Quote: (07-30-2015 07:29 PM)offthereservation Wrote:
Quote: (07-30-2015 05:53 PM)se7en Wrote:
Great idea for a thread.
Boglehead's Guide to Investing / Retirement:
Before 25 the idea of retirement was outside of my universe. At that point I lost a lot of money (relatively speaking) from individual stock picking. Then I just decided to hoard cash here and there, but without any specific goals or plans in mind.
This book taught me the importance of saving, coming up with an investment plan, tax efficient investing, compound interest, and ETFs / mutual funds.
Since then, Ive saved a bunch of money in my tax efficient accounts and other accounts, and have a substantial amount of money placed in a thought out equity / bond allocation.
This book has been a gift and I recommend everyone read it as soon as possible if you are not familiar with, or currently utilizing, the concepts listed above. Its also an easy and enjoyable read.
Like Rich Dad Poor Dad?
I read Rich Dad Poor Dad a while ago, and although it provided some kind of momentary enthusiasm about getting rich, it didn't really provide actual tools for doing so. That book, as I recall, is primarily about building wealth from real estate, right?
Boglehead's Guide to Investing is more about:
1. tax efficient investing by means of Roth IRA / 401k etc.
2. proper portfolio allocation (what % international stocks, what % US stocks, what % bonds)
3. Guide to ETFs/ Mutual Funds/ Indexes, and why these are superior investment products.
4. Understanding the power of compound interest.
5. Being simple in your investing.
6. Importance of living within your means.
Unlike rich dad poor dad, which is somewhat nebulous in its approach, Bogleheads Guide to Investing provides you with tools and resources to make proper investments now - you can contribute to your IRA NOW, and you should do so now. Save up $1k and dump it into a vanguard account asap - that is exactly what I did as soon as I finished the book.
Prior to reading the book, I had no idea wtf an IRA was. Similarly, althought I thought I understood compound interest, I did not really comprehend the power of the idea.
Anyway, there are a lot of great ideas to draw from that book, and the earlier that you draw from its advice the better - I wish my parents gave me that book when I was like 14 or 15. Still, I'm glad to have read it at twenty five, since it totally changed how I managed my finances. Rich/Dad Poor Dad changed nothing for me, since it provided no way for me to make changes to my lifestyle which reaped immediate results. There is a difference between understanding the importance of investing in real estate, but having to wait for a few years to save start-up capital, and understanding the importance of investing in index / mutual funds in your IRA, and being able to do so immediately. In my early twenties, I had no discipline to save start-up capital for five years, bit by bit, but I did have the discipline to throw a few hundred bucks at the end of the month into a mutual fund.
The book is named after Mr. Boglehead himself - I highly recommend reading the Boglehead forums religiously @
https://www.bogleheads.org - I think it is the best place to learn a level-headed, logical, & conservative investing philosophy which will build your wealth for decades to come. (Sorry if I appear over-zealous - implementing their ideology has resulted in many positive changes to my life)
