Broke Millennial Takes on Investing
Page 23
robo-advisors and, 140, 142, 148–50
scams and, 182–83, 185, 187
selling investments and, 191, 194
starting to invest in, 94–104, 106–10
stock picking and, 113–14, 119, 121, 124
Bruno, Maria, 52, 180, 205
on impact investing, 161–62
on investing while paying off student loans, 89–90
on stock picking, 115, 117
bubbles, 174
definition of, 43–44
dot-com, 163, 169–70
market crashes and, 163–64, 169–70
tulip mania and, 44, 55, 165–66
budgets, budgeting, 5, 20–21, 82, 178, 241
Buffett, Warren, 11–12, 213
Building Bread, 216
bull markets, bear markets, 43, 48, 83, 85, 163, 166, 168, 172, 175
call options, 130
capital gains, capital gains tax, 44, 190, 192–94, 200
cash, cash accounts, cash equivalents, 37, 64, 70, 80, 86, 122, 149, 203, 205
and case for investing, 12, 16
investment terminology and, 32–35, 41
market crashes and, 174, 176
micro-investing apps and, 130, 133
and readiness to start investing, 21, 23
risk and, 48, 50, 53, 73
scams and, 178, 181
selling investments and, 191–92
and starting to invest in market, 97, 109
cash flow, 20–22, 84–85
CBS News, 45–46, 51, 70, 83, 165, 179, 204
certificates of deposit (CDs), 33–34, 193
certified financial planners (CFPs), 14, 101, 143–44, 148, 151–52, 183
checking accounts, 24
micro-investing apps and, 127, 129, 131
risk and, 52, 54
and starting to invest in market, 96, 107
Cisco, 113
cliff vesting schedules, 63
climate change, 157
CNBC, 164, 206, 211
colleges, college, 18, 49, 75, 129, 156, 217
and case for investing, 3–4, 11, 13
financial advisors and, 150–51
and starting to invest in market, 93, 96, 110
and tactics of wealthy people, 195–98, 201
See also student loans
Collins, J. L., 213, 217
commissions, 130, 133
financial advisors and, 151–52
investment terminology and, 36, 40–42
scams and, 178, 184–85
and starting to invest in market, 100, 104, 107
stock picking and, 122–24
commodities, 55, 180
investment terminology and, 32, 43–44
market crashes and, 165–66, 175
micro-investing apps and, 129–30
stock picking and, 118–19
companies, 4, 107
and case for investing, 9, 15
for-profit and nonprofit, 62, 103–4
impact investing and, 144, 155–60
and investing while paying off student loans, 84, 86–91
investment terminology and, 32–33, 35–36, 38, 41
large-cap, 58, 160, 165, 191
market crashes and, 164–65, 175
micro-investing apps and, 127, 130, 132
researching of, 118, 123, 159–60
retirement investing and, 57–60, 62–63, 66–71, 76
risk and, 50, 54
robo-advisors and, 142, 144
scams and, 179–81
stock picking and, 113–14, 116–19, 122–23, 130, 175
and tactics of wealthy people, 196–97, 199–202, 205, 207
See also employment, employers
compound interest (compounding), 133
and case for investing, 7–9, 10n
definition of, 7, 40–41
investing advice and, 210
and investing while paying off student loans, 88–90
retirement investing and, 60, 68
conservative portfolios, 36, 64, 73, 129
Consumer Price Index Inflation Calculator, 8
credit, credit scores, 72, 84, 172
credit cards, 72
investing while paying off, 80–81, 86
micro-investing apps and, 127, 133
and readiness to start investing, 22, 24–25
cryptocurrency, 27, 43, 129, 181–82, 185, 212
custodial accounts, 126, 131–32
day only purchasing requests, 121
day trading, 111–12, 115
deaths, 97, 177–78
retirement investing and, 65–66
debit cards, 127, 129, 133
debts, debt, 60, 93, 149, 210
investment terminology and, 33, 39
nonretirement account investing and, 71–72, 77
and readiness to start investing, 18, 20–24
scams and, 177–78
selling investments and, 189–90
and tactics of wealthy people, 195–98, 202, 205
See also loans; student loans
derivatives, 180
discount brokerage firms and accounts, 37, 101–2, 140
Discover, 81
diversification, 86, 175
and case for investing, 5, 9, 12
impact investing and, 160, 162
investment terminology and, 34–35, 39, 45, 50
micro-investing apps and, 127, 131
risk and, 50, 54, 56, 105
robo-advisors and, 142–44, 146
selling investments and, 191–92, 194
and starting to invest in market, 103, 105, 110
stock picking and, 113, 115–18
and tactics of wealthy people, 202–4
dividend reinvestment plans (DRIPs), 41, 97
dividends, 97, 143, 176
investment terminology and, 32, 41
micro-investing apps and, 132, 134
selling investments and, 192–94
stock picking and, 115, 121–22
Dodd-Frank Wall Street Reform and Consumer Protection Act, 172
