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Where do I start when I don’t understand the basics?

Home Beginners Helping Beginners Where do I start when I don’t understand the basics?

  • Avatar Stone122122 
    Participant
    Status: Physician
    Posts: 2
    Joined: 08/08/2019

    Hi all,

    Thanks in advance to those who take the time to read and respond to this.

    I grew up fortunate and quite naive about money. I would like to make the most out of my money, but I fear I still don’t have an understanding of the basics. I have already read the WCI book and have been listening to the WCI podcast for over 50 episodes. But there are some words and phrases used that I still don’t have a grasp of.

    For example, I think I understand what stocks are (portions of ownership of companies out there that have a value based on what someone is willing to pay for it), but don’t quite understand what a bond is and how/why there are different kinds of bonds (municipal, treasury, etc) and why bonds seem to be protected when the stock market goes down. I don’t understand other phrases like “ordinary income tax” vs “capital gains tax.” What is the difference between an index fund or a mutual fund or an ETF? What is a dividend?

    I feel like by reading the WCI book and listening to the podcast, I certainly know more now than I did a year ago, but I fear my future knowledge growth will be stunted unless I really grasp some of these basics. Are there any books that are recommended out there that can teach me a little bit more about the basics?

    Thank you!

    #237367 Reply
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 1666
    Joined: 02/11/2019

    WCI has a bunch of beginner posts under the Start Here button on his web page.  https://www.whitecoatinvestor.com/new-to-the-blog-start-here/

    I found the PoF site very valuable as well.

    Bogleheads guide for investing really helped me out in the beginning.

    Welcome and good luck

    “Never let your sense of morals prevent you from doing what is right.”

    #237505 Reply
    Liked by Tartesos
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 4240
    Joined: 01/08/2016
    Are there any books that are recommended out there that can teach me a little bit more about the basics?

    Click to expand…

    bogleheads. read the wiki. read the books.

    https://www.bogleheads.org/wiki/Books:_recommendations_and_reviews

    #237547 Reply
    Liked by Lordosis
    Avatar JBME 
    Participant
    Status: Spouse
    Posts: 498
    Joined: 03/26/2018

    I would re-read the WCI book again because your questions are very basic. I haven’t read the WCI book myself but if you are asking questions like what is ordinary income tax and capital gains tax, you can even look that up on wikipedia and it’s correct over there too

    #237550 Reply
    Liked by Tartesos
    wonka31 wonka31 
    Participant
    Status: Physician
    Posts: 686
    Joined: 03/24/2018

    There’s a blog.

    #237568 Reply

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