Discover how to invest in stock and bond funds (ETFs) as an expat – cheaply, quickly and sensibly. Maximise your saving power while you work abroad!
Last week, I bought some crypto. I’m going to skip a lot of the how to, use cases, risks & FI community reactions to focus on what’s important: the psychology.
Our brain instinctively defaults to addition and complexity when problem-solving. Understanding how this knee-jerk reaction messes with your finances will help you increase your wealth and reduce your stress. Who doesn’t want that?
On 25 March, Vanguard launched a new set of all-world exchange-traded funds (ETFs) that are highly relevant for any expats or people living in developing countries. One of them could become the only stock fund you need in your portfolio.
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.
Investing is hard enough for people living in the US. Expats have to deal with a whole other set of challenge first.
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?
How one of the smartest men of all time put most of his investments into one stock at the peak of a bubble and lost the equivalent of $20 million… Maybe he could calculate the movements of the planets but not the madness of the people.
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.
IIt’s been a wild ride in the stock market these past few days. Should you hide your cash under the bed? Here’s what I think.