CONTENTS

Introduction by Knight A. Kiplinger
Editor in Chief, Kiplinger's Personal Finance Magazine

PART 1
The Roots of Investment Success

Chapter 1:The Five Keys to Investment Success

Key #1: Make Investing a Habit * Key #2: Set Exciting Goals Key #3: Don't Take Unnecessary Risks * Key #4: Keep Time on Your Side * Key #5: Diversify

Chapter 2:The Investment Climate in the Years Ahead

The Age of the Global Economy * Can America Compete? * Why Right Now Is a Good Time to Invest

Chapter 3:How to Get More From Your Savings

The Cost of Doing Nothing * How to Get the Most from Certificates of Deposit * The Limited Appeal of Money-Market Deposit Accounts * Why You Should Use Money-Market Funds * Shift Some Cash into Short-Term Treasuries * Saving with Savings Bonds

Chapter 4:The Way to Wealth with Stocks

Different Kinds of Stocks * Kiplinger's Way to Buy Stocks * More Clues to Value in a Stock * Low-Risk Strategy #1: Dollar-Cost Average * Low-Risk Strategy #2: Reinvest Your Dividends * When to Sell a Stock * How the Pros Decide to Sell * How Much Money Did You Make? Keep Your Eye on Total Return * Advanced Investing I: Timing the Market * How to Spot a Bull Market in Advance * How to Spot a Bear Market in Advance * Advanced Investing II: Companies that Own Their Own Markets * Advanced Investing III: When Bad Things Happen to Good Stocks * Mistakes Even Smart Investors Make

Chapter 5:Success with Bonds

What You Need to Know about Bonds * Unlocking the Potential of Bonds * How to Reduce the Risk of Bonds * If You Must Flirt with Junk Bonds * Should You Buy Convertible Bonds? * Treasuries: The Safest Bonds of All * What U.S. Agency Securities Have to Offer * Savings Bonds: New Spark for an Old Idea * Making Money with Municipals * How to Use Zero- Coupon Bonds

Chapter 6:Mutual Funds: The Best Investment Idea Anyone Ever Had

What Funds Have to Offer * The Cost of Mutual Fund Investing * How to Find the Right Funds for You * Funds for Long-Term Investors * Funds for Income- Oriented Investors * Funds for Aggressive Investors * Funds for Special Purposes * How Much Are You Making? * Closed-Ends: Funds that Sell at a Discount * Unit Trusts: Funds with No Managers

Chapter 7: Good Ways to Invest In Foreign Stocks & Bonds

Three Ways to Go Global * Special Opportunities in European Stocks * American Stocks with Global Connections

Chapter 8: When You Think You Need Help

What a Financial Planner Can Do for You * Secrets of Successful Investment Clubs * A Club for Do-It-Yourselfers * Do You Need an Investment Newsletter?

PART 2
Stepping Up the Risk

Chapter 9: Investing in Real Estate

Why Real Estate Is Unique * Are You Cut Out to Be a Landlord? * The Numbers You Need * The Tax Angles of Real Estate * A Rule that Limits Real Estate's Allure * Figuring Your Gain -- or Loss * A Better Way to Judge Your Return * The Accidental Real Estate Investor * Indirect Ways to Invest in Real Estate * Real Estate Investment Trusts * Stocks of Related Companies * Mutual Funds * Real Estate Limited Partnerships * Investingin Raw Land

Chapter 10: Investing in Mortgages

Meet Ginnie, Fannie and Freddie

Chapter 11:The Overselling of Precious Metals & Collectibles

The Whys and Ways of Gold * Should You Invest in Gold at All? * An Even Weaker Case for Silver * Why Collectibles Aren't Investments

Chapter 12: More Investments You Can Live Without

Limited Partnerships * Put and Call Options * Commodities Futures * Stock-Indexed CDs * Contractual Mutual Funds * Penny Stocks

PART 3
Common Investment Goals: How to Achieve Them

Chapter 13: Investing to Pay for College

Savings Bonds for College * Zero-Coupon Bonds * State CollegeSavings Plans * Life Insurance as College Savings * Two Plans for Putting It All Together * Should You Save in the Child's Name?

Chapter 14: Investing for Retirement

How Much Income Will You Need? * Where Will the Money Come From? * Time and Risk Factors * Individual Retirement Accounts * Deferred Annuities * Keogh Plans * Simplified Employee Pensions * 401(k) Plans * GuaranteedInvestment Contracts (GICs) * Employee Stock Ownership Plans

PART 4
Getting It Done

Chapter 15: Choosing & Using a Broker

The Right Way to Choose a Broker * Full-Service Brokers * Discount Brokers * Which Kind of Account? * Records You Should Keep * How to Deal with Your Broker * Your Rights If Your Broker Fouls Up * What If Your Broker Goes Broke?

Chapter 16: Taxes & Your Investments

Savings Accounts and Certificates * U.S. Savings Bonds * The Basics of Basis * Capital Gains and Losses * Stocks * Bonds * Taxes and Your Mutual Funds * Life Insurance and Annuities * Deductible Investment Expenses

Chapter 17: Useful Numbers for Every Investor

How Regular Investments Will Grow * How Compounding Affects Your Return * How Much Money You'll Need * How a Lump Sum Will Grow * How to Account for Inflation * Tax-Free vs. Taxable Yields * How to Figure Bond Yields * Historic Market Highs and Lows

Chapter 18: 100 Investment Terms You Should Know

Index