Best book for 25y/o w/ limited investing experience?

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MattB
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Best book for 25y/o w/ limited investing experience?

Post by MattB »

Hi Bogleheads,

Can you please recommend the (single) book you would recommend for a 25-year-old with limited investing experience?

My much younger SIL is a recent college graduate with a stable job and the means to save for her future. I'm thinking about encouraging her to take a more proactive role in saving and investing. And I was hoping I might give her a book to spark some interest.

Thank you.

Best,

Matt
Carousel
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Re: Best book for 25y/o w/ limited investing experience?

Post by Carousel »

JL Collins, "The Simple Path to Wealth."
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Wiggums
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Re: Best book for 25y/o w/ limited investing experience?

Post by Wiggums »

William Berstein's If You Can is suggested reading for Millenials http://efficientfrontier.com/ef/0adhoc/ifyoucan.pdf

The Bogleheads' Guide to Investing
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ruralavalon
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Re: Best book for 25y/o w/ limited investing experience?

Post by ruralavalon »

MattB wrote: Wed Jun 16, 2021 8:34 am Hi Bogleheads,

Can you please recommend the (single) book you would recommend for a 25-year-old with limited investing experience?

My much younger SIL is a recent college graduate with a stable job and the means to save for her future. I'm thinking about encouraging her to take a more proactive role in saving and investing. And I was hoping I might give her a book to spark some interest.

Thank you.

Best,

Matt

Wiggums wrote: Wed Jun 16, 2021 8:56 am William Berstein's If You Can is suggested reading for Millenials http://efficientfrontier.com/ef/0adhoc/ifyoucan.pdf

The Bogleheads' Guide to Investing
In my opinion Dr.Bernstein's free pdf book "If You Can" is the best for a 25 year old with limited investing experience.

For a gift you could select anything by Mr. Bogle or "The Coffehouse Investor" by Bill Schultheis.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
Onlineid3089
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Re: Best book for 25y/o w/ limited investing experience?

Post by Onlineid3089 »

Wiggums wrote: Wed Jun 16, 2021 8:56 am William Berstein's If You Can is suggested reading for Millenials http://efficientfrontier.com/ef/0adhoc/ifyoucan.pdf

The Bogleheads' Guide to Investing
This right here. Even if they don't read all the additional assignments.
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CABob
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Re: Best book for 25y/o w/ limited investing experience?

Post by CABob »

My favorite for a beginner is Personal Finance for Dummies by Eric Tyson. Tyson also has a number of other books in the "Dummies" category.
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Re: Best book for 25y/o w/ limited investing experience?

Post by hnd »

you don't want anything that would feel like a text book. the dummies books by Tyson are good. The Ifyoucan pdf by bernstein is fantastic.
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Re: Best book for 25y/o w/ limited investing experience?

Post by BirdsE »

In her new job get her to join the company savings plan. Hopefully Vanguard , Fidelity etc program. Do this right away. She should get some stocks, bonds and money market and see how those different savings work.The main thing is to get started saving right away.
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Re: Best book for 25y/o w/ limited investing experience?

Post by BigJohn »

Wiggums wrote: Wed Jun 16, 2021 8:56 am William Berstein's If You Can is suggested reading for Millenials http://efficientfrontier.com/ef/0adhoc/ifyoucan.pdf

The Bogleheads' Guide to Investing
Another vote for If You Can. I gave copies to all my children, nieces and nephews.
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Re: Best book for 25y/o w/ limited investing experience?

Post by wetgear »

All About Asset Allocation
young-ish
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Re: Best book for 25y/o w/ limited investing experience?

Post by young-ish »

You said SIL, so isn't your brother the one to connect with on this? Did he or she express interest in saving?
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Re: Best book for 25y/o w/ limited investing experience?

Post by whereskyle »

MattB wrote: Wed Jun 16, 2021 8:34 am Hi Bogleheads,

Can you please recommend the (single) book you would recommend for a 25-year-old with limited investing experience?

