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Ask HN: Any good investments for those saving a substantial portion of income?

• jesusmichael 13y ago
  If you go to a financial advisor... he's going to talk asset allocation and diversity. I was in the same situation as you. I got some good advice and purchased real estate. I bought a home for myself and and a rental, got another rental 2 years later and 4 more over the next 10 years. 20 years later and I have $2M in equity in property that has never been underwater and a nice annual income stream(60K+) that I don't do much for. Real estate has its ups and downs but its not as volatile as the stock market and is an asset that can not only generate capital gains but also income. .02
• jafaku 13y ago
  I'm a little surprised no one suggested Bitcoin.
  • gebe 13y ago
    He asked for (relatively) low risk alternatives though.
    • jafaku 13y ago
      Invest little money then. That could still become a significant retirement fund for him after a few years. That said, I think Bitcoin is low risk if you secure your coins properly. I don't think there is much risk of the price going down to zero.
• seivan 13y ago
  Cheap/Free Index Funds
• bybjorn 13y ago
  > although I am not immediately interested in home ownership yet... You should be, as this is one of the best investments you can make. At least in my part of the world :-)
  • EliRivers 13y ago
    Which part of the world are you in? If I had to design a truly terrible investment, I'd end up with something that looked an awful lot like housing.
    • bluedevil2k 13y ago
      In the US I wouldn't call a home a terrible investment. It's not a great one either. The pluses are - tax privileges and the old mantra "you have to live somewhere", but the minuses are property taxes, lack of liquidity, and transaction costs. The problem when evaluating a house as an investment is that there are hundreds of markets, so no rule is good. Washington DC or San Francisco is a far different market than Austin or Dayton, OH.
      • EliRivers 13y ago
        I would. It's illiquid, not fungible, prone to bubbles, deteriorates all by itself, costs money just to own, laughable transaction costs, massively impractical to sell or buy in convenient units, generates no income (unless you rent it out, but most people don't - they live in it); just an awful investment. I literally struggle to think of another mainstream investment that is this bad.
  • elharo 13y ago
    Depends on where you are, the cost of renting vs. owning, and whether you plan to move. If you expect to be moving in the next 5 years or so (more likely in your 20s than your 40s) then home ownership usually doesn't make sense. Real estate is also a lot less liquid than stocks, and that can be a concern too.
  • elefont2 13y ago
    Past performance does not guarantee future results - That is true for all investment types, including home ownership. Home ownership does have very advantageous tax consequences in the US compared to other instruments - e.g.: deductible interest, tax breaks on capital gains. But it also depends on your stage of life. If there is a good chance you'll just randomly move to a different city or country in the next few years, then i would not recommend buying a home.
• DanielStraight 13y ago
  If you are new to investing, I highly recommend watching these videos: http://www.bogleheads.org/wiki/Video:Bogleheads%C2%AE_investment_philosophy http://www.bogleheads.org/wiki/Video:Bogleheads%C2%AE_invest... They aren't selling anything, its just a series of simple videos explaining the basics of buying index funds and why you would want to do that.
• elharo 13y ago
  This is easy. You want a low cost index fund. Vanguard has a number of good ones. The Vanguard Total Stock Market Index Fund is probably the best bet. 0.05% expense ratio for admiral shares, a bit more for investor shares. They're a few others that only cover the S&P 500, or include some bonds, or have more international exposure but at your age and savings level it's not worth agonizing over the differences. Just go with the broadest, lowest cost stock fund you can find.
• cik 13y ago
  There are some things you can do, while you're searching - full disclosure of course, I do all these things. First off, get a high interest savings account (or several) from your bank(s). In Canada, ING Direct does decent things (though there are better). At the very least, while you're figuring out what to do with your money, have it make more interest for you. Secondly, look at preferred shares. They're less volatile than shares in their parent company, and they pay higher dividends. The obvious drawback being the rate of return over the long term is significantly lower than the indices themselves. Banks, at least in Canada are a great example of this, though the same is true of insurance, and power companies. All investments bring risk, there's no such thing as a guaranteed return. And of course, investments in preferred shares are a risk, like any other stock. That being the case, they're a risk I can accept.
