Index funds where you put your money in each month and hold for retirement is the best ROI an average person is going to get. Buying house is expensive and comes with a LOT of risk with a substantial chunk of your capital tied up in an immovable asset. I appreciate you showing the average NZ interest rate and housing appreciation around this period, IIRC it was around 7%. This ties into my thesis on investments, the average person would want to invest around 40% of capital in debt based instruments and the rest in equities. The appreciation from debt would cover inflation and any extended equity drawdown period. As for me, I have 75% in equities, 5% in liquid debt, and 20% for my active trading (algorithmic option selling).
Thanks for your great comment!! I'd suggest that putting money into a fund based on a stock index is effectively having your capital tied up in an asset you can't leave without risking missing a market surge or having to sell in a downturn :). But that said, I'd hope most people are doing this or some sort of regular investment with at least some of their income! Also, in the time period I was talking about, the offerings for funds were much worse - higher fees, index funds either didn't exist or were a novelty, and fund managers who made it difficult to get your money out (without fees of one kind or another) and impossible to be certain what price you would cash out at!
My personal opinion only is that day trading is very risky and is only really suitable for very sophisticated traders, probably doing this professionally for a hedge fund or something like that. I tend to think that what people like Warren Buffett and Robert Kiyosaki say make good alternatives to the standard narratives on investing, but that said the standard advice isn't that bad ... I just think it can be oversold, and sometimes (in some economic/market situations) even a little harmful. But not the lose all your money kind of harmful, which day trading can be!
In the story in this video, the answer for me personally was to invest in a house not in a managed fund - which worked out much better. I saw on a RUclips trading advice channel that the aim is to get rich slow rather than get rich fast (which often turns into lose money fast!), which I think is a really good description of what is likely to work. The key message I hope that is in my video is that it’s not that managed funds are necessarily bad, but more that they are not so great that you should only ever consider them when investing. Warren Buffett's advice is that you should really understand well what you are investing in - even if these are just short-term trades - and that the trick is that it's better to be investing rather than not. I can't give you advice, so please don’t take this as such, but my opinion is that it is okay to trade directly in the markets rather than via managed fund, but be aware it is harder work, and that you face greater risk, which depends on exactly what it is you are doing. I think though there's no simple solution and it depends a lot on your personal situation - Robert Kiyosaki talks about investing to make your money work for you, and he mainly talks about investing in housing, but he considers any investment where your money provides you a return is worthwhile. He seems to advocate for seeking opportunity by picking market swings as well - for example, he talks about how much money he made during the COVID pandemic. But basically his theme is to develop a habit of investing, and look for opportunities. It’s the opportunities part that the standard advice ignores.
aren't we now in a similar bubble? In certain countries legislation protects tenants and renting properties has become a risky business since once they stop paying they can stay for free during years
this shuoldn'ty have less than a thousand views like this, youtube pull up fr
Hee hee, yeah I think so too!! Thanks a million - really appreciate your comments!!
This is a great channel
Thank you!
fr man its a blessing hidden in a hay stack
Index funds where you put your money in each month and hold for retirement is the best ROI an average person is going to get. Buying house is expensive and comes with a LOT of risk with a substantial chunk of your capital tied up in an immovable asset. I appreciate you showing the average NZ interest rate and housing appreciation around this period, IIRC it was around 7%. This ties into my thesis on investments, the average person would want to invest around 40% of capital in debt based instruments and the rest in equities. The appreciation from debt would cover inflation and any extended equity drawdown period.
As for me, I have 75% in equities, 5% in liquid debt, and 20% for my active trading (algorithmic option selling).
Thanks for your great comment!! I'd suggest that putting money into a fund based on a stock index is effectively having your capital tied up in an asset you can't leave without risking missing a market surge or having to sell in a downturn :). But that said, I'd hope most people are doing this or some sort of regular investment with at least some of their income! Also, in the time period I was talking about, the offerings for funds were much worse - higher fees, index funds either didn't exist or were a novelty, and fund managers who made it difficult to get your money out (without fees of one kind or another) and impossible to be certain what price you would cash out at!
Great channel i think this will be a staple in the financial world in the future.Ppl are catching on love the evolution.
Thank you - very kind! I should get back to making some more videos soon
What about day trading is work or not ? Great Channel
My personal opinion only is that day trading is very risky and is only really suitable for very sophisticated traders, probably doing this professionally for a hedge fund or something like that. I tend to think that what people like Warren Buffett and Robert Kiyosaki say make good alternatives to the standard narratives on investing, but that said the standard advice isn't that bad ... I just think it can be oversold, and sometimes (in some economic/market situations) even a little harmful. But not the lose all your money kind of harmful, which day trading can be!
@@fractalmanhattan What's the solution 😅?
In the story in this video, the answer for me personally was to invest in a house not in a managed fund - which worked out much better. I saw on a RUclips trading advice channel that the aim is to get rich slow rather than get rich fast (which often turns into lose money fast!), which I think is a really good description of what is likely to work. The key message I hope that is in my video is that it’s not that managed funds are necessarily bad, but more that they are not so great that you should only ever consider them when investing. Warren Buffett's advice is that you should really understand well what you are investing in - even if these are just short-term trades - and that the trick is that it's better to be investing rather than not. I can't give you advice, so please don’t take this as such, but my opinion is that it is okay to trade directly in the markets rather than via managed fund, but be aware it is harder work, and that you face greater risk, which depends on exactly what it is you are doing. I think though there's no simple solution and it depends a lot on your personal situation - Robert Kiyosaki talks about investing to make your money work for you, and he mainly talks about investing in housing, but he considers any investment where your money provides you a return is worthwhile. He seems to advocate for seeking opportunity by picking market swings as well - for example, he talks about how much money he made during the COVID pandemic. But basically his theme is to develop a habit of investing, and look for opportunities. It’s the opportunities part that the standard advice ignores.
aren't we now in a similar bubble? In certain countries legislation protects tenants and renting properties has become a risky business since once they stop paying they can stay for free during years
Thanks and good point! - I think the situation changes all the time, which is why it pays to put thought into investing