We have talked about many things now in the Investing Guide for Beginners series. We have covered index funds in details. Finally, we have 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. It is the 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 allocation every few years. Either by rebalancing or by injection of new capital. But there is another way. Target Retirement Funds will automatically change their bond allocation over time.
In this post, I am going to cover Target Retirement Funds. We are going to see what is good with them and what is not.
Continue reading “Target Retirement Funds – Too Much Simplicity?”
No country is perfect. I am sure you can relate to that with your own country. It is the same for me and Switzerland. While I really like Switzerland and I plan, and hope, to spend all my life here, there are some things I really do not like about it. In this post, I am going to discuss the five things I hate about Switzerland.
I am not about to leave Switzerland and I hope I will never have to. I also wrote about the things I love about Switzerland! There are more things I like than things I hate. But I think it is important to realize that no country is perfect. Some things should definitely be improved in Switzerland.
Of course, these things will probably be different from one person to another. I know that there are some things on the list that some people like. Please tell me what you do not like about Switzerland in the comment!
Continue reading “5 Bad Things I Hate about Switzerland”
For a lot of people, having a strict routine will help them not forget anything. This is the same for me. I really like routines. Each month, I am following the same personal finance routine for my budget. You can see most of the results in my monthly finance reports. In this post, I am going to describe the steps I am doing every month.
I think it is great to have a routine. This helps to get more efficient and like this, you do not forget to do everything.
Of course, you do not need to have the same steps as me of course. Every people can have different things to do based on the way they are investing or based on their situation. But I would encourage you to clearly define your at least a monthly routine. And why not even a weekly routine?
Continue reading “The 11 Steps of My Monthly Personal Finance Routine”
In our Investing Guide For Beginners series, we already talked about mutual funds. Instead of investing in single stocks, you can invest in many stocks at once. Mutual Funds are a great tool for investment. We are especially interested in passive funds with very low fees, thanks to index investing! Unfortunately, mutual funds are not accessible to everyone. This is where Exchange Traded Funds (ETFs) come into play!
The problem with mutual funds is their availability. They are provided by banks and fund providers such as Vanguard. If you are lucky, you have access to Vanguard via your bank. Or you can directly invest in Vanguard funds. That means you can directly invest in their low fees mutual funds. There are others like Vanguard, but they are the most famous!
If you are not lucky, for instance, if you live in Switzerland, you do not have any easy access to good mutual funds. I can bet that your Swiss bank does not offer cheap passive funds. They will probably offer you expensive active funds. At least mine does not! This is where Exchange Traded Funds (ETFs) are being a very good investment tool!
In this post, we are going to learn all about Exchange Traded Funds!
Continue reading “Exchange Traded Funds – ETFs”
At the beginning of this month, I started my new job. For the sake of anonymity, let’s say I am working for Pied Piper. I hope there are some Silicon Valley fans in my readers ;) Since I am just starting working at this company, I do not want to disclose it on this blog. And since I am still anonymous, I am going to try to stay like this.
This is going to be a shorter post than usual. In this post, I will describe all the financial aspects of my new job. I am really happy about my new job. Working at Pied Piper is an incredible opportunity. In my field, this is a great company. And in the region where I live, they offer really good conditions. This will help me a lot in my path towards Financial Independence (FI). As you will see, there are many advantages when working at Pied Piper.
Continue reading “My New Job at Pied Piper – Opportunity and Benefits”
Investing is something that not enough people do. This is something that I actually started to do too late myself. For some people, it can be intimidating to start investing. Therefore, I decided to write a series of posts on Investing. This series of post is meant to be an Investing Guide For Beginners.
This is the first post I am going to write about Investing. I am going to try to cover as much as possible on the different forms of investing. In this first post of the series, we are going to see what is investing in a broad sense.
In this guide for beginners, I will try to cover the basics, the stocks, the funds, Exchange Traded Funds (ETFs) and so on! Hopefully, it will be interesting for some of you and it will motivate some people to start investing. If you want this series to be available as an ebook, let me know and I will see what I can do.
I am no financial advisor. I am not nearly an expert investor. This post is just what I learned about investing from my experience and from research.
Continue reading “The basics of investing – Why and How to invest?”
I think a lot of people will agree that having lots of paper documents at home is a hassle. Who would not want to get rid of all this for a better solution? In 2017, I decided to become paperless with my administrative documents. It was a long work. But now I am finally done. All my documents are available as electronic documents now. I have been able to throw away five big document binders.
I have used my phone as a scanner and uploaded all my documents to the cloud. Now my documents are accessible from anywhere. And they are safely stored in the cloud. Find out how I became paperless for free in this post.
Continue reading “Why Become Paperless – How to?”
Everybody will do some mistakes in his life. There is no way around it. Over the years, I made many investing mistakes. One thing is very important with mistakes is that you learn from them. Not only should you not repeat your mistakes, but you should also improve your knowledge after you have made this mistake. You need to understand why this was a mistake and how to not do it again.
It is very important to learn from your mistakes. And it is also very important to recognize your mistakes. There is no value in thinking you cannot make mistakes. And there is no value in ignoring them. I am not very proud of my investing mistakes. But it is better to talk about them than ignore them! And people can learn a lot from the mistakes of other people.
In this post, I will talk about my 9 biggest investing mistakes and what I could have done better. It is also the story of how I got into investing early and left very early. And finally started investing again way too late!
Continue reading “My 9 Biggest Investing Mistakes – How to Avoid Them!”
We can all agree that having a clearly defined strategy is very good for your investing and your personal finances. It is very important to have goals and a long-term vision.
An Investor Policy Statement (IPS) is a tool helping you do just that. It is a way of writing down why and how you are investing. Your IPS helps you have a clear view of why you are investing and how you should invest to attain your goals.
It has been a long time now since I wanted to write my Investor Policy Statement (IPS). I just took some time over the last week to write it down completely. It took me about two hours. It was a really good exercise for me.
In this post, I am going to give you my own IPS and explain exactly the goals of an IPS. Each IPS will be different because each investor is different. You can follow my own example in order to start your own. But you still need to think about each point and adapt it for your own needs.
Stay tuned to learn about my Investor Policy Statement!
Continue reading “My Investor Policy Statement – You Need One Too!”
The Millionaire Next Door: The Surprising Secrets of America’s Wealthy, is a book by Thomas J. Stanley and William D. Danko. This book is a study of millionaire households in the United States. In this post, you will find out exactly what this book is about and what I thought about it. I was lucky to find it very cheap on Kindle.
This book is one of the best personal finance books I have read. The authors have really gone into a lot of effort to collect all the data from millionaires. And they have drawn some very interesting conclusions from this data.
I am still reading many new personal finance books. And so far, it has been a great ride. There are some really great books about personal finance, investing and frugality. It is just a bit sad that most of these books are missing any international content. They are really made for the United States. However, a lot of their lessons can still be translated into Europe.
Continue reading “The Millionaire Next Door – Book Review”