  • aestra 13y ago
    >First off, get a high interest savings account (or several) from your bank(s) Online savings accounts give a higher interest rate than any B&M bank out there, not that the interest rates are actually high. Compare here: http://www.nerdwallet.com/rates http://www.nerdwallet.com/rates
• mcot2 13y ago
  Open a brokerage account and invest in index funds. That requires the least amount of effort and is shown to provide solid gains over time. You may also want to accelerate your home purchase plans. This is also an excellent way to use spare cash and you will get a nice tax benefit. 60,000 on a car is just like lighting money on fire, but you probably already knew that. Try to get as close to 0% interest as you can and don't pay it off with the spare cash. The money is better off earning 5% in the stock market and paying a 1.9% car loan (if you can get it).
• Tycho 13y ago
  Something like this maybe? Peer-to-peer lending (with risk-pooling) that cuts out the spread taken by banks http://en.wikipedia.org/wiki/Zopa http://en.wikipedia.org/wiki/Zopa
  • bluedevil2k 13y ago
    I tried Prosper a few years ago, put in a few thousand dollars, spread it over 50 loans, and saw about a 4.5% return when factoring in IRR. I think I've read the returns from others are about the same.
• rhgraysonii 13y ago
  Medium to high risk vanguard funds have done very well for me and since they are index based it is much lower risk than just day trading. http://www.mrmoneymustache.com/2011/05/18/how-to-make-money-in-the-stock-market/ http://www.mrmoneymustache.com/2011/05/18/how-to-make-money-...
  • seivan 13y ago
    Do you pay a fee for them?
    • hibikir 13y ago
      Vanguard fees are about as low as they get in the business. They are not one of those companies that sell an easy, computer managed fund, and then charge you 4 times the market rate in fees for it. The sleaziest I have seen was 401k providers that actually offer funds that have very low fees, and then it's the provider itself that tacks on their own management fees that are many times the size of those of the index fund. Yikes.
      • aestra 13y ago
        There is an interview with the founder of Vanguard in this video: http://www.pbs.org/wgbh/pages/frontline/retirement-gamble/ http://www.pbs.org/wgbh/pages/frontline/retirement-gamble/ The video is all about investing in your 401(k). Highly recommend watching.
• bluedevil2k 13y ago
  All the recommendations for low cost mutual funds are good, but I recently found Motif Investing (http://motifinvesting.com http://motifinvesting.com) - it's a really interesting way of investing in stocks, based on very specific sectors. For example, "cloud computing" or "beer". These types of investments would be difficult to do cheaply with any current mutual find or ETF. It's not something to put all your money into, but it's an alternative and possibly interesting way to invest (I am not affiliated with them in any way). I would also offer a recommendation against an expensive car. Take it from someone who bought a really nice sports car - the novelty wears off relatively fast, and after that, you're just left paying hefty maintenance fees. Remember a car is to take you from point A to point B.
  • deleted 13y ago
    [deleted]
  • coldpie 13y ago
    > Take it from someone who bought a really nice sports car - the novelty wears off relatively fast, and after that, you're just left paying hefty maintenance fees. Remember a car is to take you from point A to point B. Sports cars are for motorsports. Take her to the track! I'm not exaggerating when I say track days are the most fun I've had in my life.
    • japhyr 13y ago
      A nice middle ground might be a motorcycle. I had a 600 sportbike for a few years, and it was funny riding an $8k machine (at the time) that could outperform most sports cars on anything other than a straight-line top speed test. But you only want a motorcycle if you have good restraint. Sportbikes are so capable, it is easy to maim or kill yourself if you don't know how to hold back. They are just really capable bikes in the low rpms, and then they are high-end racing machines in the high rpms. I got my motorcycle in my late 20's, after spending a lot of my life riding a bicycle. I don't think it would have been good for me to have a motorcycle in my late teens/ early twenties.
      • 13y ago
• edw519 13y ago
  I'm maxed up to match on 401k. Max it beyond match. At current returns and tax rates, investing pre-tax dollars will probably get you more bang for your buck that almost anything else.
  • seivan 13y ago
    In Sweden these kinds of schemes just pushes up the tax to the future once you take the money out. And in Sweden pensioners are the hardest tax - making this a horrible deal.
    • rg81 13y ago
      Interesting. Most companies nowadays offer a "Roth" option for 401(k) which takes contributions with after tax dollars so when you are ready to get your money back out at 59.5, all of the growth is tax free. You only have to pay taxes on what your employer matches.
