Reading recommendations

Below I have listed information that have influenced my life and that has been great eye-opening resources.

My Favorite Books

  1. The Total Money Makeover:A Proven Plan for Financial Fitness Dave Ramsey
  2. The Richest Man in Babylon George S. Clason
  3. The Compound Effect Darren Hardy
  4. Think and Grow Rich Napoleon Hill
  5. The Millionaire Next Door: The Surprising Secrets of America’s Wealthy Thomas Stanley
  6. The Strangest Secret Earl Nightingale
  7. Common Sense on Mutual Funds John Bogle
  8. Retire Inspired: It’s Not an Age, It’s a Financial Number Chris Hogan
  9. What the Most Successful People Do Before Breakfast Laura Vanderkam
  10. 7 Habits of Highly Effective People Stephen Coven
  11. Unshakeable: Your Financial Freedom Playbook Tony Robbins
  12. Rich Dad Poor Dad Robert Kiyosaki
  13. The Exceptional Art of Living Jim Rohn
  14. The Essence of Success Earl Nightingale
  15. You Money or Your Life Vicki Robin
  16. Money Management Skills Great Courses
  17. HOLD: How to Find, Buy, and Rent Houses for Wealth Jennice Doty
  18. I Will Teach You to be Rich Ramit Sethi
  19. The 7 Habits of Highly Effective People Stephen Covey

My Favorite Index Funds

  1. Fidelity® Large Cap Growth Enhanced Index (FLGEX) has maintained average a return of 12% over last five years w/ .45 expense ratio
  2. Vanguard Total Stock Mkt Idx Inv (VTSMX) Averaging an annual return of 7% over a 10 year span. VTSMX encompasses the entire stock market and has a .16 expense ratio! What could be better than having the entire stock market in terms of diversity of equity blends? I’m a large cap guy, but this stock gives you great exposure to the entire market.
  3. T. Rowe Price Health Sciences (PRHSX) This fund is a healthcare/services index. With the aging population rapidly increasing I think healthcare is a sound investment. With annualized rate of returns of 20% for 5 years and 15% for the last 10 years I have no problem investing in this fund for the long-term.
  4. Vanguard 500 Index Inv (VFINX) This is your go to S&P500 index and it has returned nearly to the dime, what the market has done. An annualized rate of return of 10% over the last 5 years and 7% over the last ten. I would like better numbers but I accept and trust the market to deliver 9% over the long haul. An expense ratio of .16 is also what makes this fund a winner.
  5. Fidelity 500 Index Investor (FUSEX) This fund is one of my favorites (currently savings $600 per month in this fund for a future car purchase). This fund has low fees (.09 expense ratio!) and turnover (5%) but has stable returns of 7.44% over the last 10 years, 13.21% over the past 5 years, and 10.28% over the past 3 years. This is the vanilla ice cream of index funds but a safe bet for matching the market.

 

My investment philosophy is that I only invest in index funds that have a 10 year track record of returns greater than 7%. I don’t purchase single stocks, bonds, or actively managed funds. I believe (because of extensive education and research) that passively investing in index funds for the long haul is the faster path to wealth. Long term investing protects you from bear markets and allows you to capitalize on corrections. Index fund investing allows you to avoid the costly fees of mutual fund administration for a product that is likely to underperform the market. I truly believe that the market undergoes seasons, follow the trend and invest heavily during winter because spring allows follows. Be wise, select funds similar to the ones above, turn off emotions, and commit for the long term.

 

*Disclaimer: This blog is not meant to give financial planning advice, it is simply giving an opinion based on logically data that can be retrieved from sources quoted within this article. There is no affiliation between this blog and any other site. Financial advice should be sought from a certified financial planner and financial decisions should be made per the readers own research and analysis. Investing involves risk and it is advised that no one invest without understanding fully the products that they are purchasing.