Dogen, Sam, 216
dollar-cost averaging, 45, 54, 176, 191
dot-com bubble, 163, 169–70
Dow Jones Industrial Average (DJIA)
investment terminology and, 38, 43
market crashes and, 164–65, 168–71, 173
Dumb Things Smart People Do with Their Money, The (Schlesinger), 46, 51, 70, 83, 165, 179, 204
Dumpster Dog Blog, The, 216
education, 29, 157, 175, 181
and case for investing, 3–4, 11–13
investing advice and, 210, 212, 214
micro-investing apps and, 128, 131, 137
nonretirement account investing and, 71–73
and starting to invest in market, 93–94, 96, 110
and tactics of wealthy people, 195–98, 201
See also colleges, college; student loans
Einstein, Albert, 7
Ellevest, 85, 102, 185, 201, 217
overview of, 143–44
emergency funds, 5, 53, 86, 93, 210
nonretirement account investing and, 69, 77
and readiness to start investing, 18, 21–22, 25
Empify, 135, 198
employment, employers, 17–18, 47, 127, 179
and case for investing, 3, 9–11, 13–14
investing advice and, 215–16
and investing while paying off student loans, 82–83, 86–91
market crashes and, 165–66, 170–72
matches by, 9–10, 13, 23, 25–27, 57–60, 62�
�63, 71, 76, 83, 86–91
and readiness to start investing, 18, 21, 23, 25–27
and retirement accounts and investing, 9–10, 23, 25–27, 57–60, 62–71, 76, 82–83, 86, 122, 149
self-employment and, 13–14, 21, 66–67, 88, 91, 197
and starting to invest in market, 93, 95–96
stock picking and, 113, 122–23
and tactics of wealthy people, 195–98, 201, 206–7
unemployment and, 11, 44, 165–66, 171–72
See also companies
energy, 35, 111, 144, 157–58, 191
entrepreneurship, 196–97
environmental, social, and governance (ESG), 157–60, 162
equities, see stocks
ethics, 41, 144, 155–56, 158, 160–61
exchange-traded funds (ETFs), 40, 62, 181, 210
impact investing and, 156, 159
micro-investing apps and, 125–26, 129, 131–32, 134
robo-advisors and, 142–43, 150
selling of, 193–94
starting to invest in, 94, 99, 103–4, 107
stock picking and, 116–17, 123
expense ratios, 142, 161, 189
investment terminology and, 30, 38–40, 42
micro-investing apps and, 133–34
and starting to invest in market, 100, 104, 106, 108, 110
expenses, 66, 77, 128, 206
financial advisors and, 150–51
and investing while paying off student loans, 82–83
and readiness to start investing, 18, 21–22, 25
Facebook, 116, 132, 200, 216
families, 32, 66, 99, 119
and case for investing, 8, 10
investing advice and, 213, 215
nonretirement account investing and, 72, 74–75
and tactics of wealthy people, 195–98, 203
Fanger, Dave, 157–61
fast money, 180, 203–4
Federal Deposit Insurance Corporation (FDIC), 109, 167
Federal Home Loan Mortgage Corporation (Freddie Mac), 171
fees, 61, 161, 194
financial advisors and, 151–52
investment terminology and, 36–37, 41–42
micro-investing apps and, 130, 133, 137
robo-advisors and, 142–44, 147–49
scams and, 184, 186
and starting to invest in market, 93–94, 100–110
stock picking and, 122–24
Ferguson, Niall, 214
Fidelity Investments, 31, 36–37, 49, 65, 98, 101–2, 123, 151, 172–73
investing advice from, 214
robo-advisors and, 142, 144–45, 150
fiduciary, fiduciary standard, 41, 158
financial advisors and, 151–52
scams and, 184–85
and starting to invest in market, 100, 107
fill or kill purchase requests, 121
financial advisors, 27, 72, 85–86, 150–53, 179, 191, 204, 213
and case for investing, 6, 10, 13
feeling comfortable with, 151–52
investing advice and, 216–17
investment terminology and, 34, 37
market crashes and, 174, 176
questions to ask potential, 183–85
and readiness to start investing, 20–24, 26
retirement investing and, 60–61
risk and, 48, 54
scams and, 180–85, 187
and starting to invest in market, 95, 100–102, 105–8
vetting of, 182–84, 187
what you need to know about, 151
where to speak with, 152–53
See also robo-advisors
financial goals, 219–21
and case for investing, 8–10
indentifying, quantifying, and prioritizing in, 71–72
investing advice and, 215–16
and investing while paying off student loans, 80, 83–84, 88
investment terminology and, 34, 42
micro-investing apps and, 126, 128, 131, 136–37
nonretirement account investing and, 70–74, 76–77
and readiness to start investing, 18, 20–22, 24–25
retirement investing and, 8, 76–77
risk and, 51–52, 55–56
robo-advisors and, 139, 142–44, 150–51
scams and, 182, 184–86
and starting to invest in market, 93, 95–97, 103, 110
stock picking and, 113, 124
and tactics of wealthy people, 195, 197–98
