Equity!

[Rudey]

Originally posted by greeklawgirl
Maybe one of you can help me out? I'm a very novice investor, but I think I'd like to get into investing stocks. Where are some good resources for me to research? Any magazines, websites, books that might help me?

I'll let you know a little bit about what I have going right now. I put around 20% of my paycheck into my 401k and 457. I think I'm pretty diversified there--I have small, mid, and large cap funds, an index fund, and bonds. I contribute to a pension fund, which will pay me 100% of my highest salary when I retire at 65. I also own one piece of income property, and I'm hoping to use the equity in that to purchase another piece next year.

I keep those investments to make sure that my family is secure in the future, but I think that the right stocks are a great way to ensure wealth, not just security.

What would you financial gurus suggest?

I personally think one of the best services out there is fool.com. I recommend this to everyone - from novice to pro. Peter Lynch's books are really easy reads and once you understand them, I'd move onto something a bit less dumbed down like Picking stocks like warren buffet and if you really are hardcore, buy books like Securities Analysis (this giant bible book).

I can't give you advice on what YOU should do because that's not my job and I am pretty sure I can get in trouble for it. Personally I max the 401K and look to put it into an index fund because close to 90% of mutual funds underperform the index and if you add in a couple percentage points for management fees, you've lost several hundred thousand dollars in a couple decades. I am pursuing a good international/emerging market fund and like an Eaton Vance India fund but I'm unconvinced that the fees are worth it yet. At the same time I'm considering taking part in a smaller hedge fund that doesn't need me to put up a ridiculous amount of money I don't have and won't have for a long time. I'm also less risk averse than most people and kick myself when I didn't go in and lost out on an opportunity as opposed to some people who cry over a dollar.

-Rudey