Your Financial Future

Education is important in the handling of your financial affairs. In a culture as materialistic as ours it is surprising how illiterate most people are when it comes to finances. This need not be the case. In fact, learning about handling money can be fun because of the sense of accomplishment it brings to you.

The purpose of this page is to dispel the myth that managing your financial affairs is terribly difficult. Reading a few good books can provide you with a firm grounding in the principals of managing your money for the rest of your life. It is the discipline to do the right thing with your money that will be the challenge, not a lack of understanding of the right thing to do.

There are a number of good books on personal financial planning and investment that can make the confusing world of finance understandable and enable you to build a solid nest egg for your future.

A Bibliography for Smart Students

Mutual Funds

Using mutual funds from the following families you can built a solid investment portfolio by saving a fixed amount regularly, (i.e., monthly, by automatic withdrawal from your checking account). An index fund should be your starting point and core holding. Common stocks could also be utilized depending upon your investment objectives and risk tolerance. You don't have to set aside a large amount in any one transaction. Just keep doing it regularly over time and you will be amazed at how much you can save. Saving in a tax sheltered IRA or Profit Sharing Plan is even better because your money compounds tax free. Here are some funds and stocks that I have purchased that have provided a good rate of return over the years.

Some Good Mutual Funds

  • The Vanguard Group of Mutual Funds
    • Vanguard Index Trust 500 - the core of a good investment portfolio. This fund invests in each of the 500 companies that comprise the Standard and Poors 500 Stock Index.  They are some of the largest and finest companies in the United States.  Many have global operations.
    • Vanguard Windsor Fund - a value oriented mutual fund
    • Vanguard Money Market Prime - money market fund for check writing purposes
    • You can purchase common stock using the Vanguard brokerage service
  • The Nicholas Family of Funds
    • The Nicholas Fund
  • Dreyfus Funds
    • Dreyfus Tax Free Money Market Fund
Some Good Common Stocks
  • Wells Fargo Bank - one of the best commercial banks available. Initially, common stock was purchased in the Bank of the Northwest as part of a private placement (a start-up company). This bank  was bought by Pacific Northwest Bank six years later which was then bought by Wells Fargo Bank a year later.
  • Omnicom - marketing firm that owns Rapp Collins where Emilie worked. This company has a convenient DRIP, (dividend reinvestment plan), which makes it easy to invest in small amounts by mail.
Managing Your Checking Account & Taxes
  • Quicken - computer software that really helps manage your checkbook.
  • Turbotax - computer software that really helps with your annual taxes.
General Investing Information

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