when to invest for, 73–74
Financial Industry Regulatory Authority (FINRA), 42, 130, 145, 210
scams and, 182–84, 187
and starting to invest in market, 95, 108–9
Financial Samurai, 216
fixed income investments, 33–34
flexible spending accounts (FSAs), 66
foreign stocks, 194
401(k)s, 1, 27, 45, 190
and case for investing, 9–10, 13
employer matches in, 9–10, 13, 23, 57–58, 62, 71, 76, 87–88
and investing while paying off student loans, 82, 86–90
micro-investing apps and, 128, 135–36
in retirement investing, 57–60, 62, 64–65, 67–72, 74
robo-advisors and, 142–43
starting to invest in, 93–94, 96
withdrawals from, 68–69, 77
403(b)s, 60, 62, 64, 68–70, 74n, 86
4 Percent Rule, 75
Fox, Ashley, 112, 135, 181
market crashes and, 175–76
and tactics of wealthy people, 198–201
front-end loads, 42, 108
FTSE All-Share Index, 114
full-service brokerage accounts and firms, 37, 100–101
Garrett Planning Network, 152
Girl$ on the Money, 216–17
Goldman Sachs, 180–81, 216
good until cancelled purchase requests, 121
Google, 15, 52, 169, 178
graded vesting schedules, 63
Graham, Benjamin, 213
grantor-retained annuity trusts (GRATs), 200
Great Depression, 3, 166–68
Great Recession, 3, 43–44, 49, 85, 163, 170–72, 174
Hatry Crisis, 166
health, health care, 35, 135, 144, 157, 178, 191
nonretirement account investing and, 74, 76
retirement investing and, 66, 75–77
health savings accounts (HSAs), 57, 77
retirement investing and, 66, 76
hedge funds, 27, 203
Holcomb, Tela, 122, 217
Holden, Amanda, 216
houses, housing, 35, 212
and case for investing, 3, 6
down payments on, 35, 69, 73, 82
market crashes and, 170–72
nonretirement account investing and, 69, 72–74, 76
and readiness to start investing, 18, 21–22
retirement investing and, 65, 75–76
and tactics of wealthy people, 197–98
Howard, Clark, 4
immediate or cancel purchase requests, 121
immediate vesting schedules, 63
impact investing, 144, 155–62
definition of, 157, 160
religion and, 160–61
your standards in, 156
incomes, income, 17–18, 45, 152, 193, 215
and case for investing, 3–5, 9–11, 13–14
and investing while paying off student loans, 84, 87–89
market crashes and, 166, 170
micro-investing apps and, 127, 131
a
nd readiness to start investing, 18, 21, 23
retirement investing and, 58, 62, 65, 67–68, 71, 76
selling investments and, 192–93
and starting to invest in market, 93, 95, 97
and tactics of wealthy people, 196–97, 205–8
index funds, 19, 62, 111–12, 123, 125, 164, 179, 186, 213
and case for investing, 7–8
impact investing and, 156, 160–61
investment terminology and, 30, 32, 37, 40
robo-advisors and, 145, 150
selling investments and, 191, 193
starting to invest in, 94, 98, 103
See also S&P index funds
indices, 15
investment terminology and, 38, 40, 43
market crashes and, 164–65, 167–69
stock picking and, 113–14
individual (solo) 401(k)s, 67
individual retirement arrangements and accounts (IRAs), 4, 23, 26–27, 90, 142, 190, 204, 215
definition of, 64–65
and micro-investing apps, 128, 131
in retirement investing, 59–60, 64–70, 76
and SEPs, 66–67, 128
inflation, 8–9, 74, 198
in-kind transfers, 109, 145
insurance, 66, 109, 145, 167–68, 215
life, 177–78, 186
Intelligent Investor, The (Graham), 213
interest, interest rates, 77, 170, 190
and case for investing, 7–9, 12
and investing while paying off credit card debt, 80–81, 86
and investing while paying off student loans, 80–87, 91
investment terminology and, 34, 40–41
and readiness to start investing, 21–23
See also compound interest
interest income, 192–93
Internal Revenue Service (IRS), 45, 95, 131, 146
retirement investing and, 65, 68, 74n
selling investments and, 192–93
internet, 99, 169, 211, 216
internships, 3–4
investing, investments
automating contributions in, 24, 38, 41, 54, 132, 135, 137, 140, 143, 147, 176
buying, selling, and holding of, 5, 12, 36, 38, 42–45, 49–50, 52, 80, 97–98, 107–13, 115–17, 119–24, 129–30, 147, 165–68, 174, 176, 189–95, 202–3
case for, 3–16
checking on, 47–48, 52
comparisons between gambling and, 114–15
consistency in, 6–7, 40, 45, 54, 82, 134, 153, 175, 207, 220–21
discipline in, 24, 147
fractional, 115–17, 132, 134
long-term, 5, 12, 22, 43, 48–49, 51–53, 58, 61, 86, 97, 111–13, 149–51, 175, 193
minimums for, 19, 23, 37, 40, 77, 96, 98–103, 105–7, 126, 131, 142–44, 152, 161
misconceptions about, 18–20
readiness to start, 20–26, 149, 153, 219