Best investment book(s) for beginners

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TFALAWL
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Best investment book(s) for beginners

Postby TFALAWL » Sun Mar 22, 2015 12:57 pm

I'm not sure if "legal employment" is the best place to put this. Anywho, I don't know anything about investment, and since my goal is to save as much money as possible while in big law, what is a good book. In addition, what are good strategies? I will have about 60k in debt, and a 160k job in an (expensive) secondary market.

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TFALAWL
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Re: Best investment book(s) for beginners

Postby TFALAWL » Sun Mar 22, 2015 12:58 pm

In addition, I anticipate my monthly costs will be 3,500$ (if I'm disciplined)

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BrazilBandit
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Re: Best investment book(s) for beginners

Postby BrazilBandit » Sun Mar 22, 2015 1:12 pm

A Random Walk Down Wall Street by Burton G Malkiel. Buy and hold, avoid fees, start early and you're golden.

thatsnotmyname
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Re: Best investment book(s) for beginners

Postby thatsnotmyname » Sun Mar 22, 2015 1:25 pm

BrazilBandit wrote:A Random Walk Down Wall Street by Burton G Malkiel. Buy and hold, avoid fees, start early and you're golden.


Basically this. Don't try to do anything fancy, just buy shares of large cap companies in diverse industries and hold them all long. To be honest, it's probably best to just invest in an index fund and call it a day. Do not panic and sell as the market fluctuates. Just set aside a portion of your salary each month to invest and consistently invest in the index fund each month.

Read and understand this stuff to get started:

http://en.wikipedia.org/wiki/Value_investing

http://www.amazon.com/Intelligent-Inves ... min+graham

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nachosrgood
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Re: Best investment book(s) for beginners

Postby nachosrgood » Sun Mar 22, 2015 1:44 pm

Anyone with advice or readings on the pros and cons of index funds vs etf?

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bou
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Re: Best investment book(s) for beginners

Postby bou » Sun Mar 22, 2015 1:48 pm

nachosrgood wrote:Anyone with advice or readings on the pros and cons of index funds vs etf?



Depends on the etf type.
If the investments' underlyings are
NOT futures :

Look at expense ratios. Typically etfs are better way to go

If they ARE futures, do not do etfs b/c of contango (google this term)

Index funds that invest into spot would be better in this case.


OP: read Peter Lynch

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Old Gregg
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Re: Best investment book(s) for beginners

Postby Old Gregg » Mon Mar 23, 2015 11:01 am

boggleheads.

index funds thru vangard.

/endthread.

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Eladriel
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Re: Best investment book(s) for beginners

Postby Eladriel » Mon Mar 23, 2015 12:07 pm

BrazilBandit wrote:A Random Walk Down Wall Street by Burton G Malkiel. Buy and hold, avoid fees, start early and you're golden.


+1

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Doritos
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Re: Best investment book(s) for beginners

Postby Doritos » Tue Mar 24, 2015 8:29 am

TFALAWL wrote:I'm not sure if "legal employment" is the best place to put this. Anywho, I don't know anything about investment, and since my goal is to save as much money as possible while in big law, what is a good book. In addition, what are good strategies? I will have about 60k in debt, and a 160k job in an (expensive) secondary market.


In general it seems this is the hierarchy:

(1) Get an Emergency Fund (3-6 mo expenses)
(2) Pay off High Interest Debt
(3) Max out tax Advantaged Investments (401k and IRA - roth or traditional) - this is $23,500 by the way, all pre tax if you go w/ traditional ira
(4) Non-Tax Advantaged Investments (Vanguard index fund, do a total market one like VTSMX; throw in VGTSX and VBMFX if you want to cover international equities & bond market)

Live well below your means and invest a high percentage of your take-home pay in relatively conservative investments like the above. You'll be surprised how much money you accumulate through the magic of compound interest.

notgreat
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Re: Best investment book(s) for beginners

Postby notgreat » Tue Mar 24, 2015 9:08 am

I'd start with this: http://www.amazon.com/Corporate-Finance-Student-Value-Edition/dp/0132138794

Then I'd reach out to finance buddies or clients once you start working.

A Random Walk Down Wall Street is a classic and should be read for a number of reasons.

