Saving for Retirement (recommended book)

In a message dated 2/10/2005 1:12:55 P.M. Eastern Standard Time, X e-mails to MoneyProf:

"Just this morning, [X] called and wondered if I thought you would
mind her asking you for a little education on investing in the stock
market. She said she has tried to talk about this with X, but she
never was really able to get him to sit down and "instruct."

MONEY PROF responds:

Tell her to email me with questions anytime.

The IMORTANT starter tip:

In the beginning when you have no money, or very little money to invest. Instead of using too much of your mind thinking you need to learn the stock market use it to think & learn where you'll get the money for the next deposit for your IRA.


Something I noticed with human nature is people usually don't get that:

5 % of zero is zero, or invest better and get a 10% return. But........... 10% of zero is still zero!!!!!!!!!

I can't remember if I had recommended X read the book "The Automatic Millionaire", if she didn't read it already tell her to email me that she ordered it. Or she read it.

(That will tell me she's serious, and I'm not wasting my time).

The book is real easy reading, I'd guess that she can get most of the points out of it in 3 hours. Then a few hours more for finishing and review

This is the whole book, but still recommend reading it ( because she needs to learn the "latte factor" BEFORE she learns the stock market):

The real message of the book could be conveyed in about a chapter. He explains how we nickel and dime ourselves to death and advocates using payroll transfers to put some of each of your paychecks away for retirement. That way, self control isn't involved and you forget you even have the money. That, naturally means that you don't spend it. Throw in a lesson on the powers of compound interest and the evils of consumer credit and you have the whole book.

NOTE: the hard part is really accepting the "latte factor", the easy part is learning to invest in the stock market.