Derek Foster who claims to be Canada’s youngest retiree wrote an interesting book called The Lazy Investor. Before I read the book, I thought the “lazy” part referred to the effort required to handle investments, but it actually refers to being lazy by quitting your job once your investments produce enough income.
What sets this book apart from most other investment books is that he recommends specific investments and gives detailed instructions on how open accounts and acquire shares as cheaply as possible.
I tend to agree with most of his general advice: minimize fees, buy stocks rather than bonds, and minimize personal spending in areas that aren’t improving your life. I don’t think it’s necessary to focus exclusively on dividend-paying stocks, but following Foster’s advice would be a big improvement over how the average person invests.
The book gives detailed advice on how to get started with very small amounts of money to invest without wasting too much of it on fees by using dividend reinvestment plans (DRIPs) and stock purchase plans (SPPs). This information is useful for beginning investors.
The second half of the book is about educating kids about money. He advocates buying dividend-paying stock to provide your children with an allowance and give them lessons on stock ownership at the same time. This is what I did with my own kids and it worked out quite well.
I can’t say that I agree with everything Foster says, but the book is well written and came at certain subjects from a fresh point of view, which making me think. It’s a quick read, and I recommend it for the beginning investor.
Other reviews of “The Lazy Investor”:
Canadian Dream: Free at 45
Million Dollar Journey