(Part 2) Best introduction in investing books according to redditors
We found 1,291 Reddit comments discussing the best introduction in investing books. We ranked the 294 resulting products by number of redditors who mentioned them. Here are the products ranked 21-40. You can also go back to the previous section.
First of all, don't bother with your friend's financial planner. They are just going to try and sell you on whatever funds have had strong recent performance, show you pretty charts, and make you feel good about investing with them. It's all sales tactics, not so dissimilar from those of a used car salesman. They make it seem like they are offering all this wonderful help for free, but they do get paid - and it'll come from your investments in the form of trailer fees that the mutual funds pay out to them. Much like the car salesman starts to panic when you ask to look under the hood, if you were to start asking the financial planner about management expense ratios and why he doesn't recommend index funds, you'll probably get one of two responses. Either they will be dismissive, making it seem like the fees are negligible relative to the great performance their promising you (but no guarantees of course), or they will be a bit more honest about them but argue that the higher fees are worth paying in order for you to be given their oh-so-valuable advice. It's all a load of BS - anyone can very easily learn the basics of DIY investing, and even those who don't want to are still better off with a robo-advisor like WealthSimple or JustWealth, who believe in keeping your fees to a minimum and instead of collecting hidden trailer fees, they are very up-front about what they charge for their service.
I don't think you really need a person to hold your hand though. Your initiative indicates to me that you have what it takes to learn what needs to be learned, and handle things yourself. Start by reading the two books you picked up - that will answer some questions and give you a solid foundation for learning more about investing. Then I highly recommend an eBook called The Value of Simple, which you can get from Chapters, Amazon, or from the author's website. It goes more into detail about DIY investing strategies, focusing mainly on TD eSeries and buying ETFs with Questrade - the two most cost-effective methods. Tangerine's investment portfolios are fine for starting out with, but at 1.07% MER and another 0.03% trading fees, it's still a bit on the costly side (though nowhere near the MER costs of a BMO fund).
Since you mentioned buying a house in the next 5+ years, I wanted to add some words of caution: any money that you want to save towards the new house should be kept relatively safe, in low-risk investments or guaranteed ones like GICs or high interest savings accounts. 5 years is simply too short of a timeframe for investing in equity. Your RRSP and other retirement funds can certainly take on a lot more risk, since you won't need that money for a long time.
My recommended reading list includes One Up on Wall Street, Fail-Safe Investing, The Black Swan, How an Economy Grows and Why It Crashes, and Extraordinary Popular Delusions and The Madness of Crowds. The first book talks about picking individual stocks based on what you already know, the second about structuring a portfolio for growth while still playing defense, the third about common fallacies and hubris, the fourth about basic economics, and the fifth about irrational behavior.
If your money is sitting in a US bank account, then you're making a 100% bet on the future of the US dollar. At a minimum, diversify your currency holdings by buying sovereign and high-grade corporate debt in countries with strong currencies.
Caution: Wall of text to follow.
Firstly, congrats on caring at a young age about your finances. That's something not a lot of people can say. With that being said I'll like to take each of your paragraphs in turn and answer your questions at the end.
NOTE: If you just want answers to your questions and not my advice skip ahead.
> While I believe that there are some truths behind "Money doesn't buy happiness", it is a lot easier to be happy knowing that you are well-off.
As a word to the wise from someone a little further down the road let me just say there is more truth than you yet realize in those 4 simple words. Many people don't come to see the truth till their old age looking back on a life filled with regret, so take some time now and seriously contemplate it, because the reality is in 85 very short years you'll likely be dead, and all you ever had will belong to someone else. If the only happiness you get in this life is seeing dollars in your bank account you'll miss out on a lot.
> The leading cause of divorces are because of financial issues. I mean, that has to speak for something.
In the vast majority of divorces it's not a lack of money that's the problem, it's a lack of agreeing on what to do with the money that is. Marriage can work below the poverty line, and above the 1% line. The financial issues of marriage aren't solved with just "more money!"
> I want to be able to support myself, other family members who aren't as well off, and be able to buy my kids (if I have them) a car, pay for their college funds, etc.
Supporting your own family is honorable, but beware when helping out "less fortunate" family members. There are many, many problems that can arise from that if not done properly, and enabling a family member will only make their situation worse, not help them.
> I don't want to be a doctor. Or a lawyer. . . . . who can bank at least a million in one year.
That is a very big dream, but it's not unrealistic. Big dreams are good, and as long as you can approach them level headed they help give you focus. I say that your dream is worthwhile, and although I caution against greed as it can destroy you and your life, there is nothing wrong with wanting to be a CEO making $1,000,000.
ANSWER TO YOUR QUESTIONS
> So tell me. Where do I start investing and also building my way up to becoming the CEO of a company?
You start right where you are. There is nothing stopping you from pursuing your dream now. Begin with learning. Learn what it takes to be a CEO, learn how other CEO's have done it, learn what your talents are. There will be much learning for you starting out.
I recommend the internet and a library card. Read a CEO's biography (it's as close as you'll come to getting to interview some CEO's). How is it that Donald Trump was able to go from rags to riches twice?! What would it take for you to do that? Learn all there is to learn about running a business, being a leader, and leading a successful venture.
> At what age?
NOW! Bill gates was already writing software and starting Microsoft at your age (not to say you're behind or anything like that.) There is no age limit on being a CEO, and there is certainly no age limit on learning and working hard.
> What majors in college should I be looking at?
This will be up to you and what you feel you would be good at. Do you want to be a CEO just to be a CEO, perhaps some business major then? Learn from other CEO's stories and what they majored in.
> And at what colleges?
Personally there is little impact based on what school you choose. There are CEO's that never went to college, and there are CEO's that went to Yale/Princeton.
The fact is it takes maybe $200 to start an LLC and call yourself a CEO, no college degree needed. What comes after that is actually making the money! In order to do that you have to provide a good or service that people want. The more people you make happy, the more money you'll get.
Something you should know now is that starting a company, and running a company is HARD WORK. I know some owners of start-ups that had to work 60 - 90 hours a week with little to no sleep to build their business. I know others who fell into the CEO position because their daddy owned the company, and they were lazy, and thanks to their lack of action the company collapsed.
> And of course, looking to do this in a legal way.
Welcome to America :), where hard work, sacrifice and the willingness to learn and strive can and do payoff.
One last piece of advice: Don't be a jerk. When you become the CEO of a company and you are making the millions, when you someday are the hotshot, don't look down on those around you. Remember where you came from, and those that helped you along the way, and there will be those that will help you!
People will always respond better to someone who is nice than someone who is a jerk.
Here is some recommended reading once you get that library card:
There are many more books, but that's a start.
Jon Acuff went from amateur blogger to best selling author, and is a great motivational writer. His books make me want to run a marathon, and are good for motivating you.
Dave Ramsey went from bankruptcy to running a 300 person business and earning in the %1 of earners in the nation with a national brand. His book is about being a leader in business and you'll need to lead if you want to be CEO. It's a hard job, and not nearly as cushy as you might think.
Thomas Stanley is a researcher who studies those with a net worth over $1M and his book will show you that being rich doesn't contradict with a frugal lifestyle.
The others and highly recommended in general!
The fact is you'll need to grow up, turn off the TV, and look weird to your friends. How many 15 yr olds do you know reading books about how to run a company and studying up on what it takes to be a CEO, or how to start a business? I don't know many, but I do know that at 17 years old William Gates III started a joint venture with Paul Allen (their first business). They both went on to make the top 20 richest billionaires list. Bill still holds the top spot.
If you want to be rich, you want to be a CEO, then work at it. Work at it now, work at it often, and work at it always. I have no doubt if you dedicate yourself you can do it. The fact of the matter is that most people reading this are tired just thinking of the work it takes to be CEO, and that's why they never will be.
Best of luck on your future success, and don't forget the little people.
~ Dragon J.
Edited for formatting.
> OP needs to seek out a trained financial adviser.
Don't. Financial advisers are mostly just salesmen, and most sell shitty products with high fees. It's impossible to navigate which ones are good and which ones aren't unless you know finance yourself, in which case, you will no longer need a financial adviser and can invest yourself for the lowest fees (use Vanguard for the lowest fees).
It's really not all that complicated to invest if you play the game of diversification and just try to get the average market return. Trying to beat the market is another game (a game which we who are interested in bitcoin are playing) and takes another level of sophistication.
Just read these two books and you'll know all you need to know to invest your own money well for the lowest fees. That is if you're playing the simple diversify-and-get-average-market-return game.
The Investor's Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between
A Random Walk down Wall Street: The Time-tested Strategy for Successful Investing
> Can you recommend any books on coding quant strategies?
http://www.quantstart.com/articles/quantitative-finance-reading-list
Favorites I've read so far:
Also
Edit: Be prepared to spend about 3 months just randomly browsing Investopedia to crack through all the jargon :)
Also, these guys have some pretty rockin' videos on on everything finance, from "WTF is an ETF?" to "WTF is a European Call Option?" to "How do I manage my pension?", especially useful if you're in the UK. The videos helped me a lot when I was getting started at my current job.
https://www.youtube.com/user/MoneyWeekVideos/videos
A few posters in here are saying its not worth it considering the "hidden costs" and they reference taxes, repairs and maintenance. The fact that they consider Taxes and mainenance as hidden should give you a sense of the type of investor they are and why they think it isn't worth. I mean seriously? if there is one thing certain in life it's Taxes and Death but people here are calling these costs hidden?
my advice is to grab this book from amazon. It will seriously take you a half hour to read and help you get an understanding of the costs at a high level, and don't listen to anyone who would consider Taxes a hidden cost, or even maintenance. Who buys a home and assumes it will have zero maintenance?
http://www.amazon.com/gp/product/0981893562/ref=oh_aui_detailpage_o02_s00?ie=UTF8&psc=1
Blogs, hier eine Metaseite: http://finanzblogroll.de/
Youtube Kanäle wie Aktien mit Kopf, Finanzfluss, Talerbox
Bücher z.B. das hier https://www.amazon.de/Souver%C3%A4n-investieren-Indexfonds-ETFs-Book/dp/3593508524
Und das wichtigste: Selber nachdenken.
