My Employee Stock Purchase Plan (ESPP) and Strategy

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My new job at Pied Piper is offering my an Employee Stock Purchase Plan (ESPP). This 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. Basically, an ESPP is a plan to use some of your income to get shares of your company at discount price.

In this post, I am going to present my ESPP plan. I am also going to present many strategies that exist to decide when to sell shares coming from an ESPP. Finally, I am going to present the strategy I decided to use for my ESPP shares.

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Target Retirement Funds – Too much simplicity ?

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This post is part 9 in the series Investing – All about investing.

We have talked about many things now in the Investing 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 haven’t covered yet. It’s Target Retirement Funds.

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’s 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 overtime.

In this post, I’m going to cover Target Retirement Funds. We are going to see what is good with them and what is not.

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More lazy portfolios

Posted on Categories ETF, Investment6 Comments on More lazy portfolios
This post is part 8 of 8 in the series Investing – All about investing.

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 is 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 am 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.

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The three-fund portfolio – Keep it simple

Posted on Categories Broker, ETF, Investment, Switzerland2 Comments on The three-fund portfolio – Keep it simple
This post is part 7 of 7 in the series Investing – All about investing.

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!

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Exchange Traded Fund (ETF) Arbitrage

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This post is part 6 of 6 in the series Investing – All about investing.

In part 4 of the Investing series, we have covered Exchange Traded Funds (ETF). In this post, I have mentioned that ETF used arbitrage to follow closely the price of the index. If the price of the stocks in the index goes up, the price of the ETF should follow. And if the price of the stocks goes 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 is a bit of a complicated subject. But I think it is important to know exactly how financial instrument are working before investing in them.

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Index Replication in details – ETFs and Mutual Funds

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This post is part 5 of 5 in the series Investing – All about investing.

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 is 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.

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Exchange Traded Funds – ETFs

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This post is part 4 of 5 in the series Investing – All about investing.

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 via your bank. 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 do not have any easy access to good mutual funds. I can bet that your Swiss bank does not offer cheap passive funds.  At least mine does not! This is where Exchange Traded Funds (ETFs) are being a very good investment tool!

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Mutual Funds and Index Investing

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This post is part 3 of 5 in the series Investing – All about investing.

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 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 difficult and dangerous game. 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! We are going to see what is important when choosing between different mutual funds. And finally, we are going to cover a very important subject: passive investing.

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Cash, Bonds and Stocks

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This post is part 2 of 5 in the series Investing – All about 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 did not cover into details how to invest. In this post, I am going to cover the most important financial instruments that you can use to invest: Cash, Bonds and Stocks.

All these instruments are quite different. They are all important. If you are serious about investing, you should be aware of them. 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 :)

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My new job at Pied Piper – Opportunity and benefits

Posted on Categories FIRE, Goals, Investment10 Comments on My new job at Pied Piper – Opportunity and benefits

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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