The Coffeehouse Investor

I finished reading this book while sitting in a beach chair in my front lawn this past weekend. The sun was out, but it was chilly and I loved it!

The book has basic information about investing and the author, Bill Schultheis, makes a very good case for indexing. So, I changed my 401k to index funds and I'm going to stop worrying so much about it. I would highly recommend this book. His advice makes a lot of sense and it's an easy read. It encourages being informed. I agree with that. I think too many people make financial decisions without looking at all towards the future. He doesn't recommend not living your life now to save, he just wants you to recognize that decisions now do affect your future and to what extent.

A few facts and figures stuck out to me... A 25 year old starts saving $300 per month vs. someone who starts saving $300 per month at age 35. Those extra 10 years (and $36,000) end up making a difference of about $457,000. Wow!! Don't cash out those 401ks when you switch jobs. Hang on to them because time is on your side!

There is a retirement worksheet and based on my current savings and age, I need to save $927 - $1,003 per month (depending on if I count my Roth IRA). So, I'm right on track! Perfect! His worksheet assumes 7% return which I think is a fairly good number. Only time will tell, but it's not too conservative or too agressive. It's just right!