Help Secure Your Financial Independence
Written: Dec 31 '05
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Product Rating:
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Pros: Terrific overview of investing in easy to understand terms.
Cons: None that I could find.
The Bottom Line: For anyone who wants to get started in investing, this book provides much useful information! It's easy reading!
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| rootk's Full Review: The Morgan Stanley Guide to Personal Investing Boo... |
Introduction
In just a few hours, we will find ourselves in the year 2006. Stop for a minute and reflect on 2005. How do you feel you did from a financial standpoint? Are you clueless and have no idea? Or, are there certain financial topics you wish you understood or would like to know about? Maybe, you are intimidated by the thought of investing in the stock market or buying real estate. Those are just some general questions that I know a lot of people have.
As we enter into a new year, filled with resolutions, you owe it to yourself to get a better grasp on financial topics. I have managed to find a terrific source of information on just about every conceivable topic related to finances and it is this book, “The Morgan Stanley Guide to Personal Investing.”
The Book
Now, you may be thinking to yourself, “How boring, a book on investing, life insurance, and real estate.” While this is somewhat true, and I understand the topics are not enthralling to many people, this particular book is very well written and easy to read. There isn’t a lot of “high falutin’” language.
The book is divided into the chapters shown below, and I’ll attempt to write a little bit about each one, to give you an idea of what is discussed within them.
1. The Slow Road To Riches – In this chapter the author lets everyone know that, there is no Santa Claus. Meaning, there is no way to get rich quickly. The quickest way to become rich is through a methodical approach using investing in stocks and real estate over a long time: say 30 years for instance. Personally, I agree 100% with this mindset to becoming wealthy. It is the same method that my favorite radio talk show host Dave Ramsey (www.daveramsey.com) teaches.
2. Getting Started – Here you will be challenged to review your current investment program (if any) and also to look at your current assets. Then the importance of beginning a good investment program is brought your attention.
3. Setting Goals and Reaching Them – This is where the fun begins. For many of us, we are primarily concerned with retirement. As I write this on Dec 31, 2005, it is no secret that the Social Security system is in trouble. No matter what end date is given, the fact remains that at some point in time, the income to the program won’t be able to keep up with the outgo. With that in mind, it is of vast importance that those of us who are young (age 18-30 as I type this) do what we can to ensure that we retire with dignity. The simplest way to do this, as brought forth in this chapter is through 2 powerful vehicles: Your employer’s 401K plan, and the Individual Retirement Account (IRA). Finally this chapter brings about 8 important points for investment success.
4. Seeking Help – This chapter deals with selecting a financial advisor and stock broker. Keep in mind this was written in 2001, as the Internet was just really coming into play. So now, I imagine a lot of people do their own thing through investment companies such as Fidelity and Vanguard. If you do choose to use a professional broker and financial advisor, they should teach you about your investments, and you should never feel any pressure to put your money into anything you do not understand. You should be able to explain your investment to someone else and answer questions about it.
5. Your Investment Program: Basic Choices – An general overview of the basic investment categories such as: stocks, bonds, mutual funds, precious metals etc. If you wonder what something is, this is the place to find it.
6. The Stock Market – A little history of the market and what you can expect. It also talks about why stocks go up and down in value and provides some basics do’s and don’ts for investing for the long term.
7. The Electronic Revolution, Wall Street – This chapter eludes to what I mentioned earlier. Now days, it’s super easy to execute trades and buy mutual funds and stocks from the comfort of your home. You can also do endless research on free sites like Yahoo Finance. CNN Money, CBS Marketwatch, and Smart Money
8. Real Estate – Here you will find good guidance on the particulars related to buying homes. Mortgages, Lending, Home Equity Loans, and Real Estate Investment Trusts (REITs) are discussed. It also talks about rentals and tax benefits associated with home ownership.
9. Life Insurance – What is life insurance? How much do you need? What are my options? All these questions are answered in this chapter. Find out why this is an important part of a good solid financial plan here.
10. High Risk Investments – Futures, High Risk Stocks, Trading on Margin etc is discussed in this chapter. Personally, I don’t do any of that, don’t plan to and don’t recommend it, but if you want to know about it, this is a good start.
11. Managing Your Portfolio – You need to keep an eye on how your investments are performing. Not every day, but at least a few times a year check and see if the performance is meeting your expectations. If not, you may need to move some money around and reallocate.
12. The Economic Facts of Life – A few pages talking about inflation and the upward trend of the market.
Conclusion
This book serves as an excellent reference to all the major types of investing options the average human could ever care about. The key piece of information to take away is, with a little discipline and a little research, there is no reason why every person in the United States can not retire financially secure, and not have to rely on any government programs for support in their later years of life.
If you’ve been thinking about taking that step into the world of investing, read this book and get a start in 2006. Let me tell you, there is nothing like the end of the year when your distributions from your investments come rolling in. It’s tons of free money! I think of it as a super special Christmas gift. Believe me, you definitely want a part in this!
Get this book today, and begin your journey on the path to financial independance
Recommended:
Yes
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Epinions.com ID:
rootk
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Member: Java Boo Boo
Location: Decatur, Alabama
Reviews written: 83
Trusted by: 23 members
About Me:
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