Long long time reader (and very occasional poster)...
Wanted to get some opinions on this. Sorry if this is turning out to be long.
My brother-in-law and sister-in-law are a hard working couple, who have always avoided debt, budgeted well, etc. Good short-term finances for a couple just starting out. My SIL in particular has a good head on her shoulders, but has never spent any time educating herself on investments. But they've also not had a ton to invest up until this point, based on their decision to get a house and start a family soon after marriage. Recently though, my in-laws decided to make a gift to each of their daughters, which has given my B/S-IL the chance to invest for the first time.
We never talk finances (strategies or numbers) around family, and normally I wouldn't volunteer much - we figure it's up to everyone to figure out their own path. But my wife indicated my SIL wanted to talk to me at some point for advice. So I was primed for a conversation at some point.
And then my BIL asked tonight whether we invest, indicating he had just bought a few books and was thinking of starting. I broadly describe our priorities/layers of investments that we've worked on for the last decade (emergency fund, 401k/403b max, Roth, then taxable, then additional towards mortgage - all investments in index funds following our predefined allocation strategy that will adjust over time). Spent a little time talking about the rationale for passive vs. active investing.
Then I asked what books he had bought - all 3 were on day trading and/or penny stocks. Evidently he had a friend make a few hundred bucks and wanted to read up on the "opportunities". I offered very gentle criticism (if it was that easy, wouldn't everyone just do that?), and suggested he may want to look at starting with a Roth IRA at Vanguard. Then we went back to taking care of the kids and the rest of the evening.
After reflection with DW, I thought I might jot them a little email broadly outlining how we've layered our investments as an example, and send them a single book to read as a gift. From there - they can figure it out (or not).
Problem is - no idea which book. Our personal (Bogleheadish) style evolved through education (MBA), lots of reading on the internet, etc. I've actually read very little in terms of 4 Pillars, or similar books. So I'm hoping for suggestions for a book that:
- Is short. Just something to get them started with a basic framework and direction
- Gives some basic guidance on how to structure and investment portfolio, while also addressing the need for emergency funds, where college savings fits in relative to retirement savings, etc.
- Outlines basic investment types (i.e. stock vs. bonds, mutual funds vs. individual stocks, active vs. passive funds)
The book doesn't really need to address living below their means, paying down debt etc. They really do a pretty decent job with that already.