I 100% agree with all of the above recommendations for Bogleheads but I'd also recommend The Simple Path to Wealth by J.L. Collins.
It boils down to low cost index funds. Invest there and watch your money grow. Good luck.
Is it worth the effort to invest in factors? The answer is "probaby yes" if your end goal is to increase your average returns over a 20-30 year time period and are willing to introduce a small amount of additional complexity. I highly recommend Berkin & Swedroe's "Your Complete Guide to Factor Investing" if you want to evaluate the evidence for a factor-based approach.
Based on your question, Ben Felix's paper "Factor Investing With ETFs" is where I would start if you haven't checked it out already. It provides a good, quick summary of the benefits of factor investing and a Couch Potato-style model portfolio with couple of added factor ETFs. The downside is that these funds are US-based, which means you have to convert to US dollars through your brokerage (they usually charge a 2% fee) or do a fancier maneuver called "Norbert's Gambit". I personally found it worthwhile to learn how to do Norbert's Gambit because once you do it once, you can do it as often as you'd like in the future.... and you'll save yourself lots in fees, too!
If you don't want to convert currencies, then Vanguard's Canadian-listed factor funds like VMO or VVL might work for you. Blackrock also has multifactor ETFs like XFC, XFS, and XFI that may work. Personally, I prefer US-listed ETFs like the ones listed in Ben's paper because they have a longer history and are cheaper to hold.
I'm gonna echo what u/StrukkStar said. If you think through your assertion carefully the logic doesn't hold up.
I currently have a similar amount of savings as yourself, but by the logic of your post I should take it all out now, right? The fees to sell with my broker are minimal so there's really nothing holding me back. Literally there is no difference between our situations except inertia. So don't I?
Because the market on average is going up, and I can't predict how it will behave. If teams of quants and high paid executives and high performance machine-learning algorithms looking through reams of data can only get it right 50.001% of the time, then my thinking I can speculate better is pure hubris.
So what do you do? Reduce risk with dollar cost averaging? That is invest a portion of it every month to reduce your timing risk? There's three situations that can happen then:
And since the market, on average, always goes up, it's just a bad bet to not be investing your cash.
If I was in your situation, I would confidently put it all immediately into exactly the portfolio I have now, because otherwise I should sell the portfolio I have now. If you want to really lower your risk against say a deflationary economy, then you can throw a portion ~10% in bonds. It won't do much harm.
But honestly, for someone in their 30s in the wealth accumulation phase of their life, you have the luxury to wait out any potential recession. The maths says throw it all into a low-cost well-spread full world stock-market ETF, and hold fast, it will be a bit of a wild ride at times but just don't panic, don't do anything rash, and it will be worth it.
As you get older and closer to retirement (wealth maintenance period) then 30% bonds is a good number. But I'd start with 90%-100% in stocks and hold fast. Do your research if you need to be convinced on the numbers for this. Or read The Simple Path to Wealth by JL Collins (I thought the audiobook was great).
Also can I ask you a question: what do you do and what region of the world do you live in? Sounds like the dream.
> What are the other allocations aside from CCP that are often recommended?
For passive investing, the CPM Model ETF Portfolios. For something more active, probably factor investing. Larry Swedroe has written a great book on this, which you can find on the Library Genesis. The main problem with this approach though is a lack of Canadian ETFs which capture the factor premiums effectively, so you have to do your own research here.
> Also here is WS allocations. What do you think of the assets below? Should I copy it at Questrade?
Seems solid to me. Captures all the main asset classes - US, Canada, International Developed, Emerging Markets, and Fixed-Income. Don't see the point of 5.5% in cash though. Also, this will be harder to rebalance on Questrade (I assume WS does the rebalancing for you?) as you pay a fee of at least $4.95 for selling ETFs. To help with that, consider going with 5 ETFs - one for each of Canadian aggregate bond index, Canadian equities, US equities, International developed equities, and emerging market equities.
Another option would be to use WS Trade, as they charge no commission for buying/selling stocks/ETFs. But if you want to hold US-listed ETFs, they do charge a currency exchange fee, which you can avoid on Questrade using something called "Norbert's Gambit". Holding US-listed ETFs is best in an RRSP though (which WS Trade currently does not let you open), as you avoid the 15% withholding tax on dividends imposed by the US government. But I still think WS Trade is the best option for TFSA accounts.
> You are unlikely to happen upon an investment strategy by sheer luck as effective as those your advisor would use EVERY DAY.
That's why professionals beat the odds. Oh, that's right. They don't. They frequently lose to dart boards. That's because no one (except Buffett, apparently) can actually beat the market.
What on earth could a financial advisor do with $200K that she couldn't do herself for cheaper? If she sticks it into the S&P500 and leaves it, she's going to beat 95% of the professionals out there. What is an advisor going to do for her, other than charge fees to do what she can do at Vanguard.com for free?
Edit: OP, here are some books to read: 1, 2
I've been sponsoring a child in (Nepal, India, Peru, Equador as each child grew up at some point) at Save The Children. You learn a lot from the children's/site leader's letters about different cultures and makes it less of a faceless exercise.
I read Andrew Tobias's book, Only Investment Guide You'll Ever Need's chapter on Charity in college and it made me decide right then to make charity a part of my investment plan. I have to say it is something I am proud to have done for every 30 years through good times and bad.
Online courses are really hit or miss. Most college courses on "business" don't really teach how to start or run a small business. They either teach big business... how to work in a large corporation... or how to create a startup. Both of those are markedly different from starting and running a small business (even an online one).
There are some great books about starting and running a small business, though. Here are a few of my favorites:
Financial Intelligence for Entrepreneurs
This is an excellent book on business finances for the non-accounting types. I took accounting classes in college but never really got what all the financial reports really meant to my business' health. This will teach you what's important in the reports, what you should look out for, and how to read them. This is critically important for a small business owner to understand, even if you plan to hire a bookkeeper and accountant.
The E-myth Revisited by Michael Gerber
Awesome book about building systems in your business to really grow it to the point where it's not just a job for the owner. It's easy to read and probably one of the top 5 business books of all time.
Entreleadership by Dave Ramsey
This is a good book and covers several different aspects of entrepreneurship from hiring and managing employees to marketing, setting the vision, etc. It's hokey at times, but is a good read.
The 7 Habits of Highly Successful People by Stephen Covey
Not necessarily a "small business" book, but easily my top #1 book recommendation of all time. It's hugely applicable to any professional, or anyone really. I re-read this book every couple of years and still get more out of it after almost 20 years.
Getting Things Done by David Allen
THE productivity book. Even if you only absorb and implement 25% of the strategies in this book it will make a huge difference in your level of productivity. It's really the game-changing productivity system. This is one of the biggest problems with small business owners - too much to do and no organization. Great read.
Since you're setting up an LLC, talk to a lawyer not only about this but about dissolution in the event the 3 of you decide it's not working out. Just assume it will all blow up in 5 years. It might not.. but.. assume.
This is a good starter book. All 3 of your should read this: http://www.amazon.com/Journal-Complete-Real-Estate-Investing-Guidebook/dp/0307345629
> I hope this is not too open-ended, but what would you folks say are the major pros and cons of investing in real estate vs e.g. securities?
You may not like this answer but you need to read about it from better sources.
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If you want to know about real estate, consider buying this book. If you want to know about securities and markets, consider buying this book.
Try Fail-Safe Investing by Harry Browne, gives you all the main parts of a safe portfolio. Where to stick your money and most of it will be safe in any economic situation.
It's OK to put in 1% as a learning experience.
A professional investor would typically put in a somewhat larger amount if there is a real edge.
One approach is the Kelly criterion, which says that if you want to maximize the growth rate of your portfolio over the long run, the amount to invest is edge/odds. In other words, if you have a big edge you invest more, if the risk/volatility around that edge is high you invest less.
However, even assuming you actually know the edge and odds accurately, the Kelly criterion position size takes a LOT of risk and volatility to maximize your growth rate. In general you would have an x% chance of losing 1-x% of your entire stack at some point in the future, ie a 50% chance of losing 50%, a 10% chance of losing 90%. Nevertheless, if you lived forever, that's the risk you would want to take to maximize your growth rate.
On the one hand, the Kelly Criterion, the long run persistence of an edge in equities in the form of the equity risk premium, and an understanding of human psychology all suggest that people don't really take enough risk.
There are 2 very good and a few not-so-good reasons to take less than the Kelly-optimal risk.
The first is you don't live forever, and it's perfectly rational to give up a big chunk of the growth rate for a MUCH lower risk of blowing up and impacting your lifestyle and opportunities of your loved ones.
The second, which is most important, is that you never really know the edge and the odds, best you have is a guesstimate. And if you take even a little more risk than Kelly-optimal, you will fall prey to the gambler's curse. Consider what happens if I give you a coin-flip where I give you 5x on your money when you win. If you bet all your money on each flip, you are guaranteed to go broke. Bet even a little too much, and you magically turn a huge edge into a guaranteed big money-loser.
But most people never even approach Kelly-optimal betting. They are risk-averse, and extremely loss-averse. Pro money managers could never tolerate the swings involved.
Warren Buffett put something like 40% of his portfolio into American Express in 1963. His view of value investing is to invest as if you have a lifetime 20-hole punch card. Every decade-ish long market cycle, you will have a few really great opportunities. Invest so at the end of your lifetime investing career, you'll have accumulated 20-odd meaningful positions in really great companies.
It's worth pointing out that EVERY time Buffett has underperformed, there has been a litany of articles about how he has lost his touch. Partly it's because it makes interesting copy, and people love to build heroes up and tear them down. But partly it's because the game involves taking risk and sometimes pain in the short run. And non-investors don't get that. You're an idiot if you underperform in the short run. Value investing works in the long run because it's hard and inflicts pain in the short run.
For the apprentice investor, it's even harder. So it's important to keep bets no larger than your personality can comfortably withstand. If 1% is it, that's what it is. Don't look for approval from anywhere else. It's good that you are erring on the low side...a lot of people get overconfident and then blow up, or blow out a good position because they can't stand the pain when they are down.
