous 292</p> <p>It’s not easy 292</p> <p>But then again, neither are a lot of other worthwhile activities 293</p> <p>Putting day trading success in perspective 293</p> <p><b>Chapter 2: Making a Day Trade of It</b><b> 295</b></p> <p>Planning Your Trading Business 296</p> <p>Setting your goals 296</p> <p>Picking the markets 297</p> <p>Fixing hours, vacation, and sick leave 298</p> <p>Getting yourself set up 298</p> <p>Investing in your business 299</p> <p>Evaluating and revising your plan 299</p> <p>Planning Your Trades 302</p> <p>What do you want to trade? 303</p> <p>How do you want to trade it? 303</p> <p>Figuring out when to buy and when to sell 304</p> <p>Setting profit goals 305</p> <p>Setting limits on your trades 306</p> <p>What if the trade goes wrong? 310</p> <p>Closing Out Your Position 310</p> <p>Swing trading: Holding for days 311</p> <p>Position trading: Holding for weeks 311</p> <p>Investing: Holding for months or years 311</p> <p>Maxims and Clichés That Guide and Mislead Traders 312</p> <p>Pigs get fat, hogs get slaughtered 312</p> <p>In a bear market, the money returns to its rightful owners 313</p> <p>The trend is your friend 313</p> <p>Buy the rumour, sell the news 314</p> <p>Cut your losses and ride your winners 314</p> <p>You’re only as good as your last trade 315</p> <p><b>Chapter 3: Signing Up for Asset Classes</b><b> 317</b></p> <p>What Makes a Good Day Trading Asset? 317</p> <p>Liquidity 318</p> <p>Volatility, standard deviation, and variance 319</p> <p>Capital requirements 320</p> <p>Marginability 320</p> <p>Securities and How They Trade 321</p> <p>Stocks 322</p> <p>Bonds 328</p> <p>Exchange traded funds (ETFs) 331</p> <p>Cash and Currency 332</p> <p>How currency trades 332</p> <p>Where currency trades 333</p> <p>How the Canadian dollar is traded 333</p> <p>Commodities and How They Trade 333</p> <p>Derivatives and How They Trade 334</p> <p>Types of derivatives 334</p> <p>Buying and selling derivatives 336</p> <p><b>Chapter 4: Investing, Trading, and Gambling </b><b>339</b></p> <p>Understanding Risk and Return 340</p> <p>What is risk, anyway? 340</p> <p>Getting rewarded for the risk you take 343</p> <p>The magic of market efficiency 344</p> <p>Defining Investing 346</p> <p>Talking about Trading 346</p> <p>Getting a Grip on Gambling 347</p> <p>Managing the Risks of Day Trading 348</p> <p><b>Chapter 5: Understanding Regulations</b><b> 349</b></p> <p>How Regulations Created Day Trading 350</p> <p>Who Regulates What? 351</p> <p>Brokerage Basics for Firm and Customer 354</p> <p>Are you suitable for day trading? 354</p> <p>Staying out of the money laundromat 355</p> <p>Rules for day traders 356</p> <p>Tax reporting 357</p> <p>Hot Tips and Insider Trading 357</p> <p>Taking on Partners 358</p> <p><b>Book 6: Cryptocurrency Investing 359</b></p> <p><b>Chapter 1: What is a Cryptocurrency?</b><b> 361</b></p> <p>Beginning with the Basics of Cryptocurrencies 362</p> <p>The definition of money 362</p> <p>Some cryptocurrency history 363</p> <p>Key crypto benefits 363</p> <p>Common crypto and blockchain myths 364</p> <p>Risks 365</p> <p>Gearing Up to Make Transactions 366</p> <p>Wallets 366</p> <p>Exchanges 366</p> <p>Communities 367</p> <p>Making a Plan Before You Jump In 368</p> <p>Select your cryptos 368</p> <p>Analyze, invest, and profit 369</p> <p><b>Chapter 2: Why Invest in Cryptocurrencies?</b><b> 371</b></p> <p>Diversifying from Traditional Investments 372</p> <p>Stocks 372</p> <p>Bonds 374</p> <p>Forex 375</p> <p>Precious metals 377</p> <p>Gaining Capital Appreciation 378</p> <p>Historical returns 379</p> <p>Huge growth potential 380</p> <p>Increasing Income Potential 381</p> <p>A bit about traditional dividends 382</p> <p>The basics on crypto dividends 382</p> <p>Fueling Ideological Empowerment 383</p> <p>The economy of the future 383</p> <p>Freedom from government control of currency 384</p> <p>Help for the unbanked and underbanked 385</p> <p><b>Chapter 3: Recognizing the Risks of Cryptocurrencies</b><b> 387</b></p> <p>Reviewing Cryptocurrency Returns 388</p> <p>Capital gains (or losses) 388</p> <p>Income 388</p> <p>Risk: Flipping the Other Side of the Coin 389</p> <p>Glimpsing Cryptocurrencies’ Reward versus Risk 390</p> <p>Digging into Different Kinds of Risk 391</p> <p>Crypto hype risk 391</p> <p>Security risk 392</p> <p>Volatility risk 394</p> <p>Liquidity risk 394</p> <p>Vanishing risk 395</p> <p>Regulation risk 396</p> <p>Tax risk 397</p> <p>Exploring Risk Management Methods 397</p> <p>Build your emergency fund first 399</p> <p>Be patient 399</p> <p>Diversify outside and inside your cryptocurrency portfolio 401</p> <p><b>Chapter 4: How Cryptocurrencies Work </b><b>403</b></p> <p>Explaining Basic Terms in the Cryptocurrency Process 403</p> <p>Cryptography 405</p> <p>Nodes 406</p> <p>Mining 406</p> <p>Proof-of-work 407</p> <p>Proof-of-stake 407</p> <p>Proof-of-importance 408</p> <p>Transactions: Putting it all together 408</p> <p>Cruising through Other Important Crypto Concepts 409</p> <p>Adaptive scaling 409</p> <p>Decentralization 409</p> <p>Harvesting 409</p> <p>Open source 410</p> <p>Public ledger 410</p> <p>Smart contracts 410</p> <p>Stick a Fork in It: Digging into Cryptocurrency Forks 411</p> <p>What is a fork, and why do forks happen? 