The recession has left workers in their 20s and 30s wary of the stock market. According to the Employee Benefit Research Institute, the percentage of workers between 25 and 35 who say they have saved for their retirement has fallen by over 20 percent in the last decade. A Newsweek article about the research noted that young investors continue to put their money into seemingly safe investments like low-yield bonds whereas investment experts say they should really be investing in stocks through passive (index) mutual funds. Playing it safe, the article noted, “could delay retirement for a decade.”
Whenever I speak on college campuses I’m impressed by how hungry today’s students are to learn about money, especially investing. And I’m reminded that they have a lot to learn. At a recent college workshop, attended by student leaders such as resident assistants, I asked how many knew what an index fund is. Not a single hand went up.
What are some of your favorite investing books, especially those that young people would find helpful?