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I would like to get my 22 year old, single, live-at-home, work-two-jobs-and-go-to-school grand daughter a book about investing. She was asking me some questions the other day and I was surprised to learn that she has saved up more than $6,000 that she wants to put to work.

I was thinking of getting her a copy of "Four Pillars of Investing".

Any other thoughts?
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"The Millionaire Next Door". Not exactly an investment book, but does open up eyes as to what it takes to become rich. Summary, it is all about lifestyle choices.

JLC
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DoLoop...

I would like to get my 22 year old, single, live-at-home, work-two-jobs-and-go-to-school grand daughter a book about investing. She was asking me some questions the other day and I was surprised to learn that she has saved up more than $6,000 that she wants to put to work.

I was thinking of getting her a copy of "Four Pillars of Investing".

Any other thoughts?

---------------

The "Four Pillars..." is an excellent choice, but before she digs into that rather intimidating looking book, maybe Bill Schultheis' little green book, "The Coffeehouse Investor" would be less of a task. The book is easy to read in an afternoon and gives the reader a good feeling for asset allocation, diversification and indexing in general. It's only about 170 pages and written in an easy to understand way.

You can get an idea of what it's all about from Bill's web site. As a matter of fact, you can read the entire first chapter on line:

http://www.coffeehouseinvestor.com/default.htm

The only problem is that it may be hard to come by. I have a copy, but I wanted to buy one and send it to my cousin, however, it hasn't been sent yet from Barnes and Noble after I ordered it over three weeks ago. I didn't realize how popular it was.

Regards,
Bill
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I liked "Successful Investor Today: 14 Simple Truths You Must Know When You Invest" by Larry Swedroe (isbn: 0312309791).

It has a lot of the same ideas as in Four Pillars (why active investing isn't good, why fees matter, the importance of asset allocation, etc). But it is shorter and I think easier to read. It is arranges as 14 chapters where each one takes a single idea, and concisely explains it.

-Joe
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"The Wealthy Barber"

Readily available, a good read, and doesn't knock you over the head with too much math too soon.

Landog
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I like all the previous ones. You may want to look at Just Give Me the Answer$ by Sheryl Garrett. Easy Reading on variety of financial planning issues.

buzman
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One Up on Wall Street, by Peter Lynch is also another quick read.
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A Random Walk Guide To Investing by Burton Malkiel
http://www.amazon.com/exec/obidos/ASIN/0393058549/qid=1101703132/sr=2-2/ref=pd_ka_b_2_2/103-9356879-1487013

This is a trimmed down version of his 1973 classic "A Random Walk Down Walk Street." She could read it in an afternoon or two. Very easy read and good introduction to investing.


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Any other thoughts?

Your granddaughter sounds like she has a very busy life and may have little time for reading. You may want to consider looking for an audiobook that she could listen to while driving to work or other activities.

IF
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Being a 22 year old, single, live in the islands, work one job, graduated school grandson I would recommend TMF's Money Guide to start then Money After 40 or one of the other books mentioned above. The money guide, while not the quickest read, would give her the answers to many of her basic questions that she may not know about being "only" 22. I've always been one to set the foundation for whatever I am doing. By knowing what certain terms mean, how taxes and fees affect returns, and how the market in general operates, allows me to better understand what it is I am doing with my hard earned cash.
TMF's Money After 40 gave me the eye opening needed for long term investing, and is still my favorite TMF book.

Here is my list of "Books to Read", not in any particular order:

>The Millionaire Next Door - Thomas J Stanley
>The Four Pillars of Investing - William J Bernstein
>The Richest Man in Babylon - George S. Clason
>Common Sense on Mutual Funds... - John C Bogle
>The Intelligent Investor - Benjamin Grahm
>A Random Walk Down Wall Street - Burton Malkiel
>The Random Walk Guide to Investing - Burton Malkiel
>How to Read Financial Reports - John A. Tracy
>Rules for Revolutionaries - Guy Kawasaki
>Buffett: The Making of an Adventure Capatilist - Roger Lowenstein
>What Color is Your Parachute? - Dick Bolles
>Investing in Real Estate, Fourth Edition - Andrew James McLean, Gary W. Eldred
>Confessions of a Tax Collector : One Man's Tour of Duty Inside the IRS - Richard Yancey

Best of luck to your grand daughter and her savvy grand parent.

-IF
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I have read a couple of the books recommends so far. To provide a perspective that is not likely covered in most of the ones suggested

Two books I would recommend.

The Weekend Millionaire's Secrets to Investing in Real Estate: How to Become Wealthy in Your Spare Time

Weekend Millionaire assumes that the person has a full time job but wants to end up with a passive income where they can retire from their job before normal retirement (50 or so was the author's age when he retired).

Nothing Down for the 2000s : Dynamic New Wealth Strategies in Real Estate

This books is one I stated with (well the 1980's version). I bought my first property at 23. The book has changed a bit over the years as has the market. That said there are lots of good ideas in the book. If nothing else your granddaughter could look at buying a place and renting out the spare bedrooms to make the numbers work. I did this and found that I was paying less to own the place then I was paying to share a house. The difference was partially due to tax deductions as I had a good job and no deductions prior to buying a home.

John
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A bit late to the thread but I recently read _The Random Walk Guide to Investing: Ten Rules for Financial Success_ by Burton Malkiel and found it be a very quick read but with a lot of very good information, particularly for someone relatively new to investing.

dt
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dt,

Malkiel has a new paper: “Reflections on the Efficient Market Hypothesis: 30 Years Later“

It is available here: http://www.thefinancialreview.org/Financial%20Review%20Preprints/FutureIssues/Malkiel.pdf

-Joe
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Joe,

Malkiel has a new paper: “Reflections on the Efficient Market Hypothesis: 30 Years Later“

Thank you for that link! It is printing right now for later reading.

dt
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