The 6 Biggest Problems of Investing in Cryptocurrencies

Recently, we talked about how cryptocurrencies worked. Then, we looked at the history of cryptocurrencies. Finally, I discuss what I think is wrong with them.

Cryptocurrencies are not an investment. When you buy a cryptocurrency, you do not buy any value. You speculate that other people will later give a higher value than what you paid. This speculation, or even gambling, is not investing. Moreover, there are several problems with investing in a cryptocurrency that you do not have with stocks. Let’s see what they are!

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A short history of Cryptocurrencies

In the previous post about cryptocurrencies, we talked about what cryptocurrencies were. We mainly talked about how cryptocurrencies work. You should know more about blockchain, cryptography, and miners.

This post talks about the history of cryptocurrencies and how it all started with bitcoin. And how it all expanded into several thousand alternative cryptocurrencies. Most of the article will be related to bitcoin since it was the first cryptocurrency. And it was also the one that made the more headlines over the years!

However, bitcoin is not the only cryptocurrency out there. Most people believe that cryptocurrencies and bitcoins are the same things. But bitcoin is only one of the cryptocurrencies.

Without further ado, let’s delve into a bit of cryptocurrency history.

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Cryptocurrencies in nutshell – How do they work?

If you read financial news or finance blogs, you have heard (a lot) about cryptocurrencies and especially Bitcoin. You probably have read some success stories where people made a fortune investing in one cryptocurrency. You also probably have read stories where people have lost a fortune with them. But what is a cryptocurrency? And how do they work?

In this post, I will answer these questions for you. It could be interesting to know precisely how they work. You probably have heard of the words blockchain, miner, or even hash function. We will see how they come into play for cryptocurrencies.

I will not cover the investment quality of cryptocurrencies in this post. I plan to discuss that in another post. Finally, in a later post, I will also discuss the history of cryptocurrencies since their creation.

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Our Wedding Ceremony in Switzerland on a Budget!

No, I am not writing the same post twice! You may remember, that we got married in Switzerland in May. At that time, we did a small civil wedding with my close family, followed by a small party at our places, joined by some of my friends. We did not have much time, so we decided on doing something really simple.

However, many of our friends and family could not come. So we decided to throw a bigger party to have more people join us. In this post, I am going to share what we did for our wedding. It was a great time for us and our guests! I am also going to discuss the costs, personal finance blog obligation!

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Who is Warren Buffett ? The Man and His Investments

If you are following personal finance blogs or podcasts, you probably have heard the name of Warren Buffett. He is very famous in the community. Warren Buffett is a very successful investor.

He made a fortune from nothing. Being one of the wealthiest persons in the world also helps to make him a very well-known figure. It is the first reason he is famous in the community.

The second reason is that he advised his fortune to be invested in index funds once he passes away. It is one of the few big investors who are supporting index funds. Finally, he also beat the market for many years, which is something complicated.

In this article, we are going to look at the history of Warren Buffett first. Some numbers may not seem much in the early years. You need to take into account inflation. One thousand dollars 70 years ago are worth around 10’000 dollars now. We are primarily going to focus on the most significant investment he did. Then, I am going to talk about some essential traits of this great man. It is going to be a long article!

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Employee Stock Purchase Plan (ESPP): Take advantage of great returns!

With my new job this year, I get access to an Employee Stock Purchase Plan (ESPP). It is the first time I am working for a company that offers such a plan. As such, I have been researching my options for how to handle this ESPP. In this post, I am going to share what I have found out about ESPP.

An ESPP is a plan to use some part of your salary to get shares of your company at a discount price.

In this article, I present many strategies that exist to decide when to sell shares coming from an ESPP. Finally, I go over the strategy I chose to use for my ESPP shares.

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How to Get Swiss Driving License as a Foreigner

Mrs. The Poor Swiss, my wife, recently started the procedure to get her driving license in Switzerland. The procedure is not too difficult. But not all the steps are obvious in the process. My wife is Chinese and she already had a driving license from China. This is what is going to interest us in today’s post.

In this post, I am going to explain the different steps in getting a Swiss driving license for a foreigner. First, it depends if you already have a driving license in your country or not. If you already have a driving license, it will depend on your country. Since Mrs. The Poor Swiss is Chinese, this post will have a Chinese bias but I am going to try to cover other countries as well.

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July 2018 – Getting back up to speed

After a disappointing June 2018 month, we managed to get back up to speed in July 2018. We had some strong savings this month. Nothing extraordinary, but pretty good still. We were able to increase our net worth significantly.

Since today is Swiss national day, Happy National Day to all my Swiss readers.

We went to Orléans one week this month. I also spent one week in the army. It was my last five days to serve in the army! Other than that, nothing special happened. It was a good month overall. Let’s go into the details now :)

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Target Retirement Funds – Too Much Simplicity?

We have talked about many things now in the Investing Guide for Beginners series. We have covered index funds in detail. We have also covered several portfolios, such as the Three-Fund portfolio and its variants and a few other lazy portfolios. But there is something we have not covered yet: Target Retirement Funds.

A Target Retirement Fund is like an automated portfolio in itself. It is a fund of funds with some allocation to bonds. And the allocation to bonds is changing over time as the time of retirement is approaching.

Many people are investing for retirement. They may know, for instance, that they want to retire in 20 years. Given that and their age, it is likely that their allocation to bonds will increase over the years until retirement. Most people will do that by changing their bond allocation every few years. Either by rebalancing or by injection of new capital.

There is another way. Target Retirement Funds will automatically change their bond allocation over time.

In this article, I cover Target Retirement Funds. We see what is good with them and what is not.

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7 Lazy Portfolios to keep investing simple

We have already talked about the famous Three-Fund Portfolio and its variants. It is a simple portfolio made of only three funds. It is straightforward to manage yet very effective and diversified. We also saw the two-fund and one-fund portfolios. They are even more simple and have many advantages. These two are called lazy portfolios. They are the most well-known lazy portfolios.

But there are more lazy portfolios than these. People have proposed many more portfolios over the years. In this article, I cover more of these portfolios. They are called lazy portfolios because they are all using index funds. And you can keep the allocation of the different funds for many years.

Instead of choosing stocks, which is difficult, you choose stock funds or bond funds. You can either use mutual funds or Exchange Traded Funds (ETFs) depending on what you prefer and what you have access to.

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