Re: How to start investing
Level 3

Investing

I'd buy JL Collins' book "The Simple Guide to Investing." BEST BOOK I've ever read. Wish I'd seen it years ago.

It's basically a homage to the John Bogle method but simplified:

a) buy index funds that invest in the entire market ("why find try to find a needle in a haystack? buy the entire stack!")

b) make sure the funds are VERY LOW cost ones (below 0.1%) for their expense ratios... which is critical in the long run

c) determine your balance between stock and bond FUNDS (more stocks in your youth)

d) don't pick individual stocks (it's generally a losing game for most)

e) don't try to time the market (even experts can't do it)

THAT'S IT. Set it and significantly forget it (with only the occasion re-balancing of those ratios as you age).

The book is a terrific read.

 

[P.S. - of course I'm referring to RETIREMENT investing. If you have money you are willing to lose and want to just "play" - there are oodles of ways to go. But in the long-term good ETFs are best.]

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