Basic Investing Book?

[OldShooter]

My wife and I have a friend who, we have recently found out, has been a victim of Eddy Jones. He's not sure how many annuities his "advisor" has sold him --- he thinks it's four or five. Ack! We are trying to slowly coach him towards better investing.

He's in his early 60s, has a BA in teaching history. He has not taught for years, though. Mathematics is not his strong point. He makes his living by cleaning homes and businesses and running a vending route. He is a prodigious saver and our guess is that he might have a $300-500K net worth. This includes a rental house he owns free and clear and expects to sell in the next few months. That will create some cash that we are hoping to keep out of Eddy's clutches.

On an unrelated investment effort, I came across a guy name Bill Schultheis and he gave me a copy of his book: The Coffeehouse Investor I was quite impressed and we loaned the book to our friend. He liked it a lot. He is also a prodigious reader, mostly of history and sometimes very dense history. So ... I need another book or two to feed to him and I am looking for suggestions.

I looked at my bookshelf, but I have Malkiel, Charles Ellis, John Bogle, and the like. All too mathematical and too much in the deep end of the pool for our friend. I am looking for something that is one small step more complex than The Coffee House Investor. (You can get a flavor here: The Coffeehouse Colloquy | The Coffeehouse Investor)

Thanks in advance for your suggestions.

 

[LOL!]

I would suggest books by Bill Bernstein who usually puts a chapter with history into his books.

Investors Manifesto
The Four Pillars of Investing

are probably suitable for your friend, but Bernstein has other books including the short, free "If You Can" in PDF format.

Bernstein's earlier books are probably too much math.

 

[OldShooter]

... Bernstein's earlier books are probably too much math.

Yeah. I have a couple of the Investing For Adults genre but those wouldn't work for him. The titles you suggest are less mathematical?

(I have given him "If You Can" but it really doesn't hit hist situation as it is deliberately more for young people.)

 

[2017ish]

Perhaps, How to Make Your Money Last: The Indispensable Retirement Guide by Jane Bryant Quinn

My wife is similar to your friend in that she is highly educated and smart, but not into personal finance (small business finance OTOH....). This is the one book that she not only [mostly] read, but recommended to others.

 

[Nightcap]

The first lesson is, never buy an investment advice book. Check it out from your local library.

I like Bogle's Little Book and Andrew Tobias' The Only Investment Guide You'll Ever Need.

 

[Chuckanut]

Jonathan Clements "Money Guide 2016".

Jonathan Clements Money Guide 2016 by Jonathan Clements, Paperback | Barnes & Noble®

 

[ERD50]

Since he is fascinated with history, I'd recommend this one:

https://www.amazon.com/Against-Gods-Remarkable-Story-Risk/dp/0471295639

I read it long ago, so I'm forgetting details, but I recall being fascinated by hearing the beginnings of modern financial structures.

It might not help that much with personal finance though. But it is interesting.

-ERD50

 

[2017ish]

Since he is fascinated with history, I'd recommend this one:

https://www.amazon.com/Against-Gods-Remarkable-Story-Risk/dp/0471295639

I read it long ago, so I'm forgetting details, but I recall being fascinated by hearing the beginnings of modern financial structures.

It might not help that much with personal finance though. But it is interesting.

-ERD50

Agree on all counts. Very interesting book.

 

[rodi]

I like "The Millionaire Teacher" by Hallam for beginners. Simple explanation about fees, asset allocation, index funds, and how easy it can be. It's an easy read.

 

[Walt34]

I'm also a fan of "The Millionaire Teacher". "How a Second Grader Beat Wall Street" is good for beginners too.

 

[REattempt]

The Investor's Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between. William Bernstein.

 

[OldShooter]

Thanks, all. I have ordered several of those books from Amazon.

And, @Nightcap, I didn't get from the library but I did buy from the used book sellers. Average price for four with shipping was around $10/each.

 

[DrRoy]

It's not super tactical, but I always recommend "Your Money and Your Brain" by Jadon Zweig. It got me through the Great Recession market:

 

[Sunset]

Have your friend look at his yearly statement from last year from Ed, buried in there will be the fees they charged him, above and beyond the fund fees, often 2% of his total $$$.
That could help him decide to leave them, or at least put the money someplace cheaper (like Vanguard).

 

[travelover]

I don't think I saw the Boglehead's book mentioned. I thought it was pretty practical. https://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/1118921283/ref=dp_ob_title_bk

 

[Scuba]

Gone Fishing Portfolio- an easy read with easy to execute advice

 

[nvestysly]

The first lesson is, never buy an investment advice book. Check it out from your local library...

+1 to that. I almost always check it out from the library. If I can't find it at the library I will consider buying it, reading it and giving it to the library.

 

[FrankiesGirl]

Jim Collins' website stock series got turned into a book called The Simple Path To Wealth. It was instrumental for me going from zero investment knowledge and being scared of investing, to feeling completely confident in my own investment abilities and have a good understanding on how it all works.

This is investing and money management for those that haven't got a clue about either.

Stock Series
^can read the series online or get the book - whichever works

 

[DrBrisket]

Jim Collins' website stock series got turned into a book called The Simple Path To Wealth. It was instrumental for me going from zero investment knowledge and being scared of investing, to feeling completely confident in my own investment abilities and have a good understanding on how it all works.

This is investing and money management for those that haven't got a clue about either.

Stock Series
^can read the series online or get the book - whichever works

+100

Just noticed that The Simple Path to Wealth is being released on 6/27/17 in audiobook format narrated by JL Collins himself. My "poor" children will never be the same after our next road trip.

An excellent oldie but goodie that complements JL Collin's book is The Wealthy Barber by David Chilton.

 

[Onward]

I'd recommend one or more of these to your friend:

As soon as you feel he's ready, he must read:

 

[Markola]

Jim Collins' website stock series got turned into a book called The Simple Path To Wealth. It was instrumental for me going from zero investment knowledge and being scared of investing, to feeling completely confident in my own investment abilities and have a good understanding on how it all works.

This is investing and money management for those that haven't got a clue about either.

Stock Series
^can read the series online or get the book - whichever works

+1. I've read and have given several of Jim Collins' book to friends and family. When someone asks me money questions lately, rather than getting involved I send them the book from Amazon and say, "What I do is in there." Most aren't curious enough to read a book about one of the most important tools in life but, finally, one relative bothered to read it and texted me to say he was surprised at how much he was "enjoying reading a book about finance!"

 

[Tortoise]

Bogleheads

I strongly recommend "The Bogleheads' Guide to Investing," and "The Bogleheads' Guide to Retirement Planning," as well as the bogleheads.org online wiki https://www.bogleheads.org/wiki/Main_Page