My much younger SIL is a recent college graduate with a stable job and the means to save for her future. I'm thinking about encouraging her to take a more proactive role in saving and investing. And I was hoping I might give her a book to spark some interest.

Thank you.

Best,

Matt
I started with the Little Book of Common Sense Investing by John Bogle at 30 yo.

I think The Simple Path to Wealth by JL Collins might be another good option.
"I am better off than he is – for he knows nothing and thinks that he knows. I neither know nor think that I know." - Socrates. "Nobody knows nothing." - Jack Bogle
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Re: Best book for 25y/o w/ limited investing experience?

Post by beernutz »

I recommend the ChooseFI book which promotes index investing. I think you have to get your personal finance life in order before you start investing and this book covers that as well.

After that Simple Path to Wealth is an excellent read for mid-20 year olds. I gave both books to my mid-20s kids.
Last edited by beernutz on Thu Jun 17, 2021 4:55 pm, edited 1 time in total.
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almostretired1965
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Re: Best book for 25y/o w/ limited investing experience?

Post by almostretired1965 »

Malkiel's "Random Walk Down Wallstreet" is, in my opinion, the single best, and for many, only, book on (passive) investing that you ever need to read.

A
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Re: Best book for 25y/o w/ limited investing experience?

Post by bhough »

The above are all good. Would recommend Jane Bryan Quinn's books (Making the most of your money now). Random walk down wall street good. Charles Schwab wrote a small book a few years ago that was good. Your money or your life is good. Robert Kiyosaki's book was good, but I know people hate him/it. The book changed the way I think even if it wasn't 100% accurate. (or so I've heard,...)Anna Thau's Bond Book is very good. I'd also consider buying a subscription to the wall street journal. I suspect at your age, you wouldn't have it delivered to your house like I do, but it has some great articles. Would also consider subscribing to Matt Levine's daily article at bloomberg. It is free to sign up and it comes right into your mailbox. He is so so smart and funny and topical. You also learn about finance in the process and he explains current events very very well. Lastly, would also consider making small ($100) investments in things you want to learn about and consider that tuition. Don't understand 30 year treasuries? Buy one and see what happens. Interested in what Morgan Stanley is going to charge you in ADR fees if you buy BASF? Buy it and watch for a year. Not clear how the French will tax you on AXA? Buy a few shares and see. The sooner you do this, the quicker you are going to feel comfortable with different investments. (this does not mean cryptocurrency please,....)
b
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MattB
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Re: Best book for 25y/o w/ limited investing experience?

Post by MattB »

Appreciate the many suggestions. I'm going to read some of these myself.
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MattB
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Re: Best book for 25y/o w/ limited investing experience?

Post by MattB »

bhough wrote: Thu Jun 17, 2021 5:13 pm Lastly, would also consider making small ($100) investments in things you want to learn about and consider that tuition. Don't understand 30 year treasuries? Buy one and see what happens. Interested in what Morgan Stanley is going to charge you in ADR fees if you buy BASF? Buy it and watch for a year. Not clear how the French will tax you on AXA? Buy a few shares and see. The sooner you do this, the quicker you are going to feel comfortable with different investments. (this does not mean cryptocurrency please,....)
b
This is a good idea.
epictetus
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Re: Best book for 25y/o w/ limited investing experience?

Post by epictetus »

The Little Book of Common Sense Investing by John Bogle
Focus on what you can control
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Re: Best book for 25y/o w/ limited investing experience?

Post by iamblessed »

I will teach you to be rich
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Re: Best book for 25y/o w/ limited investing experience?

Post by ruralavalon »

MattB wrote: Thu Jun 17, 2021 5:27 pm
bhough wrote: Thu Jun 17, 2021 5:13 pm Lastly, would also consider making small ($100) investments in things you want to learn about and consider that tuition. Don't understand 30 year treasuries? Buy one and see what happens. Interested in what Morgan Stanley is going to charge you in ADR fees if you buy BASF? Buy it and watch for a year. Not clear how the French will tax you on AXA? Buy a few shares and see. The sooner you do this, the quicker you are going to feel comfortable with different investments. (this does not mean cryptocurrency please,....)
b
This is a good idea.
I think that's a poor idea.
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Topic Author
MattB
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Re: Best book for 25y/o w/ limited investing experience?

