Digital Wealth E-Book

Simon Moore

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 239

Veröffentlichungsjahr: 2015

Beschreibung

Leverage algorithms to take your investment approach to the next level Digital Wealth: An Automatic Way to Invest Successfully reveals core investment strategies that you can leverage to build long-term wealth. More than a simple review of traditional investment strategies, this innovative text proffers digital investment techniques that are driven not by people but by algorithms. Supported by asset allocation research, the secrets shared in this forward-thinking book have underpinned cutting-edge investment firms as they integrate algorithm-based strategies. In addition to presenting key concepts, this groundbreaking resource explains how these concepts can give you an edge over the professionals on Wall Street through details regarding achieving financial security and meeting financial goals rooted in a firm foundation in behavioral finance, portfolio tilts, and modern portfolio theory. Investment strategies have evolved from one generation to the next, and the ability to leverage new digital tools calls for another overhaul of traditional investment concepts. Investment techniques implemented by algorithm rather than by human monitoring can, in some cases, prove more successful. The key to a balanced portfolio is understanding what these algorithm-based strategies are, and how to best use them. * Explore insights from multiple Nobel Prize winning academics that can give your investment strategy an edge * Consider how technology can open up powerful techniques to mainstream investors, including tax-loss harvesting and automated rebalancing * Discuss how cost minimization and a strategic tax approach can boost your portfolio's compound growth * Identify strategies that support the long-term growth of your wealth Digital Wealth: An Automatic Way to Invest Successfully is an essential text for sophisticated individual investors and investment consultants alike who want to explore how digital tools can bolster financial success.

Leseprobe

Digital Wealth

An Automatic Way to Invest Successfully

Simon Moore

Cover design: Wiley

Copyright © 2016 by Simon Moore. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

ISBN 9781119118466 (Hardcover) ISBN 9781119118480 (ePDF) ISBN 9781119118473 (ePub)

Dedicated to Mum and Dad.

Thank you for everything.

Contents

Preface

Note

Acknowledgments

Chapter 1 America’s Savings Challenge

We Don’t Save Enough

The Key Change in America’s Retirement Planning Process

How Financial Innovation Helps

The Magic of a 15 Percent Savings Rate

Notes

Chapter 2 The Risk of Not Investing in Stocks

The Short-Term Risks

The Historical Perspective

The Logic

Chapter 3 The Enemies of a Stock Portfolio

Why Inflation Matters

Treasury Inflation-Protected Securities (TIPS)

Asset Confiscation

Recession

Chapter 4 The Value of Time for Investors

Why Long-Term Stock Investing Is Less Risky than It May Seem

The Long-Term Picture

How Bonds Can Help

Note

Chapter 5 Core Assets of a Robust Portfolio

Asset Classes We Include

Individual Asset Classes We Exclude

Notes

Chapter 6 Dynamic Asset Selection:

Determining the Lowest-Cost Option for Each Portfolio

Chapter 7 What Software Does Better than People

How Software Helps Investors

Example: All the Decisions an Algorithm Makes

Chapter 8 How International Investing Can Smooth Returns

Demographics Matter

Diversification Improves Your Industry Mix

Notes

Chapter 9 The Advantages of Exchange-Traded Funds

The Benefits of ETFs

In-Kind Transfers

The Risks of ETFs

Securities Lending Policies

Notes

Chapter 10 The Triumph of Low-Cost Investing: How Paying Less Gets You More

Fooled by Randomness

A Triumph of Marketing over Results

Notes

Chapter 11 Learning from Nobel Prize Winners

Milton Friedman, 1976

James Tobin, 1981

Harry Markowitz, 1990

William Sharpe, 1990

Daniel Kahnemann, 2002

Eugene Fama and Robert Shiller, 2013

Chapter 12 The Costs of Being Active

The Cost of Closet Indexing

The Other Costs of Active Management

Notes

Chapter 13 The Greatest Mistakes Made by Novice Investors

Starting Saving Too Late

Are You Using Tax Shelters Effectively?

Are You Taking Advantage of 401(k) Matching If Available?

Are You Diversified Internationally?

Are You Chasing Returns?

Are You Overpaying in Fees?

Are You Tracking the Right Index?

Do You Trade Too Much?

Chapter 14 Tilts and Other Ways to Help Long-Term Performance

History of Market Thought