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I had this conversation with Andrew years ago. He told me about the low cost index funds, but of course I only half listened. Well, fast forward a few years and I realize I don't like investing at all and I'm 100% with this advice. Vanguard ETFs and Mutual Funds.
Learn by doing is the way. Nothing focuses the mind and performance like paying "tuition" from losses. Paradoxically, had I given up after slightly underperdorming the market a decade ago I would have never gone on to strongly outperform in future years. I considered throwing in the towel and only index investing. Glad I didn't.
One rule I have strictly maintained is not sharing "stock tips" or investing advice with friends other than DIY with indexing. Avoiding fees etc. Resentment is easily created for a variety of reasons with unsolicited or even solicited advice.
Winning in the market depends on what constitutes a win for you. In my case it meant creating a portfolio that would provide me another $1K a month of income. However as an American living abroad I have 25% of all dividends skimmed off because of where I live. At the age of 70 starting with $19K over the passed 7 years it has grown to produce just under $20K a year in dividends. Though I have been far away from finance for the last almost 50 years, in the 70's I worked in the industry for 5 years so I did have an understanding of what I was getting into.. It has 40 stocks and ETFs and hopefully will support me when I retire the middle of this year.
When asked what ETFs to buy what do you say? Just the Buffett advice of the s&p 500?
Hi Andrew,
How can we find your ideas on VIC?
THANKS!
I had this conversation with Andrew years ago. He told me about the low cost index funds, but of course I only half listened. Well, fast forward a few years and I realize I don't like investing at all and I'm 100% with this advice. Vanguard ETFs and Mutual Funds.
Though of you when I was writing it!
Learn by doing is the way. Nothing focuses the mind and performance like paying "tuition" from losses. Paradoxically, had I given up after slightly underperdorming the market a decade ago I would have never gone on to strongly outperform in future years. I considered throwing in the towel and only index investing. Glad I didn't.
One rule I have strictly maintained is not sharing "stock tips" or investing advice with friends other than DIY with indexing. Avoiding fees etc. Resentment is easily created for a variety of reasons with unsolicited or even solicited advice.
Winning in the market depends on what constitutes a win for you. In my case it meant creating a portfolio that would provide me another $1K a month of income. However as an American living abroad I have 25% of all dividends skimmed off because of where I live. At the age of 70 starting with $19K over the passed 7 years it has grown to produce just under $20K a year in dividends. Though I have been far away from finance for the last almost 50 years, in the 70's I worked in the industry for 5 years so I did have an understanding of what I was getting into.. It has 40 stocks and ETFs and hopefully will support me when I retire the middle of this year.
On the passive/etf and diversification point, what international etfs do you like @andrew?