Hello,
I am young (21) and recently have been given the option to join a 401K with my company i work for. I never invested in stocks before. Just did my taxes for
the first time last year. My question is what are good books to read or subjects in college that will help me understand and build my knowledge on making the
most of the money? I am very interested reading the responses of DCK101 and MS401 to other people, and half of the time i have no idea what they are talking
about. I am eager to learn.
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Understanding my Money
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 AXworker |
Understanding my Money |
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Posts: 1 (04/21/08 01:46:36) |
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ms401 |
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Posts: 19 (04/21/08 05:40:14) Member |
AXworker: you will always learn about investing, it will constantly change! For a young person like yourself, I would start with "the automatic
millionaire," it will put some basic philosophy's of saving in perspective for you. When it comes to how to invest the money, pick a sound portfolio
up front. Do not over-do the risk and rebalance annually to keep your allocations consistent. For someone as young as you are, I would recommend 60-80% in
equity, the rest split between stable value and bond. I may be on the conservative side for a young person, but that is my style. Keep your largest exposures
to large cap funds with some smaller amounts to small and mid and international. Good luck! If you look at "lifestyle" accounts, make sure they are
not 90% in equity (as many will be for young people). The biggest key is saving enough! Start out big, get your total numbers, you and the match you might
recieve at 12-18%. Then talk to the financial advisor your plan has, they can help!
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DCK101 |
Understanding my Money | ||
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Posts: 378 (04/24/08 14:39:24) Elite Member |
Take some entry level Finance courses in college or some introductory personal finance books. You need to start with some basic knowledge about stocks, bonds,
mutual funds, etc., along with explanations of the securities markets and how to calculate earnings, yields and ratios for comparing and analyzing various
investments.
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Quick Reply
IMPORTANT NOTICE: Answers are provided as general guidance on the subjects covered in the question and are
not provided as legal, tax or investment advice to the questioner's situation. Individual situations vary. Please consult
your tax, legal or financial advisor for more detailed information and advice.
Visit www.401khelpcenter.com for more help and information on 401k plans.