Over time, you want to get more comfortable trading closer to a Kelly-optimal size, without going over the edge of your personal pain threshold. As a small investor, you have some disadvantages in information flow, resources to apply to investing, but you have a big edge: the only person you need to please is yourself. You don't need to do a goddamn thing if you don't want to, you can be opportunistic and you can take as much or as little risk as you like. Personally, playing poker helped me a lot ... you get an intuitive feel for how often you're going to lose when you have the edge, and get comfortable betting big when you have that edge, because you know in the long run it's going to work out.
Also recommend William Poundstone's Fortune's Formula, which is an awesome read on Bell Labs' Kelly and Shannon, who invented information theory, and applied it to investing along with MIT colleague Ed Thorp, who invented blackjack card-counting and started one of the first, most successful hedge funds, and the occasional mafioso and degenerate gambler.
And you won't go wrong reading all of Buffett's essays and letters.
http://www.amazon.com/Fortunes-Formula-Scientific-Betting-Casinos/dp/0809045990/
http://www8.gsb.columbia.edu/rtfiles/cbs/hermes/Buffett1984.pdf
http://www.amazon.com/The-Essays-Warren-Buffett-Corporate/dp/0966446119
[TL; DR] Bet small while you're learning. Get comfortable with taking risk when you really know what you're doing and have an edge. Learn the Kelly Criterion. Read Warren Buffett. Play some poker.
If you're new to investing, I wouldn't recommend that you start with a high-risk, undiversified investment like weed stocks. Here's a brief introduction that I wrote up.
Investing basically means lending out your money, and getting some kind of return on it.
There’s two kinds of investments: debt and equity. With debt, you lend the money and get a fixed rate of interest. With equity, you buy a small slice of a business and get a share of its earnings. Typically the business will pay out some as a cash dividend and reinvest the rest to expand its business (for example, by buying or building another factory), causing its value to grow.
Either way, the value of your investment compounds over time. The rule of 72 says that if your annual return is x%, then it takes about 72 / x years for your money to double. At 5%, for example, it doubles every 14 years or so. So if you can invest $10,000 at 5% and not touch it for the next 40 years, it’ll double a bit less than three times, increasing to $70,000.
Equity investments are volatile: they go up and down. So investors aren’t willing to pay as much as for debt investments, resulting in a higher return on equities. In the long term, equity investments grow faster than debt investments. You take a higher risk and get a higher return.
There's different approaches to investing in equities:
A common approach is to keep your costs low by just buying index funds. Stock picking is hard: it's like trying to find a diamond in a field that's already been searched by an army of professionals. With mutual funds, you’re paying a lot. When your expected average annual return is around 5%, 1-2% is a big chunk. And because stock picking is hard, mutual fund managers have a very hard time doing better than average.
Index funds are liquid (you can sell them easily) and diversified (you’re not going to lose all your money if a single company or a single economic sector does badly).
You probably don't want 100% of your retirement savings in equities, because they go up and down, which can be pretty hard to take. (You don’t want to panic and sell whey they’re low.) A common recommendation is to keep 40% or 50% in bonds (interest-paying debt investments), which are less volatile, providing some stability and reassurance when the stock market is going through a meltdown.
The Vanguard Balanced ETF Portfolio fund, VBAL, is a simple, hands-off way to keep your investments 60% in equities, 40% in bonds, with annual management expenses of about 0.25%. (If you want a different allocation, VGRO is 80% equities / 20% bonds, and VCNS is 40% equities / 60% bonds. iShares and BMO also offer asset allocation funds.)
For a step-by-step guide, I'd recommend John Robertson's book The Value of Simple: A Practical Guide to Taking the Complexity out of Investing. (He comments here as /u/HolyPotato.)
Most people, including experts, underperform the market average when they try stock picking themselves. That's why people buy the average by investing in index funds.
Vanguard might honestly be a better place to start unless you also want a range of other products like a checking account (with checks and bill paying), CDs (certificates of deposit, a type of savings account), currency trading, etc. Schwab is probably a better "full service" bank/brokerage, though.
If you don't have a lot of money to start with, and this is for long-term investing, I recommend starting with 1-3 conservative mutual funds or ETFs, and resist the temptation to try to do individaul stocks. The "three fund portfolio" is a very solid technique. This book is a great introduction to sensible investing, which explains why this is a good strategy.
Basically, index funds and ETFs let you hedge your stock market bets by pooling your money in a big basket of stocks. The S&P 500 (e.g. VOO or SPY ETFs) are up more than 22% this year. That's hard to beat for individual stocks. It's possible to get lucky, but over time, you're likely to do worse than the stock market.
Hey, we graduated at the same time! As long as you keep paying extra towards your high-interest loans first, you will pay them off quickly. One thing that will allow you to pay off your loans even faster is to change your repayment plan to 25 years instead of the standard 10.
This sounds counterproductive, but what this will do is dramatically reduce your minimum monthly payment. I did this and my monthly payment went from $500 to $260. However, I still pay the full $500 (plus some). Now, I am able to force $240 of the original $500
minimum payment to my loans with the highest interest rates.
This only works on federal loans because the interest rate will not change. Call your loan servicer and ask about a 25 year FIXED repayment plan. They will try to get you on an income-driven repayment plan, but don't do this as your payments will change as your income does. You want the 25-year fixed payment. I had a friend that tried this, but for some reason, his loan servicer would not let him do it. I think that your income and debt balance have some influence on whether or not you can get on the 25-year plan.
Another thing that you can do to retain more of your income is to rework your car insurance. You are on the right track by not paying it monthly. This saves you some premium as you pay for it all at once. To get the cheapest rates, you should buy a policy that lasts a full year (not 6 months because your rates can increase 2 times per year as opposed to 1). You should also get a $1,000 deductible. Most people have $500 deductibles. If you get a $1,000 deductible, you get put in a lower risk pool and will have a lower premium to pay. Just be sure that your emergency fund could take a $1,000 hit instead of a $500 one if you get in a wreck. Make sure that you also have good coverage like 100/300. Don't ever get the state minimums as this is not enough coverage and you will get sued to cover everything your insurance fails to pay if you are in an accident.
Another thing that you should do is read these 3 books. It sounds like your debt is under control and you are already familiar with Dave Ramsey (you are ignoring his snowball method for the much much much much much better avalanche method). So your debt is under control and will be paid off in a few years. What happens then? You should read these three books now, so you can set up your future today:
"The index card" by Harold Pollack.
This book tells you everything you need to know about personal finance. It is very simple and you will be ahead of the curve if you read this.
https://www.amazon.com/Index-Card-Personal-Finance-Complicated/dp/0143130528/ref=sr_1_2?ie=UTF8&qid=1536937178&sr=8-2&keywords=the+index+card
The second book you should read is "Unshakeable" by Tony Robbins. This book covers some of the same stuff in "the index card", but it goes into more depth about how to invest in index funds for taxable accounts, 401k, Roths, and other IRAs. This book can show you how to minimize your fees and help keep your risks manageable. It is a great book for learning how to invest for the long haul (it's not a get rich quick scheme).
Honestly, depending on what your interest rates are on your student loans, you should probably start investing some of your money rather than just paying off loans. Sure it will take you longer to pay off loans, but why pay off a loan today that has a 2-3% interest rate when you could buy into an index fund that will pay you 10% on average? I would aggressively pay down the high-interest stuff (anything above 4%) as fast as possible. Once that is paid off, I would shift some of the money to invest. I would still pay more than the minimum on the remaining loans. Doing this will allow you to take advantage of compounding interest and your net worth will be higher when your loans are paid off. This is where you should stop listening to Dave Ramsey. Ramsey's goal is to get you out of debt as quick as possible. His goal is not to increase your net worth as much as possible. Once you get all your student loans above 4% paid off, your student debt is manageable and will be close to the traditional inflation rate. As long as you keep paying the current minimums, it will be gone by 2025 (sooner if you pay a little extra). But your net worth could be significantly higher if you take a few hundred dollars a month and invest it.
https://www.amazon.com/Unshakeable-Your-Financial-Freedom-Playbook/dp/1501164589/ref=sr_1_2?s=books&ie=UTF8&qid=1536937326&sr=1-2&keywords=unshakeable+tony+robbins
The third book you should read is "Your money or your life" by Vicki robbin. This book is crazy and has a cult-like following on places like the financial independence subreddit. This book shows you how to become financially independent. It has a foundation based on the mindset that "if you always want more, you will never have enough." This book shows you how to make a plan to retire as soon as humanly possible based upon your age, income, and fixed expenses. I have read it and adopted many of the concepts. I don't necessarily plan on retiring early, but I will be secure and able to retire if shit hits the fan, the option will be up to me and not my employer.
https://www.amazon.com/Your-Money-Life-Transforming-Relationship/dp/0143115766/ref=sr_1_1?s=books&ie=UTF8&qid=1536937840&sr=1-1&keywords=your+money+or+your+life+2018+edition
I hope this helps. Good luck!
Investing in real estate really requires that you know a little about a lot of things. These are the books I used when starting up:
General Overview:
Multi-Family Introduction:
Flipping Introduction:
Real Estate Formula Primer:
Landlord Tax Basics:
That is a good intro for books...BiggerPockets is always good too. However, most investors will tell you that there is only so much you can read about real estate. Read some books, get a feel and then go for it. It's the only way you can really learn.
I suggest reading this. It's a good introduction to the subject:
https://www.amazon.com/gp/product/0981893562/ref=ppx_yo_dt_b_search_asin_title?ie=UTF8&psc=1
tl;dr, my advice would be to take 3 deep breaths and not be in a huge rush. Don't dilly dally for no reason, but take a little while and educate yourself on what options you have. The reading list in the sidebar is a very good start. Stuff like Millionaire Teacher(new version just came out this year) will help you understand what you're investing in, why you would chose one method to invest over others, etc... Spending a few bucks on those books(or better yet, get as many as you can from a local library) will save you a heck of a lot over the course of your life.
You certainly can invest through CIBC. Either through an advisor there, or a self-directed system where you control things more directly.
But just because you have a savings account with CIBC doesn't you don't need to invest with them though! You have a few different options besides them.
