I have thought about that but the returns are so low it’s like what’s the point.
Historically the s&p returns ~10% when you reinvest the dividends. That’s way, way better than letting it sit.
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Better than letting it sit (bank interest nowhere near inflation rates) and more beneficial to you over the long run than the best stock pickers. When “the best stock pickers” succeed, it’s sheer dumb luck, unless there’s insider trading, which is illegal. They’ve done comparisons of actual monkeys with dart boards vs. “top investors” and the outcomes overall averages out to be the same. Put your money in an index fund.
Index funds are better than the average investor / stock picker / financial professional, but no, not better than the best - the best do much better than the index, but there’s not many Peter Lynchs and Warren Buffets out there.
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I read about this guy (Sam something) who’s like barely 2 years older than me and he’s got like $20 billion in net worth. All he does is trading cryptocurrency. Really makes you wonder what’s the point of living.
If anyone knows a good English-speaking financial guy to help with a salary that’s ok for Taiwan, but piddling for North America, and to explain the international options (in my case Canada), I’d love to know.
I’ve been greeted with “God I dunno” shrugs in Canada from people who deal with my income bracket, and for those who deal with international “expats,” for lack of a better word, what I make is a rounding error.
This guy is super smart,he just applied it to getting rich in crypto but he would be rich all the same.
The dividends thing and investing in the stock market works best for Americans because of their tax system and US stock market doing well over the years. It can work well for foreigners but it’s not optimised for us. For instance foreigners get charged tax on divdends and can’t offset by 401s etc.
I don’t know of anyone, I’m sorry. I learned of my person through talking to a coworker who had someone who handled his father-in-law’s significant holdings and, as such, “lowered” himself to deal with my coworkers’. Through this connection I started working with my guy, who correctly realized that I might be a good long-term client (and probably wanted to keep my coworker (or his father-in-law) happy).
It’s an uncomfortable conversation, but you might just ask every Canadian you know to see if they have someone they could recommend. With a personal connection to a good client, they might take you on despite the lower ROI they might get from you.
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Yeah probably. It’s incredibly depressing. Here I am thinking about what to do with like an unsubstantial amount and he’s got $24 billion.
Yeah it feels quite pointless.
Still not too late. ETH is still a bargain.
You would assume that people who save money for retirement aren’t investing it for any kind of return?
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It’s certainly a hell of a lot better than stuffing it in the mattress.
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There wasn’t enough context.
I think it’s worth bearing in mind that the dividends on, say, the S&P500 are low and falling over time. I pay the standard 30% foreigner tax on them but it’s not a huge deal compared to the total return (including price increases). The migration from dividends to stock buybacks is a really good thing, for me, because of this.
If you’re a dividend investor it’s obviously a bigger problem, but I’m pretty unconvinced by that strategy anyway.
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If you are Taiwanese you can take advantage of domestic investment. Many Taiwanese corporations pay decent dividends in range of 3 to 5% and Taiwananese residents pay no tax on domestic dividends. Can buy stocks directly or maybe there is a local ETF available for low yearly fee (0.3% or less).
Avoid active mutual funds cause they charge hefty fee (like 2% yearly + others). By compounding calculation this is like 30% of your 30 year profit. Google for more
To adjust to currency risk have
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- 35 % in Taiwanese corporations ETF (cause is your currency)
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- 35 % in american SP 600 small cap ETF. Is best index you can invest in USA. Sp500 has very low expected returns for next 15 years.
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- 30% in international small cap value ETFs (index is like 20% Japan, 15 % UK, 7% Germany…)
Do dollar cost average (every month same amount invested). So January you buy 1 ETF, February 2., March 3, April 1.
You can expect an average of 8 to 10 % yearly returns with max downswing of 60%. Which will happen 1 to 2 times in 15 years.
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I have a feeling that this is just around the corner.
Plenty of us do. But you should still stick your money in an index fund, because trying to time the market makes you poorer in the end. Do it in monthly chunks, if it makes you feel better.
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A lot of people have been waiting for the next big market correction for the last 8 years or so, before they jump in on a bargain…
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No one can time the market. This is why average dollars strategy works. You get in when stocks are expensive and when they are cheap too.
Over long run your timing risk is minimalized
Investment sounds complicated, cause a lot of people try to make a living on that hype. TV hosts, newspapers, mutual funds sellers, politicians.
What is best approach to live long life?
Eat a lot vegetables and exercise.
And we have people write books on thousands pages about diets.
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Actually, in the early oughts Warren Buffet made a bet that index funds would outperform the best investment funds. Almost lost back in 2008-2012, but he was waaayyy ahead when it came time to pay up a few years later.
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