I know the bare bones of investing. Buy a slice of a company (a stock) at one price and hope to God it increases over time. What I’ve been learning over the last few years is that diversification is really important.
Recently I read all 700+ pages of Tony Robbins book “Money: Master the Game: 7 Simple Steps to Financial Freedom” and can say that it was worth the read. At times I felt like it was a long sales letter… although he never asked me to buy anything.
He repeatedly trumpeted some companies as resources but when I reached to them they never returned my call or they didn’t service New York.
With that being said… the book provided some good information. I learned how to balance my portfolio and really, for the first time, understood what a true balance portfolio looks like.
I also learned about different investment vehicles. Since I am self-employed I cannot contribute to my company’s 401K like most of you can. I learned about self-employed 401k’s and SEP-IRA’s. I learned about expense ratios and why just 1% in extra fees can drastically reduce your money over time.
Tony does a great job keeping me interested in what he has to say but I think part of it could be that I have a genuine interest in this stuff. I can’t imagine my wife reading this book and enjoying it. She’s just not really that into finance stuff.
Over all, I learned a lot. I learned about some really great resources and I learned some portfolio allocations that I think will serve me and my family in the future. I rarely keep books (I put them out on the corner for others to take and read) but this book I kept because I’ll be referencing it for some time.
Get a copy of and start learning about investing the right way – diversify, low expense ratios, great portfolios, and setting yourself up for retirement.