An increasingly popular method is to use a roboadvisor like Wealthsimple. They charge a % of the value of your investments as their take, but they also do all the buying and selling and whatnot for you which might help keep you from doing something Silly(a lot of folks do). Silly things might include putting all your money into whatever country/sector/company has been really hot lately under the assumption that it'll keep going up forever(it probably wont!)
Or to save a bit more money you can open an account with TD and invest using their e-series mutual funds. They're quite cheap in terms of fees(for Canadian mutual funds anyway, we're used to paying through the nose for stuff like this).
Once you have that account set up you just pay your TD account number through CIBC's bill payment just like you would a phone bill or whatnot. Then once they money is in your TFSA/RRSP/Taxable account you use them to buy the appropriate funds.
Then if/when you want to really save some cash, and can be online during 'market hours' going to Questrade is a popular choice. That way you can use rock-bottom cost Exchange Traded Funds(think mutual funds, but they trade like individual stocks) and you aren't paying any significant fees to buy those.
But seriously, read a couple of those books(and make one of them Millionaire Teacher). If the how-to of investing with TD or Tangerine or Questrade is confusing to you, or you want more info on that sort of thing, The Value of Simple is a good book to get too. The e-book version gets more updates due to the realities of printing costs, but the author has a bunch of new/edited info on their website.
Finally, as to WHAT to invest in, most folks in here follow something along the lines of a Couch Potato strategy.
On What to Read
Here are some suggestions on books and websites:
The Millionaire Next Door by Stanley and Danko - https://www.amazon.com/Millionaire-Next-Door-Surprising-Americas/dp/1589795474
If You Can by William Bernstein - http://efficientfrontier.com/ef/0adhoc/2books.htm
Free version is here - https://www.dropbox.com/s/5tj8480ji58j00f/If%20You%20Can.pdf?dl=0
The Investor's Manifesto. Preparing for Prosperity, Armageddon, and Everything in Between by William Bernstein - https://www.amazon.com/Investors-Manifesto-Prosperity-Armageddon-Everything/dp/1118073762
The Bogleheads Guide to Investing - https://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/1118921283
The Coffeehouse Investor - https://www.amazon.com/Coffeehouse-Investor-Wealth-Ignore-Street/dp/0976585707
The Bogleheads' Guide to Retirement Planning - https://www.amazon.com/Bogleheads-Guide-Retirement-Planning/dp/0470455578
The Four Pillars of Investing: Lessons for Building a Winning Portfolio by William Bernstein - https://www.amazon.com/Four-Pillars-Investing-Building-Portfolio/dp/0071747052/
Total Money Makeover by Dave Ramsey - https://www.amazon.com/Total-Money-Makeover-Classic-Financial/dp/1595555277
Personal Finance for Dummies by Eric Tyson - https://www.amazon.com/Personal-Finance-Dummies-Eric-Tyson/dp/1118117859
Investing for Dummies by Eric Tyson - https://www.amazon.com/Investing-Dummies-Eric-Tyson/dp/1119320690/
The Millionaire Real Estate Investor per red-sfplus’s post (can confirm this is excellent) - https://www.amazon.com/Millionaire-Real-Estate-Investor/dp/0071446370/
For all the M.Ds on here and HNW individuals, you might want to check out https://www.whitecoatinvestor.com/ and his blog – found it to be very useful.
https://www.irs.gov/ or your government’s tax page. If you’ve been reading, you know that millionaires know more than your average bear about the tax code.
https://www.reddit.com/r/TheRedPill/comments/7vohb3/money/
https://www.reddit.com/r/TheRedPill/comments/3hzcvn/financial_advice_from_a_financier/
https://www.artofmanliness.com/2017/09/22/4-money-tips-4-personal-finance-legends/
Personal Finance Flowchart from their wiki - https://i.imgur.com/lSoUQr2.png
Additional Lists of Books:
https://www.bogleheads.org/wiki/Books:_recommendations_and_reviews
https://www.whitecoatinvestor.com/books-4/
Subreddits
https://www.reddit.com/r/investing/
https://www.reddit.com/r/personalfinance/ - I would highly encourage you to spend a half hour browsing their wiki - https://www.reddit.com/r/personalfinance/wiki/index and investing advice - https://www.reddit.com/r/personalfinance/wiki/investing
https://www.reddit.com/r/financialindependence/
https://www.reddit.com/r/SecurityAnalysis/
https://www.reddit.com/r/finance/
https://www.reddit.com/r/portfolios/
https://www.reddit.com/r/Bogleheads/
MRP References
https://www.reddit.com/r/marriedredpill/comments/40whjy/finally_talked_to_my_wife_about_our_finances_it/
https://www.reddit.com/r/marriedredpill/comments/67nxdu/finances_with_a_sahm/
https://www.reddit.com/r/marriedredpill/comments/488pa0/60_dod_week_6_finances/ (original)
https://www.reddit.com/r/marriedredpill/comments/6a6712/60_dod_week_6_finances/ (year 2)
https://www.reddit.com/r/marriedredpill/comments/3xw015/how_to_prepare_for_a_talk_about_finances/
https://www.reddit.com/r/marriedredpill/comments/30z704/taking_back_the_finances/
https://www.reddit.com/r/marriedredpill/comments/2uzukg/married_redpill_finances_and_money/
https://www.reddit.com/r/marriedredpill/comments/3637q5/some_thoughts_on_mrp_and_finances/
https://www.reddit.com/r/askMRP/comments/8dwaqt/best_practices_for_finances_within_marriage/
https://www.reddit.com/r/marriedredpill/comments/588e5o/gain_control_of_the_treasury/
Final Thoughts
There are already a lot of high net worth individuals on these subs (if you don’t believe me, look at the OYS for the past few months). This should be a review for most folks. The key points stay the same – have a plan, get out of the hole you are in, have a budget, do the right moves for wealth accumulation. Lead your family in your finances. Own it.
What are YOU doing to own your finances? Give some examples below.
I started my journey almost a year ago. I read many books but I found Trading Systems to be the best beginners book. In terms of algo trading, its a different beast on its own. Your biggest challenge is getting the data.
I think that was talking about the Invest Like a Pro book he self published on Amazon. The YNAB book was published by Harper Collins so unless he’s got some really crazy deal with them, he can’t just send it to people as a PDF. He’s the author, but it’s not his property anymore.
I started with this book and it's helped a lot--> https://www.amazon.com/Index-Card-Personal-Finance-Complicated/dp/0143130528/ref=sr_1_1?keywords=personal+finance+index+card&qid=1565197060&s=gateway&sr=8-1
It simplifies everything for you. Made me realize I don't need an FA, but if you do need one there are resources in the book to help make sure you choose someone who will actually help you and act in your financial interests. Not all financial advisers do that, nor are they required to.
Also I saw one of your other comments about the house issue -- if you're not making much right now not sure how you would expect to pay off a house that quickly unless I'm misunderstanding your question. Also for side income, a house isn't really a sure thing except in certain circumstances. A huge portion of your investments would become tied up in one asset that could flood, get damaged in a hurricane, etc. Nothing wrong with buying a house for yourselves to live in if that's what you want and can afford it, but sounds like you're getting way ahead of yourself with the decision to buy a house as an investment.
The reason why the Fama-French 3 factor and Carhart 4 factor are so prevalent is because people generally agree on these factors. Without going into history too much, the number of factors have grown over time from CAPM (1 factor) to Fama French (3 factor), to Carhart (4 factor). There are even more, but at some point, it starts looking like a "factor zoo".
After the success of Fama-French, and quantitative investment firms that use the approach like DFA and AQR, almost every finance program teaches this type of approach. This has influenced a lot of finance students, who themselves started to look for new factors. Some of the new studies try to find further nuances in existing factors, while others go off all new tangents, a fun one that comes to mind is a paper that tries to create a factor out of moon cycles.
We have so many factors now that academics are writing meta-papers describing the problem of there being too many factors to choose from.
If you want a nice summary of some pretty widely accepted factors, I would recommend a very accessible book called Your Complete Guide to Factor-Based Investing
Não tens de agradecer, my pleasure. Assim de repente, alguns clássicos e outros livros que possam ser úteis:
- Rich Dad Poor Dad
- One Up on Wall Street
- The Intelligent Investor
- Everyday Millionaires
- Your Money, Your Life
- Side Hustle
- Motley Fool for Teens - não leves a mal ter escolhido a edição "for teens" - é só porque é um excelente guia para quem está a começar e vai investir quantias pequenas só para molhar o pé. Se quiseres algo mais completo, tudo o que é do Motley Fool (incluindo o site, newsletters e podcast) é bom.
Em português não conheço muito e o único que me vem à cabeça é este do Pedro Queiroga Carrilho.
I'll give you some books to use as a starting point. You want to start out as generally as possible and then follow what interests you. Someone can give you a list of top books, but if they don't fascinate you enough to really dig in deep and reflect on them to sate your own curiosity, you'll just be scratching the surface. I don't care what it is, you can make money anywhere in the markets. So starting generally will help you find out what direction to go.
So, that said, these are the ones I'd recommend starting out with
https://www.amazon.com/Market-Wizards-Updated-Interviews-Traders/dp/1118273052
https://www.amazon.com/Reminiscences-Stock-Operator-Edwin-Lef%C3%A8vre/dp/0471770884
https://www.amazon.com/gp/product/1400063515/
https://www.amazon.com/gp/product/0684840073/
https://www.amazon.com/gp/product/0809045990/
Some less conventional ones I really liked
https://www.amazon.com/gp/product/1578645018/
https://www.amazon.com/gp/product/1422121038/
Chaos theory describes some properties that pop up again and again in markets. I really liked this one.
https://www.amazon.com/Deep-Simplicity-Bringing-Order-Complexity/dp/140006256X
I also highly recommend finding a few good books on behavioral investing, just to get acquainted with the common mistakes investors make (how you can avoid them, and how you can exploit them). I don't have a lot here because the books I read are outdated and you can find better. So one example:
https://www.amazon.com/gp/product/0470067373/
But in general reading about psychology will help you understand the world better, and that's always a good thing.
https://www.amazon.com/Flow-Psychology-Experience-Perennial-Classics/dp/0061339202
Dan from CCP has some suggestions for low cost ethical investing but the article is from 2010 and may not be current info. One of the commenters who says he's a fee-for-service advisor has created an Organic Couch Potato Portfolio that uses some of Dan's suggestions. I dunno about those solar bonds.. might not be super liquid.
