Broke Millennial Takes on Investing

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Broke Millennial Takes on Investing Page 24

by Erin Lowry

reinvesting and, 41, 97, 121, 132, 134, 143, 176, 193

  rules of thumb in, 51–52

  selection of, 6, 27, 60–61, 94, 103, 110–24, 126, 129–31, 175, 179, 217

  starting early in, 4, 6–7, 9–12, 19–20, 24, 40, 59–60, 89, 117, 135, 195, 202, 204, 207

  terminology in, 30–46, 50

  theories of, 45–46

  investing advice, 15, 100, 111, 131, 183, 209–18

  books for, 212–14

  brokers for, 213–14

  costs of, 209, 217–18

  courses for, 218

  highly technical sites for, 210–11

  media outlets for, 211

  online resources for, 216–18

  podcasts for, 211–12, 218

  Investopedia, 122, 210

  Investor.gov, 10n, 210

  Investors Podcast, The, 212

  Jaconetti, Colleen

  on fees, 104, 106

  on investing while paying off student loans, 86, 88

  on market crashes, 173–75

  on retirement investing, 60–61

  on stock picking, 113, 123

  on tactics of wealthy people, 202–3

  Jill on Money, 204

  Jlcollinsnh.com/stock-series, 217

  JPMorgan Chase, 198

  Kennedy, Joseph P., Sr., 55

  Kitces, Michael, 217

  Krawcheck, Sallie, 217

  on investing while paying off student loans, 85–86

  on scams, 185–86

  on tactics of wealthy people, 201–2

  Krieg, Brandon

  on Stash, 130–31, 133–35

  on tactics of wealthy people, 203–4

  Lannan, Kelly, 31, 49, 98

  on financial advisors, 151–52

  on market crashes, 172–75

  Lehman Brothers, 171

  Lele, Avi, 115–18

  lifecycle funds, 61

  life insurance, 177–78, 186

  lifestyles, 21, 23, 74–75, 128, 196, 220

  limit orders, 120–21, 124

  Little Book of Common Sense Investing, The (Bogle), 213

  load funds, 42, 108

  loans, 68, 97, 130

  market crashes and, 166, 170–71

  nonretirement account investing and, 71–72

  and readiness to start investing, 22, 24

  scams and, 177–78

  selling investments and, 189–90

  and tactics of wealthy people, 195–98

  See also student loans

  Madoff, Bernie, 145–46, 181

  Malkiel, Burton G., 213

  margin, margin accounts, 37, 97, 130

  market orders, 120–21, 124

  Marketplace, 212

  market sell orders, 191

  Matthews, Kevin L., II, 216

  maxing out, 1, 67–69, 72, 74–77

  MGM Resorts International, 160

  micro-investing apps, apps, 1, 19, 27, 45, 51, 125–37, 191, 203, 214

  automating contributions and, 132, 135, 137

  and case for investing, 14–15

  common misconceptions about, 134–35

  costs of, 129–30, 132–34, 137

  overview of, 127–33

  and starting to invest in market, 99, 102

  stock picking and, 123, 126, 129–31

  what you need to know and share before starting with, 126–27

  Microsoft, 117–18, 132

  moderate portfolios, 36, 129

  modern portfolio theory, 45, 134

  modified adjusted gross incomes (MAGIs), 65

  Molson Coors Brewing Company, 160

  money market funds, 181, 193

  Morgan Stanley Capital International (MSCI), 159, 161

  Morningstar, 1, 118, 210

  impact investing and, 159–60

  and starting to invest in market, 99, 104

  mortgages, 10, 21–22, 86, 170–71

  mutual funds, 15, 126, 171, 179, 210

  buying, selling, and holding of, 108, 189–91, 193–94

  impact investing and, 156, 159

  investment terminology and, 38–40, 42

  in retirement investing, 62, 66

  scams and, 180–81

  starting to invest in, 94, 99, 103–4, 107–8

  stock picking and, 116–17

  Nasdaq, Nasdaq Composite Index, 164, 169–70

  National Association of Personal Financial Advisors (NAPFA), 152

  Nerd’s Eye View, 217

  Netflix, 11, 60, 109, 111, 179

  net worth, 1, 6, 95, 127, 172, 186

  investing advice, 212, 216

  robo-advisors and, 145, 149

  and tactics of wealthy people, 197–99

  New Century Financial Corporation, 171

  New York Stock Exchange, 19, 170

  New York Times, The, 4, 211, 214

  9/11 terrorist attacks, 170

  no-load funds, 42, 108

  NPR, 199n

  Nugent, Dave, 114, 140, 147–49, 153

  Nuñez, Mabel, 213, 216–17

  Oblivious Investor, 217

  Observer, 113–14

  online financial advisors, see robo-advisors

  options, 129–30, 180, 204

  Pant, Paula, 211–12

  parents, 1, 11, 17–18, 69, 79, 174, 216

  and case for investing, 3–6

  micro-investing apps and, 126, 131–32

  retirement investing and, 57–58, 66

  scams and, 177–78

  and starting to invest in market, 94, 99

