Reddit reviews The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today
We found 5 Reddit comments about The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today. Here are the top ones, ranked by their Reddit score.
Yeah, then I'd definitely suggest avoiding corporate bonds as much as you can. I also linked a less-optimal book. While he discusses this topic in that book, I'd forgotten how dry and academic it can be. A better choice would be this other book from the same author: http://www.amazon.com/dp/0312339879
From the chapter "Efficient Markets and Bond Funds" in the above book:
... because the main purpose of the fixed-income [bond] portion of a portfolio is to provide stability and/or certainty of cash flow... investors should limit their purchases to securities within the top two investment grades. [US Government or VERY highly rated municipal bonds.]
Others have discussed the importance of average bond duration and interest rate risk. I don't think this is likely to be of great importance given the small amount of bonds in your portfolio. I wouldn't worry about it too much, but still-- stay away from long-term bond funds.
If you want to actually learn something... and not just pass your tests... then you need to read A Random Walk Down Wall Street, The Four Pillars of Investing, The Intelligent Asset Allocator,
The Only Guide to a Winning Investment Strategy You'll Ever Need, and All About Asset Allocation... to start.
>The purpose of this post is help new investors. Often times we may be asked by a friend or family member what they should invest in. They can be easily turned off by throwing multiple FAQs and guides at them. I have found that for a new investor, reading through wikipedia pages on lazy or 3-fund portfolios can be daunting. Reading books on the subject can be over the head of most people as well, if they do not have a finance background. Understanding stocks and bonds as well as the overall market is difficult so don't feel bad about not understanding it. I will try to keep this as short and sweet as possible. Hopefully you can link friends or family who are just starting off with investing to this post to set them on the right path. This information is covered in the FAQ very briefly without much explanation, however. Hopefully others can add insights that could be helpful for readers of this guide or additional questions to add on if they come up.
>
>Disclosure: I am not a financial adviser. I do not work in the financial sector. I do invest in some of the funds that may be listed in this guide. I did not author/publish any recommended books in this guide. I am also not a CPA. This guide is not intended to discuss tax planning.
>
>#Why should I invest?
>
>You should invest in order to help your money grow. Without growth from investing, it would be impossible for most people to retire. 401ks, IRAs, Pensions, and even Social Security all rely on investment returns to meet their obligations.
>
>#Isn't investing risky? How can I be sure I'm not going to lose everything?
>
>Investing doesn't have to be very risky. If you are investing in a single stock and that company goes out of business, then you can lose a lot of money. This is why diversification is important. It like the saying goes, "never put all your eggs in one basket." If they basket breaks then all your eggs break. If you invest in thousands of companies or put your eggs in thousands of baskets then you are much less likely to lose your investment and are quite more likely to gain money. For example, since it was started in 1994 the LifeStrategy growth fund listed below has grown 8% on average per year and invests in thousands of stocks and bonds, international and domestic.
>
>You may think that a 1% high yield savings account is a "safe investment." However, if inflation is over 1% per year, which it often is, it means that you are actually losing purchasing power on that money in the savings account.
>
>Even if you started investing right before a major financial crisis, you would still have more money than a very high yield savings account: Chart
>
>#I Know absolutely nothing about investing, what stocks should I buy?
>
>Target Date Fund or Lifestyle Fund. These are ALL-IN-ONE solutions for investing.
>
>Step 1: Open an account with Vanguard if you don't already have one.
>
>CLICK HERE to determine a good Target date fund for you. How a target date fund works is that it starts off with a higher percentage of stocks to bonds such as 90/10 and then moves toward 50/50 as you near the target date.
>
>For Lifestyle Funds:
>
>the Vanguard LifeStrategy Growth Fund is a solid choice that gives you an 80/20 stock to bond ratio.
>
>the Vanguard LifeStrategy Moderate Growth Fund is also a good choice for a 60/40 stock to bond ration.
>
>Vanguard can make a personalized recommendation for you as well if you aren't sure
>
>in general the higher amount of bonds you have, the less risk but lower growth potential your investment will have.
>
>#Shouldn't I listen to a financial adviser instead of some stranger on reddit?
>
>Well That depends on a few things:
>
>How much money is this financial adviser gaining from your business? I am gaining zero, so I have no reason to steer you wrong. Some times a financial adviser is out to make significant commissions by landing business, especially in extremely high fee "investments" such as whole life insurance or similar policies. Even 1% fees to hold and manage your investments can take a huge bite out of your account over time.
>
>Fee based advisers are the kind that you pay for an appointment, much like a doctor visit, and then they give you advice on your investments. Try to make sure however that they do not try to advise you into using investment vehicles that they receive commission from. These can be helpful in certain situations because you aren't throwing away money for years and years just to have an adviser handle your money.
>
>Consumer Reports says this could happen with some financial advisers. Basically they use their positions and your lack of knowledge to get you to invest in things to make them more money, costing you dearly in the long term.
>
>#Why are you suggesting Vanguard? What about other banks / brokerages?
