Many newspapers and magazines offer book lists for light, summer reading.
As you know, if you want to learn something, read.
Read books. Read magazines. Read websites.
Perhaps reading about money and investing is not considered light reading but when you are determined to care for your money and make it work for you, it is essential reading.
Here are a few books to consider:
The Little Book of Common Sense Investing
by John Bogle, the father of index investing.
Mr. Bogle, also the founder of Vanguard, offers timeless and sensible advice.
A Random Walk Down Wall Street
by Burton Malkiel, helps you understand the workings of Wall Street.
The Investment Answer
by Daniel Goldie and Gordon Murray, give easy to understand investment knowledge.
The Little Book of Main Street Money
by Jonathan Clements (often seen on PBS) provides good, basic financial advice.
One book I suggest for widows or newly divorced is
On Your Own: A Widow's Passage to Emotional and Financial Well-Being
by Alexandra Armstrong and Mary Donahue, offers easy-to-follow advice with step-by-step guidance.
If tackling a book is too heavy for your summer schedule pick-up a financial magazine like MONEY, Kiplingers or FORBES. Read it all - read the ads, the comments, the table of contents, the articles, cover to cover. The more you read the more familiar you become with the terms and the language of finance. The better you understand the language, the less intimidated you feel.
Be $ Smart - Build your confidence. Grow your assets. Learn about investing. Your future is yours to create.
Showing posts with label investing. Show all posts
Showing posts with label investing. Show all posts
Sunday, July 15, 2018
Sunday, October 25, 2015
An Innovative Way to Buy Stock
A friend called to ask me if I would comment about the Wall Street Journal article on a new way to give stock as a gift. The concept totally surprised me as well as the fact that it has been available for some time!
A few years ago my 10 year old grandson told all his relatives he wanted stock for Christmas. That is not an unusual request knowing Calvin is obsessed with making money, always manages to have money and constantly chides his parents about the cost of things. So we all sent him cash with which his father opened an UGMA brokerage account and built a portfolio.
But NOW there is a simpler way.
Stockpile.com is a company that offers gift cards (like iTunes, Home Depot, Target, etc.) which enables you to buy a specific dollar amount of hundreds of stocks!
I am not endorsing this company as I have not made any purchases and cannot vouch for the process but I thought it important to make you aware of its existence. Here is what they offer:
- The ability to purchase the stock of hundreds of U.S. and international companies,
- Any amount of the gift - up to $1000. Whatever the amount will buy a certain number of full or fractional shares depending on the share price on the day the card is activated.
- Instant card delivery as they accept most credit cards.
- No cost to the recipient who may buy shares for the full amount of the gift but there is a gifting fee to the giver which pays the credit card fee and commission.
- A gift receipt which allows the receiver to choose a different company,
- A claiming notification to tell you when the gift stock has actually been claimed.
(Minors may own stock with a parent or someone over 18 in a Uniform Gift to Minors Account.)
A gift of stock makes a child curious especially if the stock is in a company he/she knows like Disney, McDonald's or KFC.
It takes the mystery and fear out of investing. It builds interest and confidence.
A gift card saves you from going through the pains of opening an UGMA brokerage account.
It might even make an interesting birthday or wedding gift for your friends!
Be $ Smart - start youngsters early in the stock market. It will pay a lifetime of dividends.
A few years ago my 10 year old grandson told all his relatives he wanted stock for Christmas. That is not an unusual request knowing Calvin is obsessed with making money, always manages to have money and constantly chides his parents about the cost of things. So we all sent him cash with which his father opened an UGMA brokerage account and built a portfolio.
But NOW there is a simpler way.
Stockpile.com is a company that offers gift cards (like iTunes, Home Depot, Target, etc.) which enables you to buy a specific dollar amount of hundreds of stocks!
I am not endorsing this company as I have not made any purchases and cannot vouch for the process but I thought it important to make you aware of its existence. Here is what they offer:
- The ability to purchase the stock of hundreds of U.S. and international companies,
- Any amount of the gift - up to $1000. Whatever the amount will buy a certain number of full or fractional shares depending on the share price on the day the card is activated.
- Instant card delivery as they accept most credit cards.
- No cost to the recipient who may buy shares for the full amount of the gift but there is a gifting fee to the giver which pays the credit card fee and commission.
- A gift receipt which allows the receiver to choose a different company,
- A claiming notification to tell you when the gift stock has actually been claimed.
(Minors may own stock with a parent or someone over 18 in a Uniform Gift to Minors Account.)
A gift of stock makes a child curious especially if the stock is in a company he/she knows like Disney, McDonald's or KFC.
It takes the mystery and fear out of investing. It builds interest and confidence.
A gift card saves you from going through the pains of opening an UGMA brokerage account.
It might even make an interesting birthday or wedding gift for your friends!
Be $ Smart - start youngsters early in the stock market. It will pay a lifetime of dividends.
