Jan 20 2017, 09:25 PM
QUOTE(RayleighH @ Jan 20 2017, 08:52 PM)
I understand that earning through investing/trading is anything but simple. I would like to think that I am not greedy and do not look to make quick money, else I would definitely be in forex and actual stock trading.
However, everytime I research on methods to investing, I come across many who would recommended investing long term in index funds, particularly vanguard funds even for your everyday average joe/jane. Most of them mentioned that index funds:
1. In the long term would provide decent returns. Nothing too fancy, amazing nor terrible which is what I am looking for.
2. In the long term, it is rather stable due to their diversification (Equity across the whole US economy and the whole world's economy + Bonds which covers the whole US economy)
3. In the long term, if one can weather the major dips and not pull out, eventually after many years it will eventually recover. Whereas, one may stand the chance lose all their money in other types of investment.
All these points mentioned by other websites recommending Index funds make it sounds like it is something which one can buy and be relatively comfortable that it is quite unlikely to lose all their investment in the event of a major financial crisis, provided one can weather the downturn period and not pullout. That is why it seems quite interesting to me.
The only downside and blocker at the moment is the fact that I am earning in MYR which translate to the huge sum which is required in order to make the investment worthwhile be it through a US or SG brokerage.
I do acknowledge that there are risks involved by investing in index funds, although I may not be able to properly size/feel it due to my inexperience. Like you have mentioned "if u hv not seen the devil, u will not cry".
However, at the moment, I can only think of three major risks with regards to investing in Vanguard index fund ETF. Please do enlightened me on any other risks of investing in Vanguard index fund ETF.
1. MYR/USD forex fluctuation.
2. Risk of fees eating up profit if investments amount is too small.
3. US & World economy downturn (though, wouldn't this also affect other funds/investment types in other countries to an extent?)
if u are really a novice in investing, then u hv a good mind and attitude, imo.However, everytime I research on methods to investing, I come across many who would recommended investing long term in index funds, particularly vanguard funds even for your everyday average joe/jane. Most of them mentioned that index funds:
1. In the long term would provide decent returns. Nothing too fancy, amazing nor terrible which is what I am looking for.
2. In the long term, it is rather stable due to their diversification (Equity across the whole US economy and the whole world's economy + Bonds which covers the whole US economy)
3. In the long term, if one can weather the major dips and not pull out, eventually after many years it will eventually recover. Whereas, one may stand the chance lose all their money in other types of investment.
All these points mentioned by other websites recommending Index funds make it sounds like it is something which one can buy and be relatively comfortable that it is quite unlikely to lose all their investment in the event of a major financial crisis, provided one can weather the downturn period and not pullout. That is why it seems quite interesting to me.
The only downside and blocker at the moment is the fact that I am earning in MYR which translate to the huge sum which is required in order to make the investment worthwhile be it through a US or SG brokerage.
I do acknowledge that there are risks involved by investing in index funds, although I may not be able to properly size/feel it due to my inexperience. Like you have mentioned "if u hv not seen the devil, u will not cry".
However, at the moment, I can only think of three major risks with regards to investing in Vanguard index fund ETF. Please do enlightened me on any other risks of investing in Vanguard index fund ETF.
1. MYR/USD forex fluctuation.
2. Risk of fees eating up profit if investments amount is too small.
3. US & World economy downturn (though, wouldn't this also affect other funds/investment types in other countries to an extent?)
i can't comment on "vanguard index funds" becos there are at at least 25 of such funds:
http://www.marketwatch.com/tools/mutual-fund/top25largest
and those are US based, $ based. i would not put all in them but over a variety of markets, currencies and types - diversification is impt.
yes, the world is round... nothing is ever the same. more so with fast tech now, cycles are shorter, reactions in seconds rather than hours or days.
what i can say... something close to my own learning over the years...
one's "investing lifespan" is maybe... 30 years? the time you start to earn and save enough till the time u have no fulltime job... say 30 to 60...?
30 years will invariably see at least 2-3 cycles of boom, recession, (maybe superboom or depression) in stocks, real estate, gold, commodities, fx, etc. - foreign or domestic. over 30 years, one will never get it right all the time for all cycles. the key is to be able to spot a couple of cycles correctly and with some "luck", ride on them when they occur. ride on the disasters, u lose big time, never to recover. and too old, run of out time.
if one is able to have success in more cycles than in failures, that's enough.
to be an overall winner over 30 years is to be an angel, good enough... no need to be god!
of course, the conservative ones can stay in savings and fd, only to be oblivious to what happened, which is OK too.
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