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Learning, Sharing, and Teaching => Investor Alley => Topic started by: AmyS on July 29, 2017, 11:29:30 AM

Title: Reader request: Primer on investing?
Post by: AmyS on July 29, 2017, 11:29:30 AM
Newbie here - I've read through all of the MMM blog and lurked a lot here on the fora. I'd like more information about investing. When I read (here, MMM blog and elsewhere) about it, I find myself opening lots of browser tabs to get definitions of terms and abbreviations. Unfortunately, I then find that I need a definition of the definition.

Does anyone have a bare-bones, "don't know nuthin' 'bout the subject, help!" resource to explain the concept, nature, and some specifics, of investing?

I have a specific question about an American Funds IRA that I would like to do something with, but I don't even know what the question is exactly since I don't understand exactly what I have or what I should be doing with it. I do understand that it is a private, non-company-provided retirement fund that supposedly does good things for my taxes in some way until age either 59.5 or 70, but beyond that I'm not sure what it is. I received it in a settlement so I'm happy to have it of course.

At this point, though, I'm not interested so much in starting a topic on the Case Studies forum as I am in learning the basics. I probably actually need to start with "What is Wall Street?" I know its origin history, but not its current function except that it has to do with money in a big way. Probably mine?

Thanks in advance for any resources for an interested but clueless newbie.
Title: Re: Reader request: Primer on investing?
Post by: FIKristen on July 29, 2017, 01:39:53 PM
If you aren't getting what you need here from MMM, you might try something like Learnvest.
Title: Re: Reader request: Primer on investing?
Post by: aperture on July 29, 2017, 01:47:07 PM
If you have been around a while, you should have encountered Jim Collin's web site and book:

WEBSITE: http://jlcollinsnh.com/stock-series/ (http://jlcollinsnh.com/stock-series/)

BOOK: https://www.amazon.com/Simple-Path-Wealth-financial-independence-ebook/dp/B01H97OQY2/ref=sr_1_1?ie=UTF8&qid=1501357482&sr=8-1&keywords=jl+collins (https://www.amazon.com/Simple-Path-Wealth-financial-independence-ebook/dp/B01H97OQY2/ref=sr_1_1?ie=UTF8&qid=1501357482&sr=8-1&keywords=jl+collins)

Good place to start is the STOCK SERIES on the website.  Read from 1 to whatever number it goes to now. 

Best wishes.
Title: Re: Reader request: Primer on investing?
Post by: AmyS on July 29, 2017, 01:52:29 PM
If you aren't getting what you need here from MMM, you might try something like Learnvest.

Thanks! I'm getting a lot of great stuff here, thankfully. I just realized I need a remedial course on investing. I'll check Learnvest out.
Title: Re: Reader request: Primer on investing?
Post by: AmyS on July 29, 2017, 01:53:51 PM
If you have been around a while, you should have encountered Jim Collin's web site and book:

WEBSITE: http://jlcollinsnh.com/stock-series/ (http://jlcollinsnh.com/stock-series/)

BOOK: https://www.amazon.com/Simple-Path-Wealth-financial-independence-ebook/dp/B01H97OQY2/ref=sr_1_1?ie=UTF8&qid=1501357482&sr=8-1&keywords=jl+collins (https://www.amazon.com/Simple-Path-Wealth-financial-independence-ebook/dp/B01H97OQY2/ref=sr_1_1?ie=UTF8&qid=1501357482&sr=8-1&keywords=jl+collins)

Good place to start is the STOCK SERIES on the website.  Read from 1 to whatever number it goes to now. 

Best wishes.


Excellent! I follow his blog but didn't know he had a stock series. I will definitely read that. I went through withdrawals after I finally finished reading all the articles and comments on MMM - this will give me something else to obsess over read. Thanks!
Title: Re: Reader request: Primer on investing?
Post by: AmyS on July 29, 2017, 01:58:32 PM
If you have been around a while, you should have encountered Jim Collin's web site and book:

WEBSITE: http://jlcollinsnh.com/stock-series/ (http://jlcollinsnh.com/stock-series/)

BOOK: https://www.amazon.com/Simple-Path-Wealth-financial-independence-ebook/dp/B01H97OQY2/ref=sr_1_1?ie=UTF8&qid=1501357482&sr=8-1&keywords=jl+collins (https://www.amazon.com/Simple-Path-Wealth-financial-independence-ebook/dp/B01H97OQY2/ref=sr_1_1?ie=UTF8&qid=1501357482&sr=8-1&keywords=jl+collins)

Good place to start is the STOCK SERIES on the website.  Read from 1 to whatever number it goes to now. 

