Exchange Traded Funds – ETFs

Categories Investing, Financial Independence

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. It 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! It is the main reason why Exchange Traded Funds (ETFs) are a very good investment tool!

In this post, we are going to learn all about Exchange Traded Funds!

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Mutual Funds and Index Investing

Categories Investing

In the previous post of the Investing Guide for Beginners series, we covered stocks and bonds. They are essential financial investing instruments. They both have their advantages. Bonds are more stable but will generally return less over time. Stocks are more volatile but should return more.

In a balanced portfolio, you need both.  But picking stocks and bonds is a lot of work. And it is a dangerous and challenging game. It requires a lot of knowledge and time. Fortunately, there is a better alternative.

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Investing Instruments: Cash, Bonds and Stocks

Categories Investing

In the first post of the Investing Guide for Beginners series, I covered the basics of investing. The previous post should have given you a few essential rules you should follow before you invest. However, we did not include details about how to invest in financial instruments.

It is time now we cover more investing details. In this post, I am going to cover the most important financial instruments that you can use to invest: Cash, Bonds, and Stocks.

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My New Job at Pied Piper – Opportunity and Benefits

Categories Financial Independence, Investing

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.

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The basics of investing – Why and How to invest?

Categories Investing, Financial Independence, Frugality

Investing is something that not enough people do. It is something that I started to do too late myself. For some people, it can be intimidating to begin investing.

But investing is not as complicated as people think. While it can be intimidating, this is something that everybody can do. But people should not start investing without doing their research.

This post is the first in a series of posts on Investing. This series of posts is to be an Investing Guide For Beginners.

It 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.

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May 2018 – Wedding and 100K net worth milestone

Categories Monthly, Blogging, Investing

A lot of things happened in May 2018! The most important event of this month is of course that we got married! We had a nice and simple wedding with close family and friends.

And as you will see, we have reached the 100K CHF milestone in our net worth! This is the first time :) We can now hope that we will stay at this level for some time!

Even considering the wedding expenses, this month has some good savings rate. This is mostly due to the extensive gifts we received. This month is the month with my largest income yet. We should have been able to turn it down. Let’s hope we can keep expenses to a low next month.

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I Will Teach You To Be Rich – Book Review

Categories Budget, Investing

I just finished reading I Will Teach You To Be Rich, by Ramit Sethi. This book will give you a lot of advice on how to improve your finances. It may not make you a millionaire. But it is a great book, full of helpful recommendations on how to improve your finances!

This book has been great to read. It is one of the best from the personal finance books I have read so far. Like the last book I read, I have been able to buy it for a few dollars on Kindle. If you want to be lucky, look at my techniques to find cheap Kindle ebooks. It is nice and light to read. It is not too dense and still contains quite a lot of information.

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How To Buy an ETF on DEGIRO

Categories Investing

In this post, we are going to see how to buy an Exchange Traded Fund (ETF) on DEGIRO. The process is going to be the same regardless of the ETF you want to buy.

I decided to use DEGIRO after comparing it with several other brokers. The main advantage of DEGIRO is its very low fees. You can read my full review of DEGIRO if you want more information.

We are also going to see how to deposit money on your account. You will need money on your account before you can buy an ETF.

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My Investor Policy Statement – You Need One Too!

Categories Investing, Financial Independence

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!

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The Millionaire Next Door – Book Review

Categories Financial Independence, Investing, Retirement

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 precisely 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 gone into a lot of effort to collect all the data from millionaires. And they have drawn some fascinating 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 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 made for the United States. However, a lot of their lessons can still be translated into Europe.

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