Investment Basics Forum

[zot1]

Anyone have recs for resources for an investment newbie? I don't have tons to invest at all (government salaries, amirite?), but I figure I can start learning about it for when I do.

Thanks!!

[ponderingmeerkat]

Anyone have recs for resources for an investment newbie? I don't have tons to invest at all (government salaries, amirite?), but I figure I can start learning about it for when I do.

Thanks!!

I'd recommend you head over the Bogglehead's forum https://www.bogleheads.org/

If you're just getting started out, that'll get you 95% of the way there (much like TLS gets you 95% of the info you need re: law school).

Books: A Random Walk Down Wall Street, If You Can: How Millennials Can Get Rich Slowly, The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns.

Tangentially related but important: A book called Your Money or Your Life.

Good luck man.

[zot1]

Thanks a lot, dude. I will check those out!

[Aeon]

Common wisdom suggests that investing in low-cost (i.e.: low expense ratio) diversified mutual funds, often along the lines of an S&P 500-type fund, is a good way to grow one's assets.

There are other options too, like well-diversified municipal bond funds, which often provide relatively stable value, modest appreciation, and decent distributions that are exempt from federal taxes (and state taxes, to the extent the fund invests in your state's municipal bonds). But I'd research funds like these thoroughly before investing, as you should with any fund in which you invest, for that matter, because they can be riskier, especially if heavily weighted to a single state.

[Lexaholik]

Anyone have recs for resources for an investment newbie? I don't have tons to invest at all (government salaries, amirite?), but I figure I can start learning about it for when I do.

Thanks!!

It's always good to get started on learning before you have money because by the time you have enough saved up, you want to be sufficiently educated to make big investment decisions. Investing in stocks is only one part of the equation--you have to be sufficiently educated to understand risk, behavioral tendencies, debt (both good and bad), etc.

For the absolute basics, it doesn't matter what personal finance book you choose. You can also get a lot of free information on the Internet.

Once you've mastered the basics, I second Your Money or Your Life. http://www.amazon.com/Your-Money-Life-T ... 0143115766 I also liked The Millionaire Next Door. It's not a perfect book by any means, but it gives you insight into how wealthy people acquire their wealth. http://www.amazon.com/The-Millionaire-N ... 1589795474

Once you get a sense of the big picture, I also second the recommendation for the Boglehead book. http://www.amazon.com/Bogleheads-Guide- ... bogleheads If you want you can also peruse their forums--there's lots of useful info there. https://www.bogleheads.org/forum/index.php

[nealric]

Anyone have recs for resources for an investment newbie? I don't have tons to invest at all (government salaries, amirite?), but I figure I can start learning about it for when I do.

Thanks!!

I second the boggleheads recommendation. The basic framework most posters there recommend is this:

1) Max out your tax advantaged accounts to the extent possible (401k, IRA, 529)
2) Put your money into diversified low-cost index funds (stock/bond mix will depend on personal risk adversion and age)
3) Do not be tempted to try to time the market or trade individual securities or options
4) Do not use a commission-based financial adviser
5) Resist the temptation to get involved in any scheme intended to "Beat the market." You probably won't, and you will likely take on a ton of risk in the attempt.

[zot1]

Thanks for the tips! This is even more than I imagined. Tons of reading to come.