      • inyourtenement 13y ago
        For myself (young-ish, high-ish income) I've determined that Roth is a bad deal. Conceptually, Traditional and Roth are about equal. Paying taxes now vs paying them in retirement is a wash, all else being equal. But with a Traditional 401(k), the tax savings are at my highest marginal tax rate. In retirement, I would not expect to be in the same tax bracket.
        • arielweisberg 13y ago
          A Roth is a better deal than post tax investing. It's not either or depending on income. The advantage of a Roth is that you control it and it isn't in expensive employer controlled funds. I say max out your Roth and then max out your 401k. If your spouse works, max out their Roth IRA as well. Definitely take advantage of any tax incentives being offered over post tax investing. edit I misread. I would take the employer offered 401k with the 17.5k contribution limit. Get the money out there earning for you. You can do your own Roth IRA. That is what I am talking about doing separate from your employer. I would max that out first assuming the funds are better. I prefer today dollars (401k) over future dollars (Roth) so the 401k is more attractive to me modulo terrible fund selection. edit
• fluffyllemon 13y ago
  I would suggest checking out index funds from Vanguard (or Fidelity or Schwab). Also, you may want to post this to: http://www.reddit.com/r/personalfinance/ http://www.reddit.com/r/personalfinance/ They're a very reasonable and helpful community.
• ktavera 13y ago
  AA+ rated municipal bonds can have great rates of return, low risk and usually the capital gains are tax-exempt. You can purchase bonds through online brokers (I use TD Ameritrade). There of course are other bonds; corporate, treasury and CD's you can set up in bond ladders to generate income and reinvest after maturity into another bond but those are generally subject to standard tax rates.
  • bluedevil2k 13y ago
    I would caution against bonds, especially US Mutual bonds, right now. It's a common belief (which of course, could be wrong), that interest rates have to rise in the next few years, which would greatly decrease the price of these bonds, resulting in losses. Also, many munis (and therefore their bonds) have outstanding debts through pensions or overspending that makes repayment dicey at best. Even the AA+ rated ones - don't forget, S&P rated all the mortgage bonds at AA+ as well, and look how those turned out.
    • refurb 13y ago
      You are correct that bond values will fall if interest rates rise, but bond prices are inversely correlated with stock prices, so they are a great way to diversify risk and maximize return.
      • bluedevil2k 13y ago
        Not true at all! Over the past 85 years, the correlation between stocks and bonds has ranged from -93% to +85%, with an average of 10% and a standard deviation of 40%! That indicates they are only very slightly correlated, and not enough to create a general rule. http://media.pimco.com/Documents/PIMCO_Quantitative_Research_Stock_Bond_Correlation_Oct2013.pdf http://media.pimco.com/Documents/PIMCO_Quantitative_Research...
        • refurb 13y ago
          Thanks for sharing that. However, that paper only looked at the correlation between the S&P500 and long-term treasuries. A well diversified portfolio should have a mix of bonds including commercial bonds. The disclaimer in the paper points this out: Bonds are represented by long treasuries (Ibbston) which should not be interpreted as a full sample representative of the bond market. Different asset class proxies will have different results. The data that I've seen on stock-bond correlation shows a pretty consistent negative correlation over the 1927-2010 time period. It's not perfect, I admit, but it serves you well when you're trying to minimize risk.
• chiph 13y ago
  Look into an Health Savings Account (HSA). Unlike a Flexible Savings Account, what you deposit can stay in there past a year and lets compound interest work for you. When you reach retirement age, you'll have a nice fund to pay for medical expenses that medicare won't pay for. Caveat: Only suitable if you don't have any ongoing expensive medical costs (diabetes, children, etc).
• mhb 13y ago
  Permanent Portfolio forum: http://gyroscopicinvesting.com/forum/permanent-portfolio-discussion/ http://gyroscopicinvesting.com/forum/permanent-portfolio-dis...
• aymeric 13y ago
  Has anyone tried http://wealthfront.com http://wealthfront.com or heard anything about it?
  • smartician 13y ago
    I read this article and the comments, and was appalled that the Executive Chairman of a wealth management company doesn't seem to know the difference between marginal and effective tax rate: https://blog.wealthfront.com/college-vs-retirement-savings-silicon-valley/ https://blog.wealthfront.com/college-vs-retirement-savings-s... I'd stay away.