Rebalancing is not that complicated. The Value of Simple by /u/HolyPotato explains exactly what to do (and has lots of other good information), otherwise there are some great blogs like Canadian Couch Potato and Canadian Portfolio Manager that can help.
I think everyone has to learn this for themselves, but don't overthink it. When I launched my passive portfolio I was checking on it every day, I was keen to reinvest my first dividends as soon as they were paid out, and I spent a lot of time researching, tweaking and convincing myself that what I was doing was right.
A year later I'm checking less and less, I have a 'meh' attitude towards doom and gloom in the financial news and I'm just gonna rebalance when I contribute to my portfolio once a year and leave it alone unless there's a crash.
I'm one of those Robinhood users but I can't complain about much it's not a bad way to start learning how to trade and buy stocks. I contribute every payday into my account it's currently around $5,000. Not much but it's decent. For the last two-and-a-half years I've been investing a portion of my paychecks to the stock market I spent about four months losing a lot of money trying to follow all these YouTube gurus advice. I lost about $1,500 trying to do that. Eventually though I decided I should just teach myself the ropes instead of taking somebody else's word for it. I purchased 4 books from Amazon and these books are great they teach you a lot of stuff about the stock market how to value companies and ideas to help you grow your portfolio over time I just wanted to recommend these books if somebody is just starting out it's not that much money it's about $45 worth of investment it has been great for me since reading them. I also have to recommend a YouTuber that I follow quite closely his name is Jeremy and his channel is called financial education. I like his investment style and I try to do very similar things myself.
.https://amzn.to/2mnwnOg The Intelligent Investor by Benjamin Graham
https://amzn.to/2nVmy A Random Walk Down Wall Street by Burton G. Malkiel
https://amzn.to/2nfkfiE Irrational Exuberance by Robert J. Shiller
https://amzn.to/2nn7imH The Bogleheads’ Guide to the 3 Fund Portfolio by Taylor Larimore
Kinda surprised at no Enterleadership by Dave Ramsey.
Practical advice on how to grow your business, treat people, and manage money.
Dave Ramsey's EntreLeadership sets out to do just that - provide experience based advice for new business owners.
Let me start off by saying your comment made my day, thank you. Also, if I could give some encouragement, it'd be that understanding market sentiment for commodities isn't something that comes naturally to anyone. I spend a lot of time online at night researching - kind of became a hobby. I'd highly recommend getting a Seeking Alpha account and putting gold ETFs on your watchlist to get articles on gold. Read anything that's written by Avi. I've learned an immense amount from him. (I also like Taylor Dart.) What you just said about 'the economy doing great so gold would do bad' is a pretty common mistake. Don't take any "truths" on gold as a certainty. Sometimes it moves inverse the SP500, sometimes it moves inverse the dollar, but not always. It's not a hedge. It crashed alongside the SPX during 2008. It's pretty correlated with the Yen and inflation expectations, but knowing that won't really help you in the long run. Fundamental analysis will only get you so far. People will use news to explain price action after the fact, never before - because it doesn't work.
"Gold moved $10 today because Trump tweeted something mean about China." BS... there's always news going on. You can know everything about global economies and still not be a successful gold trader. But basic technical analysis and market sentiment will get you pretty far. I look at the CFTC report (https://www.investing.com/economic-calendar/cftc-gold-speculative-positions-1618) for a reference on how people are positioned. See how in August gold was at one of the highest net long positions ever? Red flag.
As for technical analysis, I watch plenty of YouTube chartists. If you want to think like a technician, you have to listen to them. Lastly, I love this book (https://www.amazon.com/Charting-Technical-Analysis-Fred-Mcallen/dp/1456468693/ref=sr_1_3?ie=UTF8&qid=1483683042&sr=8-3&keywords=technical+analysis+of+the+financial+markets) too. It's not dry at all, and was a great starting point. Happy trading.
Den Klassiker von Gerd Kommer kann ich empfehlen.
Wenn man sich erstmal Grundwissen aneignen will, ist auch "Börse für Dummies" gar nicht schlecht. Da bekommt man Grundlegendes einfach erklärt.
> Ich bin ich wirklich informiert über den Finanzmartk, an dieser Stelle würde ich mich über einen Buchtipp freuen der zu meiner Situation passt.
> Eigentlich wär mir es lieber die Wohnung zu halten und auf weiteren Preisanstieg zu hoffen.
Die historische reale Rendite von Wohnimmobilien liegt nahezu bei 0% und damit deutlich unter einem vergleichbarem Weltportfolio bestehend aus Aktien und Anleihen/Tagesgeld. Der Anstieg der letzten Jahre der Immobilienpreise ist nur eine Ausnahme.
Generell besteht ein hohes Klumpenrisiko, wenn du die Immobilie weiterhin behältst. Das Risiko ist nicht zu unterschätzen. Der Preis einer Immobilie schwankt deutlich mehr, als man denkt.
Dies alles wird aber ausführlich in den beiden Büchern erläutert.
Looking for this one too. For non-aus one, am planning to get this: The Simple Path to Wealth: Your road map to financial independence and a rich, free life https://www.amazon.com/dp/B01H97OQY2/ref=cm_sw_r_cp_api_i_CmjyCbV4KKJJS
I read this book to help with my market expectations.
https://www.amazon.com/gp/product/B01H97OQY2/
My conclusion is that Betterment is an investing tool to help me stay on my simple path.
Great, so then you're looking at the following:
Emergency Fund: let's round up to $2000
Retirement: $5500
New Car: $10000 (I'm guessing here)
Which leaves you with $6,500 to consider investing. That's what I'd focus on with your financial advisor. Keep in mind, you generally want to look at investing as a long term play (5 years+) so if you ever feel like you'd need to pull that money out, I'd keep it more liquid and maybe beef up your EF some more. If you're comfortable with not tapping into that money, you can look at crazier things like some of the cryptocurrency stuff floating around (higher risk) or real estate (lower risk). Generally a few good investing resources are Wall Street Survivor (they have a bunch of free online courses), Investopedia (awesome resource for learning about finance) and this book (The Index Card - https://www.amazon.com/Index-Card-Personal-Finance-Complicated/dp/0143130528/ref=sr_1_1?ie=UTF8&qid=1498149260&sr=8-1&keywords=the+index+card).
The wiki is a great place to start, especially the PRIME DIRECTIVE.
This book is a nice short read that explains things very well.
I really like the podcast Death Sex and Money. They have a lot of resources online about beginning to deal with a lot of these issues. For example they just had a two part episode about student loan debt and the different ways people are dealing with them. Here's a link to their back catalog.
I listen to a load of economic and financial podcasts because I find it interesting. There's one book that's been recommended across multiple different ones. Here's an NPR link about the basis for it. It pretty much is that all the best financial advice can fit onto an index card as is pretty simple. Here's the amazon link to the book but you could also probably find it for sale cheap at a used book store or get it from your library.
The most important thing
http://www.amazon.com/Most-Important-Thing-Thoughtful-Publishing/dp/0231153686
I'd highly recommend all of Buffett's letters and this, as well as this book
This
Especially this
I found a copy of each of these in a book drive I participated in for charity-- paid 25 cents each. Well worth it.
Props for mentioning the Permanent Portfolio, but a) where's the cash?, and b) not enough gold.
There are a lot of very smart investors out there who think that gold still has a long way to go. I can wholeheartedly recommend the Permanent Portfolio to anyone and present it as a very stable portfolio, but on some level I expect the 25% gold to make the difference between rags and riches.
Harry Browne's must read book on investing.
It's kind of addictive when you start earning good money. You never want to go down. I just had a great two yr contract end and I'm using the cash generated over the next four months to market myself in a sector I'd love to be working in, next.
Also worth buying a copy of Rich Dad Poor Dad if you've not read it. The author's style annoys me, but his message is spot on. Just don't bother buying any of his other books.
And yes, better to freelance as the pimp than the hooker ;)
Rich Dad Poor Dad
This book is a really easy read, but has a lot of great information in it. I read this right after graduating, and it really helped put life, work, money in perspective. After finishing it, I immediately got myself out of debt.
Not sure how this book will help you, but it would definitely be a good start.
Good luck and remember that you are not the only person who has felt like a underachieving 20-something. We all do (or have in my case).
I'm gonna throw some book titles at you.
The first two will help with the money problems. The third just helps you deal with life and achieving your goals. The last may be the most important because everything in life involves dealing with other people.
Whatever you do, do not sacrifice your own financial security for their sake. Make sure you have your emergency fund set up; do not ever under any circumstances ever ever ever co-sign any loans for them or give them any credit cards under your name ever, on any planet. Ever. See this previous post of mine for just one reason why.
Rich Dad, Poor Dad is a good book for understanding different perspectives on personal finance.
For stubborn parents, I find that a little bit of a guilt trip goes a long way in helping them understand the potential impact of their actions -- i.e., they have no savings for retirement, what do they expect to do when they want to stop working in 5-10 years? Live off of your income? How is that fair to you? You would most likely just be starting a family of your own and trying to save for potential children's educations and your own retirement, do they really want to be an impediment to that?
There's 3 kinds of incomes: A, B, and C income:
C - A job, the worst way to make a living. Working for another man trading dollars for hours. Slogan: "I'll learn to love (tolerate) what I do and live with what it gives me, at least until I save up enough money to strike out on my own."
B - Contracting work, a business you work. Trading dollars for hours still, but you work for yourself and set your own price. Example, creating and selling products or providing a service. Slogan: "I get paid what I'm worth because I work hard, make my own hours and prices"
A - Passive income streams, AKA residual income, a business that runs itself. Acquire a system of assets. Assets vary greatly and are generally built over time. Examples: Owning a rental unit, owning rental boats, owning a storage facility, really anything you can rent out is an asset, owning an online business that generates enough money for you to pay a manager to run it for you, investments in an institution that pays off high-yields, a copyright that leads to royalty payments, Or setting something up so others can make money, and take a small percentage (Facebook & twitter). Slogan: "Key word: Ownership. I've worked hard, sacrificed for the future, and made tough decisions most people don't. So now I don't have to work for money anymore... my money works for me now!"
