Stock Investing For Students
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.
Alan Ellman targets students and novice investors by providing a wide range of investing topics in an easy-to-understand manner.
Stock Investing for Students is now required reading at several colleges.
The book 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.
Basic assumptions according to the reader's specific situation:
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 rebalancing annually
Table of Contents
Acknowledgments
Introduction
Basics of Stock Investing
Exchange-Traded Funds & Mutual Funds
Game Plan
Executing a Stock Trade
Stock Splits
Tax Implications
Other Factors that Influence Stock Performance
Related Topics of Interest
Covered Call Writing - Using stock options to enhance returns
Appendix
Strategy outline
Online discount broker list
Long-term chart of S&P 500
Stock selection summary
Game plan summary
Master figure list of charts and graphs
Plans for alternate time frames
Glossary
About the Author