Investing wisely remains a mystery to many people. This is understandable, considering the many types of “investment” types out there; from stocks and shares, dividend stocks, gold, property, peer to peer lending and even the recent cryptocurrency craze. There is way too much information out there which can leave things looking confusing. This was my state of mind until a few years ago when I learned how to invest in the right way.
My lightbulb moment came at the height of the great recession in 2010. I had been working at my first professional job for three years. At that point I realised I was worth more as a baby than I was at this time. My net worth had not increased over this period due to financial illiteracy and lifestyle inflation. This was shocking to me and I decided to turn things around.
At the beginning I was afraid of investing in stocks, so in 2010 I purchased only £50 worth of a fund which tracked the UK FTSE stock market index and set up monthly payments of £1. The fund was provided by a finance company which is a household name so I felt more comfortable, even though their annual management fees where 1%. The 1% may seem low but it is extremely high considering that, with other providers, these fees can be as little as 0.07%! Over the long term the difference could well add up to be thousands of pounds.
After a couple of years, I looked at the performance of my mini portfolio and I was amazed. The value of the fund had increased by more than 30%! I regretted not having invested larger sums into the fund but the past was the past. Immediately I knew I was on to something here. Education was the next step. I started reading all the top investing books and letters I could find. From learning more on online groups such as the Bogleheads, inspired by Vanguard Investments founder Jack Bogle to dissecting Warren Buffett’s annual letters to shareholders since the 1970’s I absorbed all the knowledge I could. On top of this, I am an avid follower of developments within the financial independence community.
All this knowledge led to the establishment of my financial independence fund. I sold off the UK FTSE fund I had and moved the money into a globally diversified portfolio of ultra low cost index funds. This dramatically cut down the portfolio’s cost of investing, reduced volatility and boosted returns. I am convinced that this sort of investing is the sure way to wealth building and achieve financial independence. As proof the percentage returns of the portfolio compared with other well known benchmarks (USA S&P 500, Warren Buffett’s Berkshire Hathaway, UK FTSE All Share, average UK savings account interest rates) are shown below.
|My Portfolio*||S&P 500||Berkshire Hathaway||UK FTSE All Share||Cash savings|
*annualised return of +10%
What you will get
One-off package and Access to:
- How I select specific index funds to invest in and constructed my globally diversified portfolio
- View the specific funds inside my portfolio, their low management fees and dividend yields
- Model investment portfolios
- How I track my net worth (video and template)
- How to use advanced tools to determine how long an investment portfolio can last and safe withdrawal rates (video guide and links to the tools)
- Live price data of stock market indices and currencies relevant to recommended investment strategies
- Top investment and retirement calculators
On-going for 1 year
- Quarterly newsletter – covering any important information such as fund fees, top articles from financial independence blogs, recommended finance/ business podcast episodes and government policy changes
How to sign up and cost
Hopefully this information can help you to improve your finances and set you on the path to achieving financial freedom. The strategy is definitely working for me and I am 100% confident in the information I have obtained from extensive research on this subject together with results I have witnessed from others following the similar approaches.
The entire service costs £30 for one entire year. To sign up for the investor guide package and quarterly newsletter click here.
This information is valuable and I wish someone had provided this to me earlier. It could mean the difference between your portfolio earning hundreds or thousands for you instead of your cash languishing in a 0.1% interest bank account or suffering losses in exotic investments.