Nov 11, 2012
This episode covers a lot of questions I faced getting started
in investing as a private investor and my own experience in
tackling these questions:
- Why invest (i.e. why not just leave your money in a bank)?
- Who is going to manage your investments, an external manager or
- Are you going to be an active investor (e.g. analysing
individual securities for value and trading more often) or a
passive investor (e.g. using index funds and trading less
- Which asset classes are you going to invest in (e.g. stocks,
bonds, precious metals, cash)? How will you allocate and balance
assets in your portfolio?
- Which individual securities are you going to select within each
asset class (e.g if you decide to buy bonds, which individual bonds
will you choose)?
- When should you start investing, within the context of your
overall personal financial planning?
- When should you buy or sell individual assets? Will you try to
time the market or will you automatically rebalance a portfolio
based on an asset allocation strategy?
- Where should you invest? Should you have geographic
diversification and if so, what kind?
You can also get more information about the concept of the
permanent portfolio discussed in this episode in Harry
Browne's book "Fail-Safe
Investing" and in many of the previous Voluntary Life podcast
episodes on investing.
As always regarding investment, do your own research. I am not an
advisor and this isn't advice of any kind, it's just my own
opinions based on my experience.