How to Invest $50-$5,000: The Small Investor's Step-By-Step Plan for Low-Risk, High-Value Investing, 9th Edition

by Nancy Dunnan

“Few books around can teach people more about the investment universe.” — Inc Magazine   From Nancy Dunnan, one of the nation’s most respected financial advisors, comes the revised tenth edition of her perennial bestseller, How to Invest $50 - $5,000 . This contemporary investment classic has been fully updated to reflect the latest and safest strategies for smart investing in the new economy. Anyone looking to thrive financially in an uncertain economic climate would do well to own a copy of this step-by-step plan for low-risk investing.

Genres: Finance, Business, Nonfiction, Money, Self Help, Personal Finance, Economics

239 pages, Paperback

First published February 1, 1985

Reviews

[VoNique · Rating 4 out of 5]

This book was very informative. Don't ever put your money into investments that will yield less than a 5% increase, especially if it's going to tie up your money. Through the website www.bankrate.com (which allows you to compare interest rates on Savings and Money Market accounts, and much more) we found a regular savings account that has a 5.25% APY!! (That's better than most money markets!) And our money isn't tied up like it would be with CDs.

[Rachel Unklesbay · Rating 2 out of 5]

The first few chapters were incredibly helpful, and then it got increasingly complex. I suppose the idea is that you'll read the first chapters (on investing smaller amounts of money), then move on to the next chapters after you're already practiced in those means of investing. I tried to read it straight through, and stopped understanding what was going on after a while.

If you understand finance jargon, you'll probably do better with it than I did. If you're a beginner, maybe you should find another book.

[Maks · Rating 4 out of 5]

Very informative read, good reference point.

[Sean Tordecillas · Rating 4 out of 5]

This book was easy to understand and the guidance is thorough. I feel that I have a more solid grasp on ways to save/invest money in the long term by being more familiar with different mutual fund, CD, and bond options. I found the breakdown of index funds and the list of websites and their best features to be helpful. I will be revisiting the resources in this book periodically which is why I annotated it as I read along; I recommend annotating with any informative or personal finance book that you aren’t too familiar with the main topics yet.

[Bakari · Rating 3 out of 5]

Good overview of options for investing, but because it's last update was 2010, it doesn't include info about online investment tools available today. I read it anyway because I want to learn as much as I can about investing. The writing in this book is very accessible.

The publisher should produce an ebook version of book with maybe an appendix about current online tools for investing, like Betterment, MI, and Robinhood.

[Marcus Hill · Rating 3 out of 5]

While I did enjoy this book, much of the information is dated.

With that said, it’s still important, especially for someone who is just starting their financial journey.

I’d say this is a great book for someone who young (perhaps in high school, maybe even college) but most adults should have this knowledge already.

[Kristofer Smith-wright · Rating 4 out of 5]

This book was an easy read. Unless you have a strong background with investing already, it would definitely need a pass or two because of the inherently complex nature of investing. I followed along pretty easily until I got to “The First $2,000” and then the terms, account similarities and differences, and mechanics started getting significantly more complex.

[Elvia · Rating 4 out of 5]

A great reference guide to financial terminology. Not exhaustive but a good place to start.

[Alexander Broses · Rating 3 out of 5]

Good for learning some of the basics. Was worth the read 👍

[Joshua Parsons · Rating 4 out of 5]

Good information, but roughly the first 2-3 chapters should be a separate book and be marketed for teens/preteens

[Alice · Rating 3 out of 5]

Has been updated, but only as recently as 2010. Was actually too simple for the information I was looking for.

[Ashley · Rating 3 out of 5]

In 2021, I'd suggest you select a more up-to-date book on investing. However, I did get some ideas on college savings accounts for my little boy that I'll use Google to research more about.

[Michael A. Johnston · Rating 4 out of 5]

Still pretty good advice, despite its age. A new Edition would sure be nice.

[Anita · Rating 5 out of 5]

Very informative for someone just beginning to invest.