Some books on how to get to Level A: 'Rich Dad, Poor Dad', 'The Richest Man in Babylon' Good luck out there :)
https://www.amazon.com/Your-Complete-Guide-Factor-Based-Investing/dp/0692783652/ref=sr_1_1?ie=UTF8&qid=1486570140&sr=8-1&keywords=complete+guide+to+factor+based+investing
There are roughly 5 components in the practical CAPM model: (i) market risk (ii) value (iii) size (iii) momentum (iv) profitability.
The market risk beta was developed in the 60's and captured around 60% of volatility.
Adding the value beta and size beta - developed by French and Fama - brought the tally up to 90%.
The momentum beta then bumped up volatility capture to 95%.
So... if you have a single factor CAPM - the traditional market risk measure - you are still leaving around 40% of volatility unexplained.
In short: Add factors! Even if (European) CAPM traditionalists frown upon this.
Edit: This is a great book on the topic, and covers all recent academic publications!
Hi I'm not sure if these are the books you would enjoy, but I do have a couple of them in my pocket list:
Personally in recent years I'm interested in topics about algorithms/cryptology and economics, so The Code Book by Simon Singh, Fortune's Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street by William Poundstone, The Physics of Wall Street: A Brief History of Predicting the Unpredictable by James Owen Weatherall, these are the ones of my all time favorite "history" books about math and science and their applications. : )
I can still come up with another (popular) book, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything, but I didn't really enjoy the book, guess I didn't agree some of the conclusions in that book. But maybe you would find it interesting. :)
Hope this helps! ☺️
J Scott wrote one a few years back. "How to Flip Houses" or something like that. TBH though I didn't think that it was that great. A lot of it was either very obvious stuff or directly related to his personal experience in his location.
I like to recommend this book:https://www.amazon.com/Skinny-Real-Estate-Investing-Introduction/dp/0981893562
It's massively simplistic, but at the same time does a great job of introducing the basic concepts and ideas.
The Investor's Manifesto by William Bernstein
The little book of common sense investing by John C. Bogle
The Bogleheads' Guide to Investing
The Bogleheads' Guide to the Three-Fund Portfolio
Best advice I have for small business in general: Dave Ramsey's EntreLeadership
His related material is also excellent.
http://www-stat.stanford.edu/~tibs/ElemStatLearn/
http://www.amazon.ca/Trading-Systems-development-portfolio-optimisation/dp/1905641796
Tomasini's book is very good. If you don't like to pay there are torrents and pdfs floating around the web.
If you want it as a Kindle book, you can also get it for free here.
Jesse wrote an investing book: Invest Like a Pro: A 10-Day Investing Course https://www.amazon.com/dp/B00O4G1BBI/ref=cm_sw_r_cp_api_-43-yb75AFCRM
This has been up for quite some time, but he did just publish it as a book. I went through it all, but I was 17 at the time and not old enough to actually start investing, I learned a lot from the course.
I think I will have to repeat the course and then actually take a leap and start investing.
Generally speaking you'll either want a target date fund (which will have a higher expense ratio, but is "set it and forget it" kind of thing), or dump into something like VTSAX (or whatever equivalent you have access to). You can opt to do other portfolio strategies, but those are the two most commonly used for general suggestions. Many will feel that VTSAX is investing in only one stock, which is inaccurate as VTSAX invests in the broad market.
Also, if you have some time go and read through JLCollin's stock series (note - it's currently down for some reason, looks like their web host is having issues). Or read the simple path to wealth.
TL:DR - if you want 100% stocks, throw it in VTSAX and forget about it. Over the past 10 years VTSAX has returned 12%, with the worst 3 year period being -8% and best 3 years being 33%.
Alternatively, one could just read https://www.amazon.com/Index-Card-Personal-Finance-Complicated/dp/0143130528 , and avoid Dave's notoriously bad investment advice (and hopefully his Reddit cult as well!).
Wow this is a great list - thanks everybody
I want to recommend a book that absolutely changed my life.
'The only investment guide you'll ever need' by Andrew Tobias. I knew little about finance, and this book, which is maybe a hundred fifty pages long, covers everything you need to know. I read it fifteen years ago in an afternoon and last year I retired early (at 50) as a result of following what he recommended. He writes for the layman and updates it regularly. Wish I'd read it at 18. I know you'll probably ignore this post because finance is boring, but do yourself a favour, check out the reviews on amazon and spend a couple of hours reading it.
http://www.amazon.com/Only-Investment-Guide-Youll-Ever/dp/0156029634
the only investment guide you'll need is one that's floated around (have a copy but haven't gotten around to reading it)
warren buffet's annual letter probably wouldn't hurt either
I paid the fee and took the insurance class. It was worth the fee to get the class, even though I never sold a nickel of insurance and walked away from them soon after. Their products are expensive and overpriced. I basically decided that I couldn't sell something I wouldn't buy. They had some really crappy biweekly mortgages too.
Read this: http://www.amazon.com/Only-Investment-Guide-Youll-Ever/dp/0156029634 It's not the be-all end-all (and the author is somewhat embarrassed about the title, but his publisher came up with it), but it is a good start. Also read the Millionaire Next Door.
Then go to a low cost broker (tiaa cref, vanguard, schwab), and start a Roth IRA, throw some money into a 401K. If you are married get some term life insurance. Stay out of debt, and save up some money to buy cars with cash and a down payment on a house.
It's a misleading title: http://www.amazon.com/Only-Investment-Guide-Youll-Ever/dp/0156029634/ref=sr_1_1?ie=UTF8&s=books&qid=1266369902&sr=8-1
However, it covers a lot of topics, is only $10, and is easy reading.
A book that would be good for you is "The Most Important Thing" by Howard Marks. It touches more on the philosophy of value investing rather than the mechanics.
Wall Street Journal Real-Estate Investing Guide is a great book about real estate investing. Covers everything you need to know. Read cribchatter.com every day to get a "feel" for the different neighborhoods and market trends. Now is a good time to get into real estate for reasons too long to get into here, but PM me and we can grab a coffee and I'd be happy to share.
Fail-Safe Investing by Harry Browne. Quite possibly the best $11 you'll spend.
The strategy he mentions isn't sexy, but it works. My year-to-date return is 12%; not much, but I'll take it over the S&P 500's -9% over the same period.
https://www.amazon.com/Truth-About-Money-4th-ebook/dp/B004EBT7I2/ref=sr_1_1?ie=UTF8&qid=1495183064&sr=8-1&keywords=The+truth+about+money
https://www.amazon.com/Intelligent-Investor-Definitive-Investing-Essentials/dp/0060555661/ref=sr_1_1?ie=UTF8&qid=1495183176&sr=8-1&keywords=the+intelligent+investor
https://www.amazon.com/Fail-Safe-Investing-Lifelong-Financial-Security/dp/031226321X/ref=asap_bc?ie=UTF8
Wealthy parents teach their kids to work not to survive or have a comfortable retirement, but rather, to produce or acquire income-producing assets. The income produced by assets -- such as real estate or businesses -- are how the wealthy get wealthier. Eventually you don't have to work at all and you get richer while you sleep because the assets are doing all the "work." In theory, anybody with just a small amount of regular discretionary income could do this, but most people aren't taught to. Instead, they're taught to sink all of their money into a home and retirement savings. Inter-generational transfer of wealth (e.g., inheritance, "trust fund kids," down payment on home as a wedding gift, etc) gets all the attention and criticism as "unfair," -- but really it's the transfer of the knowledge about HOW to create wealth that is the real treasure handed down from one generation to the next, and the real reason for the perpetuation and resilience of the class system.
Edit: For more, read Rich Dad Poor Dad: What the Rich Teach Their Kids About Money-That the Poor and the Middle Class Do Not by Robert Kiyosaki.
It's $8 on Amazon, that's probably a worthwhile investment to begin with
I can tell from your perspective that your work experience is limited in the corporate world to one or few companies. I'm 40 and worked in tech startups most of my career before starting a business. When you work in tech startups, the average time you're at a company is a year or two, so I've worked at a lot of places. I also consulted for a couple of years and bounced from company to company. I've worked at plenty of places where the executives all have corporate credit cards and charge meals regularly. I've charged meals at companies I've worked for thousands of times. At several dotcoms I've worked at it was customary to have breakfast provided daily and lunches catered on a regular basis. When my company had offices we provided breakfast each Monday, and did a bbq every Friday, and it's all deducted as business expenses on taxes. None of that appears on anyone's pay stub. Your company may have a policy of billing execs for your corporate cafeteria, but that's not how the rest of the business world works.
I've also worked for companies that have kept permanent corporate apartments. They were regularly used by software engineers that we would fly in from other states or Russia where we had an office. Some were in these apartments for over a year and none were billed for rent. They kept their primary residence and some were flown back regularly. One guy from AZ was going back every weekend.
My mother owned a real estate business. She wrote off part of the house where her office was, and wrote off her car as a business expense. I once worked at a software company where someone in the accounting department sent an email to all asking who had a particular cell number because it was being billed to the company and wasn't on the internal phone list. The phone was being used by the CEO's 75 year old father who didn't work for the company or know how to turn on a computer. Companies can write off plenty of things which benefit executives.
Companies that are pre-IPO can offer shares at much lower rates than what they know it will IPO for in a year or two. There's a flaw in your assumption that a particular executive has a hand in the success of the company when stock prices go up and they profit from ISOs. Sometimes a certain sector becomes the hot stocks and the price goes up. Other times executives offshore jobs, sell off assets and divisions of the company to artificially boost profits and the stocks go up temporarily, but it hurts the company in the long run. Sometimes companies acquire other companies and the stock goes up temporarily, but it hurts the company in the long run. I worked at a company where we begged the CEO not to do an acquisition. The stock went up, he made millions. Six months later, when the competitor was able to sell their stock, they dumped it on the market, and drove the stock into a downward spiral that the company never recovered from. There are thousands of dotcom millionaires that worked at companies which never made a penny in profit and went out of business.
