INSEAD Library

Includes bibliographical references and index and glossary

Digitized

The Unoffical Guide to Managing Your Personal Finances Contents The Unofficial Guide Reader's Bill of Rights The Unofficial Guide Panel of Experts Introduction xv xix xxiii 1 3 4 5 5 7 9 9 12 13 16 16 18 19 21 23 25 25 27 28 31 32 37 41 43 43 47 48 56 56 I Managing Your Money 1 The ABC's of Counting Your Pennies Why It's So Important to Save Money Put Your Money to Work for You Compounded Growth Dollar Cost Averaging Rule of 72 How Inflation Reduces Your Spending Power Figuring Out How Much You Actually Spend Setting Up a Budget Just Say No Establishing an Emergency Fund "When I'm Sixty-four..." Figuring Out Where You Can Cut Costs Getting Motivated and Staying on Track Just the Facts 2 Credit Cards Using Credit Shopping for a Card How Credit Cards Can Work Against You How Credit Cards Can Work for You Creative Credit Card Money Saving Strategies So Much Plastic Just the Facts 3 Taking Care of Business Taking Advantage of Banks Taking Advantage of Credit Unions Credit Unions Versus Banks How to Get the Best Deals Just the Facts II Creating and Protecting Your Wealth 4 Building Your Assets Risk and Your Risk Tolerance Figuring Your Risk Tolerance What You Can Do to Reduce Risks Developing an Investment Plan Building a Diversified Portfolio Types of Investments Stocks Bonds Mutual Funds Real Estate as an Investment Tax Savings Leveraging: Getting the Most Bang for Your Buck Enlisting the Aid of a Financial Advisor What's It Going to Cost You? Putting Your Advisor to Work Just the Facts 5 Safeguarding Your Assets and Your Family Health Insurance Fee-for-Service Managed Care Coverage Through Work and Other Options Pre-existing Conditions and the Law Working into Your Golden Years Shopping for a Policy Disability Insurance Long-term Care Coverage Homeowner's and Renter's Insurance How Much Is Enough? What Kind Should You Buy? Life Insurance Finding the Coverage That's Right for Your Needs Learn to Comparison Shop Auto Insurance Bringing the Costs Down Types of Available Coverage Getting Covered Protect Yourself Just the Facts 59 61 61 64 65 69 70 71 71 72 73 77 78 79 81 85 89 90 91 91 92 94 96 97 97 98 99 101 103 104 105 109 112 113 114 116 117 119 121 121 III Buying Big-Ticket Items 6 Getting a Car What's the True Cost of Owning a Car? Finding the Best Overall Car and Truck Values Tips for Buying a Car or Truck Whether to Lease or to Buy--That Is the Question Added Incentives Sometimes Make Leasing a Good Buy Getting the Best Lease Deal for Your Money How Leasing Calculations Work Protecting Yourself Surfing the Net The Cost Impact of Accidents To Catch a Thief: More on Insurance Rates Should You Buy a New or Used Car? Strategies for Negotiating Price and Extras Just the Facts 153 7 Finding Your Home Sweet Home Should You Buy or Should You Rent? Getting Representation Buy! Buy! Buy! Sell! Sell! Sell' Using the Internet to Find an Agent The Home-Buying Process Using the Internet to Find a Home and Get Insurance Strategies for Buying a House "On Sale" Frequent-Flyer Mile Programs Just the Facts 8 Buying the Home of Your Dreams Shop for Your Mortgage Wisely Getting Professional Representation Builders' Contracts: Understanding the Fine Print The Lowdown on Resale Contracts Qualifying for a Mortgage Computer-Aided Credit Scoring How Much Can You Borrow? The Best Mortgage for You Types of Mortgage Loans Mortgage Loan Options The Risk of Foreclosure Getting the Best Mortgage Rate What's Negotiable in a Mortgage? Paying for Convenience: Buyer Beware the Mortgage Broker When to Pay Discount Points Home Loans on the Internet Down Payment Gifts Just the Facts 123 125 126 129 130 133 134 137 138 145 147 148 149 150 152 155 155 160 161 163 166 166 173 176 180 181 183 184 185 187 191 193 193 197 199 199 200 202 203 205 207 208 209 211 211 IV Debt 9 Digging Out of Debt Figuring Out How You Got There Getting Out of Debt Dealing with Creditors Big Brother Is Watching Protecting Your Credit Rating Debtors' and Creditors' Rights The Brink of Foreclosure: How You Got There and How to Step Back Bankruptcy Getting Back on Track Just the Facts V Counting