What books changed your outlook on how you should invest?

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Re: What books changed your outlook on how you should invest?

Post by TylerS7 » Tue Feb 27, 2018 10:32 am

My dad gave me Financial Fitness Forever by Paul Merriman for Christmas a few years ago, along with a link to his two hour Youtube video detailing his portfolio and ideas.

That lead me to this community, which lead me to the Bogleheads Guide to Investing and John Bogles Common Sense on Mutual Funds.

I also listen to Rob Berger's Dough Roller Podcast and White Coat Investors podcast along with a few others. Rob's series How to Build Wealth on Any Income starting around January of 2017 was really an amazing resource that I came across at just the right time.

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Re: What books changed your outlook on how you should invest?

Post by Clever_Username » Tue Feb 27, 2018 10:51 am

In summer 2008, I got my first 401(k) as part of an internship. I later discovered that I had a 403(b) from a job I held as a student, but that was just a quarterly letter I got saying "hey, your undergrad school holds some money for you in some way." I didn't know what it was or what it was invested in. I think my first 401(k) I split evenly between an S&P 500 and a Russell some-number index. I didn't know what I was doing, but fortunately, that meant I wasn't inclined to tinker with it.

That summer, I read Walter Updegrave's The Right Way to Invest in Mutual Funds. It's funny looking back on it now because the numbers are so different. I'm not entirely sure how I pictured investing working before then. I imagined someone reading the newspaper to select stocks maybe.

I clearly forgot what I learned at some point, as in early 2012, I was preparing to leave my position as a Post-Doc, decided to roll the other two accounts to an IRA and contribute to it, but did so through a financial firm that was suggested to me. Fortunately, this was very little money overall (maybe $10k total). This was coupled with moving some mutual funds that I had from my late grandfather to the same firm, but that was also small money overall. I felt I was doing something not-quite-right (as in, not correct, not in the sense of morally ambiguous or wrong) and started looking into other books, including starting to read Bogle. I think Common Sense on Mutual Funds was my first such book, but I've since read others.

About three months later I moved that account to Vanguard when I was setting up my 401(k) at my then-employer that I started working for summer of that year. I've been with them ever since, other than one part-time job since then that has a 403(b) at Fidelity I still keep there (about $4k)... I really should consider moving it, but for some reason I think that would prohibit me from ever returning to that employer (a non-zero probability), or at least prohibit me from having a retirement account if I go back to that employer. I should look into that because rolling that 403(b) into my existing 403(b) or my rollover IRA would probably make sense.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_

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Re: What books changed your outlook on how you should invest?

Post by parsi1 » Tue Feb 27, 2018 10:53 am

Smartest 401(k) Book You'll Ever Read by Dan Solin

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Re: What books changed your outlook on how you should invest?

Post by rec7 » Tue Feb 27, 2018 11:31 am

LateStarter1975 wrote:
Mon Feb 26, 2018 2:20 pm
I've read >100 books on investing. By far the greatest impact on me was "The Boglehead's Guide on Investing"
I think that book, Millionaire Next Door and Stop Acting Rich are three gems.
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack

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Re: What books changed your outlook on how you should invest?

Post by harrythegoat » Thu Mar 01, 2018 6:54 am

"The Aspirational Investor" by Ashvin Chhabra (http://www.aspirationalinvestor.com/) changed my outlook on investing. I'm a Bogle / Vanguard diehard and know the basics -- indexing, AA, etc. -- well. Chhabra's book gives investors like me -- and I suspect like most readers of this site -- valuable perspective. Chhabra sets forth an investment framework that divides one's assets into three categories:

1. Personal Risk -- Protective assets e.g. emergency cash, home, insurance.
2. Market Risk -- Market assets e.g. Retirement fund, 529.
3. Aspirational Risk -- Aspiration assets. e.g. concentrated stock positions, investment real estate.

This framework is very helpful to me, as it's a reminder that categories #1 and #2 should be optimized and left alone. There's only so much time one needs to spend focused on these categories. I'm in my late 40's in a growing industry -- prime earning years. To improve my financial position, I should focus on earning more money and less on #1 and #2.

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