If I want, I can setup a company that is seeking commercial real estate opportunities. Then, I can expense trips to Hawaii, Europe, or anywhere I want to go. The company can operate at a loss for a couple of years, and all of my trips can be deducted as a business expense even if I don't buy any real estate. Then, I can fold up that company, and open one that looks for timeshare opportunities.
The top 1% is not paying 35% federal, 8% state and 3.876% city. They are using these loopholes to pay far less. A lot of stars don't get paid directly from studios, they incorporate themselves so they get to write off everything they can, and pay taxes only on what's left over at the end of the year.
There's a book you should really read called, "Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and Middle Class Do Not!" by Robert T. Kiyosaki. It's only about 200 pages and it's a quick read, not very academic, but full of good business information and a nice story. Here's the amazon link, but it's probably at any bookstore you pass by. http://www.amazon.com/Rich-Dad-Poor-Money-That-Middle/dp/0446677450
Edit: Link to book
No problem at all. Honestly the best thing I have ever read that has given me the most beneficial mind set towards money is the book Rich Dad Poor Dad. Its my financial principle bible. Ive read it at least 4 times thought high school and up to now. Listen to me when I say this and Just Read It. As far as stock specific goes, I used a site called wall street survivor Stock Simulation Game
It follows the stock market exactly and teaches you the basics starting out with a mock up 100K. I played it all through highschool and it has taught me SO much and saved me SO much. There are several other sites like this one but its just the one I've found to like the most. To give relation I'm in the same boat as you. In college and have a few thousand in the bank that I'm trying to make something with. When I say make something I mean I'm aiming for a 10% return on my portfolio after tax and commissions. Lastly and most important are my own personal rules, DONT touch your real cash until you have spent at least 6-8 consecutive months playing the security and keeping track of it in relation to it's industry. And when you do don't put more than 10% in any one security. Also Dont invest in anything you don't understand. And finally, the ultimate goal is to have all your money working for you creating a steady cash flow of passive income. <-- This is something I have still yet to accomplish but am hoping to in the next few years.
It is basically a valid approach but there are a lot of details you have to get precisely right. And you will have significant periods of underperformance.
The book "complete guide to factor based investing" has a good discussion of the magic formula and its limits.
https://www.amazon.com/Your-Complete-Guide-Factor-Based-Investing/dp/0692783652
Check out the Motley Fool Investment Guide for Teens. Read it when I was 16, it essentially made me financially literate. Focus on gaining compound interest opposed to just “quick money”. If you’re risk-adverse, I would look into putting money into a low-cost index fund. For more risky investments, you can purchase shares of public companies or even invest in cryptocurrencies.
Pick up the Motley Fool Investment Guide for Teens. It comes with worksheets so you can't just read the book and pretend you understood what it said. Some of the worksheets involve life goals which may or may not be something to think about now.
http://www.amazon.com/Motley-Fool-Investment-Guide-Teens/dp/0743229967
Start reading and then look for your first stock.
The Motley Fool Investment Guide for Teens: 8 Steps to Having More Money Than Your Parents Ever Dreamed Of
The Motley Fool Guide to Investing for Beginners
On second thought, I would read The Signal and the Noise first, I think it's got a lot of good advice about life in general as well as predictions.
You could load up your stuff into excel just as a start and try to do some back fitting, like try to see what method has the most accurate prediction. You have to be aware of over fitting with this though, especially in a small set of data.
EDIT: I would also look into Fortune's Formula it's probably one of my favorite books, primarily about the Kelly Criterion but it talks about a whole bunch of stuff. Definitely would be interesting to a mathematician.
These two are more cool stories and advice than "how to make a model" like Who's #1.
I apologise if I'm going to be direct here, but I think I can see you have the ability to come up with great insights but you're just shy of getting it right.
You establish the call to look for value bets here:
> So generally in the first round the top ranked players would play someone who is unseeded in the tournament. Even in the second round the chances of the top two or three players playing unseeded players is extremely high.
> Of course the betting lines tend to correspond to the mismatch but there are in-play betting lines which have not quite caught up with the trends.
This is good. I like the fact that you've spotted a solid bet but that you recognise that bookmakers often offer poor value on those and you need to look further afield for value. And then…
> For example if the number one seed player is playing against an un-seeded player in the first round, generally their odds will be as low as 1/40 or even 1/100. However, the odds for them to win their own service game will likely be closer to 1/12.
Oh dear. The reason why those odds are 1/12 is because the true odds are more like 1/10, and there might be no value there. You need to show that in fact the true odds are more like 1/15 by grabbing some historical data, and doing some analysis, and showing it if you can.
You then develop a system where you assume that games where the favourite serves to open the set or to win the set they are more likely to lose them, without showing any actual numbers. Why are the odds still 1/12 if the true odds change in these games? This could be a great understanding of value if you had stats to back you up.
Then this sentence:
> If you roll your bet, a $10 bet would see approximately a $30 return. So from an initial 1/40 bet, you have increased your odds to 2/1
No. No, no, no, no, no.
No.
Please, read up on Kelly criterion. If you can identify true odds, and you can identify the odds being given to you, you can identify edge/value and you can therefore identify the optimal staking plan between games that is mathematically proven to increase your bankroll optimally.
It's not a "system". It's not a guess. It is mathematic proof that given true odds and odds being offered it is trivial to work out what percentage of your bankroll you should bet.
Just rolling like this is guaranteed to kill you off almost every time.
This is a great book on the subject if you don't like the idea of reading academic papers: http://www.amazon.com/Fortunes-Formula-Scientific-Betting-Casinos/dp/0809045990
And then this:
> If you are brave enough to follow this system through both rounds letting the bet roll, your $10 initial stake would grow up to as much as $2,500.
No, because you're betting 100% of the bank roll on it - you have a huge odds-on chance of losing your bank roll. This sentence suggests you have paper-traded the system but not actually done it, otherwise you would know this.
And you'd think "well, what if I bet half the bank roll? Or 75%? Or 25%?" and then suddenly you'd plot these things on a graph using historical results, and you'd spot the apex and then you would think - ah, there is a sweet spot here which increases my bank optimally.
From that you can work out through the kelly criterion your edge by rearranging the formula.
Please stop giving anecdotes, use data, show what is going on. If you don't want to give it all away to bookmakers so the edge disappears, either don't write about it, or conceal pieces of data.
The Poundstone book fortunes formula has a lot on Shannon. And it is great
I can think of two that I've read that are good stories in addition to being informative.
Fortune's Formula by William Poundstone
This is a good book that talks about a system (a money-management method called the Kelly Criterion) that has roots in information theory and applications to stock market investing as well.
Here's a snippet of a review:
"Fortune's Formula is a fascinating study of the connections between such seemingly unrelated topics as gambling, information theory, stock investing, and applied mathematics. The story involves the stunning brainpower of men such as MIT professor Claude Shannon, who single-handedly invented information theory, the science behind the Internet and all digital media; Ed Thorpe; and John Kelly of Bell Laboratories, who developed the "Kelly criterion," a now-legendary investment strategy for maximizing growth while controlling risk. Initially, Shannon and Thorpe took Kelly's theory to Las Vegas and applied it to roulette and blackjack. Later, they took it to Wall Street and cleaned up--Shannon made a personal fortune while Thorpe created the highly successful hedge firm Princeton-Newport Partners. They both discovered that Kelly's system was particularly effective when applied to arbitrage (minute price differences that result from market inefficiencies). As Poundstone ably demonstrates, the merits of Kelly's criterion are still hotly debated today."
http://www.amazon.co.uk/Fortunes-Formula-Scientific-Betting-Casinos/dp/0809045990/
I also second the recommendation of /u/AndrewRichmo of "21" (originally published under the title "Bringing Down the House")
Hope this helps.
>Kelly criterion, interesting formula but it doesn't apply to bitcoin, because p is highly disputed. It's a one time event - there's just no way to even estimate it.
You can do scenario analysis to apply it:
The range of values for p and b that you find believable, will give you a range for the fraction of your money you should be investing. Many traders only invest a fraction (eg half) of what Kelly dictates, because Kelly feels pretty bold to most. "The Kelly Criterion marks the boundary between audaciousness and madness."
Even if you only make one single (long term) bet on bitcoin, Kelly still applies, as long as you keep making other bets with your investments later. However, it only applies to lump sum investments. It does not apply if you have a continuous income stream from which you invest $x every month, say.
When professional traders give advice on position sizing, it is almost always based on some (fractional) Kelly argument. The book 'Fortune's Formula' by William Poundstone about this is fantastic.
The Skinny on Real Estate Investing
https://www.amazon.com/gp/product/0981893562/ref=oh_aui_search_detailpage?ie=UTF8&psc=1
Hey! I just started investing as well. I jumped straight into ETFs for various reasons.
I think your idea is great. I wanted to mention that when you start nearing $10,000, take a look at this book: https://www.amazon.ca/Value-Simple-Practical-Complexity-Investing/dp/0987818910
You can find the PDF version online if a library doesn't have a copy. The only part I looked at is how to invest in ETFs using Questrade. I was intimidated by the Questrade platform and trading on a real stock exchange network. This walks you through how to buy and sell ETFs on Questrade which is perfect. You can also open a practice account on Questrade to try all of the buttons they have on their trading platform website. One thing to note is that the book is a little outdated as the user interface has changed. Regardless, you'll definitely find your way around easily.
Good luck!
Hi, just came across your book browsing this subreddit. Looks great, and I ordered it on amazon.ca
Just wanted to let you know that the availability is showing as 1-3 months. I ordered from amazon anyway because I'm hoping that's just an error and it will ship sooner. But you might want to look into it; at the least it's probably deterring orders.
Looking forward to reading it! I'm about to start using RRSPs and wanted a primer for the whole system.
http://www.amazon.ca/gp/product/0987818910?
The Investors Manifesto was referred to me by my college PFIN professor. I was able to read it cover to cover, in plain English, and it definitely helped me understand the basics of investing.
