All in ETF
I interviewed a bloke for an upcoming episode of my podcast and he had a lot to say about investing in individual shares and why he used to buy them, but now no longer does. He took the advice of a good friend when she told him, back in the 1980s, just buy into today’s equivalent of an index fund and let time in the market be your money’s best friend. Low and behold, she was correct.
Every single day I receive emails from YOU about anything and everything that is playing on your mind in regards to money and I absolutely love responding to them. This week I thought that I would just give you a snippet of the queries I get because to me they are one of the main reasons I blog, to interact with other people who are thinking about PF.
When I realised that in order to become an investor I didn’t have to learn how to pick stocks it was like the clouds had parted and the sun had finally come out. And I have American John C. Bogle to thank for that. Last week he passed away at the age of 89 but he leaves a huge legacy behind and I know that in years to come many will still be learning from him, just like I did.
Since I began investing in index funds I have been thinking of selling my shares in Meridian Energy because they are the only individual shares I own now. But then I procrastinated, then I got busy, then I got a dividend payout and then I actually took a much closer look at them because I realised that this has happened, a steady rise in their share price.
The Barefoot Investor by Australian Scott Pape is an excellent book and it has been instrumental in changing the financial direction of not just Australians but also of Kiwis. Many people have asked me to work out what the Kiwi equivalents are of the providers he recommends. I’m not saying this is a conclusive list, but I’ve given it my best shot.
This week I sat down and took a bit of an ‘end of year’ look at how 2018 has been financially for our household. I don’t do this on a set date each year, I just felt interested this week so I checked it out. Being the over-sharer that I am I thought you may also be interested?
This question was sent in by Declan a while back, but it is one that crops up in my inbox relatively consistently as well, so I thought back to what I did and what I would do if faced with the situation he is proposing again.
I have reached a point where I’ve learned a bit more about myself. When I heard that the stock market had “plummeted” it actually didn’t unnerve me at all. Warren Buffet would say that I have not lost anything, because I didn’t sell, the value of my investments has simply changed and by my calculations, I’m down 4%. If I freaked out and sold then I would have locked in my losses. But I didn’t and I won’t.
I don’t subscribe to the view of “leaving my daughter to it”; that when she is old enough she can earn her own money and save for herself and she will miraculously become wealthy. In my view starting young, learning how money works and investing over a long period of time is the way to get ahead.