Best wishes.


Excellent! I follow his blog but didn't know he had a stock series. I will definitely read that. I went through withdrawals after I finally finished reading all the articles and comments on MMM - this will give me something else to obsess over read. Thanks!
I agree!  The Stock Series is great, and the book is even better!!!!!
Thank you! That's my weekend sorted.
Title: Re: Reader request: Primer on investing?
Post by: Dicey on July 29, 2017, 02:15:12 PM
Well, I came to help, but I see it's been given. Love this forum!
Title: Re: Reader request: Primer on investing?
Post by: AmyS on July 29, 2017, 02:15:52 PM
Well, I came to help, but I see it's been given. Love this forum!
Thank you, and I agree!
Title: Re: Reader request: Primer on investing?
Post by: PizzaSteve on July 29, 2017, 05:07:34 PM
Bogleheads Wiki highly recommended:

https://www.bogleheads.org/wiki/Main_Page (https://www.bogleheads.org/wiki/Main_Page)
Title: Re: Reader request: Primer on investing?
Post by: AmyS on July 29, 2017, 05:43:07 PM
Excellent! Bookmarked. Thanks!
Title: Re: Reader request: Primer on investing?
Post by: Radagast on July 29, 2017, 06:07:13 PM
Here is an old question on the topic. I suddenly recalled scrubbyfish is canadian, but lots of it will still be relevant. The first question is "what is the S&P500?"
https://forum.mrmoneymustache.com/investor-alley/one-(investing)-question-at-a-time/
Title: Re: Reader request: Primer on investing?
Post by: AmyS on July 29, 2017, 06:15:57 PM
Here is an old question on the topic. I suddenly recalled scrubbyfish is canadian, but lots of it will still be relevant. The first question is "what is the S&P500?"
https://forum.mrmoneymustache.com/investor-alley/one-(investing)-question-at-a-time/

Thank you! MMM forum folks are the awesomest!
Title: Re: Reader request: Primer on investing?
Post by: koshtra on July 29, 2017, 08:12:54 PM
Chiming in to endorse Collins' stock series. Read that! And then

1) Find out how American Funds has allocated the assets! They're a respectable outfit, your money isn't going to disappear overnight, but you want to know what you have.

2) Find out what sort of IRA it is, and whether its transfer to you changes anything about it (when you can, or must, take money out of it & so forth.)

You're pretty much stuck with the terms of the IRA as you received it, but you don't have to leave the contents to be managed by American Funds unless you want to.

My main advice to any newbie about investing: don't let anyone rush you. If anyone tells you need to buy something or sell something right away, because some market is going to do this or the price of some property is going to do that, and you're going to miss some huge opportunity, or take some huge loss, if you hesitate -- turn right around and find somebody else to talk to. You've got plenty of time.
Title: Re: Reader request: Primer on investing?
Post by: AmyS on July 30, 2017, 01:36:39 AM
Chiming in to endorse Collins' stock series. Read that! And then

1) Find out how American Funds has allocated the assets! They're a respectable outfit, your money isn't going to disappear overnight, but you want to know what you have.

2) Find out what sort of IRA it is, and whether its transfer to you changes anything about it (when you can, or must, take money out of it & so forth.)

You're pretty much stuck with the terms of the IRA as you received it, but you don't have to leave the contents to be managed by American Funds unless you want to.

My main advice to any newbie about investing: don't let anyone rush you. If anyone tells you need to buy something or sell something right away, because some market is going to do this or the price of some property is going to do that, and you're going to miss some huge opportunity, or take some huge loss, if you hesitate -- turn right around and find somebody else to talk to. You've got plenty of time.

Thank you! I do have the information about how the assets are allocated, and I agree with the strategy (some higher risk, some lower risk - both earning like crazy right now, though why in this political climate the stock market should be climbing is beyond me, but there we are). I know it's a traditional IRA and that the transfer to me doesn't change anything about it fee-wise (it was joint before, now it's just me). 

I appreciate the news that I don't have to leave it to be managed by American Funds. I need to pursue this angle more, but a phone conversation with a very helpful person at Vanguard nevertheless left me confused about what I was actually trying to do (I thought I was trying to turn my IRA into a Vanguard account of some kind, he thought I was trying to get Vanguard to be the something-er (owner, holder, manager, not sure) of the current funds. Either way was OK with him and Vanguard, I just felt lost by the end of the conversation and haven't pursued it further yet. Fortunately, no one is rushing me at all, so I'm good there.

Title: Re: Reader request: Primer on investing?
Post by: Heckler on July 30, 2017, 02:04:23 AM
Bogleheads Wiki highly recommended:

https://www.bogleheads.org/wiki/Main_Page (https://www.bogleheads.org/wiki/Main_Page)

I would start with Bogleheads Getting Started

https://www.bogleheads.org/wiki/Getting_started
Title: Re: Reader request: Primer on investing?
Post by: koshtra on July 30, 2017, 09:05:31 AM
Probably you're looking at a trustee-to-trustee transfer...?

https://investor.vanguard.com/account-transfer/transfer-ira?lang=en
Title: Re: Reader request: Primer on investing?
Post by: koshtra on July 30, 2017, 09:43:28 AM
"why in this political climate the stock market should be climbing is beyond me"

-- hee! Zackly. Object lesson in not trying to time markets: I held off my usual quarterly buys right after the election -- though my policy is absolutely not to try to time things -- because, come on, when the markets realize these chuckleheads are in the saddle? I'll hang on to my cash till it drops...

Er, yeah. Up the market went, and I ended up getting less for my money when I did buy.
Title: Re: Reader request: Primer on investing?
Post by: AmyS on July 30, 2017, 12:01:11 PM
Thank you so much, everyone! I've added substantially to my bookmarks on my computer, and I've used up all of my available loans for ebooks at the library! Y'all rock!
Title: Re: Reader request: Primer on investing?
Post by: AmyS on July 30, 2017, 12:09:10 PM
One more to add: Investing Made Simple by Mike Piper.

Everyone I've recommended that book to has liked it. Not as in depth as other books or the Bogleheads wiki, but a great short intro.

I just did a quick google and found that he has a blog as well: http://www.obliviousinvestor.com/
Title: Re: Reader request: Primer on investing?
Post by: AmyS on July 30, 2017, 04:58:31 PM
I'm jumping back in with a book recommendation - as I looked for and requested all of the books you folks recommended, I found this one was available to borrow right away. I've started reading it, and it is EXACTLY the kind of writing and the kind of description that I need.

The book is called:
How to Speak Money: What the Money People Say-And What It Really Means - by John Lanchester https://www.amazon.com/How-Speak-Money-People-Say/dp/039335170X/ref=sr_1_1?ie=UTF8&qid=1501455320&sr=8-1&keywords=How+to+speak+money

It's brilliant - extremely well written, and it explains the background of money-speak beautifully.
Title: Re: Reader request: Primer on investing?
Post by: kenaces on July 30, 2017, 09:35:08 PM
Two quick, easy, and cheap reads:

https://www.amazon.com/If-You-Can-Millennials-Slowly-ebook/dp/B00JCC5JKI/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1501471917&sr=1-1&keywords=if+you+can

https://www.amazon.com/Global-Asset-Allocation-Survey-Strategies-ebook/dp/B00TYY3F3C/ref=sr_1_2?s=digital-text&ie=UTF8&qid=1501471947&sr=1-2&keywords=meb+faber

Both are short and focus on the basics that matter - high savings rate, asset allocation, keep costs low, and be tax smart
Title: Re: Reader request: Primer on investing?
Post by: AmyS on July 30, 2017, 10:47:04 PM
Thanks! I picked up the first one already, I'll add the second one to my list.