I would also suggest:
http://www.amazon.com/books/dp/1118073762
Word-for-word the same advice, but as an added bonus goes into some basic math and history to back it up!
try [this one] (http://www.amazon.com/books/dp/1118073762)
The cover and title are a little over the top but once you get inside its full of good, solid, fairly conservative advice. Lots of really good explanations of investment principles that you don't need to be a math wiz to understand. (although, if you are a numbers person he has enough depth in the footnotes to keep it interesting)
The Bogleheads' Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk https://www.amazon.com/dp/1119487331
Here are two great books to start with:
Personal MBA - https://www.amazon.com/Personal-MBA-Master-Art-Business/dp/1591845572?ie=UTF8&amp;*Version*=1&amp;*entries*=0
Entreleadership - https://www.amazon.com/EntreLeadership-Practical-Business-Wisdom-Trenches/dp/1451617852/ref=sr_1_1?s=books&amp;ie=UTF8&amp;qid=1466870653&amp;sr=1-1&amp;keywords=entreleadership+dave+ramsey
So I guess we're talking about this book?
http://www.amazon.com/EntreLeadership-Practical-Business-Wisdom-Trenches/dp/1451617852
It's hard to say. Is this an ongoing theme throughout the book? My guess is yes, since the author, Dave Ramsey, works for Fox and his Wiki page says: "His books and broadcasts often feature a Christian perspective that reflects Ramsey's religious beliefs."
I was recommended this book since charting/technical analysis is one of the most trustworthy ways of determining what a stock is going to do next. Other than that, I just went out and bought a couple of "investing for beginners" kind of books.
A good brokerage to start with is an app called Robinhood, which is free of brokerage fees (the fees most places charge for buying and selling stock), and they offer a couple of free day trades per week, if that's something you want to do. Very intuitive app that does a lot of what you want it to. Other than that, Google is your best friend, but invest off your own research and start with safe investments like ETFs while you read up.
https://www.amazon.com/Charting-Technical-Analysis-Fred-Mcallen/dp/1456468693
Read this book. Go to tradingview.com for free charting. Learn how to trade options (calls and puts). Invest all $1000 into calls on a stock you think will raise OR all $1000 into puts on a stock you think will fall. PROFIT $$$$$
http://www.amazon.com/Charting-Technical-Analysis-Fred-Mcallen/dp/1456468693/ref=pd_sim_14_1?ie=UTF8&amp;dpID=413yX1E7rvL&amp;dpSrc=sims&amp;preST=_AC_UL160_SR107%2C160_&amp;refRID=0QWDYQZ8CB2FYA9V4KSX
Hace 2 dias nomás me bajé y empecé a leer un libro de intro al charting y al TA. Bajé y ojeé otros, pero hasta ahora éste me resultó el más claro.
El tema de acciones, bonos, forex y demás me gusta. Pero por alguna razón el tema crypto me atrae aún más.
Ahora me pregunto seriamente si no me conviene mandar programación a la mierda, porque vengo sufriendo desde hace rato como un condenado para dar siquiera con entrevistas para puestos de trainee/jr... que por supuesto después terminan en la nada.
La verdad me gustaría dedicarme más de lleno a esto y ganar plata en serio. :)
(perdón por los edits)
that was the book i started with. I read that and Stock Market 101. The second book I read was Charting. Now I'm reading The Intelligent investor and a couple Day Trading books
http://www.amazon.com/Trading-Systems-Development-Portfolio-Optimisation/dp/1905641796
this book?
> Volksbank für die Eröffnung eines Depots Union Investments
Uff. Wenn du dich hier im Subreddit ein bisschen umguckst, wirst du sehr schnell feststellen, dass Union Investments und eigentlich alles, was dir deine Volksbank zur Altersvorsorge anbieten wird, ziemlicher Mist ist, weil: Im besten Fall mittelmäßige Rendite, die von den völlig überhöhten Verwaltungskosten aufgefressen wird.
Kauf dir dieses Buch vom Subreddit-Papst und beschäftige dich erstmal ein bisschen mit dem Thema, bevor du beim Bankverkäufer irgendwas abschließt, denn da ärgert man sich nachher schnell über sich selbst.
> Riester
Riester ist erstmal nur ein Rahmen für eine staatlich geförderte Altersvorsorge. Ob es sich lohnt, hängt sehr stark vom Einzelfall ab. In aller Regel ist die Rendite aufgrund der gesetzlichen Voraussetzung, dass im Alter mindestens der Einzahlbetrag wieder zur Verfügung stehen muss, eher mies, da die Anbieter dann halt auf Nummer sicher spielen. Außerdem gibts auch hier meist ziemlich hohe Gebühren (typische Ausnahme und der einzige, der für mich persönlich in Frage kommen würde, ist der fairr-Riester).
Aber je nach persönlicher Situation kann sich ein Riester schon lohnen, z.B. bei hohem Einkommen und Kindern aufgrund der staatlichen Zulagen und der Steuervorteile.
Aber generell wäre mein Tipp: beschäftige dich in den kommenden Wintermonaten nochmal mit dem ganzen Thema Altersvorsorge. Das ist alles nicht so wild und ob du jetzt oder Anfang des nächsten Jahres damit anfängst, macht den Braten auch nicht fett, vermeidet aber den einen oder anderen ärgerlichen Anfängerfehler.
Eine gute Anlaufstelle ist neben /r/Finanzen auch der Finanzwesir.
Dein Link führt mich auf eine Fehlerseite von Amazon. Ich nehme an, du meinst dieses Buch, oder? https://www.amazon.de/Souver%C3%A4n-investieren-Indexfonds-ETFs-Book/dp/3593508524/ref=sr_1_1?keywords=souver%C3%A4n+investieren&amp;qid=1565635686&amp;s=gateway&amp;sr=8-1
Klingt interessant, danke.
> In das Buch schmöker ich mal rein. Ratgeber waren mir ja Zeitlebens suspekt ("Wie wird man reich? - Verkauf ein Buch mit dem Titel 'Wie wird man reich?'").
Das Buch von Gerd Kommer (bzw. diese "größere" Version) kann man allerdings empfehlen. Das ist eher eine etwas aufgehübschte und praktisch orientierte Version seiner Doktorarbeit, die im Prinzip wissenschaftliche Erkentnisse zusammenfasst und zugänglich macht. Ggf. gibt es das ja auch in der Bibliothek oder per Fernleihe zum reingucken.
Hier ist das relevante Buch
Eine der Kernaussagen: Schuldzinsen sind sichere und feststehende zukünftige Zahlungen. Zinsen auf eigene Investitionen sind unsicher und nicht feststehend. Zurückgezahlte Schulden sparen mit Sicherheit die Schuldzinsen, also ist für einen Retailinvestor gesparter und somit sicherer Zins unsicherem Zins vorzuziehen.
Was du mal durchrechnen musst ist folgendes: Wie schnell kannst du mit Sondertilgung deinen Kredit ohne Malus abbezahlen? Wie schnell mit Maluszahlung? Hast Du möglichkeiten, das Schuldgeld alternativ besser anzulegen mit besserem Risk/Return?
Let's try:
https://www.amazon.com/Invest-Like-Pro-10-Day-Investing-ebook/dp/B00O4G1BBI
and yes, it is about investing more than about using YNAB to track investments.
the simple path to wealth by JL Collins
I suggest reading some personal finance blogs before getting books. information in bite size pieces, so you won’t feel overwhelmed, you can get a general consensus from many bloggers, and you will realize that investing and planning for retirement isn’t super complicated.
And podcasts! I am really into Suze orman’s new podcast “women and money”
I apologize if you had indicated your gender and I missed it. Otherwise I am old school (got this from my 60 year old female freshman English teacher way back in the day) and unknown genders use the masculine form.
As far as reading materials:
https://www.amazon.com/gp/aw/d/B01H97OQY2/ref=tmm_kin_title_0?ie=UTF8&amp;qid=1479088087&amp;sr=8-1
I haven't read this book. I've read everything on his blog, and it's my understanding that the book is a reorganization of the key parts of the blog. I wanted to read the book before recommending but it's been checked out of my library since they got it (and the author is so serious about financial independence that his recommendation was to get it from the library instead of buying!). It is available on the kindle.
Most of the info in the book is probably included for free in this series of blog posts.
http://jlcollinsnh.com/stock-series/
Learn some basic accounting. Learn to balance cash flow. Use Quickbooks/Quicken and bill pay.
Try to not buy things that cost money. Try to buy things that will make you money.
Separate your career from your business.
Best book I ever read was Rich Dad Poor Dad ( http://www.amazon.com/Rich-Dad-Poor-Money-That-Middle/dp/0446677450/ref=pd_bxgy_b_img_a ) buy it used for a couple dollars. This book, through a 3rd grade reading level, will teach the basics of getting ahead...and most importantly, get you excited about it.
(Free video: http://www.betterdaystv.net/play.php?vid=190). Stay away from the courses and stuff...they're really expen$ive and I'm not convinced they're all that useful. ...and read other authors who's view points are different to round yourself out.
And so you know, I am closing on my 13th profitable real estate investment thanks to the teachings of this book. It's a great start.
Get the book Poor Dad Rich Dad and read it. Then invest in assets.
Wow you're knowledge is at zero. An RRSP is an investment vehicle, unless it's a special kind offered by a bank you won't even get anything if you let it sit there as cash.
I'd try to explain things but it would take me forever.
.
.
To get the above answered I recommend looking through this sub or buying this book (It's not mine but it is very easy to read in a weekend and gives you an explanation for everything).
http://www.amazon.ca/Value-Simple-Practical-Complexity-Investing/dp/0987818910/ref=sr_1_2?ie=UTF8&amp;qid=1420877097&amp;sr=8-2&amp;keywords=simple+investing
Or ... you could read books that are not based on half-truths and fallacies that will lead you to a range of unnecessary and easily avoidable risks.
Here are a couple of suggestions
The Simple Path to Wealth - J L Collins
The Bogleheads' Guide to the Three-Fund Portfolio
He has a highly rated piece about budgeting already. There's a market for this. The hatred coming from this sub is absurd.
EDIT: Added links to Jesse's writings.
The Debt Consolidation Myth
Invest Like A Pro