Book of the Week: If You Can

27 Dec 2015

As young people I know enter the workforce and get into investing, I wanted to make an easy primer for them to follow. It was hard for me to write something down that would be short and digestible. Fortunately, William J. Bernstein, author of The Four Pillars of Investing, wrote If You Can: How Millennials Can Get Rich Slowly, which summarizes information and mentions other books for further reading. The ebook is short enough that you should just read it. Portfolio Save 15% of your salary in a 401(k), IRA and/or taxable account and split it equally among 3 funds. Rebalance to maintain 1/3 split once a year.

This portfolio would work, but I personally try to follow the Unconventional Success portfolio and add in some individual stocks for fun/gambling. Hurdles It sounds easy to follow the above strategy, but there are five hurdles that you must overcome to succeed.

  1. Even if you can invest like Warren Buffett, if you can’t save, you’ll die poor
  2. Finance isn’t rocket science, but you’d better understand it clearly
  3. Those who ignore financial history are condemned to repeat it
  4. We have met the enemy and he is us.
  5. The financial services industry wants to make you poor and stupid

Reading List

The information does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice