When you invest in a global stock fund, many of the companies in the fund are generating dividends for you, so the fund pays an aggregated dividend for you. Same with a bond fund, the interest payments on the bonds are generating cash for you. What to do with these?
Countless studies have shown that two people make better financial decisions than one, by offsetting each other’s unhelpful biases. Too much risk vs not enough risk. Too much spending vs too much miserable cash hoarding. Too much trust in a financial advisor vs healthy cynicism and reading of the small print. If you have a partner, do it together.
I have found a way for people to save and invest cheaply and flexibly. All that remains is to get your psychology handled. This is simple, but not easy. You have to train your brain to accept that yes, you will become great with money, you will stick to the path and you won’t let your monkey mind get in the way.
Who would benefit from this post? Share here: Share on facebook Share on linkedin Share on twitter Share on whatsapp Share on email Listen to Steve debating the trustworthiness of financial advisors… with the king of financial advisors. Recently the CFA Institute (which oversees the Chartered Financial Analyst qualification) released an interesting survey suggesting …
Here’s a complete overview of investing by yourself, from mindset to transaction fees. If you go it alone, you’re going to have to find some knowledge and discipline. It’s worth it though, to avoid the hidden fees and exit penalties in the plans sold by most UAE banks and financial advisors. It has never been easier to invest cheaply and effectively by yourself.
Financial advisors are often trying to get expats to invest in long-term savings plans. They sound good in theory but 99% of the time they are completely inappropriate. You will probably either make unimpressive gains or lose money. So just say no and tell your friends to say no too. Here’s why. Almost no financial advisor on commission is going to tell you this, which is why I have to.