10 tips: how to make the most money when investing
[Estimated time to read: 1 minute]
DON'T speculate, actively invest or try to guess the market because:
- Almost all US, global and emerging market funds have underperformed since 2006.
- 99% of actively managed US equity funds sold in Europe have failed to better the S&P 500 over the past 10 years.
- Only two in every 100 global equity funds have ever beaten the S&P Global 1200 since 2006.
DON'T save your money and expect it to grow:
- $13 today equals the purchasing power that $1 provided in 1926.
- If you’d saved $1 in the bank in 1926, you would have $21 today.
- If you’d put that $1 in long-term bonds, you’d still only have $132.
DO invest your money passively, remain disciplined, cut costs and focus on the long-term:
- If you’d invested $1 in the S&P 500 index in 1926 you would have $5,386 today.
- 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.
- Index fund expenses are about seven times less than comparable actively managed fund expenses.
- 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.