411</p> <p>Hard forks and soft forks 412</p> <p>Free money on forks 413</p> <p><b>Book 7: Investing in Real Estate 415</b></p> <p><b>Chapter 1: Thinking about Real Estate</b><b> 417</b></p> <p>Investigating Real Estate Investing 418</p> <p>Discovering the opportunities 418</p> <p>Considering alternatives 421</p> <p>Figuring Out Whether You’re Right for Real Estate Investing 423</p> <p>Determining how much you can invest 424</p> <p>Assessing your risk tolerance 424</p> <p>Getting into Real Estate Investing 426</p> <p>Knowing your needs 426</p> <p>Keeping your goals in mind 427</p> <p>Understanding your limitations 427</p> <p>Looking for locations 428</p> <p>Fitting Real Estate into a Financial Plan 430</p> <p>Considering when to sell 430</p> <p>Planning for retirement 431</p> <p>Wills and (real) estate planning 431</p> <p><b>Chapter 2: Exploring Real Estate Investments</b><b> 433</b></p> <p>Homing In on Residential Properties 434</p> <p>Investing begins at home 434</p> <p>Renting a suite, paying a mortgage 435</p> <p>Renovating for fun and profit 438</p> <p>Owning second homes and cottages 439</p> <p>Securing Commercial and Industrial Properties 440</p> <p>Assessing classes 441</p> <p>Assessing liquidity 443</p> <p>Weighing Condos as an Investment 445</p> <p>Investing in residential condos 446</p> <p>Investing in commercial condos 447</p> <p>Investing in hotel condos 447</p> <p>Dreaming of Recreational Properties 448</p> <p>Cottages and cabins 449</p> <p>Fractional ownership 449</p> <p>Resorts by the suite 450</p> <p>Developing a Taste for Raw Land 450</p> <p>Staking your claim 451</p> <p>Goin’ country or swingin’ in the city 451</p> <p>Banking on land 452</p> <p>Deciding to build 452</p> <p>Howdy, Partners: Buying into Syndicates 453</p> <p>Gaining strength in numbers 455</p> <p>Turning to the crowd 455</p> <p>Knowing the risks 455</p> <p>Researching Real Estate Investment Trusts 456</p> <p>Trusted alternatives 456</p> <p>Reading financial statements 457</p> <p><b>Chapter 3: Establishing Your Investment Strategy</b><b> 459</b></p> <p>Studying Market Cycles 459</p> <p>The real estate cycle 460</p> <p>Factors affecting market conditions 462</p> <p>Knowing the Market, Knowing Yourself 465</p> <p>Taking stock of your skills 466</p> <p>Gauging the market’s future — and yours 468</p> <p>Selecting an Investment Type 469</p> <p>Investing with intent 470</p> <p>Lapping up liquidity 470</p> <p>Staying strong in soft times 471</p> <p>Doing your research 471</p> <p>Selecting Advisers 472</p> <p>Before you begin: The criteria 473</p> <p>The real estate agent 475</p> <p>The lawyer 476</p> <p>The appraiser 477</p> <p>The accountant 477</p> <p>The financial planner 478</p> <p>Other professional advice 479</p> <p><b>Chapter 4: Pulling Together the Cash: Assessing Your Resources</b><b> 481</b></p> <p>Assessing Your Financial Situation 482</p> <p>Identifying Resources 483</p> <p>Liquid: Savings 484</p> <p>Illiquid: Long-term investments 485</p> <p>Vaporous: Friends and acquaintances 487</p> <p>Banking on family 488</p> <p>Working with Professional Financial Partners 492</p> <p>Squaring accounts 493</p> <p>Recognizing danger 494</p> <p>Optimizing Saving Strategies and Leverage 494</p> <p>Assembling a war chest 495</p> <p>Weighing the opportunities and risks of leveraging 497</p> <p><b>Chapter 5: Scouting Properties: Where to Look and What to Look For</b><b> 499</b></p> <p>Assessing Current Market Cycles 500</p> <p>Research: Doing your homework 500</p> <p>Analysis without paralysis: Tallying the variables 505</p> <p>The decision: Trust your gut 506</p> <p>X Marks the Spot: Identifying a Target Market 506</p> <p>Separating the fads from the fundamentals 507</p> <p>Getting to know markets and neighbourhoods 508</p> <p>Honing your vision 510</p> <p>Consulting the locals 512</p> <p>Selecting a Property 512</p> <p>Home sweet home 513</p> <p>Location, location, location 516</p> <p>Amenities and services 517</p> <p>Looking to the future 518</p> <p>Identifying the Types of Land Ownership 519</p> <p>Holding freely 519</p> <p>Holding with limits 520</p> <p>Knowing That a Property’s Right for You 521</p> <p>Checking Out Even More Resources for Property Information 522</p> <p>Government agencies 522</p> <p>Real estate brokerages and boards 523</p> <p>Financial institutions 524</p> <p>Real estate consultants 525</p> <p>Owners’ associations 525</p> <p>Builders’ associations 526</p> <p>Provincial land registries 527</p> <p>Property assessment offices 527</p> <p>City hall 528</p> <p>Court records 528</p> <p>Index 529</p>