Insights of a noob:
10 things I've learned from 18 months in the financial services industry.
👇🧵
Negative compounding is a thing, it occurs from the buildup of fees and taxes over time (there is a link to an article which explains this in more detail in point 9).
@MavenAdviser summed it up perfectly in a recent podcast, 'financial success takes place between your ears, not on a computer screen'.
Over the long term markets do not lose money, however investors do.
A study found that over a 20 year period ‘the average investment return was 11.81%. The average investor return was 4.48%.’
You are not god's gift.
You can't predict the future.
Market timing is futile.
Day trading may sound exciting and you may feel like the Wolf of Wall Street - most of the time you are just mugging yourself off.
If you want to have an extra focus on a particular asset/market, dabble in that on the side, do not make it the centre of your portfolio (if you are unsure why, see point 4).
It may be the worst possible decision an investor can ever make, potentially wiping out a huge chunk of their net worth in one go.
Take a breath, step back and THINK.
If you are going to buy back in when the markets start to rise again, then YOU have acknowledged that it is just a TEMPORARY decline!
DON’T DO IT!
Learn the difference between volatility and risk and you will soon realise that the real risk is not being in the market.
This rings especially true for the financial media.
Sensationalist writing sells - unfortunately level headed, evidence based commentary does not. Learn to tune out the noise and crack on.
Spend less than you earn.
Pay yourself first.
Keep a close eye on fees and tax.
It drives home the importance of your savings rate and the impact of negative compounding (touched upon in point 2).
https://t.co/d30XxFjsWu
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If you want to become financially independent and don't know where to start, here is a thread that will help you get started
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1. Review your expenses and make a budget
It will help you see where you overspend, make a plan to save, pay down debt and start
2. Set your investing and retirement goals
How much do you need to support yourself in retirement and when do you want to
3. The earlier you start investing, the better.
Here's why and how time and compounding can become your
4. Invest in an index fund
It's easy, safe, cheap, and the best choice for a beginner in investing, with not much time for
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1. Review your expenses and make a budget
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Budgeting, the 50-30-20 rule, and the envelope method
— Kostas \U0001f468\u200d\U0001f4bc \U0001f4c8 \U0001f4b8 (@itsKostasWithK) January 6, 2021
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How much do you need to support yourself in retirement and when do you want to
The most important number for your retirement: The 4% rule
— Kostas \U0001f468\u200d\U0001f4bc \U0001f4c8 \U0001f4b8 (@itsKostasWithK) January 7, 2021
What Is the Four Percent Rule?
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3. The earlier you start investing, the better.
Here's why and how time and compounding can become your
The Miracle of Compound Interest and the Rule of 72
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//THREAD// pic.twitter.com/AOqd3kL6cn
4. Invest in an index fund
It's easy, safe, cheap, and the best choice for a beginner in investing, with not much time for
Jack Bogle, the Father of Indexing
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THREAD: Who are the rising stars of Chinese elite politics in the central Party-State bureaucracy?
For @MacroPoloChina I analyzed last year's ministerial-level promotions to posts in Beijing
TLDR: Ties to Xi Jinping—or a Xi ally—are very helpful! (1/14)
https://t.co/kO2A0Efyq2
Seven politicians were promoted to ministerial-level positions in central Party agencies last year
All are likely to feature on the next Central Committee selected at the 2022 Party Congress
Some could make the CCP's elite 25-person Politburo (2/14)
https://t.co/kO2A0Efyq2
Likeliest for the Politburo is Meng Xiangfeng, new Executive Deputy Director of the CCP General Office
He would replace Xi ally Ding Xuexiang as CCP chief-of-staff if Ding is promoted further in 2022
Meng worked under Xi allies Cai Qi in Hangzhou and Chen Xi in Liaoning (3/14)
Less likely for the Politburo but still important is Jiang Jinquan, new Director of the CCP Policy Research Office
He replaces 5th-ranked leader Wang Huning who led the Party's brains trust for 18 years
Wang remains prominent and will be <68 in 2022, so he'll stay around (4/14)
Other notable central Party promotions include Li Shulei and Liang Yanshun, who both assisted Xi when he led the Central Party School from 2007-2012
Li is a political conservative who is said to be quite close with Xi, even drafting his 2014 speech on culture and art (5/14)
For @MacroPoloChina I analyzed last year's ministerial-level promotions to posts in Beijing
TLDR: Ties to Xi Jinping—or a Xi ally—are very helpful! (1/14)
https://t.co/kO2A0Efyq2
Seven politicians were promoted to ministerial-level positions in central Party agencies last year
All are likely to feature on the next Central Committee selected at the 2022 Party Congress
Some could make the CCP's elite 25-person Politburo (2/14)
https://t.co/kO2A0Efyq2
Likeliest for the Politburo is Meng Xiangfeng, new Executive Deputy Director of the CCP General Office
He would replace Xi ally Ding Xuexiang as CCP chief-of-staff if Ding is promoted further in 2022
Meng worked under Xi allies Cai Qi in Hangzhou and Chen Xi in Liaoning (3/14)
Less likely for the Politburo but still important is Jiang Jinquan, new Director of the CCP Policy Research Office
He replaces 5th-ranked leader Wang Huning who led the Party's brains trust for 18 years
Wang remains prominent and will be <68 in 2022, so he'll stay around (4/14)
Other notable central Party promotions include Li Shulei and Liang Yanshun, who both assisted Xi when he led the Central Party School from 2007-2012
Li is a political conservative who is said to be quite close with Xi, even drafting his 2014 speech on culture and art (5/14)
