Investment Reading Ideas - Planning For Financial Success

Summary

• There are a wide range of investment books that will allow individuals to better plan for their retirement and financial security.
• The books included in this article have helped me become a better investor and have influenced my financial and retirement decisions.
• This article discusses several books and financial ideas that may help investors with future investment performance. I’ve found them all to be excellent reading.

During the current environment with the COVID-19 crisis, many individuals may be working from home and have additional time in their daily routine, as the daily commute has now been eliminated for a period of time. For those not as fortunate, and have lost their jobs for a temporary period of time, this selection of investment reading ideas may provide a valuable resource. Hopefully, this article will be helpful to both veteran and novice investors. This is the seventh article in my Early Retirement series.

Investment Reading Idea #1 – Cash is King: Investing In REIT Preferreds To Generate Long-term Income

Source: Amazon.com

• REIT preferreds have been the backbone of my portfolio for close to 20 years and have performed very well over this period of time.
• Author Simon Wadsworth was the CFO of a publicly traded REIT for over 15 years and shares his experience investing in REIT preferreds in this book.
• This book is a great reference tool for both novice and veteran investors in REIT preferreds.
• While the book covers all types of REIT preferreds, I believe the Hotel and Mall REIT sectors should be avoided now and in the future.
• Unfortunately, this book appears to be out of print at the present time. However, it may be found by looking for copies on Ebay, etc. I was able to find a new copy for $25 a little over a year ago as a gift to my brother who is new to preferred stocks. In addition, you may be able to borrow a copy from your local library system
• QuantumOnline.com also provides a great reference tool for those investors looking to screen preferred stocks by company name and credit rating

Investment Reading Idea #2 – Rich Dad Poor Dad: What the Rich Teach Their Kids About Money – That the Poor and Middle Class Do Not!

Source: Amazon.com

• Rich Dad Poor Dad is one of the best selling financial books of all-time.
• Author Robert Kiyosaki takes a very unique and interesting approach to investing and financial success.
• This is probably one of the most influential books that I have read in years and opened my mind to looking at investments in a whole new way.
• The book also focuses on cash flow and helps to explain the value of depreciation for real estate investors.
• It also discusses why individuals can’t count on the school system to teach the younger generation about money and finances.
• I would strongly recommend this book for parents trying to teach their children about finances and saving for retirement.

Investment Reading Idea #3 – The Millionaire Next Door

Source: Amazon.com

• A New York Times Best Seller.
• This book highlights a number of traits that show up in individuals that have accumulated wealth.
• Great discussion and overview of how individuals, with moderate levels of income, can save and accumulate significant funds for retirement.
• One of the key components of the book is how typical millionaires avoid the big-spending lifestyles many of us associate with rich people.
• Another great reference tool for parents and grandparents that are trying to provide financial education to their children and grandchildren.

Investment Reading Idea #4 – The Alternative Answer

Source: Amazon.com

• Most individuals think of investments solely as mutual funds, stocks and bonds.
• Author Bob Rice does a great job of reviewing Alternative Investments that people may want to consider when trying to diversify their portfolio.
• The book discusses other types of alternative investments such as timber, farmland and other non-traditional strategies.
• While these alternative investment ideas may not be right for everyone, it provides a nice overview of various ideas for future thought and exploration.

My Alternative Investment Idea #5 – Timberland and Real Estate

Source: LandandFarm.com

• Several years ago, as a way to diversify my portfolio, I began looking at alternative investments outside of the traditional stock and bond markets.
• After looking at a number of potential ideas, I decided on a private timberland partnership with some other investors. At the present time, we own thousands of acres of valuable timberland and some other improved real estate.
• Due to the close proximity of several major roads nearby, the land also provides some real estate opportunities - a mobile home park and a self-storage facility. These additional revenue sources help to diversify income from the sale of timber alone.
• The cash distribution on my investment have been over 10% the past several years. However, under the current economic environment, I expect the distribution in 2020 to be somewhere in the 5-6% range.
• For our partnership, due to the fact that the timber has been owned for over a year, it qualifies for the very favorable long-term capital gains rate.

Closing Comments

Hopefully, this seventh article in my series on early retirement has been educational and should provide good reading ideas for further investment exploration. A timber/land investment may not be suitable for many investors, depending on their investment preference and age in life. However, some investors may consider small apartment rentals or other real estate options to help diversify their portfolios. Many of the books listed in this can be easily purchased at very reasonable prices and provide very good investment ideas. I encourage all investors to do additional research before investing in any of these ideas.

Happy and successful investing to everyone!

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.