    • refurb 13y ago
      Wow! I had seen that article a while back, but never read then comments. The marginal vs. effective tax rate thing is something he should know. Also, he seems to like to extrapolate trends that include the cost of tuition being $500K in 20 years. Sure if you straight line the recent growth, but is that really likely?
• refurb 13y ago
  Do some reading: Intelligent Asset Allocator by William Bernstein[1] The book is actually a quick read even if you're not a math whiz (which I'll assume you are). It goes through a review of how to allocate your money across a number of investments and explain why it makes sense not only from a theoretical perspective but also based on historical returns in the stock market. You can also pick up other books by William Bernstein that cover the same thing in different degrees of detail. [1] http://www.amazon.com/The-Intelligent-Asset-Allocator-Portfolio/dp/0071362363 http://www.amazon.com/The-Intelligent-Asset-Allocator-Portfo...
• meric 13y ago
  Put a portion in cash. At some point the market will have another downturn. The 1987 stock market crash occurred 7 years after the 1980's recession. The mini-bear market in 1994 happened 7 years after the 1987 stock market crash. The dotcom bust occurred 7 years after the 1994 mini-bear market. The GFC occurred 7 years after the dotcom bust and it is currently the 6th year since the GFC. https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1396270301650&chddm=486013&chls=IntervalBasedLine&q=INDEXSP:.INX&&ei=2mQ5U8j5I9ChkgWuUQ https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&... Does it look like a good time to put all your money into a S&P500 index fund?
  • bluedevil2k 13y ago
    That's the problem, you can never tell when it's a good time to invest or a bad time. You think people thought it was a good time to invest in March 2009, when the Dow was at 6500? Many people pulled all their money out, thinking the drop would continue. Those who bought were happy. There's an equally likely chance the market will go up 10% in the next year as down 10%. And, there's definitely no pattern to the market.
    • meric 13y ago
      I suppose you're more of a theory type than I am. For the record, I invested every dollar I had but $100 into the market between March and May 2009, though it was not much (several thousand) as I was but a humble student. I also bought TSLA at $28 and SCTY at $12, and I still hold both of them.
  • conroe64 13y ago
    The 1994 mini-bear market? You're shoehorning the data a little to match your theory, don't you think?
    • meric 13y ago
      Actually, no. The S&P 500 was 20% higher in Jan 1994 than in Jun 1994. I'm not saying it has to be around 7 years, I'm just saying it's generally not a good idea to start investing all your money into the stock market when it's at or near all time highs. There's even an urban dictionary word for it. "BTFATH" - Buy the fucking all time high. http://www.urbandictionary.com/define.php?term=BTFATH http://www.urbandictionary.com/define.php?term=BTFATH
• ct 13y ago
  Look into selling covered calls or vertical spreads for part of your portfolio as recurring monthly revenue.
  • mrfusion 13y ago
    I'd be interested in learning more. Can you explain it, or point us to some reading material?
• emacdona 13y ago
  Everything you said makes me think you are heading in the right direction except for the 60k car :-) Spend 30k on a lightly used car if you want "nice". It sounds like you have three different goals, and they break down neatly into: 1) short term: car 2) medium term: house 3) long term: retirement First: If you can afford to (and it sounds like you can), max your 401k. Your 401k is a vehicle that allows you to "borrow" money from the government and earn interest on it (by being able to postpone taxes). Personally, I invest 100% of my 401k in an S&P 500 index. I have Fidelity, so my fund is Spartan 500 Investor Class (FUSVX). Use whatever S&P 500 index is available to you, though. If you still have money left, put it into a Roth IRA. Same deal: index fund. That covers your long term goal. Now, for the house. I'm not sure what to say here. Most of my personal savings is also in the Spartan 500. If you've got a sliding window of 5 years to buy a house, I'd recommend the same. Convert to something more stable (bonds?) when you've made some money... then hold on to it while you're waiting to buy a house. However, consider buying one right now with little money down. Prices are stabilizing and interest rates are still historically low. Finally, short term. You're young, so you probably won't listen (and honestly, that's okay -- I'm not picking on you): don't buy a 60k car. Spend 30k on a used Audi or BMW if that's your thing. Personally, I would recommend spending 23k on a used Honda. You will be amazed (maybe) at what 23k gets you for a used Honda. Same deal as the house, though. Buy it now, with little money down. Interest rates are really low. Good luck. Mid 20's and already talking about saving half of your pay check. You'll be fine. Just max that 401k. And please don't get a 60k car :-)
  • coldpie 13y ago
    Great advice here. Definitely get into an index, or a handful of mutual funds. Your bank savings account is losing you money. I'm 100% into mutual funds and honestly I should just switch over to the index you're using, emacdona (I'm also at Fidelity). Everything I've read suggests indexes do at least as well as funds, and it's truly "set it and forget it". About the car: I agree that 60k is ridiculous, but don't get the Honda. Get a car you like. Or do get the (used) Honda, and also a car you like. I bought a 2007 Z4 Coupe for less than 24k back in 2011. Taking her up to the track is literally the most fun I've had in my life, and it's emerging into a full hobby as I'm trying to get into ChumpCar this year. Motorsports is a great hobby. I wrote a short article about it a year ago: http://www.smokingonabike.com/2013/03/27/programmer-looking-for-a-hobby-try-cars/ http://www.smokingonabike.com/2013/03/27/programmer-looking-... Life is about fun. If you have financial security in the bag, enjoy it while you've got it.
