I haven’t written much about investing lately, because investing is simple and I think I pretty much covered everything already. You come up with an asset allocation, open some accounts, pick a few index funds, and you are done. Once in a while you see if anything is out of whack and you redirect your new money to wherever is lagging. It’s not complicated at all.
Fellow blogger Mike Piper apparently agrees. He wrote a small book called Investing Made Simple. He’s making the PDF available as a free download until October 1. [Free PDF download is no longer available.]
Table of Contents
Introduction: Investing is Not Complicated
- The Building Blocks
- Types of Accounts
- Risk and Return
- How to Know How Much You Need
- Don’t Bother Picking Stocks
- Index Funds Win
- Asset Allocation
- Putting the Pieces Together
- Think Long-Term
- How to Find a Good Financial Advisor
- Automate Your Investments
- Beware the Hot Fund
- Turn Off the Television
- Steer Clear of Stock-Picking Newsletters
Conclusion – Keep It Simple
Appendix: Helpful Resource Guide
Simplicity wins. The simple approach is very straight forward. I was able to finish the book in half an hour. I agree with pretty much everything Mike wrote in the book.
I sent the link to several co-workers who asked me about investing in the past. If you have friends or family members who don’t have patience to read a larger book, send them Investing Made Simple.
Mike also wrote several other small books. If you find reading IRS publications unappealing or the 800-page J. K. Lasser tax guide too daunting, get Taxes Made Simple. It looks like a perfect gift book for someone who’s new to filing taxes.