  and tactics of wealthy people, 195–200

  passive management, 38, 40, 103, 105

  patience, 11, 31, 205, 207

  Pets.com, 169

  Piper, Mike, 217

  Planet Money, 199n, 212

  plans, planning, 128, 174, 179, 202, 215

  investment terminology and, 35–37, 41

  and readiness to start investing, 22–23, 25–27

  risk and, 54–56

  robo-advisors and, 141, 143–44, 148–49

  scams and, 183, 186

  and starting to invest in market, 94, 105

  See also retirement, retirement plans

  Pocket Idiot’s Guide to Investing in Stocks, The (Burgess et al.), 213

  podcasts, 30, 204, 211–12, 218

  Pokémon cards, 163

  Ponzi schemes, 145–46, 204

  portfolios, 11

  impact investing and, 158, 160–62

  investing advice and, 215–16

  and investing while paying off student loans, 82–83, 86, 91

  investment terminology and, 31–32, 34, 36–40, 42–43, 45

  market crashes and, 168, 171–72, 174–76

  micro-investing apps and, 126–29, 131–34, 136

  minimum initial investments for, 98, 100, 102–3, 105, 107

  retirement investing and, 58, 61, 64, 71, 75, 129

  risk and, 48, 50–53, 55–56, 73, 75, 105

  robo-advisors and, 140–44, 147–48, 153

  scams and, 184–86

  selling investments and, 190–92, 194

  stock picking and, 113–17, 122–23

  and tactics of wealthy people, 196–97, 200, 205

  practice accounts, 122

  private equity companies, 181, 199

  prospectuses, 104, 106–7, 159

  public, publicly traded, 32–33, 38, 169

  purchase fees, 108

  Random Walk Down Wall Street, A (Malkiel), 213

  real estate, 11–12, 31–32, 35, 50, 143, 191, 197, 202, 212

  rebalanc
ing, 52, 61, 64, 134, 175, 220

  definition of, 42–43

  robo-advisors and, 140–41, 143, 145, 147, 154

  selling investments and, 190–91

  and starting to invest in market, 102, 105, 110

  and tactics of wealthy people, 202–3

  recessions, 3, 74, 85, 110, 163, 165, 170–72, 174, 176

  investment terminology and, 43–44

  risk and, 49–50

  Reddit, 30, 217

  redemption fees, 108

  refinancing, 84–85, 170

  religion, 160–61

  required minimum distributions, 69

  retirement, retirement plans, 57–77, 171, 190, 215

  and case for investing, 4, 8–10, 12–13

  employer matches in, 9–10, 13, 23, 25–27, 57–60, 62–63, 71, 76, 83, 86–91

  investing outside of, 57, 69–77

  and investing while paying off student loans, 79, 81–83, 86–91

  investment terminology and, 30, 34–35, 42–43, 45

  micro-investing apps and, 128–29, 131–32, 135

  and readiness to start investing, 23–27

  risk and, 50, 53–54

  robo-advisors and, 142, 149

  selecting investments for, 60–61, 122

  setting up of, 60–61

  and starting to invest in market, 96, 110

  and tactics of wealthy people, 196, 201, 206–7

  terminology specific to, 62–68

  25 Rule and, 75–76

  withdrawals from, 65, 68–69, 74–77

  returns on investments (ROIs), 147, 163

  and case for investing, 7–9, 14

  and impact investing, 161–62

  and investing advice, 217–18

  and investing while paying off credit card debt, 80–81

  and investing while paying off student loans, 82–83, 85–87

  and investment terminology, 38–41

  and micro-investing apps, 133, 137

  and readiness to start investing, 21, 25

  and retirement investing, 59, 76

  and scams, 186–87

  and starting to invest in market, 106, 108–9

  and stock picking, 112, 114

  and tactics of wealthy people, 206, 208

  risk, risk tolerance, 18, 46–56, 190, 219–20

  asset allocation and, 50–52, 56

  and case for investing, 3–4

  and checking on investments, 47, 52

  diversification and, 50, 54, 56, 105

  impact investing and, 160, 162

  inability to tolerate, 55

  investing advice and, 209, 216

  and investing while paying off student loans, 83–84, 91

  investment terminology and, 31, 33–36, 42–43

  market crashes and, 171, 174

  micro-investing apps and, 51, 126–27, 132, 134

  nonretirement account investing and, 72–74

  and protecting yourself from yourself, 53–56

  and readiness to start investing, 20–21, 24

  retirement investing and, 60–61, 75

  robo-advisors and, 142, 144, 147, 154

  scams and, 181, 185

  and starting to invest in market, 93–94, 103, 105, 107, 109–10

  stock picking and, 113–15, 120

  and tactics of wealthy people, 198, 203

  Robbins, Tony, 206

  Robinhood, 102, 123, 129–30, 132

  robo-advisors (online financial advisors), 14, 45, 123, 126, 136, 139–54, 160, 215

