Hi All,
I have been reading now this blog post and the comment,( newbie here). I am also new to this whole investment world.
I read some terms like VT. Many of you mentioned that you will invest in VT.
Can someone explain what is that?
Also where to invest in VT?
Also what the hell is this ETF and which ones are better to invest on?
Ok my story:
I never invested in my life other than having conservative approach of saving for home, kids, education, sudden need or any unpredictable situation or for family in need.
So I have been saving for a property to buy here and it’s so hard to get a right property. I missed many house or apartment just because one or two requirements were not matching. Now last year I thought of investing something so as a household we have around 40k in IBKR which individual stocks, around same I have invested in PF and recently invested 30 on Migros bank just because that guy in suit asked and I thought ok let’s do it. It was not fruitful. Hope this year it gives some benefits.
Okay so now I have some amount as cash which I am keeping for down payment but looks like getting right and reasonable property will take some time. Now I want to earn some money by investing and have no ideas where to start and what to do.
May I ask you
Should I consult someone on this? Is anyone willing to guide me from this community?
How much should I keep as a case and how much I should invest?
How much on bonds, stocks? What the hell os this equity? Is it same as stocks?
I am thinking to open 3a with finpension this year. What would you guide me with regards of investing ?
What VT should I invest on?
Should I keep POst finance shares or should I go to finpension for investment?
How can I put money on 2a?
Is there anything I can invest for the kids for long term?
Any investment platform or stocks you would suggest?
Can someone suggest some VT shares I can refer to
Last but not least any reading material suggestion for dummies on investing like me? I have biological background and more a feeling person than numbers. Now looks like I need to pull my pants when it comes to the financial or investment.
If you understand the french language, you should read the book from the creator of this forum and the forum « Mustachian Post », and then check if this book can answer all your question
I think that it is a good book for beginner in the world of a DIY investing.
Most people use Interactive Brokers to invest in VT. There are many topics on the forum regarding this.
ETF is an exchange traded fund. There’s no “best” ETF to invest in, it depends on your goals, risks you want to take, markets you want to invest in, etc.
What is “some time” for you? 3y, 5y, 10y? Investing in stocks should be done with a long horizon, at least 15-20 years, otherwise you have a high risk that you need to sell your stocks at the worst point, because you need it for the downpayment of your house.
How did you choose these stocks? Just gut-feeling?
Wow, you are the perfect client I’m sorry but how can you just invest 30k without any knowledge about investing?
Regarding your questions:
Consultation will be expensive and probably not worth for the amounts of money you have, also they’ll try to sell you their products with often high ongoing fees. In my opinion it is better to educate yourself by reading a lot and ask specific questions here as you already did.
Only invest what you can afford to lose. If you need money for a downpayment, it’s better to keep it in cash or other short-term securities.
Stocks is the same as equity. The allocation depends on your risk tolerance, investment horizon and many other variables.
Depends on how much risk you want to take, the more equity, the higher the risk.
VT is single ETF, there’s not different VT you can invest in.
Finpension is only for 2nd/3rd pillar money.
2nd pillar is your pension fund, if you are not self employed you can only put money in there by doing buy-ins into your pension fund or increasing your contribution if your employer gives you this option.
Personally I’d make the same investments for my kids as for myself.
I don’t understand this question, as said in 5., VT is a single ETF.
For me it sounds like you suffer from “fear of missing out” and want to invest as soon as possible to profit from the returns that everyone seems to make in the stock market. This is extremly dangerous and I would suggest reading some books about investing and especially risk first, before investing. I can suggest “The most important thing…” from Mark Howards and of course “The Intelligent Investor” by Benjamin Graham. Also the Bogleheads Wiki is a good resource.
@Burningstone shared lot of useful details! But most importantly the last sentence.
Sometime doing nothing is the best strategy. If you have not invested much so far. You can afford to sit on the sideline for few more months and understand how this works.
I suggest to read few books
The Bogleheads’ Guide to Investing
the millionaire next door (it won’t teach you much about investment but the importance of saving and preservation)
Let me try to give you an overview on some points.
The basic investment that most in the community do is passive, index based investing. The idea behind this is instead of picking specific stocks, you just follow the complete market. An index is something that tries to show the market. You might have heard of things like SMI or Dow Jones that went up or down. Those are indexes. Now there are several financial instruments which try to reproduce those indexes, what most use here are ETF (exchange traded funds). This is an instrument that you can buy or sell on the market with a broker such as ibkr. In general, passive ETF that reproduce such an index are a lot cheaper than a fund that a bank offers and in the end in most cases this results in more gain for you.
The simplest and most used way to invest in the total, worldwide market. VT is now such an ETF which represents this. So if you buy VT it’s as if you would own a piece of every worldwide public company. This is to reduce risk, one company might go bankrupt but over long enough time, it’s expected that all the companies together will make profit. Another one would be called VWRL, which is slightly different from a tax and inheritance point of view.
This now brings me to your concrete situation. There are a couple of points you should think about. Very high level there are two main asset classes that you can invest. Equity=Stocks=Parts of companies and the other are Bonds, which in the current situation are almost not worth it and instead you would just hold cash on a bank account.
Equity is the one that should hopefully make you gains over some time but it will fluctuate and there can be multiple years where you would have a loss. I would say Equity makes sense if your investment horizon is 10+ years.
Bond or cash are not fluctuating but will not really make you gains.
Now what you have to figure out are two things.
What is your investment horizon
What percentage do you want to have in Equity (the value can and will fluctuate, so this should be a percentage that you can still sleep even if the value goes down a lot for some time, can even be years)
Saw some other responses while I was typing me response, fully agree with them and it’s really about figuring out your time horizon and risk limits and avoiding costly investment vehicles of your bank/advisor and learning about investing.
You’ll find more information on the “emergency fund” by searching on this forum. Many recommend between 3 to 6 months of spending. It may vary based on your circumstances (family with 1 or 2 income, how many kids, stability of the job, freelancer etc).
What are your investments with PF ? A 3rd pillar ? Finpension is available only for 3A/vested benefits for pilar 2. If you have a 3A with PostFinance, you are totally free to close it and transfer the money to Finpension. It’s easy and fast.
Avadis could be an option. In comparison with main stream banks, they offer a chepeast alternative. The funds performances are interesting. The offer several funds. The proportion between bonds and equities will depend of your risk tolerance
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I’m sorry but how can you just invest 30k without any knowledge about investing?