Відео

I think this format is great. Keep going!

Thanks for handing in your portfolio Lorenzo! Feel free to add context below.

Share your thoughts on the portfolio below 👇🏻

Market cap filter is too high. FB can't 100x. Small cap companies should be the focus.

Been investing for about 14 years. Biggest lessons: - always think about risk management - I've made some very good investments only to have to offset profits against 'stupid' losses (yes, I'm looking at you China, Russia - you *_were_* definitely 'cheap for a reason' (lesson learned the hard way!)) - low-cost ETF's are a great place to have the bulk of your 'retirement fund' - especially long-term - but stock-picking is fun and interesting! So I have 30-40% in now well-researched individual stocks. And they aren't doing badly - but I now stay away from the 'Next Big Thing'. I'd rather own part of an efficient company with a proven track record, willingness to evolve, with a good management (do your research on this!) that's in a niche in the market with no disruptors on the horizon (nice moat) - than potentially fomo hyped 'promise of riches' - avoid panic-selling - but don't hold onto stuff that closer scrutiny will tell you is actually flawed - your ETF's should generally not be tinkered with/timed; but keep an eye on all your individual stocks: something that was great when you got it, might start to go off the boil or suffer stronger competition Excellent content, as always, Rene. Keep it up!

Learn about the market and understand yourself. You might want to auto-invest in a low cost ETF if you're more of a hands off type of person.

I am a Malaysian working in Singapore, no capital gain tax in both of these countries.

If you've been investing for more than 5 years, share your #1 tip for new investors below.

Inflation is typically compounded over time. This is similar to how interest compounds, where each year's inflation rate builds upon the previous year’s inflated amount.

I was astonished when he said 1000 USD is an average amount on an average income. Then he said he is from Germany and suddenly it all made sense :D

In Ireland the exit tax rate for a mutual fund is 41%. Capital gains tax on individual shares is 33%. Tax on drawdowns from pension funds is the income tax rate.

I talked with a coworker about this. And her reply was, what do i need 1 million dollars for when I'm 70? And she's kinda right. Most old folks are rich, but you need money in your 20ies not in your 70ies.

There are mutual funds that operate i EU and pecause they operate in EU I owe no taxes when I realize the investment. I live in Bulgaria.

Such a high value video. thank you so much

cgt should be zero. we take all the risk. ireland has 33% cgt

Passive investing just means you are not actively managing/changing your investments. It could be one stock or ten thousand. I think you're confusing the initial choice of stock/index/etf with the subsequent passive investing.

In Croatia, if you hold something like a stock/ crypto, something from the financial market for more than 2 years you pay 0% tax on capital gains. You can move money around, you just can't cash out.

nah I just own a single all-world etf with all caps in it, no one could argue it's an active investment without also explcitly saying that there is no such thing as passive investing at all. Which at that point, you're just debating "what is a chair", it has fallen into semantics so hard that it long lost any utlity.

This is a wild amount of energy to devote to semantics. Saying you're not passive because you're betting the US Economy will grow over time is like pointing a magnifying glass at a tree because you're not quite missing the forest hard enough.

Hi Rene, great video, I have been telling people these points for years, thanks for making a consice video I can send people haha. Regarding me, in my passive/etf portion of my portfolio I try to be as passive as possible by tracking a world market index (ACWI) as this is the easiest and cheapst way for me to have a passive portfolio where I leave. This ETF has a high expense ratio, so I combine 3 ETFs (us, europe and emerging markets) in percentages they appear in the index(went over the excel with all of their holding for these haha), I stick with accumulating ETFs as this also makes my choices passive. In order to make this process as robotic as possible I have made an excel which tells me each month how much to buy which ETF. I am aware that there also geogrpahical/currency/other risks in my approach (emerging markets for example) but I sleep well at night. Expense ratio is also important as it can really make a differnce in your returns and all the thematic/active ETFs come with a high one.

You are right about the fact that often people are not fully aware of what they are actually investing in, but "passive" does not intrinsically implies "diversified". If I had a portfolio that's 100% invested in Apple were I invest 100$ every month (let's not delve into the complications of fractional shares), it that passive? I think so. Is that diversified? No. Is that a good portfolio? I think definitively not. Anyway, you underline some interesting points that one may not think about :)

Another interesting point on risk that many people don’t seem to understand when investing in ETFs strictly following an index (e.g. the S&P 500) is this: as a value investor you would like to buy (significantly) undervalued stocks with growth potential because this reduces risk (as „in the long term, the market is a weighing machine“ / reversion to the mean). An ETF that strictly follows an index, however, is constructed in a way that it, by definition, places the most weight on stocks which have gone up in value and much less weight on cheaper or undervalued stocks. Thus, the more expensive a stock gets, the more weight is placed on this stock, increasing the level of risk / downside potential of the index as a whole.