  costs of, 142–44, 147–50

  human vs., 139–40, 148–54

  overview of offerings of, 142–44

  perks of, 146–47

  pitfalls of, 147–49

  readiness for, 149, 153

  safety of, 145–46

  selling investments and, 191–92

  and starting to invest in market, 102, 105

  what they are, 140–41

  rollovers, 65, 96

  Roth accounts

  401(k)s and, 58, 62, 67

  and investing while paying off student loans, 90

  IRAs and, 4, 64–65, 67, 76, 128, 131, 215

  micro-investing apps and, 128, 131

  in retirement investing, 57–58, 62, 64–65, 67–68, 74, 76

  withdrawals from, 68

  S&P 500 index, 49, 72, 147

  impact investing and, 156, 161

  investment terminology and, 38, 43

  market crashes and, 164–65, 170, 172

  S&P 500 index funds, 19, 30, 32, 37, 81–82, 103, 116

  impact investing and, 160–61

  savings, saving, 190, 219–20

  and case for investing, 3–4, 9

  and investing while paying off student loans, 79–80, 82–83, 86, 88, 90–91

  investment terminology and, 30, 44

  market crashes and, 166–67

  micro-investing apps and, 134–36

  nonretirement account investing and, 69–70, 72–73

  and readiness to start investing, 18–19, 21, 23, 25

  retirement investing and, 58–59, 62, 75–76, 88, 90–91

  risk and, 49, 53, 55

  robo-advisors and, 140, 145, 150–51

  and starting to invest in market, 94, 99, 110

  and tactics of wealthy people, 196, 202–5, 207

  savings accounts, 25–26, 53, 107, 193

  and case for investing, 4, 8–9, 12

  and readiness to start investing, 18, 21, 25

  retirement investing and, 66, 71

  scams, 177–87

  experts on, 179–82

  financial advisors and, 180–85, 187

  investments you should question and, 185–86

  life insurance and, 177–78, 186

  and questions to ask about products, 184–85

  Schlesinger, Jill, 45–46, 165, 204, 212, 219

  and investing while paying off student loans, 83, 91

  micro-investing apps and, 135–36

  nonretirement account investing and, 70–71, 73

  risk and, 51, 53, 55, 73

  scams and, 179–80

  Charles Schwab & Co., Inc., 8, 36–37, 48, 65, 101–2, 123, 215

  robo-advisors and, 142, 144–45, 150

  Schwab-Pomerantz, Carrie, 8, 48–50, 52, 54–55

  sectors, 8–9, 35, 39, 103, 117, 158, 160, 162, 165, 191–92, 203

  securities, 33, 39, 115, 117, 130, 161–62, 166, 171, 182, 184

  Securities and Exchange Commission (SEC), 10n, 118, 130, 210

  robo-advisors and, 145–46

  scams and, 183, 187

  and starting to invest in market, 95, 107, 109

  Securities Industry and Financial Markets Association (SIFMA), 210–11

  Securities Investor Protection Corporation (SIPC), 109, 127, 145

  shareholders, stockholder, 32–33, 38, 41, 193

  shares, 107–9, 126, 130, 145, 161, 179–80

  fractional, 115–17, 132

  investment terminology and, 32–33, 38, 41, 44–45

