Want to learn investing basics? Barbara Friedberg takes you through it step-by-step. A perfect primer in how to get started — and it's free.
I've long been an advocate of using investing to build wealth, and I also tirelessly explain that investing doesn't have to be complex, and it doesn't have to be hard. Barbara Friedberg recently released a microbook on investing basics, and is offering it for free, as long as you subscribe to her blog. This is a really great deal (free!) on an awesome resource.
How to Invest and Outperform Most Active Mutual Fund Managers
Barbara's free microbook is a primer in investing basics. She takes you through a strategy that anyone can use to get started — and the important thing is to get started.
Starting with a look at at the best investing method (hint: it's not stock picking) for long-term wealth-building success, Barbara then helps you take a look at your own personal situation and determine what you need to do before you invest. The good news is that it's not a whole lot.
One of the things I like about this investing microbook is that Barbara focuses on first encouraging you to understand your own style. She tackles risk tolerance, and provides you with different scenarios, depending on your ability to handle risk. As with so many things in life, one of the keys to success with investing is understanding yourself.
After getting these basics down, and providing you with a handy list of financial things you should have in order before you get serious about investing, Barbara offers her “quick start” guide to getting going. Her portfolio advice is simple and effective. She places emphasis on taking the first step right now, and then building on it as you go. In a world where low-cost index funds make it possible for your to invest with an acceptable level of risk management, and without the need for an understanding of P/E ratios, there really isn't a reason why you can't set things up right now.
Barbara places a great deal of emphasis on asset allocation, which is a good way to go for the beginner. You can use your risk tolerance to determine your asset allocation, and you can use the sample portfolios illustrated by Barbara to choose index funds that make sense for your individual situation.
Barbara closes out with a quick look at Jemstep, a portfolio management tool that can help you improve your overall performance, since it helps you evaluate your risk and diversify accordingly.
Stock investing is still one of the best ways to build wealth for the future. Even though there is greater risk of loss, the reality is that you still have a good chance of building long-term wealth when you make stock investing a big part of your wealth building efforts.
Barbara writes clearly and concisely. When you read this investing microbook, you will understand what you need to do, and have a clear method of putting your plan into action. This book is definitely worth the signup. And, of course, you can get more information by default once you are signed up.
Get your free microbook today and learn the investing basics that can help you build wealth for a lifetime.