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 financial advice. Show all posts
Showing posts with label financial advice. Show all posts
Sunday, July 15, 2018
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.
Saturday, November 1, 2014
Full Service or Discount Broker
I was with some friends this weekend and one asked me "What is a discount broker?"
As I often encourage you to invest your money to help it grow, this might be a good time to explain the difference.
A full service broker is a firm like Merrill Lynch or Morgan Stanley. Here you will find a "broker" or sales person who may be called a Financial Advisor, Wealth Management Advisor or Retirement Specialist.
These large, full service firms will give you financial advice, help determine your financial goals and your risk tolerance. They typically have large research departments or purchase outside research on various companies' stocks and bonds. They use this research to recommend to their clients a mixture of investments (asset allocation) and will direct the buying and selling of these investments - usually for a substantial commission.
The commission charged is based on the price of the stock times the number of shares. The cost to buy or sell could be hundreds of dollars. This is how they get paid.
(Remember:
"What's this going to cost me? How do you get paid?" from a previous $ Tip.)
A discount broker is a firm with many of the same functions as above but without as many services. They will offer "canned" research, something anyone can find online. They will not call you recommending investments nor will they take pains to get to know you.
These firms are more "do it yourself". They assume you know what you are doing. They will take your order to buy or to sell and they will not offer comment.
Actually, the greater discount on buying and selling is when you talk to no one and enter the trade online. (A trade is a buy or a sell.)
There is one discount brokerage that charges $5 per trade for almost any size trade (50, 100, 1000 shares). Others may charge $7.50, $10 or $20 per trade. Scottrade, eTrade, Ameritrade are some discount brokerage firms.
Be $ Smart - know what type of brokerage firm is best for you to build wealth and financial security.
As I often encourage you to invest your money to help it grow, this might be a good time to explain the difference.
A full service broker is a firm like Merrill Lynch or Morgan Stanley. Here you will find a "broker" or sales person who may be called a Financial Advisor, Wealth Management Advisor or Retirement Specialist.
These large, full service firms will give you financial advice, help determine your financial goals and your risk tolerance. They typically have large research departments or purchase outside research on various companies' stocks and bonds. They use this research to recommend to their clients a mixture of investments (asset allocation) and will direct the buying and selling of these investments - usually for a substantial commission.
The commission charged is based on the price of the stock times the number of shares. The cost to buy or sell could be hundreds of dollars. This is how they get paid.
(Remember:
"What's this going to cost me? How do you get paid?" from a previous $ Tip.)
A discount broker is a firm with many of the same functions as above but without as many services. They will offer "canned" research, something anyone can find online. They will not call you recommending investments nor will they take pains to get to know you.
These firms are more "do it yourself". They assume you know what you are doing. They will take your order to buy or to sell and they will not offer comment.
Actually, the greater discount on buying and selling is when you talk to no one and enter the trade online. (A trade is a buy or a sell.)
There is one discount brokerage that charges $5 per trade for almost any size trade (50, 100, 1000 shares). Others may charge $7.50, $10 or $20 per trade. Scottrade, eTrade, Ameritrade are some discount brokerage firms.
Be $ Smart - know what type of brokerage firm is best for you to build wealth and financial security.
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