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10 tips: how to make the most money when investing

Posted by Sam Instone
Feb 13, 2017

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[Estimated time to read: 1 minute]

DON'T speculate, actively invest or try to guess the market because:

  1. Almost all US, global and emerging market funds have underperformed since 2006.
  1. 99% of actively managed US equity funds sold in Europe have failed to better the S&P 500 over the past 10 years.10 tips how to make the most money when investing
  1. Only two in every 100 global equity funds have ever beaten the S&P Global 1200 since 2006.

Behaviour Gap 

DON'T save your money and expect it to grow:

  1. $13 today equals the purchasing power that $1 provided in 1926.
  1. If you’d saved $1 in the bank in 1926, you would have $21 today.
  1. If you’d put that $1 in long-term bonds, you’d still only have $132.

AES International Investment Code

DO invest your money passively, remain disciplined, cut costs and focus on the long-term:

  1. If you’d invested $1 in the S&P 500 index in 1926 you would have $5,386 today.
  1. In a study of the S&P 500, eight of the 20 best days happened within 10 days of one of the 20 worst days. Therefore, remain disciplined because jumping ship can cost you the market’s biggest gains.

Returns of S&P 500

  1. Index fund expenses are about seven times less than comparable actively managed fund expenses.
  1. Average passive investors earn 3% to 4% more annually than average active investors.

How you can make more money from your current savings and investments 

Most expats can:

  • Cut costs and fees.
  • Get more flexible, penalty-free access to their funds.
  • Make more money than they currently are by changing the way they invest.

If you’d like us to, we’d love to help you make these positive changes to your portfolio.

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AES International helped me and my family with their low cost no-nonsense approach.
Kristian Petersson
Chairman, KP Confidencia Ltd

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