  market crashes and, 165n, 169, 176

  stock picking and, 111, 115–22

  Shin, Laura, 212

  Simple Path to Wealth, The (Collins), 213, 217

  simplified employee pension IRAs (SEP IRAs), 66–67, 128

  socially responsible investing (SRI), 157–62

  See also impact investing

  social media, 15

  Social Security, 76, 95, 97, 110, 126

  solo (individual) 401(k)s, 67

  speculation, 43, 55, 166, 169, 182, 187

  Stash,
102, 130–35, 203, 215

  stock market

  and case for investing, 5–6, 9, 11–13, 15

  corrections of, 43, 47, 50, 74, 85, 110, 147, 163–64, 168, 173, 184

  crashes and volatility of, 5, 11, 34, 44, 49, 55, 83, 163–76, 217

  impact investing and, 155, 161

  investing advice and, 209, 210–11, 213, 217

  and investing while paying off credit card debt, 80–81

  and investing while paying off student loans, 83, 85–87, 91

  investment terminology and, 30–31, 33–36, 38–39, 43, 45

  love letter from, 11–13

  micro-investing apps and, 130, 134–35

  nonretirement account investing and, 72–74

  and readiness to start investing, 18–19, 22, 24–26

  recoveries of, 164, 167–68, 170–72

  risk and, 47–51, 54, 56, 74

  robo-advisors and, 140–41, 145, 147, 153

  scams and, 184–85

  selling investments and, 191–92

  starting to invest in, 2, 93–110

  stock picking and, 113–16, 120

  and tactics of wealthy people, 202–3

  ups and downs of, 5–6, 9, 12, 15, 34–36, 43, 46–52, 54, 56, 73, 83, 85–86, 91, 109–10, 113, 115, 141, 147, 163–66, 168, 170–76

  Stock Market Investing (Nuñez), 213

  Stockpile, 115–16, 132–33

  stocks, 165n, 192–94, 199

  buying, selling, and holding of, 97, 107, 112, 115–17, 119–24, 168, 170, 174–76, 185, 193–94

  and case for investing, 5, 9, 15

  fractional shares of, 115–17, 132

  gifting of, 132–33

  investing advice and, 213, 217

  investment terminology and, 32–33, 35, 38–44

  market crashes and, 164, 166–67, 174–75

  micro-investing apps and, 126, 129–34

  picking of, 27, 94, 103, 110–24, 126, 129–31, 175, 179, 217

  retirement investing and, 60–62, 64, 75

  risk and, 49–52, 55, 73, 75, 103

  starting to invest in, 94, 97, 103–4, 107, 109

  things to know before buying, 119–22

  types of orders for, 120–21, 124

  ups and downs of, 112, 114, 123–24, 179

  stop-limit orders, 121, 124

  stop-loss orders, 120–21, 124

  student loans, 39

  debt tolerance and, 90–91

  investing while paying off, 2, 79–91

  nonretirement account investing and, 71–72

  and readiness to start investing, 22, 24

  refinancing of, 84–85

  scams and, 177–78

  selling investments and, 189–90

  and tactics of wealthy people, 195–96

  subprime mortgage crisis, 170–71

  suitability, suitability standard, 42, 100, 107, 151, 158, 184–85

 

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