Monday, June 8, 2015
RoBo Advisors
In our wonderful hi-tech world you now have the option of having a robot invest for you! We have been invaded by a group of R2D2 automatons who will direct you and your money towards the future.
It is very tempting to have someone else be responsible for investing your money, especially when you don't know whom to trust. But these online automated investment platforms present their own problems. They ask a series of questions to determine your goals, level of investing experience and time horizon (just like any financial adviser would). It is still your responsibility to ask questions and know what you're getting into. Caveat emptor - let the buyer beware!
Here are some things to learn before you commit your hard earned dollars:
1. Terms and conditions? What is the time commitment, required minimum sum to be invested, and what are the fees?
2. Investment choices. From what universe are the investments drawn? May they choose funds from ALL companies or promote only their own?
3. One size fits all. Garbage in, garbage out plays the same role here as it did in early computer programs. The robo adviser will only be able to make pertinent recommendations dependent upon what you tell it. Be as specific as you can to make sure your money is properly allocated.
4. Sensitive information. Keep your personal information protected! Be wary of scams that may trick you into providing confidential financial data.
5. The "In" thing. Know that as cool as hi-tech may seem, this may not be right for you. Before you send your money, check it out with friends and relatives. Read reviews.
R2D2 won't ask how your kids are doing nor talk about the latest sports or movies. You may miss the personal touch of a real-life adviser.
Be $ Smart - before you invest, protect your assets and research Robo Advisers (automated platforms) to learn the rules.
It is very tempting to have someone else be responsible for investing your money, especially when you don't know whom to trust. But these online automated investment platforms present their own problems. They ask a series of questions to determine your goals, level of investing experience and time horizon (just like any financial adviser would). It is still your responsibility to ask questions and know what you're getting into. Caveat emptor - let the buyer beware!
Here are some things to learn before you commit your hard earned dollars:
1. Terms and conditions? What is the time commitment, required minimum sum to be invested, and what are the fees?
2. Investment choices. From what universe are the investments drawn? May they choose funds from ALL companies or promote only their own?
3. One size fits all. Garbage in, garbage out plays the same role here as it did in early computer programs. The robo adviser will only be able to make pertinent recommendations dependent upon what you tell it. Be as specific as you can to make sure your money is properly allocated.
4. Sensitive information. Keep your personal information protected! Be wary of scams that may trick you into providing confidential financial data.
5. The "In" thing. Know that as cool as hi-tech may seem, this may not be right for you. Before you send your money, check it out with friends and relatives. Read reviews.
R2D2 won't ask how your kids are doing nor talk about the latest sports or movies. You may miss the personal touch of a real-life adviser.
Be $ Smart - before you invest, protect your assets and research Robo Advisers (automated platforms) to learn the rules.
Wednesday, November 26, 2014
Becoming a Better Investor - Whom to trust?
The financial services industry can be very confusing and intimidating. Many people either stay away or jump in blindly and get fleeced.
So how do you find someone to help and guide you?
Let's start with some titles and designations:
Financial Advisor - a very broad term which translates to someone who can help you with finance and investments.
WMA - Wealth Management Advisor - same as financial advisor but has more snob appeal.
CFP - Certified Financial Planner - a person who has taken many courses and passed a rigorous exam covering all the aspects of personal finance. They have a good grasp of money management and investing.
Stock broker - aka Financial Advisor - this person has passed the Series 7 exam, is register with the SEC (Securities and Exchange Commission) and has a good knowledge of investing.
Let's review how they get paid:
Financial advisor, WMA and stock broker rely essentially on sales. The more they sell you, the more commissions they make. (Both buy and sell orders generate commissions for the broker.) If you are being advised to buy and/or sell often, the only person making money is your broker.
A Fee Only Financial Planner prepares a comprehensive plan for you and your family. It may include buying a home, additional education for you or your spouse, education for your children, taxes and other financial goals leading to retirement. Since this plan takes many hours of gathering information and analysis the planner will charge a substantial fee - somewhere between $1000 to $2500 or more, depending how complicated your situation may be. The planner then sends you to a financial advisor or broker to implement the plan.
Another type of Financial Planner will prepare a less comprehensive plan and implement it for you. The fee for the plan will be covered by the charges for investing. (You don't get the plan for nothing.)
Remember to ask:
"What's this going to cost me? How do you get paid?"
There are ways for you to determine if a broker or investment advisor is a bad apple. Go to BrokerCheck at finra.org website or call the BrokerCheck hotline 800-289-9999. Here you will learn a broker's current license status and history, employment history and any reported regulatory proceedings, disputes and settlements.
(FINRA - the Financial Industry Regulatory Authority is the self-regulator for the securities industry.)
When you work with a financial professional it is important to know the extent of his/her expertise in the various areas of finance. Although they may exhibit a certain level of knowledge, there is no test or regulation for integrity and trust. You must seek a professional who is worthy of your trust and the care of your money.
Be $ Smart - take the time to research and interview financial advisers before you give them your hard earned money.
So how do you find someone to help and guide you?
