In the previous post of the Investing series, we discovered the Three-Fund Portfolio and its variants. It is a simple portfolio made of only three funds. It’s really simple to manage yet very effective and diversified. We also saw the two-fund and one-fund portfolio. They are even more simple and yet have many advantages. But there are more lazy portfolios that are available.
People have proposed many more portfolios over the years. In this new post, I’m going to cover more of these portfolios. They are called lazy portfolios because they are all using index funds. And you can kee 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.
Continue reading “More lazy portfolios”
In the previous posts of the Investing series, we have covered the basics of the stocks and bonds. We also have covered index funds, in the form of mutual funds and Exchange Traded Funds (ETFs). You should now have a good idea of how you want to invest. The problem remains on how to invest!
This is a very important question and one that you should spend some time thinking about. There is no one-size-fits-all investment in my opinion. There are many kinds of investment that work. For some of them, you’ll need some knowledge and time to make it work. The three-fund portfolio is a very simple portfolio made of three funds that should work for most people.
In this post, we are going to cover two things. How much bonds you should have and what is the Three-Fund Portfolio. Since there are also some direct variations of the three-fund portfolio, I’m also going to cover them!
Continue reading “The three-fund portfolio – Keep it simple”
In part 4 of the Investing series, we have covered Exchange Traded Funds (ETF). In this post, I’ve mentioned that ETF used arbitrage to follow closely the price of the index. If the price of the stocks in the index go up, the price of the ETF should follow. And if the price of the stocks go down, the price of the ETF should follow as well. But if the price of the ETF goes up because of stock market trading, something should correct the price quickly. This is where arbitrage plays a big role.
In this post, we are going to see how Exchange Traded Funds are created. And also what is arbitrage ? How it makes sure the price of ETF stay in sync with the price of the index. It’s a bit of a complicated subject. But I think it’s important to know exactly how financial instrument are working before investing in them.
Continue reading “Exchange Traded Fund (ETF) Arbitrage”
In the previous post of the Investing series, we talked about Exchange Traded Funds (ETFs). Before that, we talked about mutual funds. In both these two cases, we focused especially on passive index funds. Index funds are replicating an existing index. For instance, the SP&500 index is replicated by many mutual funds and many ETFs. In this post, we are going to focus on index replication.
There are several different ways of replicating an index. There is physical index replication and synthetic index replication. It’s important to know how funds are replicating the index. If you want to make a good choice between the different ETFs and mutual funds that exist, it is important to know the different ways they are using for replicating the index.
Continue reading “Index Replication in details – ETFs and Mutual Funds”
In the previous post of the Investing series, we talked about mutual funds. They are a great tool for investment. And especially passive funds with very low fees, thanks to index investing.
This is all great, but the problem with mutual funds is their availability. If you are lucky, you have access to Vanguard. And you can directly invest in their low fees mutual funds. There are other like Vanguard, but they are the most famous 😉 If you are not lucky, for instance, if you live in Switzerland, you don’t have any easy access to good mutual funds. I can bet that your bank does not offer cheap passive funds. At least mine doesn’t! Here comes Exchange Traded Funds!
Continue reading “Exchange Traded Funds – ETFs”
In the previous post of the series, we covered stocks and bonds. They are important financial investing instruments. They both have their advantages. Bonds are more stable but will return less. 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’s a difficult one. It requires a lot of knowledge and time.
So why not let other people pick bonds and stocks for you ?
Investment funds are doing exactly that for you. In this post we are going to cover them!
Continue reading “Mutual Funds and Index Investing”
In the first post of the Investing series, I covered the basics of investing. This should have given you a few important rules you should follow before you invest. However, we didn’t cover into details how to invest. In this post, I’m going to cover the main financial instruments that you can use to invest: Cash, Bonds and Stocks.
We are going to see the advantages and disadvantages of each of these instruments. By the end of this post, you should have a better understanding of them. And you can always ask questions for more information 🙂
Continue reading “Cash, Bonds and Stocks”
At the beginning of this month I started my new job. For the sake of anonymity, let’s say I’m working for Pied Piper. I hope there are some Silicon Valley fans in my readers 😉 Since I’m just starting working at this company, I don’t want to disclose it on this blog. And since I’m still anonymous, I’m going to try to stay like this.
This is going to be a shorter post than usual. In this post, I’ll describe all financial aspects of my new job. I’m really happy about my new job. Working at Pied Piper is an incredible opportunity.
Continue reading “My new job at Pied Piper – Opportunity and benefits”
This is the first post I’m going to write about Investing. I’m 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 the broad sense.
I don’t yet know how many posts will be in this series. 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 motivation some people to motivate.
I’m no financial advisor. I’m not nearly an expert investor. This post is just what I know about investing from my experience and from research.
Continue reading “The basics of 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’ll see, I reached the 100K CHF milestone in my net worth!
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.
Continue reading “May 2018 – Wedding and 100K net worth milestone”