A Beginner's Guide to Investing: How to Grow Your Money the Smart and Easy Way Paperback – July 5, 2012

Clear, concise, helpful... great price... WOW. This is the book I wish I'd read a while ago.If you're trying to wade through the sea of personal finance and investing books out there, here's some info on what this book IS and ISN'T:This book is NOT:--Personal finance oriented. This is NOT the book for things about budgeting, loans, taxes, real estate, etc. Some of this book DOES talk about retirement accounts (and in conjunction with taxes), but overall, this is a book about investing (as the title says) and not personal finance.--A thorough primer on the intricacies of the stock market. It assumes you have a very basic knowledge of investing/stock market concepts. You don't need much to start, just a basic understanding. But if you're looking at a really detailed stock/fund summary page and you're confused about some of the intricate terminology there, that is outside the scope of this book. But that's okay, this book is meant as a starting point.What this book DOES discuss:--Stocks, bonds, how they move, etc. It's all laid out very cleanly.--How to choose an investment account. (Spoiler: the book reaches the conclusion that discount brokers like Fidelity, Ameritrade, etc. are probably the best for you)--Taxes/401k/IRAs/interest and how that all factors in to your overall plan--Figuring out a nest egg and savings plan to get you started with investing--Risk and beta, and why beta returns are good for you--Why asset allocation is key, and how to improve it through ETFs.--How to determine the right asset allocation mix, and what types have proven success.--Next steps to take once you've gotten started. Steps to allow yourself learning and growing while protecting yourself from a downturn.It's the latter half of that list that is where the meat is. The first stuff, you can get online anywhere. But the latter stuff includes a lot of the authors' well-reasoned analysis. And it's where to focus. Once you've read it, you'll have a much better understanding of how to proceed with getting your investing started.Highly recommended!

As I inch closer to retirement, I am becoming painfully aware that I have not done a very good job managing my retirement accounts. Don't get me wrong - I have always seen the value and contributed to my retirement, and I have my savings and my 401(k) and my company-sponsored ESOP. But the recent recession and fluctuations in the market helped me realize I haven't really been in control. I know I have options where to put my retirement dollars, I just don't know what the best options are. I purchased A Beginner's Guide to Investing (BGI) to help educate myself about my options.The best thing about BGI is that is is very concise. It is difficult to find a book these days that doesn't seem to have a page count in mind, and an author who doesn't just keep writing to fill up that page count, when a much shorter book could convey the same information. Frey keeps things very simple and short, explaining what various market options exist, and how and why investing in a diversified portfolio can improve your chances of coming out ahead in the game. He uses everyday analogies to explain market concepts, which will be welcomed by many novice investors.However, the tone was a bit too familiar for my taste - I would have preferred a more technical approach - and many of the concepts introduced seemed simplistic to me (e.g., compounded interest, the difference between stocks and bonds, and how tax deferral benefits an investor). But I understand this is supposed to be a primer, and not everyone has the same knowledge, so Frey had to hit all of the basics. Even with this approach, I also learned a great deal from BGI, especially the relationship of alpha and beta, the benefits of index funds and exchange traded funds (ETFs), and how diversification can improve returns and minimize risk at the same time.It is important to note that the ultimate purpose of BGI is not to define the technical aspects of the market, but rather to introduce concepts that will educate the reader enough to support the long-view diversification investment strategy proposed by the author. This is not to say that Frey is pushing any particular fund or portfolio. His premise is that your primary purpose to be in the market should be controlled, minimal risk growth, and he lays out one plan to achieve that. Though Frey presents his case well, it is too early for me in my research to know whether I would agree or not.I liked the book overall, as I did learn some market concepts I had not known, but I would have preferred more technical depth. I will continue to educate myself on how the market works, and perhaps revisit Frey's strategies later to see if I agree with them.

I thought this book was an excellent overview of a complicated topic that one could easily obfuscate, but this author does not make that mistake. I read this book in a few hours and came away with a lot of ideas that I didn't have before, and if you want more in-depth information, he provides lots of links to other references. Some of this I already knew, but some I did not, and I've never seen this information presented so concisely and in such a readable manner. Sure, you could get most of this by searching the web yourself, but this author has saved you a lot of time by collecting it all in one place and using his own insights to glue them all together. This author has many ideas that are very valuable, and he presents many easily-understandable examples to back up his arguments. He advocates a very commonsense approach to long-term investing that every new or experienced investor should be familiar with, regardless of their level of acceptable risk. I have recommended this book to several people since I've read it, and for the price, it's a real bargain. Just buy it! You won't regret it, and you get some great advice for less than I paid for my cup of coffee at Starbucks this morning.