Books and websites to get educated on investing?

[mousebandit]

Thanks to MMM and this community, we are almost out of debt, and ready to begin investing!  However, we've spent all our lives thus far just circling the drain, so neither of us have any concept of investment anything.  I know that my husbands employer used to have a mandatory amount they pulled from his checks for a Davis-Bacon pension or retirement fund, and my husband allocated how that money was invested by checking off his risk-aversion level on a form, lol.  We got quarterly statements showing us his contributions and what was earned or lost.  However the company just got bought out and i haven't paid attention to whether or not they offer anything.  I do know that they no longer take anything out for any retirement plans.  I have heard, and spouted, the terms 401k and IRA, but I truly have no clue what those really are, or how they work, or any other investment related anything, lol.

So, I need recommendations for books and websites that start at the very beginning, kindergarten level of investment education. 

Thanks!

MouseBandit

[MDM]

Here is something that might help, or might be useless - if you could reply with what parts were helpful and what is useless, perhaps we can improve it for the next person:


Some shorter "getting started" reading material (note that these may not give identical advice, but if you follow any of it you will likely do well):
www.etf.com/docs/IfYouCan.pdf
http://jlcollinsnh.com/stock-series/
https://www.bogleheads.org/forum/viewtopic.php?f=1&t=6211

For longer works, http://www.mrmoneymustache.com/the-mmm-reading-list/ - Haven't read them all, but A Random Walk Down Wall Street by Burton Malkiel and The Four Pillars of Investing by William Bernstein were good.

[Seppia]

Very strong suggestions on the post above.
I would add The Millionaire Next Door, as it explains very very clearly what are the habits that lead to a successful financial life, and (once you're a little knowledgeable maybe), The Intelligent Investor.


I would start by the book If You Can recommended above though, it's like 40 pages, and it's super efficient in explaining the basics.

[Radagast]

Yup, Bernstein's If You Can is a good choice and I think it is a free download. After that his Investor's Manifesto or Four Pillars of Investing is a good choice, plus The Boglehead's Guide to Investing.

[capitalninja]

Blogs on the Internet are ok; books are better.

If you're serious about getting good at investing, the following books are what I'd consider required foundational reading:

The Intelligent Investor by Benjamin Graham
Security Analysis by Benjamin Graham/Dodd
How to Read A Financial Report by Tracy
Financial Shenanigans (How to Detect Accounting Gimmicks & Fraud in Financial Reports) by Howard M. Schilit

The knowledge you acquire will put you in a great position both from a technical and psychological perspective for investing. You'll know more about the truly important aspects of investing than 99% of the population.

Hope this helps.

[scrubbyfish]

The Millionaire Teacher (Hallam). Most others I tried (though this did not include any of the others listed above) were beyond me when I started. This one was simple and clear.

[mousebandit]

Oh yeah!  Ty!  This is looking perfect!  I will start on reading tonight!   Ty!!!

MouseBandit

[wienerdog]

http://paulmerriman.com/first-time-investors/

http://paulmerriman.com/101-investment-decisions/

http://paulmerriman.com/get-smart-or-get-screwed/

http://paulmerriman.com/wp-content/uploads/2015/11/FRTG-Chapter-10-Move-to-Action.pdf

You can download all for free in .pdf form.

[NorCal]

The absolute best books to start out:

The Bogleheads Guide to Retirement Planning
The Bogleheads Guide to Investing

Some of the other books mentioned are great investing classics (Ben Graham, etc.), but I wouldn't recommend them to start.

[mrpercentage]

When you are done chasing intellectual deduction--- On almost every subject I have found that no logic beats induction: pure, true, and real experience. On any retirement account pick the higher long term return with lowest fee options.

On investing--- I suggest a Robinhood account with maybe $500-1000 to start. Look into companies and put your money where your mind is and see what happens. If you can't handle the pressure and do not have the determination/will/faith/talent(whatever you want to call it) and buy high and sell into losses and then just stick to passive investing. At least the damage was minimal. At least you know and will not wonder. You never know what you like until you try it. I love stocks. I love picking them. I love the idea into taking ownership in a great company. I don't plan on changing anytime soon but acknowledge the power and wisdom of diversified-low cost-passive investing.
I am drinking a tall Yellow Tail again and lift my glass to you... Cheers

Give a man a fish.... pfft... they can catch one. It isn't that hard

[Cognitive Miser]

I'm reading The Bogleheads Guide to Investing right now and it is quite good, but not *quite* kindergarten level.   Maybe 2nd grade level.  I think you could learn the kindergarten level stuff online though.  Maybe start out with one of the Bogleheads books and google what you need to fill in the gaps.  Or you might try a website like this: https://www.learnvest.com/knowledge-center/

I also read Jane Bryant Quinn's "Making the Most of your Money" about 10-15 years ago and it's a *wonderful* reference.  It looks like there is an "updated" version (copyright 2009) out now.  It's about more than just investing - it also talks about estate management, insurance, and the like.  It's over 1200 pages long, so it's truly a financial "bible".
http://www.amazon.com/gp/product/0743269969?ie=UTF8&tag=passages00-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=0743269969

[GreatLaker]

Yup, Bernstein's If You Can is a good choice and I think it is a free download.

I will add my recommendation for Bernstein's If You Can. The author says more in 16 pages than many authors say in hundreds. And he gives a good list of other recommended books in each chapter. If there is a starting point for neophyte investors, If You Can is it.

The other one I like that has already been mentioned is Millionaire Teacher by Andrew Hallam. It's a great story of low cost investing and frugal living.

I really wish these books were available when I was 20 years old.

[MustacheAndaHalf]

"The Investment Answer" clocks in at about 96 pages, and gives a great overview for a short book.  Check your library for a copy.

If you stick with Vanguard, you're less likely to go wrong than at other websites or investment companies.  There are low expense funds at most investment companies - but it's because Vanguard created such a strong draw to those type of funds.

A book like "Millionaire Next Door" may help reinforce your instinct for saving.  You could also watch old episodes of "The Suze Orman Show" for her segments on how to save money, or to see the priorities she uses.  She's not as good at specific investments, but that's where Vanguard or "The Investment Answer" can fill in.