Post by MattB »

ruralavalon wrote: Thu Jun 17, 2021 5:58 pm I think that's a poor idea.
It's interesting, at least.
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Re: Best book for 25y/o w/ limited investing experience?

Post by roguewarrior0 »

I personally like "The Automatic Millionaire". Read that and then invest in Vanguard Target Date fund. Then read any of the Boglehead books. I recommend the Boglehead's Guide to Three Fund Portfolio. After reading the 2nd book, decide if you want to stay Vanguard Target Date or do 3 Fund Portfolio.

Those 2 will get you on a path to be a multi-millionaire by retirement. Either way you will be good.
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Re: Best book for 25y/o w/ limited investing experience?

Post by ApeAttack »

almostretired1965 wrote: Thu Jun 17, 2021 4:53 pm Malkiel's "Random Walk Down Wallstreet" is, in my opinion, the single best, and for many, only, book on (passive) investing that you ever need to read.

A
Great book, but I wouldn't recommend it to a complete novice. Maybe as a second or third book to read.
Just another lazy index investor who recently found out about I-Bonds (https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm).
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Re: Best book for 25y/o w/ limited investing experience?

Post by Brianmcg321 »

Carousel wrote: Wed Jun 16, 2021 8:54 am JL Collins, "The Simple Path to Wealth."
Yep. This one.

Here is JL's blog: https://jlcollinsnh.com/stock-series/
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Re: Best book for 25y/o w/ limited investing experience?

Post by Mr. Rumples »

One approach which my niece is using is not a book, but every day she looks at the Morningstar Classroom:

https://www.morningstar.com/start-investing/classroom
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Re: Best book for 25y/o w/ limited investing experience?

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Sleep Well at Night Investor by Tim Decker
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Re: Best book for 25y/o w/ limited investing experience?

Post by Sandtrap »

MattB wrote: Wed Jun 16, 2021 8:34 am Hi Bogleheads,

Can you please recommend the (single) book you would recommend for a 25-year-old with limited investing experience?

My much younger SIL is a recent college graduate with a stable job and the means to save for her future. I'm thinking about encouraging her to take a more proactive role in saving and investing. And I was hoping I might give her a book to spark some interest.

Thank you.

Best,

Matt
(dislaimer: IMHO)

There are 2 categories/genres of books that work great, actually produce results, for a young person, if not anyone.

1. Motivation and inspiration, character and growth, and behavior/life habits.
(light my Fire.. . think big. . .dream big. . little fish or big fish. . .etc)

IE: "Life Strategies", and "Life Code" by Dr. Phil
IE: "As a Man Thinketh"
IE: "Richest Man In Babylon"
IE: "Think and Grow Rich"
IE: "Millionaire Next Door"

2. Money and finance and "how to" and "what to do".
IE: Money Fundamentals. . "Liz Orman", "Dave Ramsy", etc, etc, etc.

3. There's no sustained investing and exponential growth of the person and what is externally materialized as career success, financial stability and independence, etc, without #1 and #2. So, It's good that all are concurrent vs fragmented or compartmentalized. Like a plant needs the entirety of air, etc, etc, etc. . and sun. All at once.

4. The sequence is: Interest > Desire > Inspiration/Passion > Action.

(dislaimer: IMHO)
j :D
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Re: Best book for 25y/o w/ limited investing experience?

Post by ruralavalon »

Mr. Rumples wrote: Fri Jun 18, 2021 5:08 am One approach which my niece is using is not a book, but every day she looks at the Morningstar Classroom:

https://www.morningstar.com/start-investing/classroom
This is something I also recommend to novice investors
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Re: Best book for 25y/o w/ limited investing experience?

