ETF Exchange Traded Funds (ETFs) 2021

What a terrible list. As soon as I saw UMAX there, I suspect the others I hadn't heard of would be similarly terrible. 0.5% fees for bonds in the current market

 

Interesting post from Accidental Fire

My System

For new or even semi-new readers, I reached financial independence and semi-retired in my mid 40’s using a very basic and simple index fund strategy. I had no inheritance, no real estate deals, and I only dabbled in buying individual stocks for a while in the 1990’s and early 2000’s with mixed results and some lessons about sunken costs.

I found researching and buying stocks too time consuming, which costs money by the way, and frankly not much fun. So for the past 18 years or so I’ve literally spent maybe an hour per year on my investments. That’s time in my pocket, meaning I’m maximizing my returns.

Most of that time is doing my monthly spreadsheet update to get my net worth, which takes about 3 – 5 minutes. I still have my original excel file that I started in 1997, she’s now 24 years old and on her own in the world.

She’s also a very flexible tool that allows me to make nifty charts with a few clicks, so let’s get to it

 

Time Horizon is Everything For Investors

Your view of any sector, factor or stock will have a lot to do with the time horizon in which you’ve been invested in it.

This is true of the stock market at large as well.

The shorter your time horizon, the higher the likelihood you will experience losses. And the longer your time horizon, the higher the likelihood you will experience gains.

 

More detail such as this is required @Redwing.

 

Yeah, nothing is happening.

It's soooo good.

 

Given that losses hurt twice as much as gains, the less often you check the better....

 

Hi all long time lurker first time poster… I am finalising an equity release with the aim of debt recycling and want to buy some etf’s. If you had $300k to invest would you dollar cost average over a certain amount of time or go all in at the one time? Might be too scared to chip in that much in one go.

 

Gains hurt?

Or losses hurt twice as much as gains feel good

Stock goes from $20 to $30 - Investors

Stock goes from $20 to $40 to $30 - Investors

 

There are many, many articles on that aspect. DCA is viewed as more psychological (I don't feel so good taking a lump sum risk.)

Here is one article from earlier this year. As I said plenty more are around if you do a search.

Dollar Cost Averaging Vs. Lump Sum Investing—How To Decide

 

Loving the divis from ETFs coming in...can't thank enough to the PC users guidance.

@Ian87 - I was in similar boat may be 12 months ago...alot of info here on DCA vs lum sum. I can understand the reservation for.market being hot but do some sort of scenario modelling on fees.and return with lump sum vs DCA with your preferred etf. Good luck

 

There's been a few similar threads on this

$200K - Aiming to dump in ASX (Local/International/ETF/Direct Shares)-SMA/MF or likes of CommSec

I think it was @Zenith Chaos who also mentioned a DCA % strategy, but I cant find the thread

 

Thank you will do some reading. I get the rationale for both, think dca is just a bit less scary!

 

this is how I’ve felt on the couple of occasions I’ve had the choice, despite knowing statistically lump sum gave superior returns.

In hindsight would lump sum have given me a better return? Yes
Do I regret it? Not at all and would dca if I were in that position again.

It’s a personal preference and everyone is different

 

Plus how often you peek and see if it's gone up


...........or down.

 

Of course you could place all of the funds with an expert. If so this will be of assistance.

 

@Ian87 I just remembered I did keep the thing. An exercise I did based on STW with $2k per month. It is definitely not sophisticated at all. Plus I was bored at the time

 

This guy has written some good articles on DCA and other strategies.

Why Buying the Dip is a Terrible Investment Strategy – Of Dollars And Data

 

S&P500 last decade

 

Hi Ian,
All the studies say that Lump Sum beats DCA but if you are only starting out the psychological worries will make dollar cost averaging easier to do than all in at the start.
The only issue will be in 12 months time you will probably look back and say that I should have lump summed the lot.
That’s what I’ve found anyway.
Cheers