Investing is an essential part to building wealth. If you invest your savings in stock market or in another form of investment, you will greatly increase the speed at which your net worth increases.
Below, you can find all the articles from this blog about investing. Find out about Cash, Bonds and Stocks. There are also many articles about index funds which is the instrument I am using to invest! Find out why index funds are the best way to invest right now. And also why Exchange Traded Funds (ETFs) are great investments.
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!
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!
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.
A few months ago, I updated my portfolio to add more bonds and more dividend-yielding stocks. Since then, I had a lot of discussions on this portfolio. I discussed it on the comments on this blog. I also discussed it on the bogleheads forum.
Since these discussions, I have given a lot of thoughts on my portfolio. I realized there were several issues with the portfolio. I am going to discuss these issues here and present the new portfolio on which I have settled on. The biggest problem was the complexity of the portfolio.
I am going to start with the decisions that I made about my portfolio and the reasoning behind them. If you want to check out the new portfolio, simply jump to it ;)
In 2018, I wanted to add a few bonds to my portfolio. I am in long-term investing. I only in my 30s, and I do not plan to retire for at least ten years. And I already have some very safe investments in my second and third pillars. Therefore, I do not need a lot of bonds. But I wanted to add 5% of bonds into my portfolio to be safe and to allow for more re-balancing opportunities. Also, I do have bonds in my third pillar account.
Moreover, I wanted to improve my ETF portfolio. More specifically, I also wanted to get rid of my crypto-currencies. So, I updated a bit my previous portfolio to reflect this. Moreover, I also wanted to depend less on the dollar. In this post, we are going to see exactly what I have changed in my portfolio.
Remember that it is only one example of an ETF portfolio. I am no financial advisor. I am just sharing what I am doing for investment. What may work for me may not work for you.
The most recent finance book I have read is “Rich Dad Poor Dad” by Robert T. Kiyosaki. This is my short review of the book. This book is very different from the others, in several ways. Generally, the personal finance community does not rate this book very high. In this post, I will give you my point of view about this book and tell you what it is all about.
As you will see, my point of view in this book is a bit varied. Some things are really good. But some things are really bad about this book. Let’s directly see what I am talking about.
Here is another book review of an investing book. The BogleHeads Guide to Investing is the second book I read in my way to personal finance enlightenment. This book is written by Taylor Larimore, Mel Lindauer, and Michael LeBoeuf.
This book is a complete guide about personal investing, how to save money, and how to invest it. I think it is an excellent book, well-written and full of excellent advice. The book is full of quotes from other financial figures and uses facts to support every argument.
I have tried to not set goals that are too high but still strive for better than this year. Since it is the first year I am setting goals like this, I do not want to be over-optimistic. This is my first attempt at setting yearly goals, so maybe I will add new goals during the year, but I will not remove any goal nor downsize any goal.
Since I started to pay closer attention to my finance, I have read a few books about investing and finance. I am going to review them on this blog. I am going to explain what the book is about and also what I liked about the book. And of course, what I did not like about it.
The first book I have read is “The little book of Common Sense Investing”, by John C. Bogle. It is coming from the founder and former CEO of the Vanguard Mutual Fund Group. John Bogle is a great man and the creator of the first index fund. A lot of people in the Bogleheads community are recommending this book, so I decided to give it a try.