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r1tlv50
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Re: Best investment book(s) for beginners

Postby r1tlv50 » Tue Mar 24, 2015 9:24 am

Agree with the posts above. I also really liked "If you can: How Millenials Can Get Rich Slowly" (I'm assuming you're roughly that age - apologies if mistaken). The author gives some really simple advice on exactly how to invest (it's all Vanguard stuff). He also has a great bibliography (milliionaire next door, random walk down wall st., etc). FYI it's available for free every now and then

legends159
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Re: Best investment book(s) for beginners

Postby legends159 » Tue Mar 24, 2015 9:26 am

https://www.bogleheads.org/wiki/Main_Page

Read through the wiki. It's free, well written and will be more than enough for the typical passive investor.

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navykev
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Re: Best investment book(s) for beginners

Postby navykev » Tue Mar 24, 2015 9:34 am

Total Money Makeover by Dave Ramsey

Personally helped me clean up my finances and live life on my own terms without financial worry.

xcountryjunkie
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Re: Best investment book(s) for beginners

Postby xcountryjunkie » Tue Mar 24, 2015 11:14 am

Buy apple stock.

/endthread

smallfirmassociate
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Re: Best investment book(s) for beginners

Postby smallfirmassociate » Tue Mar 24, 2015 11:26 am

Just invest in some index funds, target retirement date funds, etc. If you get tempted to day trade or get fancy, read Fooled by Randomness by Nassim Taleb.

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lacrossebrother
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Re: Best investment book(s) for beginners

Postby lacrossebrother » Tue Mar 24, 2015 2:39 pm

just buy vanguard is about has helpful as "buy low sell high." Vanguard is a low cost and reputable option, but it has 52 ETFs alone :lol:

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lacrossebrother
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Re: Best investment book(s) for beginners

Postby lacrossebrother » Tue Mar 24, 2015 2:40 pm

Also this advice all seems great for the current bull market. Just buy Apple. :lol:

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r1tlv50
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Re: Best investment book(s) for beginners

Postby r1tlv50 » Sun Apr 12, 2015 1:25 pm

lacrossebrother wrote:just buy vanguard is about has helpful as "buy low sell high." Vanguard is a low cost and reputable option, but it has 52 ETFs alone :lol:


The index funds are what they're known for. I think it's safe to assume that's what most posts were referencing. Target date funds for early/mid career mainly the stock index fund with some bonds. It moves more toward bonds as retirement gets closer

TheDogWhisperer
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Re: Best investment book(s) for beginners

Postby TheDogWhisperer » Sun Apr 12, 2015 5:19 pm

I have made around 12% return on a couple of stocks of large cap. corp. It that above average for non-index stock investments? at the end of the day I'm happy because its disposable income that would have otherwise sat in a bank account with .03% interest

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Anastasia Dee Dualla
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Re: Best investment book(s) for beginners

Postby Anastasia Dee Dualla » Sun Apr 12, 2015 5:24 pm

The above information. I would also like to add that I have found the below helpful:

The Essays of Warren Buffet
The Intelligent Investor
and Peter Lynch's book (the title of which I can't recall)

Re: Vanguard; watch the fees on the investor level index funds (as compared to the admiral funds).

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lhanvt13
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Re: Best investment book(s) for beginners

Postby lhanvt13 » Sun Apr 12, 2015 5:39 pm

is investing in real estate not recommended post-crash?

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sublime
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Re: Best investment book(s) for beginners

Postby sublime » Sun Apr 12, 2015 5:41 pm

..

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BmoreOrLess
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Re: Best investment book(s) for beginners

Postby BmoreOrLess » Sat May 02, 2015 10:57 am

A little off topic, but does anyone know of a book that is similar to Barbarians at the Gates for startups/venture capital?

GunnerBingo
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Re: Best investment book(s) for beginners

Postby GunnerBingo » Sat May 02, 2015 1:29 pm

Anyone use Betterment? If so, is this a good option if I'm just looking to passively invest in bonds/indexes?

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Anastasia Dee Dualla
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Re: Best investment book(s) for beginners

Postby Anastasia Dee Dualla » Sat May 02, 2015 2:07 pm

GunnerBingo wrote:Anyone use Betterment? If so, is this a good option if I'm just looking to passively invest in bonds/indexes?



Check the expense ratios; if I recall correctly there was something off putting about them for me.




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