Originally Posted by
HoboPilot
With the direction the stock market has been going recently, it's gotten me thinking about beginning to invest some money for the future and ultimately for my retirement. I'm 20 years old and have been working full time this fall at an internship and have been making enough money so that my savings account has actually been growing. I'm interested in starting a Roth IRA, but would also like to get my feet wet in the stock market with a little bit of money so I can get a feel for how it all works before I graduate college.
Unfortunately, I don't feel my knowledge of the stock market, or just financial planning in general is at the level where it should be. I was wondering if anyone knew of some good books that I should look into for sound investing techniques? I'm sure there's lots of books about the topic, but I'd like to hear if any of you have and recommendations.
Thanks for the help, it's much appreciated.
Thanks for the help, it's much appreciated.
Hobo,
Thanks for asking, my pleasure to offer you some advice.
I'll address your questions the best I can with a lot of personal experience behind it. First, I would recommend this book,
The Total Money Makeover by Dave Ramsey. This is a good book that deals with personal finance, which is the first step in investing and building wealth. Since you already indicated that you are 20 AND have some money to save/invest, it sounds like you are ahead of the game already. Regardless, you will enjoy this book.
Second, with regards to books and how to invest. There are two things I would recommend you do. First, read and learn about the market and how to invest. I would start by picking up a copy of the Wall Street Journal and reading through it. Also, I think the WSJ has published one or more books on the subject of investing. There are many more, and places like Borders and Barnes and Nobles have entire shelves dedicated to the subject.
The second (and biggest) piece of advice I will offer is partly based on your following statement:
Unfortunately, I don't feel my knowledge of the stock market, or just financial planning in general is at the level where it should be.
I think your statement describes the majority of us. With that being said you want to hire (non-commission) a good, competent financial planner who works for a FEE. Investing can be very complicated and can cost you plenty if you are not careful. A good financial planner will know (as best he/she can) where to put your money, how much to invest where, innovative, etc.. A lot of millionaires have acquired the wealth they have not because they are financially smart, but because they were smart enough to hire people who are.
A good financial planner will also share/teach you what is going on with your money, at least mine does. Most are like pilots in that they enjoy what they do AND enjoy talking about the crux of their trade - money. You will learn tons by listening to your financial planner and reading as much as you can about money, the market and wealth-building strategies.
Hope this helps.
