Guide or book on investments
Discussion
My youngest son has been asking me about investing is stocks and shares and I wondered if anyone can recommend a good guide or book for someone starting out to give him an idea. He is good with money and is already a homeowner of a 4 bed semi at 22 but is managing to save over £1k a month as he rents two bedrooms to his friends and would like to invest this spare cash. He wants to understand the financial marketplace rather than just put his money with someone and leave it to them.
This guy has a reasonable record: https://www.amazon.co.uk/Investing-Growth-companie... .
He’s obviously got his head well screwed on, op.
Aside from learning about stocks/bonds/metals etc. I would really emphasise that he learns about the power of compound interest by using examples on an app, and also tax efficiency of using ISAs and SIPPs.
You’ll see that 1000 a month over 30 years at 6% annualised comes to over a million quid. I suggest that, because that was probably the lightbulb moment that urged me to read further and take investing in my future seriously.
He’ll also learn that he can invest via an ISA for tax-free returns and SIPPs for tax free growth and reducing his tax bill. Using these avenues will save hundreds of thousands over that 30 year period.
Aside from learning about stocks/bonds/metals etc. I would really emphasise that he learns about the power of compound interest by using examples on an app, and also tax efficiency of using ISAs and SIPPs.
You’ll see that 1000 a month over 30 years at 6% annualised comes to over a million quid. I suggest that, because that was probably the lightbulb moment that urged me to read further and take investing in my future seriously.
He’ll also learn that he can invest via an ISA for tax-free returns and SIPPs for tax free growth and reducing his tax bill. Using these avenues will save hundreds of thousands over that 30 year period.
vulture1 said:
Renting out rooms very clever. Renting out rooms to mates.... I dunno. Usually ends up bad. Either lost money or lost friendships.
Not necessarily I rented rooms to mates for 5 years they basically paid my mortgage during that time. They are still good mates. The alternative was a s
tty bed sit for the same money or back at their mums. vulture1 said:
Renting out rooms very clever. Renting out rooms to mates.... I dunno. Usually ends up bad. Either lost money or lost friendships.
Yup, I'd suggest he gets a job. If he's making £1k net spare a month from two bedrooms he's presumably not a taxpayer.... 
Or if he's a taxpayer he should probably get an accountant. IIRC the rent-a-room (tax free) scheme caps off at £625 a month.
I'm reading this after someone recommended it on here, really enjoying it. How to own the world
https://www.amazon.co.uk/dp/1473695309/ref=cm_sw_r...
https://www.amazon.co.uk/dp/1473695309/ref=cm_sw_r...
Derek Chevalier started a whole thread on useful resources here:
https://www.pistonheads.com/gassing/topic.asp?h=0&...
https://www.pistonheads.com/gassing/topic.asp?h=0&...
BoRED S2upid said:
Read all the books he can then give it to a giant fund manager and leave them to it.
This.After 30+ years of amature investing I started putting my money I to funds. Best investing decision I've ever made.
It works exactly the same way as buying shares, but you're spreading your risk across multiple shares/sectors/countries, and and a pro is making the decisions for a very small %.
I still dabble with individual shares, but for all the extra effort I'm still consistently making less money than my funds do!
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