Post by sandan »

almostretired1965 wrote: Thu Jun 17, 2021 4:53 pm Malkiel's "Random Walk Down Wallstreet" is, in my opinion, the single best, and for many, only, book on (passive) investing that you ever need to read.

A
Agreed. A crucial book for anyone that needs to select funds or stocks.
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Re: Best book for 25y/o w/ limited investing experience?

Post by TxFrog »

I’d recommend “Bogleheads’ Guide to Investing”.

I just finished reading “A Random Walk Down Wall Street” this week for the first time. It’s a great book and a must read for an index investor. However, IMO this book is more of a thesis why index investing is the best approach. Most of the practical implementations are at the end of the book. If this 25 y/o doesn’t find investing interesting, they may get bored with the book and not make it to the end.

Also, +1 towards Bernstein’s “If you can” pdf.
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Re: Best book for 25y/o w/ limited investing experience?

Post by ApeAttack »

sandan wrote: Fri Jun 18, 2021 11:24 am
almostretired1965 wrote: Thu Jun 17, 2021 4:53 pm Malkiel's "Random Walk Down Wallstreet" is, in my opinion, the single best, and for many, only, book on (passive) investing that you ever need to read.

A
Agreed. A crucial book for anyone that needs to select funds or stocks.
I am in the process of reading that book now. If I didn't spend a year on BH.org and do a massive amount of reading beforehand to get used to investing terminology and concepts, I would've given up on Malkiel's book after a few chapters. In my opinion it is too advanced for an introductory book, but is a terrific book for someone wanting to gain a deeper understanding of why index investing is a great strategy.
Just another lazy index investor who recently found out about I-Bonds (https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm).
Dennisl
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Re: Best book for 25y/o w/ limited investing experience?

Post by Dennisl »

Another vote for Bernstein's if you can

If you want a book to give, I like the boglehead's guide to investing

If they don't want to read the book, the wiki is pretty good.

https://www.bogleheads.org/wiki/Getting_started
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Re: Best book for 25y/o w/ limited investing experience?

Post by Luckywon »

young-ish wrote: Thu Jun 17, 2021 4:27 pm You said SIL, so isn't your brother the one to connect with on this? Did he or she express interest in saving?
SIL may mean sister of spouse. Either way, in my opinion a book on investing is a perfectly appropriate, even fine gift. On several occasions I've sent such books to younger relatives or colleagues. My favorites are:

Why Smart People Make Big Money Mistakes and How to Correct Them
The Intelligent Asset Allocator
The Little Book of Common Sense Investing
A Random Walk Down Wall Street

Someone did the same for me when I was (relatively) young and I've been eternally grateful.
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MattB
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Re: Best book for 25y/o w/ limited investing experience?

Post by MattB »

Luckywon wrote: Fri Jun 18, 2021 12:00 pm
young-ish wrote: Thu Jun 17, 2021 4:27 pm You said SIL, so isn't your brother the one to connect with on this? Did he or she express interest in saving?
SIL may mean sister of spouse. Either way, in my opinion a book on investing is a perfectly appropriate, even fine gift. On several occasions I've sent such books to younger relatives or colleagues. My favorites are:

Why Smart People Make Big Money Mistakes and How to Correct Them
The Intelligent Asset Allocator
The Little Book of Common Sense Investing
A Random Walk Down Wall Street

Someone did the same for me when I was (relatively) young and I've been eternally grateful.
Thanks for your suggestions.

My apologies for using an ambiguous abbreviation. By sister-in-law I was referring to my wife's much younger sister, who I've known since she was 4 years old.
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Re: Best book for 25y/o w/ limited investing experience?

Post by arcticpineapplecorp. »

this is pretty good (road map for investing success):
https://investingroadmap.wordpress.com/

i also think the videos if people prefer that are pretty good:
https://www.bogleheads.org/wiki/Video:B ... philosophy

forgot one that just came out recently. Paul Merriman and Rich Buck's "We're Talking Millions":
https://paulmerriman.com/wp-content/upl ... llions.pdf
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events.
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