Anonymous User wrote:Thanks. I think Ill buy a couple of the suggested books in that link. Any other good books not mentioned in that first sticky aimed toward beginners?
"The Elements of Investing" by Malkiel and Ellis is a good, short read. Frankly though, as someone familiar with online message boards, you can learn pretty much all you need to know just by browsing through the current and old threads on Bogleheads. Start with the Help with Personal Investments subforum. There, people will post their current financial portraits and long-time members will provide advice on proper asset allocation. People also tend to ask basic questions there. If you're confused about a topic, search for old threads or post your question. You can spend weeks taking in old info. From there, move on to the Theory, News, & General subforum. They tend to discuss more advanced topics. Noted personal finance authors Larry Swedroe and Rick Ferri often post there.
For a biglawyer, these are probably the most important topics:
1. Bond allocation (most bogleheads recommend age in bonds, but it really depends on your risk tolerance...I'm at about 10%).
2. International allocation (typical recommendation is 20-50%; I hold international at market weight, so about 52%).
3. Taxes. 401(k)'s (if your wife is a teacher, 403(b) is probably the equivalent for her) and IRAs are tax-advantaged accounts. There are Roth options for both (i.e., pay taxes up-front and nothing when you withdraw), but a Roth 401(k) generally doesn't make sense for someone in a biglawyer's tax bracket. There are many ways to lower your tax burden in retirement. By contrast, there are only a few ways to lower your high marginal tax rate while working. You will make too much money to benefit from a traditional IRA, so a back-door Roth IRA will be your only other option for tax-advantaged space until you have kids and start contributing to 529s. Once you have maxed out your tax-advantaged space (and there is really no reason not to max that out), you start saving in taxable space. Even there, there are ways to minimize your tax burden (e.g., tax loss harvesting, donating appreciated shares to charity, stacking property tax payments). But at your future income level, don't expect many tax breaks.