Investing from Scratch - James Lowell

A Handbook for the Young Investor

Lowell, editor of FundWorks on America OnLine and author of How to Survive in the Real World, offers an investment primer for readers in their 20s and 30s who are just beginning to have money available for investing. In a straightforward yet engaging style, Lowell first explains how to establish a realistic budget and then walks readers through the maze of investment opportunities, including stocks and mutual funds. He offers basic advice on deciphering economic news as well as somewhat more advanced strategies, such as on-line trading, investment clubs and ethical investing. Here, readers not only get the details on individual subjects but also some reasonable warnings from the author. For example, ""becoming a landlord isn't all it's cracked up to be, but when it comes to the potential for the best returns--and the most risks--owning an investment property yourself is the way to go. If this is for you, make sure you are ready for the monetary, legal, and psychological demands that even a single investment condo can rain down upon you. "" The final chapters contain useful information on retirement planning for both the self-employed and workers who have 401(k) plans. Also, each chapter includes a list of books and other publications on particular subjects. The book is narrower in focus than Beth Kobliner's recent Get a Financial Life, for example, but it is an excellent addition to the overcrowded personal finance shelves.