I think I am currently very passive. I have a Vanguard Isa and a Vanguard SIPP. Contributions are automated on the 20th of each month. I have a single fund, the Global All Cap VAFTGAG, which follows the Ftse All Cap benchmark and tracks the entire global market. I have no other funds. I don't believe in bonds. I currently have £10,000 in cash savings to tap into in the event of an emergency so I don't need to touch my stocks. I will retire in 20 years. Prior to retiring I will build a fund equal to three years living expenses so that I do not have to touch my stock on my initial retirement to prevent sequence of returns risk. I aim to draw 4 percent of my stocks each year to preserve the fund, spending out of my cash savings if the market is down and replenishing that when the market is doing well again. I feel this is as complex as I need to get and anything more than that is unnecessary and probably detrimental fiddling.

Great video Rene. This is an aspect that no one is ever really talking about. Thanks for shedding some light on this! 😊

Taxation is theft! Zero capital gains tax is best. Govt is criminal

No, you can do that. I had 3500 and i did it to 400 000 in just 2 months. And i lost this even faster to 40 000 and then to 1000 eventually. Mistakes were made but i did 400 000 so it's for sure possible. But it's very hard and you need also luck.

You are totally right about all those points, Rene. What ETF's, when to get in, proportion of capital allocation etc are all choices, fraught with worry, potentially influenced by emotions etc

Do your passive investing friends know what they own? Share an anecdote below 👇🏻

Poland. 19% flat capital gains tax on price gains and dividends. Introduced in 2003 as a "temporary" tax. 😀

Thanks

Israel 🇮🇱 25%

The BIGGER Lie.. misleading actually.. that $2.2M is only worth $1M in today's dollars when adjusting for inflation.

The way the market can fluctuate is a harsh reality. For example, if you were saving for 30 years as in the example with the goal of using that money in say, 2010 or so, you would be pretty upset by what had just happened.

straight to the point! Yet lots of information 🙏🏼 Great video again Rene

My returns have improved tremendously since I implemented strict DO NOTHING rules. I cannot have an annual turnover of +20% (hard rule).

We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.

How is 1000$/month an "average" amout of money to invest? If you're investing 10% of you income into a index fund for the long term you would need to be making 120k$ a yea after tax (in america that might not be too crazy, but im pretty sure its not average. In my country the average salery is 28k€ gross. 16k€ after tax).The interest of 10% also seems somewhat hopeful.

You missed income tax on reinvested dividends

Also include inflation and buying power, that would further reduce tangible profit

My wife and I now own eight 2-bedroom apartments in Romania and we rent them all. We did that by starting with two and investing the rent money + some of our own money in the stock market (BVB - Romanian stock market). Here, the tax is 1% if you hold it longer than 1 year and 3% under 1 year. We just took out everything and bought another apartment as soon as we could afford it and put a new rent to work in the stock market. We are now investing about 5k euros/month looking forward to our 9th apartment. This is compounding for us, making sure inflation doesn't eat our profits this way. Your 2%/year is wishful thinking...the average over 10 years is about 3.3% and it will probably be more in the future. Owning real estate and renting it will always go up with inflation prices and no recession will make a dent in my net worth.

SO what you do is what I am doing which is Pay the £1000 into a pension. In the UK the government will top that up by 40% (as I am a hgiher rate taxpayer but if lower rate it is still 20%) and then you can draw down 25% tax free when you get to retire. No CGT but you do have to pay tax on the taxable amount thereafter. The other alternative is to put the money into an ISA and then you get it all tax free and no CGT.

1:38 Channel Name :D

What's your favorite valuation method?

Inflation, inflation, inflation. Not only is it helpful (and depressing) to look at purchasing power at your contribution horizon, but also how the value of those investments will decline over the next 30 years while you're withdrawing. Folks like Dave Ramsey, who say you can take out 10% of your portfolio every year in retirement in perpetuity and be fine, are just plain wrong. In the very best of scenarios, you may be able to perpetually withdraw 10% each year (but it's highly unlikely), but the purchasing power of that 10% will decline over time, most likely to the point where it won't meet your needs.

investing makes other people richer. Just live life and let the state pick up the tab in the end

Well done ❤

Kardden Token and amazon signed a partnership. It will blow up once it hits mainstream.

Thanks I bought Kardden and I can't be more happy about it

Thanks, please make another video about Kardden I prefer Kardden that is strong

All guys stacking Kardden Token before next bull are smart apes for sure