Best book for 25y/o w/ limited investing experience?
Best book for 25y/o w/ limited investing experience?
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
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
Re: Best book for 25y/o w/ limited investing experience?
JL Collins, "The Simple Path to Wealth."
Re: Best book for 25y/o w/ limited investing experience?
William Berstein's If You Can is suggested reading for Millenials http://efficientfrontier.com/ef/0adhoc/ifyoucan.pdf
The Bogleheads' Guide to Investing
The Bogleheads' Guide to Investing
"I started with nothing and I still have most of it left."
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Re: Best book for 25y/o w/ limited investing experience?
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
In my opinion Dr.Bernstein's free pdf book "If You Can" is the best for a 25 year old with limited investing experience.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
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: Bogleheads® investment philosophy
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Re: Best book for 25y/o w/ limited investing experience?
This right here. Even if they don't read all the additional assignments.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
Re: Best book for 25y/o w/ limited investing experience?
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.
Bob
Re: Best book for 25y/o w/ limited investing experience?
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.
Re: Best book for 25y/o w/ limited investing experience?
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.
Re: Best book for 25y/o w/ limited investing experience?
Another vote for If You Can. I gave copies to all my children, nieces and nephews.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
"The greatest enemy of a good plan is the dream of a perfect plan" - Carl Von Clausewitz
Re: Best book for 25y/o w/ limited investing experience?
All About Asset Allocation
Re: Best book for 25y/o w/ limited investing experience?
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?
I started with the Little Book of Common Sense Investing by John Bogle at 30 yo.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 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
Re: Best book for 25y/o w/ limited investing experience?
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.
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.
AA: 40/41/19 - equities/positive return-zero volatility/bonds
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Re: Best book for 25y/o w/ limited investing experience?
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
A
Re: Best book for 25y/o w/ limited investing experience?
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
b
Re: Best book for 25y/o w/ limited investing experience?
Appreciate the many suggestions. I'm going to read some of these myself.
Re: Best book for 25y/o w/ limited investing experience?
This is a good idea.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
Re: Best book for 25y/o w/ limited investing experience?
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?
I will teach you to be rich
- ruralavalon
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Re: Best book for 25y/o w/ limited investing experience?
I think that's a poor idea.MattB wrote: ↑Thu Jun 17, 2021 5:27 pmThis is a good idea.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
"Everything should be as simple as it is, but not simpler." - Albert Einstein |
Wiki article link: Bogleheads® investment philosophy
Re: Best book for 25y/o w/ limited investing experience?
It's interesting, at least.
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Re: Best book for 25y/o w/ limited investing experience?
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.
Those 2 will get you on a path to be a multi-millionaire by retirement. Either way you will be good.
Re: Best book for 25y/o w/ limited investing experience?
Great book, but I wouldn't recommend it to a complete novice. Maybe as a second or third book to read.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
May all your index funds gain +0.5% today.
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Re: Best book for 25y/o w/ limited investing experience?
Rules to investing: |
1. Don't lose money. |
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Re: Best book for 25y/o w/ limited investing experience?
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
https://www.morningstar.com/start-investing/classroom
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Re: Best book for 25y/o w/ limited investing experience?
Sleep Well at Night Investor by Tim Decker
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Re: Best book for 25y/o w/ limited investing experience?
(dislaimer: IMHO)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
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
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Re: Best book for 25y/o w/ limited investing experience?
This is something I also recommend to novice investorsMr. 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
"Everything should be as simple as it is, but not simpler." - Albert Einstein |
Wiki article link: Bogleheads® investment philosophy
Re: Best book for 25y/o w/ limited investing experience?
Agreed. A crucial book for anyone that needs to select funds or stocks.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
Re: Best book for 25y/o w/ limited investing experience?
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.
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.
Re: Best book for 25y/o w/ limited investing experience?
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.sandan wrote: ↑Fri Jun 18, 2021 11:24 amAgreed. A crucial book for anyone that needs to select funds or stocks.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
May all your index funds gain +0.5% today.
Re: Best book for 25y/o w/ limited investing experience?
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
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
Re: Best book for 25y/o w/ limited investing experience?
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.
Re: Best book for 25y/o w/ limited investing experience?
Thanks for your suggestions.Luckywon wrote: ↑Fri Jun 18, 2021 12:00 pmSIL 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.
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?
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
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
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