An unusual recommendation perhaps but recently I've been thinking of starting a small online business. Investing in that seems to offer the better risk to reward ratio. It also doesn't require a large capital to start. Consider that perhaps?
I don't have time to start a business, otherwise I wouldn't ask (see the title). I just look for ways to make it more with doing one time jobs (like investing, buying selling etc.) which I don't have to do the thing on a regular basis but one time and make it 51k after some time, for example.
When I say small online business, I was thinking more along the lines of drop shipping or novelty items from china which you can resell. There's a big difference between the effort required for a startup and populating a shopify account...
If you're after no effort at all, then investment is probably the best advise you would get. But that does carry some risk. As always, the risk/reward ratio...
Me too. Low fee index funds always seem to be the generic answer but after reading many articles and a couple of books about it, I am still not convinced. It seems to me that the rate of return has a lot to do with when you enter/exit the market and it is well known that you can't time the market so how is this different than any other gamble? There was also a popular article(NYT?), which I can't find the link to at…
Consider the alternatives to the index fund: 1. Pick individual stocks and directly buy those. (A lot less diversification and a lot more hands-on management required.) 2. Hire a stock broker to invest for you. This is like #1 except now you are at the mercy of someone else whose interests you cannot be guaranteed to align with you. 3. Managed investment fund. Funds are diversified based on the discretion of the fund…
Oh I agree. They're a good deal considering the alternatives but they also carry a lot of risk. Less risk than individual stocks of even specialized baskets but a lot of people throw the term around as if its magic. Several source I've read also assume that you'll constantly be putting money into the market and never withdrawing it to actually buy that house you start this whole thing for. Withdrawing the money means your rate of return depends on which cycle the market is in when you do it and to get the best rate, you need to withdraw when its peaking. That's timing the market. That's misleading...
But overall, I agree with your analysis. It's a great vehicle for people who either lack the time or knowledge required for investing. If you decide that stock investment is the best way forward for you...
> It seems to me that the rate of return has a lot to do with when you enter/exit the market Most people "enter the market" continuously by depositing a percentage of their pay each month of their career and "exit the market" slowly and continuously during retirement 40 years later. The booms and busts in between become irrelevant and you're left with a nice and high average rate of return.
In fact, even if you started investing in an S&P 500 index fund at the top of the market right before the big crash of 2007 (financial crisis), you'd still have a very decent return today.
That article convinced me otherwise. I wish I could find it now because I'd love to get some input on the numbers that, I'm assuming, I'm reading correctly.
Me too. Low fee index funds always seem to be the generic answer but after reading many articles and a couple of books about it, I am still not convinced. It seems to me that the rate of return has a lot to do with when you enter/exit the market and it is well known that you can't time the market so how is this different than any other gamble? There was also a popular article(NYT?), which I can't find the link to at…
"There was also a popular article(NYT?), which I can't find the link to at the moment, that showed me that only if you invest in the market for around 30 years or more, can you get a decent return. To me that makes sense if you want to leave your kids a little something after you're gone but not for your own lifetime." What about investing for your own retirement? If you start investing when you begin your first job…
I'm already in my early 30s and my circumstances did not allow me to start investing in my 20s even if I had the knowledge. I won't get into it now but it wasn't possible then. So that means I can only start investing now. Assuming that you do follow the expected timeline, what does retirement mean? Spending money for when you're no longer able to work? That assumes that you actually own your own home and only need spending money + medical expenses. And how can you unless you've invested in your 20s plus have you seen the current real estate market(Australia)?
I'm not sure I have a specific point except to say that the math stops working unless you follow the exact path expected.
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Dear Sir, SEEKING YOUR IMMEDIATE ASSISTANCE. Please permit me to make your acquaintance in so informal a manner. This is necessitated by my urgent need to reach a dependable and trust wordy foreign partner. This request may seem strange and unsolicited but I will crave your indulgence and pray that you view it seriously. My name is. DAN PATRICK of the Democratic Republic of Congo and One of the close aides to the for…