>
>I find Vanguard the easiest to use. They also are structured to keep your investments safe. Once you reach a $50,000 with them, you have access to professional advisers. Unlike other banks/brokerages the advisers at Vanguard DO NOT RECEIVE COMMISSIONS. They are salaried so they have no reason to steer you wrong. Source
>
>Vanguard also has some of (if not the) lowest fees in the industry. This saves you money in the long term vs using other institutions or a financial adviser to manage your money.
>
>#Are there other investments besides these All-in-one funds?
>
>Yes, of course. Here are some more examples of portfolios that you could use as well:
>
> Examples of so called "Lazy Portfolios"
>
> These are some 3 fund portfolios
>
>
>#Are there any good books I could read to understand these investments more?
>
>Book recommendations:
>
> The Bogleheads Guide to Investing
>
> The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today
>
> Book List from Bogleheads wiki
>
>
>The purpose of this post is help new investors. Often times we may be asked by a friend or family member what they should invest in. They can be easily turned off by throwing multiple FAQs and guides at them. I have found that for a new investor, reading through wikipedia pages on lazy or 3-fund portfolios can be daunting. Reading books on the subject can be over the head of most people as well, if they do not have a finance background. Understanding stocks and bonds as well as the overall market is difficult so don't feel bad about not understanding it. I will try to keep this as short and sweet as possible. Hopefully you can link friends or family who are just starting off with investing to this post to set them on the right path. This information is covered in the FAQ very briefly without much explanation, however. Hopefully others can add insights that could be helpful for readers of this guide or additional questions to add on if they come up.
>
>Disclosure: I am not a financial adviser. I do not work in the financial sector. I do invest in some of the funds that may be listed in this guide. I did not author/publish any recommended books in this guide. I am also not a CPA. This guide is not intended to discuss tax planning.
>
>#Why should I invest?
>
>You should invest in order to help your money grow. Without growth from investing, it would be impossible for most people to retire. 401ks, IRAs, Pensions, and even Social Security all rely on investment returns to meet their obligations.
>
>#Isn't investing risky? How can I be sure I'm not going to lose everything?
>
>Investing doesn't have to be very risky. If you are investing in a single stock and that company goes out of business, then you can lose a lot of money. This is why diversification is important. It like the saying goes, "never put all your eggs in one basket." If they basket breaks then all your eggs break. If you invest in thousands of companies or put your eggs in thousands of baskets then you are much less likely to lose your investment and are quite more likely to gain money. For example, since it was started in 1994 the LifeStrategy growth fund listed below has grown 8% on average per year and invests in thousands of stocks and bonds, international and domestic.
>
>You may think that a 1% high yield savings account is a "safe investment." However, if inflation is over 1% per year, which it often is, it means that you are actually losing purchasing power on that money in the savings account.
>
>Even if you started investing right before a major financial crisis, you would still have more money than a very high yield savings account: Chart
>
>#I Know absolutely nothing about investing, what stocks should I buy?
>
>Target Date Fund or Lifestyle Fund. These are ALL-IN-ONE solutions for investing.
>
>Step 1: Open an account with Vanguard if you don't already have one.
>
>CLICK HERE to determine a good Target date fund for you. How a target date fund works is that it starts off with a higher percentage of stocks to bonds such as 90/10 and then moves toward 50/50 as you near the target date.
>
>For Lifestyle Funds:
>
>the Vanguard LifeStrategy Growth Fund is a solid choice that gives you an 80/20 stock to bond ratio.
>
>the Vanguard LifeStrategy Moderate Growth Fund is also a good choice for a 60/40 stock to bond ration.
>
>Vanguard can make a personalized recommendation for you as well if you aren't sure
>
>in general the higher amount of bonds you have, the less risk but lower growth potential your investment will have.
>
>#Shouldn't I listen to a financial adviser instead of some stranger on reddit?
>
>Well That depends on a few things:
>
>How much money is this financial adviser gaining from your business? I am gaining zero, so I have no reason to steer you wrong. Some times a financial adviser is out to make significant commissions by landing business, especially in extremely high fee "investments" such as whole life insurance or similar policies. Even 1% fees to hold and manage your investments can take a huge bite out of your account over time.
>
>Fee based advisers are the kind that you pay for an appointment, much like a doctor visit, and then they give you advice on your investments. Try to make sure however that they do not try to advise you into using investment vehicles that they receive commission from. These can be helpful in certain situations because you aren't throwing away money for years and years just to have an adviser handle your money.
>
>Consumer Reports says this could happen with some financial advisers. Basically they use their positions and your lack of knowledge to get you to invest in things to make them more money, costing you dearly in the long term.
>
>#Why are you suggesting Vanguard? What about other banks / brokerages?
>
>I find Vanguard the easiest to use. They also are structured to keep your investments safe. Once you reach a $50,000 with them, you have access to professional advisers. Unlike other banks/brokerages the advisers at Vanguard DO NOT RECEIVE COMMISSIONS. They are salaried so they have no reason to steer you wrong. Source
>
>Vanguard also has some of (if not the) lowest fees in the industry. This saves you money in the long term vs using other institutions or a financial adviser to manage your money.
>
>#Are there other investments besides these All-in-one funds?
