Stock Investing For Students E-BOOK
A Plan To Get Rich Slowly And Retire Young
Self-investing starting at a young age can ensure a successful financial future and an early and comfortable retirement. So why is nobody doing this? The answer includes such factors as the social pressures facing our youth, certain pre-conceived ideas regarding our ability to successfully self-invest and the education or lack thereof needed to motivate our youth to undertake such a long-term project. The purpose of this book is to change that way of thinking and create a goal and a user-friendly methodology that will facilitate a plan which will allow you to retire financially secure at a relatively young age
COLLEGES USING STOCK INVESTING for STUDENTS
Ramapo College – see the college
Summary
How often have we heard the expression “if I only knew then what I know now….” You said it, I said it and many of our friends and family have also used that comment because it is true. By the time we realize that we should have, would have and could have, we start playing catch-up and in many cases it’s too late. Our youth is simply not educated in a practical manner as to how to self-invest despite the fact that it is one of the most critical skills they need to be taught. My hope is that this book will, in some ways, change that and have a lasting impact on the quality of life of our children. I have always wanted to write this book but covered call writing took a front seat to my time and effort as I spent the past 6 years focused in that arena. In mid-2012, I decided it was time. My goals were two-fold:
- Educate our youth on the basics of stock investing so the concept will not be intimidating
- Set up a user-friendly game plan based on historical statistics that will lead to a wealthy and secure retirement
The book was written in a way that I would have wanted it written when I was in school…with respect to the reader, easy to understand and filled with color charts and graphs to assist in the education. It uses basic financial concepts that have been proven effective over the years such as dollar-cost-averaging, cash allocation, dividend re-investment as well as fundamental and technical analysis. Certain basic assumptions are made that can be adjusted according to the reader’s specific situation but here are the basic assumptions:
- You invest 10% of your gross income each year (earn $50k, invest $5k)
- Start at age 18 (can be adjusted)
- Average gross annual income of $60k for the first 20 years and $80k for the second 20 years of our 40-year plan (can be adjusted)
- Start off using broad market mutual funds until portfolio value reaches $25k
- Switch to individual stocks after $25k
- Set up specific guidelines for exiting a position that can be automated
- Use an online stock screener using fundamental, technical, descriptive and common sense requirements for stock selection a few years after beginning to self-invest
- Portfolio re-balancing annually
Given these parameters, here is what a retirement portfolio will look like after 40-years using conservative historical statistics:
Stock Investing For Students: 40-year plan
Using a savings calculator, conservative historical statistics and basic financial principles you can retire at age 58 with $1.8 million. The key is to start at a young age and use the power of compounding, the 8th wonder of the world. The techniques presented in the book are for everybody because they are user friendly and self-motivational as our youth watches their portfolio grow larger and larger as will their confidence and quality of life. This is my hope and my dream.
Here is the book’s table of contents:
- Table of Contents
- Acknowledgments
- Introduction
- About this book
- 1. Basics of Stock Investing
- 2. Fundamental Analysis
- 3. Technical Analysis
- 4. Portfolio Management
- 5. Exchange-Traded Funds (ETFs) & Mutual Funds
- 6. Game Plan
- 7. Executing a Stock Trade
- 8. Stock Splits
- 9. Tax Implications
- 10. Other Factors that Influence Stock Performance
- 11. Related Topics of Interest
- 12. Covered Call Writing- Using stock options to enhance returns
- Appendix
- I. Strategy outline
- II. Online discount broker list
- III. Long-term chart of S&P 500
- IV. Stock selection summary
- V- Game plan summary
- VI. Master figure list of charts and graphs
- VII. Plans for alternate time frames
- Glossary
- Index
- About the Author
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