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I have just opened a Roth IRA account for my grandaughter. I would like to provide her some reading material on investing for a beginner. Any suggestions?
Congratulations on a great gift idea and having a granddaughter to implement it. She's also a very fortunate girl with the opportunity for a really long (60 plus years) investment period.
I hope she has the interest, the discipline, and the patience to take advantage of your foresight. Being female, she has a higher likelihood of doing so over any male probabilities.
Given the likelihood that she will not commit any significant time to following the markets on a daily or even monthly basis, I would recommend thin books that advocate a passive investment approach.
The Little Book series offers two obvious choices: John Bogle's "Little Book of Common Sense Investing" or Burton Malkiel's " The Random Walk Guide to Investing".
Both volumes are abreviaions of much larger works. The Bogle book is just over 200 pages and the Malkiel work is just under that total. That increases the likelihood that she will actually read them.
The Little Book series also has volumes that address active investment strategies, but I would not recommend them at this juncture; perhaps a little later.
This book/link deals with, in particular, spending habits; which directly relates to the ability to have monies to invest; as well as for "other" regarding too, wants and needs.
This link is for Khan academy, to which your grandaughter likely already has access. Many investment topics are in place at this site. Although this link subject is not directly related to beginning investing.
Lastly, I suggest a search of Youtube. Many investing videos are available, including beginning and understanding through a variety of topics. I find video/graphic presentation to be a happy presentation medium to my brain for intake of the information.
@Bobpa: In my earlier response I failed to mention Peter Lynch,. who made the Linkster a ton of money, two books ""One Up On Wall Street" and "Beating The Street" Regards, Ted
If she is or soon will be a college graduate I suggest "The only investment guide you will ever need " by Andrew Tobias
Don't know if Tobias' work is the best - but do recall it being the last investment book I ever gleaned anything worthwhile out of. Excellent choice for any age. Don't believe you'd have to be a college grad to comprehend. A reasonably capable high school junior/senior should do just fine. (Really depends on where her inclinations lie). --- Additional: Very impressed with the Bloomberg interviews I've seen with Howard Marks of Oaktree Capital. An exceptionally bright, clear, easy to understand thinker. Haven't read any of his books yet, but am tempted to do so.
More: Haven't read anything by Peter Lynch either. But if he writes as well as he speaks, I'd expect a newbie would find his investing ideas both entertaining and instructive.
Any of the books by Jason Kelly are good options, too. Very understandable, rational, objective, and actionable investing analysis/guidance for young and old, newbies or experienced alike.
(Disclosure: I've been a 5+ year subscriber to his weekly commentary and have endorsed his latest book)
Comments
Seriously, The Wall Street Journal Guide to Understanding Money and Investing is good for beginners: https://thriftbooks.com/w/wall-street-journal-guide-to-understanding-money-and-investing-wall-street-journal-guide-to-understanding-money--investing_kenneth-m-morris_alan-m-siegel/250418/?gclid=CLur7cCxpNICFZuNswoddKQM-A#isbn=0684869020&pcrid=70112878992&pkw=&pmt=&plc=
That's an older book, though, so it might not cover ETFs well, but it has all the basics on how things work explained clearly. There is a newer beginners book out, which is very popular though I haven't read it:
https://amazon.com/Beginners-Guide-Investing-Money-Smart/dp/1477463992/ref=sr_1_1?s=books&ie=UTF8&qid=1487790208&sr=1-1&keywords=investing+for+beginners
If she's a little more advanced, you could move her on to: https://amazon.com/Bogle-Mutual-Funds-Perspectives-Intelligent/dp/111908833X/ref=sr_1_1?s=books&ie=UTF8&qid=1487790690&sr=1-1&keywords=bogle+on+mutual+funds
That's a really good book on the importance of keeping costs low, indexing and diversification, but it might be too hard for the absolute beginner.
Regards,
Ted
http://www.investopedia.com/university/beginner/
Congratulations on a great gift idea and having a granddaughter to implement it. She's also a very fortunate girl with the opportunity for a really long (60 plus years) investment period.
I hope she has the interest, the discipline, and the patience to take advantage of your foresight. Being female, she has a higher likelihood of doing so over any male probabilities.
Given the likelihood that she will not commit any significant time to following the markets on a daily or even monthly basis, I would recommend thin books that advocate a passive investment approach.
The Little Book series offers two obvious choices: John Bogle's "Little Book of Common Sense Investing" or Burton Malkiel's " The Random Walk Guide to Investing".
Both volumes are abreviaions of much larger works. The Bogle book is just over 200 pages and the Malkiel work is just under that total. That increases the likelihood that she will actually read them.
The Little Book series also has volumes that address active investment strategies, but I would not recommend them at this juncture; perhaps a little later.
I hope this helps.
Best Wishes
flip4u.org/docs/If%20You%20Can%20Millenials-Bill%20Bernstein.pdf
First, hats off to you for the support and guidance for your grandaughter.
This book/link relates to all things in our lives and assuredly to the critical aspect of the psychological/emotional side of investing.
https://www.amazon.com/Power-Habit-What-Life-Business/dp/081298160X
This book/link deals with, in particular, spending habits; which directly relates to the ability to have monies to invest; as well as for "other" regarding too, wants and needs.
https://www.amazon.com/Millionaire-Next-Door-Surprising-Americas/dp/1589795474
This link is for Khan academy, to which your grandaughter likely already has access. Many investment topics are in place at this site. Although this link subject is not directly related to beginning investing.
https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/investment-consumption/v/investment-vs-consumption-1
Lastly, I suggest a search of Youtube. Many investing videos are available, including beginning and understanding through a variety of topics. I find video/graphic presentation to be a happy presentation medium to my brain for intake of the information.
Regards,
Catch
Regards,
Ted
Shiller Irrational exuberance
Bach, The automatic millionaire
Clason, the richest man in Babylon
---
Additional: Very impressed with the Bloomberg interviews I've seen with Howard Marks of Oaktree Capital. An exceptionally bright, clear, easy to understand thinker. Haven't read any of his books yet, but am tempted to do so.
More: Haven't read anything by Peter Lynch either. But if he writes as well as he speaks, I'd expect a newbie would find his investing ideas both entertaining and instructive.
Any of the books by Jason Kelly are good options, too. Very understandable, rational, objective, and actionable investing analysis/guidance for young and old, newbies or experienced alike.
(Disclosure: I've been a 5+ year subscriber to his weekly commentary and have endorsed his latest book)