I’ve started thinking about saving for my retirement (I’m only 21, so I think I could have quite a nest egg if I started saving now), and I’m pretty sure I’d like to start contributing to a Roth IRA. Before I do, though, I’d like to see what the alternatives are like: CDs, mutual funds, stocks, etc.
The problem is, I don’t know a damn thing about money. I’ve read some articles on Motley Fool, but I’d like something along the lines of a “Finances for Dummies” kind of thing, because I’d have to start from square one. So if you’ve ever read a book or website that explained finacial stuff to you pretty well and you’d like to recommend it, please do so.
The Dummies books are a good place to start. I know they have both a Personal Finance for Dummies and a Investing for Dummies.
The Personal Finance book gives a good overview of all the thigns that go into smart money handling. It has chapters of budgeting, planning, investing, spending (esp. car, house) and saving.
Investing goes into details about stocks, bonds, mutual funds, brokers, etc.
Both contain worksheets and tips (things to ask a broker, how often to review your investments, where to go with complaints).
You local community college or banks may offer seminar classes on investing, and these can be helpful (esp. if you have some knowledge). But be careful, they are often taught by people who are “in the business” in some way–brokers or financial consultants who do this as a way to get business. Any “special deal” they may offer you through the class may be biased to get them fees.
Good luck, and kudos to you for starting so early–I’m in my forties and just startignto get a handle on this. Maybe we should keep in touch so I can mooch off you when we’re both old!
I agree with the recommendation on the Andrew Tobias book. That book has been around for a while, but the advice is still good. (His website at www.andrewtobias.com has daily financial advice that’s pretty interesting.)
Another source is the “Dilbert: Way of the Weasel” book. It has a one page summary of Financial Advice, which is really pretty good:
Yes, although the Tobias book has been around for a while (about twenty years), it was updated just a couple of years ago. And the basic advice is timeless.