[Omar Misdaq · Rating 2 out of 5]

I didn't find this particularly useful for a non-financial minded reader. If it's aimed at the small investor ten it needs to be aimed at finance/investing noobs, but if it is, it fails in this respect. The problem is in each chapter she introduces 5 to 10 new investing products/concepts, which is already overload. However she explains each one simply by using other financial terms which most readers won't get. All she needed to do was give hypothetical examples, i.e "Nancy invests, $10k in this. Because of X, she gets Y, but then Z" but there is none of this. So not very beginner friendly. It's also ten years old now which makes it a bit dated. It's a pity because she knows what she's talking about. In one section she gives a list of 15 stocks she recommends for a beginner's portfolio. Just out of curiosity, I looked up each one and compared their 2007 price with now, and if you'd followed her advice, you'd have more than doubled your money by now. Overall though, a dull read. And it's not like finance books have to be so - Ramit Sethi's (yea he is a bit obnoxious but still) stuff is engaging and fun, for example.

[Javi · Rating 4 out of 5]

Nancy Dunnan’s How to Invest $50 - $5000 is a publication that was written to help small investors, who don’t have a formal financial background, select proper banking options and make logical investments in order to yield high profit. The book actually begins by talking about the end, retirement! In financial terms Dunnan explains why it is chiefly important to start an IRA or Keogh Plan at a young age. The rest of the book is divided into parts that explain how to best treat investments of $50, $500, $1000, $2500, and $5000. She addresses choosing an investment vehicle to best suit the readers needs as well as weighing the pros and cons of each option.

I enjoyed this read because it offers a score of valuable saving and investing tips for small investors such as myself. A major reason I liked this book is because it gives beneficial investing suggestions that include safe stashing your first $50, joining investment clubs, and purchasing stocks. One problem I had with the book is its age. It was written in 1987 and many of the investing methods mentioned are outdated and are of no benefit to the reader.

Despite its age, many of the investment vehicles explained by Dunnan are timeless and of great benefit for the average investing novice. If you are a young investor or simply want to learn more about investing your money, I would recommend this book to you.

[Amina · Rating 4 out of 5]

Very informative book for anyone interested in beginning to invest. Easy to understand and makes investments accessible, even for those who never thought they could have the money to. Previous editions are till useful, because some of the strategies discussed are timeless. Worth picking up the latest book to get a better, more up-to-date grasp of the economic climate.

[Rebecca · Rating 2 out of 5]

This book is good for people who want to invest VERY conservatively and have a lot of time to do so (ie, starting in their teens or 20s).
There are so many types of investments described that none are described in much detail.

[Kimberly · Rating 3 out of 5]

Could be titled "Investments for Dummies." A good book for beginners.

[Veronica · Rating 4 out of 5]

Yeah that's right. I read a finance book. And It was very informative.

[Ann · Rating 3 out of 5]

Seems like a pretty good resource with good information. I did take away a few things, but some of it was not relevant.

[Shari · Rating 4 out of 5]

Great book to learn the basics about all types of investments.

[Rosemary · Rating 3 out of 5]

Really a book for a novice in investing.

[John · Rating 3 out of 5]

Get your CD's through a broker and one does not have to pay early withdraw penalty.1st 50 does not go into the stash spot, credit unions inevitably pay 1 or 2 points above bank rates.

[Hiatt · Rating 4 out of 5]

I good overview of all the opportunities to invest your money.

[Prashanth · Rating 4 out of 5]

Good book for Beginners. Was expecting more information on fundamentals of investing.Nevertheless a good book to get started.

[Josh Clausen · Rating 4 out of 5]

Very informative, especially for those just starting out.

[Fred Tyre · Rating 4 out of 5]

This was a fun, short read. It shouldn't replace a financial advisor, but I like how the author promotes saving your money no matter how small it seems at first. It's a good reminder for us normal people who can only scrape together a few dollars here and there about the benefits of saving something.