the Beans 10 Taxes How Much Do You Pay in Taxes? Investment Tax Law Capital Gains Long-Term Capital Gains Short-Term Capital Gains Dividends Taxes and Timing Your Investments Reinvesting Your Shares Selling Your Shares FIFO Average Cost, Single Category Average Cost, Double Category Specific Shares Tax Savings and Education Taxes and Retirement 401(k) Plans Traditional IRAs Roth IRAs Which IRA is Best for You? Aggressive Mutual Funds: In Your Taxable Accounts or Retirement Portfolio? Divorce and Taxes Property Transfers Alimony Versus Child Support Alimony Recapture Exemptions Qualified Domestic Relations Orders (QDROs) Health Insurance How to Handle Assets with Potential Capital Gains 213 215 216 220 226 230 230 231 234 238 241 242 243 245 245 248 250 250 251 251 251 252 253 254 254 255 256 256 259 259 259 259 260 264 264 265 265 267 267 267 269 269 More Tax-Saving Strategies Placing Investments in Your Children's Names Charitable Contributions Just the Facts VI Your Financial Future 11 Investing in Your Future and Your Children's Future Education Benefits of a College Degree Finding the Right College or University Preparation Strategies for Saving for a College Education Investing In and For College Investment Strategies Tax Packages Traditional IRAs Education IRAs (EIRAs) Hope Scholarship Credit Lifetime-Learning Tax Credit Student Loan Interest Payment Deductions State Tuition Plans Working While You Go to School Community Service Loan Forgiveness Qualified State Tuition Programs State Education Savings Plans Prepaid Tuition Programs Government Financial Aid Finding Private Loans and Scholarships Best-Kept Secrets Graduation Date Guarantee Joint Degrees Low-Cost Loans Free Tuition Other School Tuition Programs Just the Facts 12 Investing for Retirement Why You Should Save for Retirement The Costs of Retirement How to Plan for What You'll Need Roth IRAs, Traditional IRAs, and SEP IRAs Roth IRAs Traditional Deductible IRAs Nondeductible IRAs SIMPLE IRAs SEP IRAs 269 270 270 271 273 275 276 278 279 279 280 282 284 285 285 286 287 287 288 288 288 288 290 292 294 297 298 299 300 300 301 301 301 303 304 306 307 309 309 311 314 314 315 401(k) Plans Keogh Plans Should You Borrow from Your 401(k)? Reverse Mortgages Just the Facts 13 Estate Planning Common Estate Planning Terms Your Taxable Estate The Importance of Estate Planning if You Have Children Titles Tenants in Common Joint Tenants with Right of Survivorship Tenants by the Entirety How Title Affects Estate Taxes Wills Making It Legal Living Wills Revocable Living Trusts Selecting Trustees, an Executor, and a Guardian for Your Children Insurance and Estate Planning Legal Representation Just the Facts VII Financial Threats 14 Dealing with Job Loss Unemployment Benefits Protecting Your Assets Postemployment Insurance Options Health Continuation Coverage Benefits Under COBRA Guaranteed Individual Health Coverage Under HIPAA Life and Disability Insurance Coverage Savvy Investments Strategies for Periods of Unemployment Strategies for Finding a New Job Just the Facts 15 Dealing with Divorce The Cost of Divorce Myths About Divorce Settlements Figuring Out What You Own Issues that Get In the Way The Difference Between Men and Women Dividing Assets When You're Splitting Up Asking for Help Mediation Versus Arbitration Calling a Lawyer Above All, Be Prepared 316 318 319 321 322 325 326 328 330 333 334 334 336 337 339 342 344 345 348 350 352 354 355 357 358 360 363 363 366 367 368 369 373 375 375 378 379 381 381 383 386 386 388 389 Looking Out for Number 1 Getting Back on Your Feet Saving on Taxes: Keeping Uncle Sam a Distant Relative Doing Your Homework Just the Facts 16 Fraud Protection Protecting Yourself from Identity Theft Protecting Your Finances on the Internet E-mail Advertisements Protecting Your Online Transactions Protecting Yourself Against Fraud on the Internet Investing Online Fraud and Your Financial Planner or Salesperson Protecting Your Assets from Telemarketers Protecting Your Assets from Check Fraud Just the Facts A Glossary B Resource Guide C Recommended Reading List Index 423 437 453 462 389 393 394 396 397 399 399 406 407 408 410 410 412 415 418 421