Let's start with some titles and designations:
Financial Advisor - a very broad term which translates to someone who can help you with finance and investments.
WMA - Wealth Management Advisor - same as financial advisor but has more snob appeal.
CFP - Certified Financial Planner - a person who has taken many courses and passed a rigorous exam covering all the aspects of personal finance. They have a good grasp of money management and investing.
Stock broker - aka Financial Advisor - this person has passed the Series 7 exam, is register with the SEC (Securities and Exchange Commission) and has a good knowledge of investing.
Let's review how they get paid:
Financial advisor, WMA and stock broker rely essentially on sales. The more they sell you, the more commissions they make. (Both buy and sell orders generate commissions for the broker.) If you are being advised to buy and/or sell often, the only person making money is your broker.
A Fee Only Financial Planner prepares a comprehensive plan for you and your family. It may include buying a home, additional education for you or your spouse, education for your children, taxes and other financial goals leading to retirement. Since this plan takes many hours of gathering information and analysis the planner will charge a substantial fee - somewhere between $1000 to $2500 or more, depending how complicated your situation may be. The planner then sends you to a financial advisor or broker to implement the plan.
Another type of Financial Planner will prepare a less comprehensive plan and implement it for you. The fee for the plan will be covered by the charges for investing. (You don't get the plan for nothing.)
Remember to ask:
"What's this going to cost me? How do you get paid?"
There are ways for you to determine if a broker or investment advisor is a bad apple. Go to BrokerCheck at finra.org website or call the BrokerCheck hotline 800-289-9999. Here you will learn a broker's current license status and history, employment history and any reported regulatory proceedings, disputes and settlements.
(FINRA - the Financial Industry Regulatory Authority is the self-regulator for the securities industry.)
When you work with a financial professional it is important to know the extent of his/her expertise in the various areas of finance. Although they may exhibit a certain level of knowledge, there is no test or regulation for integrity and trust. You must seek a professional who is worthy of your trust and the care of your money.
Be $ Smart - take the time to research and interview financial advisers before you give them your hard earned money.
Tuesday, November 11, 2014
Becoming a Better Investor
Achieving financial freedom or financial independence is a worthwhile goal to pursue at any age. Life can be more enjoyable and less stressful when you have enough money to live the life you want.
I have learned I can only work so many hours each day, each week. Realizing that, I must put my money to work by investing.
Over the next few weeks I will give tips on investing. Actually, last week's $ Tip discussed the services offered by a Full Service Broker vs a Discount Broker, was a good start.
Education is the key. I offer four suggestions. Pick one or two to raise your understanding and commitment to investing:
1. Take a class. Most adult education programs at your local high school or college offer a class on personal investing. Take a friend. Learn together. Go out after the class and discuss what you learned and what you can implement.
2. Read. Join AAII, the American Association of Individual Investors.
The cost is $29 per year. They are dedicated to people like you who are learning about investing. They offer a monthly publication filled with good, basic information. Also, they offer chapter meetings where you can meet others interested in investing. Go to www.aaii.com.
3. Read more. Buy one, yes one, money/investing magazine. Read it cover to cover, even the ads. Here you are familiarizing yourself with a new vocabulary. The more you see and read the words, the sooner you will understand their meaning. You don't really need a year's subscription until you find one magazine you enjoy and understand. Or, regularly read the Business Section of your newspaper.
4. Find a "money buddy". Doing things with another person is always more fun. Just as Weight Watchers encourages buddies and exercise routines suggest partners, you know you are more likely to stick to your financial goals and learn more if you have a buddy.
Be $ smart - learn investing to build wealth and financial independence.
I have learned I can only work so many hours each day, each week. Realizing that, I must put my money to work by investing.
Over the next few weeks I will give tips on investing. Actually, last week's $ Tip discussed the services offered by a Full Service Broker vs a Discount Broker, was a good start.
Education is the key. I offer four suggestions. Pick one or two to raise your understanding and commitment to investing:
1. Take a class. Most adult education programs at your local high school or college offer a class on personal investing. Take a friend. Learn together. Go out after the class and discuss what you learned and what you can implement.
2. Read. Join AAII, the American Association of Individual Investors.
The cost is $29 per year. They are dedicated to people like you who are learning about investing. They offer a monthly publication filled with good, basic information. Also, they offer chapter meetings where you can meet others interested in investing. Go to www.aaii.com.
3. Read more. Buy one, yes one, money/investing magazine. Read it cover to cover, even the ads. Here you are familiarizing yourself with a new vocabulary. The more you see and read the words, the sooner you will understand their meaning. You don't really need a year's subscription until you find one magazine you enjoy and understand. Or, regularly read the Business Section of your newspaper.
4. Find a "money buddy". Doing things with another person is always more fun. Just as Weight Watchers encourages buddies and exercise routines suggest partners, you know you are more likely to stick to your financial goals and learn more if you have a buddy.
Be $ smart - learn investing to build wealth and financial independence.
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