>
>Yes, of course. Here are some more examples of portfolios that you could use as well:
>
> Examples of so called "Lazy Portfolios"
>
> These are some 3 fund portfolios
>
>
>#Are there any good books I could read to understand these investments more?
>
>Book recommendations:
>
> The Bogleheads Guide to Investing
>
> The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today
>
> Book List from Bogleheads wiki
>
>
>The purpose of this post is help new investors. Often times we may be asked by a friend or family member what they should invest in. They can be easily turned off by throwing multiple FAQs and guides at them. I have found that for a new investor, reading through wikipedia pages on lazy or 3-fund portfolios can be daunting. Reading books on the subject can be over the head of most people as well, if they do not have a finance background. Understanding stocks and bonds as well as the overall market is difficult so don't feel bad about not understanding it. I will try to keep this as short and sweet as possible. Hopefully you can link friends or family who are just starting off with investing to this post to set them on the right path. This information is covered in the FAQ very briefly without much explanation, however. Hopefully others can add insights that could be helpful for readers of this guide or additional questions to add on if they come up.
>
>Disclosure: I am not a financial adviser. I do not work in the financial sector. I do invest in some of the funds that may be listed in this guide. I did not author/publish any recommended books in this guide. I am also not a CPA. This guide is not intended to discuss tax planning.
>
>#Why should I invest?
>
>You should invest in order to help your money grow. Without growth from investing, it would be impossible for most people to retire. 401ks, IRAs, Pensions, and even Social Security all rely on investment returns to meet their obligations.
>
>#Isn't investing risky? How can I be sure I'm not going to lose everything?
>
>Investing doesn't have to be very risky. If you are investing in a single stock and that company goes out of business, then you can lose a lot of money. This is why diversification is important. It like the saying goes, "never put all your eggs in one basket." If they basket breaks then all your eggs break. If you invest in thousands of companies or put your eggs in thousands of baskets then you are much less likely to lose your investment and are quite more likely to gain money. For example, since it was started in 1994 the LifeStrategy growth fund listed below has grown 8% on average per year and invests in thousands of stocks and bonds, international and domestic.
>
>You may think that a 1% high yield savings account is a "safe investment." However, if inflation is over 1% per year, which it often is, it means that you are actually losing purchasing power on that money in the savings account.
>
>Even if you started investing right before a major financial crisis, you would still have more money than a very high yield savings account: Chart
>
>#I Know absolutely nothing about investing, what stocks should I buy?
>
>Target Date Fund or Lifestyle Fund. These are ALL-IN-ONE solutions for investing.
>
>Step 1: Open an account with Vanguard if you don't already have one.
>
>CLICK HERE to determine a good Target date fund for you. How a target date fund works is that it starts off with a higher percentage of stocks to bonds such as 90/10 and then moves toward 50/50 as you near the target date.
>
>For Lifestyle Funds:
>
>the Vanguard LifeStrategy Growth Fund is a solid choice that gives you an 80/20 stock to bond ratio.
>
>the Vanguard LifeStrategy Moderate Growth Fund is also a good choice for a 60/40 stock to bond ration.
>
>Vanguard can make a personalized recommendation for you as well if you aren't sure
>
>in general the higher amount of bonds you have, the less risk but lower growth potential your investment will have.
>
>#Shouldn't I listen to a financial adviser instead of some stranger on reddit?
>
>Well That depends on a few things:
>
>How much money is this financial adviser gaining from your business? I am gaining zero, so I have no reason to steer you wrong. Some times a financial adviser is out to make significant commissions by landing business, especially in extremely high fee "investments" such as whole life insurance or similar policies. Even 1% fees to hold and manage your investments can take a huge bite out of your account over time.
>
>Fee based advisers are the kind that you pay for an appointment, much like a doctor visit, and then they give you advice on your investments. Try to make sure however that they do not try to advise you into using investment vehicles that they receive commission from. These can be helpful in certain situations because you aren't throwing away money for years and years just to have an adviser handle your money.
>
>Consumer Reports says this could happen with some financial advisers. Basically they use their positions and your lack of knowledge to get you to invest in things to make them more money, costing you dearly in the long term.
>
>#Why are you suggesting Vanguard? What about other banks / brokerages?
>
>I find Vanguard the easiest to use. They also are structured to keep your investments safe. Once you reach a $50,000 with them, you have access to professional advisers. Unlike other banks/brokerages the advisers at Vanguard DO NOT RECEIVE COMMISSIONS. They are salaried so they have no reason to steer you wrong. Source
>
>Vanguard also has some of (if not the) lowest fees in the industry. This saves you money in the long term vs using other institutions or a financial adviser to manage your money.
>
>#Are there other investments besides these All-in-one funds?
>
>Yes, of course. Here are some more examples of portfolios that you could use as well:
>
> Examples of so called "Lazy Portfolios"
>
> These are some 3 fund portfolios
>
>
>#Are there any good books I could read to understand these investments more?
>
>Book recommendations:
>
> The Bogleheads Guide to Investing
>
> The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today
>
> Book List from Bogleheads wiki
>
>