• tomp 13y ago
  http://wallstreetplayboys.com/sp-500-surpasses-1700-the-world-is-not-ending/ http://wallstreetplayboys.com/sp-500-surpasses-1700-the-worl... TL;DR: invest in a low-fee, broad stock-market index (e.g. S&P) every month; over a long time horizon, it should perform well, even if the market doesn't go up (example in article: June 2007 until March 2013 - 5% annualized return).
• vishnugupta 13y ago
  While I will not be able to advice you about the choice of investment owing to my nationality, I highly recommend reading following books. Cover-to-cover if you can. 1. The Intelligent Investor by Benjamin Graham. 2. Irrational Exuberance by Robert J. Shiller. 3. Thinking, Fast and Slow by Daniel Kahneman. OK, here's advice anyway :). Please, please do diversify your investments across different classes of products ; Equity, Debt, assets such as Gold or land and so on. The proportion may vary according to your risk appetite, but do diversify.
• bavcyc 13y ago
  Read Graham's Intelligent Investor, there are also books which provide examples or slight alternatives to Graham's approach. Also sites similar to Mr. Money Mustache may provide guidance that is helpful to you (or not). Regarding the home purchase, consider loaning yourself the money from the 401k rather than paying someone else interest.
• leftcoaster 13y ago
  Take this question to the bogleheads forum.
• wes-exp 13y ago
  https://www.futureadvisor.com https://www.futureadvisor.com
• stygiansonic 13y ago
  Firstly, I'd recommend this book: http://www.bogleheads.org/wiki/Bogleheads'_Guide_To_Investing http://www.bogleheads.org/wiki/Bogleheads'_Guide_To_Investin... It's easy to grasp and straightforward. Some basic ideas from the book: 1) What is your timeline? You seem to have multiple goals/timelines (car, retirement, home) and you need to define each clearly so that you can save for them in the proper manner. Needing money in 5-10 years for a house going to present a different goal than needing it in 30+ years for retirement. Generally, the shorter the time-frame, the less-risky the investment. If you need it in <=5 years, I would stay away from equity, but that is me. Once you know your goals and timeline you can figure out what kind of expected return you want to target. 2) Risk tolerance: You touched on this, but again, you need to clearly define what you mean by "I don't want to risk too much". How affected would you be if your investments were down 30% in one year? Would you hold or panic and sell to avoid further losses? Answering this question is a lot easier to do when you haven't lived through a huge market drop. (People tend to overestimate their tolerance for risk) 3) What is your financial situation? I assume no debt if you're saving 50% of your pay each month, but if you do have any debt, you're probably better paying that off before choosing to invest. Talking a financial planner (who isn't trying to sell you product/services from his/her institution) is a good way to figure out a plan in this respect. I would also ensure you have a decent emergency fund - depending on your situation, 6 months is usually enough. 4) Other assets: If you have a decent 401k match (as you indicated) this gives you a little more flexibility since you already are saving decently for retirement. 5) Taxes: This matters a lot and tax rates for different investments can vary quite a bit. I'm not familiar with US tax code so again, this is something you should talk to a financial planner or accountant to understand. Having said all of that, I'm personally pursuing a passive, asset-allocation plan. I'm mostly invested in Vanguard Index ETFs with a percentage allocation of bonds, US equity, Canadian Equity (I live in Canada) and International Equity that I feel is comfortable for me. I chose this mainly because of the low-cost/low-MER (Vanguard ETFs have even lower MER in the US) and went passive because I don't like to have constantly make adjustments to my portfolio. Most of my assets are invested for long-term capital growth, but I have separate accounts for an emergency fund and saving for a real estate purchase where preservation of principal is my concern. (high interest savings account)
  • refurb 13y ago
• bushido 13y ago
