The ABCs of Investing For Beginners (video)

– Posted in: Investing For Beginners

Here’s the essence of investing for beginners — using the alphabet as a tool to help you remember.

Click below to watch video! (more fun than reading)

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Read the transcript for The ABCs of Investing For Beginners

A is for Assets: stocks, bonds and other stuff.
Don’t fret about precision, getting close — good enough.

B is for Begin, to simply get started.
That’s the surest way to achieve dreams uncharted.

C for Compounding, for growth exponential.
Accomplishes big results and often essential.

D for Diversify, stocks and bonds in your pie.
Their ratio controls risk when things go awry.

E for Emergencies that come as surprises.
A responsible person has a reserve that suffices.

F is for Frugal, not cheap or miserly.
It’s prioritizing your spending and your life energy.

G for “Get Rich Quick”. Dismiss these schemes brisk.
Beating the market comes with a big dose of risk.

H is for Harvesting, in more advanced classes.
You might sell your losers to lower your taxes.

I is for Indexing, the lowest cost way.
For you get to keep what you don’t give away.

J is for Junk bonds, their tempting yields hawked.
But in bad markets, they behave more like stocks.

K is for Knowledge, about how to invest.
It’s lifelong learning that will help you the best.

L is for Low-cost. We like this a lot.
Keep what you earn and don’t finance their yachts.

M is for Mutual funds and avoid daily trading.
We’re long-term investors and eschew speculating.

N is for Noise, it’s worth tuning out.
We’re surrounded by blowhards that financial porn spout.

O for Overconfidence, a fault many have.
Feels good ‘til a bear market, then it feels bad.

P is for Penny, and the lesson we’ve learned:
A penny that’s saved equals two pennies earned.

Q is for Qualifying, to include and weed out.
It’s quite easy to do, then get out and about.

R for Retirees, and safe withdrawal voodoo.
It’s all about making your money last longer than you do.

S is for Saving, automatic paycheck withdrawal.
What you never see, is not missed at all.

T is for Timing, from tempting purveyors.
It’s only for those that believe in soothsayers.

U for U.S. bonds, as safe as it gets.
Keep risk on the stock side, safe bonds for the rest.

V for small Value, these funds carry more risk.
But if you seek out-performance, add these to your list.

W is for Writing a workable plan not too long.
Write the best you can now; and over time make it strong.

X is for X-ray, your funds — look inside.
For consistent styles, and lack of surprise.

Y is for You. How we remember thee?
Personality is revealed how you spend your life energy.

Z is for Zen, simple peace in your niche.
To know you have enough is to be rich.

There you go! That’s the ABCs of investing for beginners. If you liked it please give it a thumbs-up and leave me a comment below.

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Thanks for watching!


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Footnotes and Video Production Credits for The ABCs of Investing For Beginners

This video may be freely shared under the terms of this Creative Commons License (CC BY-NC-ND 2.0). with attribution to Rick Van Ness and this web page. This work contains a collection of photographs which are either owned by Rick Van Ness or licensed under one of these creative commons licenses:
Photo Statue of Liberty by Shinya Suzuki shown at (2:18) with license (CC BY 2.0).
Photo Income Tax Return by Chris Potter shown at (0:56) with license (CC BY 2.0).
Photo Jumping by be-younger.com shown at (2:46) with license (CC BY-NC-SA 2.0).
Photo Pennies by Jeannette E. Spaghetti shown at (1:48) with license (CC BY-NC-ND 2.0).
Photo SMYE 2010 by Gwenael Plaser shown at (2:31) with license (CC BY-NC-SA 2.0).
Photo Writing by Jeffrey James Pacres at (2:29) with license (CC BY-NC-ND 2.0).
Photo Reading by Danny Molyneux shown at (1:15) with license (CC BY-ND 2.0).
Photo Kite Flying by Mauricio Balvanera shown at (2:51)) with license (CC BY-NC-SA 2.0).
Photo Kite in the sky by Karen Blaha shown at (2:48) with license (CC BY-SA 2.0).
Casino video from andkow81 used at (0:50) under fair use.
Mad Money video from thestreet.com used at (1:35) under fair use.

The music, Get Outside! by Jason Farnham, is provided by YouTube.com.
To know you have enough is to be rich.” This is from The Tao Te Ching.

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  • Jake January 18, 2015, 7:58 pm

    “T” is for “Thanks;” each couplet rings sound; I’ll pass it to others, so your advice will compound.

    • Rick Van Ness January 19, 2015, 1:43 pm

      Touché! I love it.

  • Jeri January 20, 2015, 2:23 pm

    Very good, I’ll send it to my Grandkids..

  • Taylor Larimore January 20, 2015, 2:49 pm

    “R” is for Rick, a man who is swell,
    “V” is for Vanguard that he knows so well.
    “N” is for never will we ever doubt.
    “K” is for knowledge that he’s all about.

    Taylor

    • Rick Van Ness January 20, 2015, 4:21 pm

      Ha ha! 🙂 You just made my day!

  • Will January 21, 2015, 12:28 am

    Nice one Rick,

    Very funny but…
    Very true

    A great way of reminding us all

  • Sunil January 21, 2015, 6:41 am

    Thanks Rick for another great video! Easy to learn from your methods. Will share with my kids.

  • miriam green January 25, 2015, 5:45 pm

    You are brilliant and creative- great combination.
    M.

    • Rick Van Ness January 26, 2015, 1:46 pm

      Quite the overstatement. But, I’ll admit that I did have fun. 🙂