Best book for young investors

[FREE866]

Hi there,


So I have two nieces, 21 and 23, who sadly lost their dad a few months ago. They will be inheriting some $$$ and my plan is to have the $$$ invested in broad based equity ETF's. Simple.



As a way of kind of educating them, in a general way because they aren't finance oriented I'd like to get them a book that they could read at their leisure just reinforcing thinking long term , not spending like crazy, etc


I heard The Millionaire Next Door is a good one


Anyone familiar with that one or have other suggestions you might have given to your kids, grandkids, etc?


Thank you

[Closet_Gamer]

The "Millionaire Next Door" is fantastic. Remind them that it was written a couple of decades ago so they need to adjust the $$$$ amounts referenced for inflation.

I also enjoyed his second book, "Inside the Millionaire Mind."

The "Wealthy Barber" is decent.

"Rich Dad, Poor Dad" is also a good read though I think the author has been shown to be a bit disingenous about his true circumstances.

Its more of an advanced book but the "Seven Stages of Money Maturity" was good as well. Written by a budhist financial planner and ultimately focuses on purpose.

Good for you in trying to help them understand how to handle the money!

[frayne]

"The Little Book of Common Sense Investing" John Bogle.

[DektolMan]

https://www.amazon.com/Millionaire-T...ps%2C90&sr=8-3


I bought this for my niece when she started her job. It's basic but I think it's a good start.

[sleddy]

'Infinity Investing' by Toby Mathis. I bought it for a niece and nephew.
I am editing to say that I do not get 'Rich Dad, Poor Dad' I have never come across another person who did not like it but I thought it was utter garbage.

[JDARNELL]

I started my boys with 3 books

The Richest Man in Babylon
The Millionaire Next Door
Dave Ramsey Total Money Makeover

They have taken things from all 3 and we are now diving deeper.

[2HOTinPHX]

I would share some YouTube videos with them. Can be much more interesting for some. The Money Guys are pretty entertaining. This video shows how important starting early can be.

https://youtu.be/nVl5i4heLi8

[Beldar]

The Bogleheads Guide to Investing.

[Calpurnia]

If You Can by William Bernstein.
It's aimed at the younger crowd and is only a 16-page PDF.

http://efficientfrontier.com/ef/0adhoc/ifyoucan.pdf

[FREE866]

Thank you everybody. I think The Millionaire Next Door will be good. Appreciate the other books too!

[sleddy]

Quote:

Originally Posted by FREE866 Thank you everybody. I think The Millionaire Next Door will be good. Appreciate the other books too!

Creepily, the audio book shows up in my youtube feed on another computer.

https://www.youtube.com/watch?v=ZWfeKqkZ0p0

[Morgan22]

Quote:

Originally Posted by Calpurnia If You Can by William Bernstein. It's aimed at the younger crowd and is only a 16-page PDF. http://efficientfrontier.com/ef/0adhoc/ifyoucan.pdf

This is the one I would recommend. An easy read.

[FREE866]

Quote:

Originally Posted by Calpurnia If You Can by William Bernstein. It's aimed at the younger crowd and is only a 16-page PDF. http://efficientfrontier.com/ef/0adhoc/ifyoucan.pdf

Thx…. Interesting piece…..

He’s obviously a smart guy , but he lost some credibility when he said a few years ago he said you should keep 20 years of expenses in cash. To me that’s completely insane.

[VanWinkle]

"If you Can" by Bill Bernstein is short enough that they might actually read it and it is full of everything a young person needs to get started. Available online for free- 16 pages.

[Markola]

The Simple Path To Wealth by JL Collins. He wrote it for his 20-something daughter and it’s a solid intro to LBYM and index fund investing.

[DrRoy]

I would add "Your Money and Your Brain' by Jason Zweig. It covers a different side of things.

[target2019]

Quote:

Originally Posted by FREE866 Hi there, So I have two nieces, 21 and 23, who sadly lost their dad a few months ago. They will be inheriting some $$$ and my plan is to have the $$$ invested in broad based equity ETF's. Simple. As a way of kind of educating them, in a general way because they aren't finance oriented I'd like to get them a book that they could read at their leisure just reinforcing thinking long term , not spending like crazy, etc I heard The Millionaire Next Door is a good one Anyone familiar with that one or have other suggestions you might have given to your kids, grandkids, etc? Thank you

With my two, 38 and 32, one book didn't work. What you may find is that one particular book may provide a good foundation, but very possible the message will be lost. Younger people are growing up in a very different world from us.

For my two what worked (I hope) is to buy a short-as-possible book, and do that consistently, say every few years. I point to total performance, and try to use what few moments I have with them. I try not to be dogmatic about this. As one preaches boomerology, they are immersed in a world where the amount of noise from social media and tracking cookies through their phones shows them non-stop that crypto, picking stocks, and FUD leaves them powerless, and they need to flock to another voice.

In my older age now I listen for their comments about what failed, and how they were fooled. So my message to them is always tempered, so they don't feel foolish. I have learned a lot about myself too.

Let's face the truth. This passive indexing is boring when viewed through their eyes. Perhaps a podcast series would be better received. Just the calm voice of an investing pro that presents the message in layers. In adult education we called that "peeling the onion."

It is really great that you are taking on this role for your nieces.

[nvestysly]

Lots of good replies in this thread. I've read many of them and have given them as gifts. One that I haven't seen mentioned is The Wealthy Barber by David Chilton. For a non-finance, somewhat disinterested person, this story of three siblings path to financial success may be a good way to make the topic interesting.

[tulak]

Millionaire Teacher.

[Stormy Kromer]

Quote:

Originally Posted by nvestysly Lots of good replies in this thread. I've read many of them and have given them as gifts. One that I haven't seen mentioned is The Wealthy Barber by David Chilton. For a non-finance, somewhat disinterested person, this story of three siblings path to financial success may be a good way to make the topic interesting.

This is a very good book to start with. Sir John Templeton even gave it a thumbs up.

Its not a hard read and doesn't get too deep, but it is a good foundation for the principal of wealth building.