  First things first: we don't have enough information to make suggestions as investing is a lot more about risk management than returns. There have been a few suggestions that could be great in other circumstances, but without knowing the OPs risk thresholds are most likely ill-advised. 1. the OP states that "I don't want to risk too much" 2. risk is a very subjective/relative concept - the only thing the OP has stated that risk can be related to is "checking and savings just aren't cutting it" 3. based on that alone the safest assumption is that the OP's risk capacity is relative to dismal returns from savings and checking returns - that barely keeps up with inflation --------------- To OP: 1. Nothing wrong with a lower risk capacity - maybe you need to work your way to managing higher risk 2. For short term goals (< 3yrs)- choose very safe investments as you cannot afford fluctuations 3. For long term goals and retirement - taxation is just as or more important than returns - interest income, capital gains and qualified dividends are taxed differently. With that in mind, looks like most if not all your current savings and investments are 100% taxable. 4. There are a number of ways to deal with taxation, best to find a good investment adviser who has a good understanding of risk management, taxation etc. 5. If you want to self manage - and don't know your tolerance - look into doing a funnel - i.e. keep 10% in highly liquid investments (Cash, Money Market etc), 20% in government/high quality corporate bonds(short-medium term), 70% in investments with additional risk (ex: 30% in managed high yield bonds, 40% in equity index funds -- if you're risk tolerance changes you could increase your equity). [change ratios to match your needs, risk etc. note: try and maintain at least 3 levels] 6. Research re-balancing strategies. 7. Read some books: a. The richest man in Babylon(fiction) - read first, no particular order after this b. The Ivy Portfolio c. The intelligent asset allocator d. The permanent portfolio e. The Investor's Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between f. Value Averaging
• PeterWhittaker 13y ago
  A) Don't take advice from random strangers, especially those living in echo chambers. B) Read, read, read, read, read. C) After B, decide on your own - you are likely as smart or smarter than any financial adviser, you need to learn what's out there. D) Some things that work for me: i) Letting my wife manage my portfolio, for the most part, she is generally more distant in her judgements; ii) stocks paying decent dividends with a history of doing so, in a DRIP; iii) reading the news, looking for things that might cause bumps in depressed stocks (made good money on Yahoo when Mayer took over); iv) doing "iii" with no more than 5-10% of my portfolio.
• fsk 13y ago
  Rule #1 - an emergency fund of 6-12 months living expenses, in checking or money market. (Putting more than this in cash is a bad idea, because the interest you earn doesn't keep pace with inflation.) Long-term savings should be in stocks (or gold or silver). Lazy allocation #1: 100% in S&P 500 index fund. Lazy allocation #2: 50% in S&P 500 index fund, 50% in gold/silver ETFs (like GLD, SLV, PHYS, PSLV). Advanced #1: Pick individual stocks in addition to index funds. Advanced #2: In addition to gold and silver ETFs, also take physical delivery. (a hedge against the possibility the the PM ETFs will default, see MF Global) Note: The stock market is a risk, but over a 5+ year time period it should do better than 0% in a checking account.
• akg_67 13y ago
  1. Invest in Yourself. 2. Value experiences over things. 3. Avoid borrowing money as much as possible. Avoid debt. 4. Keep an emergency fund. 5. Invest in low cost Index mutual funds/ETF. 6. Read following books: 6a. Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence. 6b. The Millionaire Next Door: The Surprising Secrets of America's Wealthy 6c. A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
• hughes 13y ago
  The Couch Potato Investment Strategy[0] is a great place to start. It focuses on total-market strategies that are extremely low in cost and dead simple to set up. You will most likely beat any actively managed mutual fund[1]. [0] http://www.moneysense.ca/invest/couch-potato-portfolio-frequently-asked-questions http://www.moneysense.ca/invest/couch-potato-portfolio-frequ... [1] http://www.businessinsider.com/sp-indices-versus-active-funds-spiva-2014-3 http://www.businessinsider.com/sp-indices-versus-active-fund...