I wandered around the counters in a trance, staring at an incredible selection of food. I didn't know what to choose or even where to start! After what seemed like 20 minutes of wandering I decided I needed to limit my options. I decided to have soup and headed to the soup section. There were 20 different soup flavours to choose from. I nearly had a melt down. I was just hungry and tired! I needed food!
This is the paradox of choice. The more options there are the harder it is to make a decision. This was just deciding what to have for lunch! Can you imagine how I felt looking at investment options for the first time? Maybe you can?
What is an index fund? The language of investing can be hugely complex at the best of times! Even a simple term like index fund takes a lot to properly explain. If you want to feel confident investing then the first step is to build your investing knowledge and financial vocabulary. The more you understand something the more confident you will feel starting! Writing this article has double Katie and my knowledge about index funds! We hope it does the same for you!
The short explanation: Index funds give you an easy and cost-effective route to diversify your investments across the globe and partake in the growth of the global economy. Sounds sexy; but what the hell does it mean! What is an index fund? What is contained in an index fund? Which index funds should I buy? Why do I care? Let's get geeky together!
He worked for a multi-national logistics company and specifically in aviation. His area of expertise was airlines. So he had taken his money and invested it into aviation and travel companies. In March 2020 when Covid-19 knocked the stock market sideways his stocks plummeted. When the stock market recovered in May; his stocks didn't. He had the opposite of a diversified portfolio! What is diversification?
One of the most interesting questions I have been exploring this year is "If things continue as they are am I happy with the direction?"
To be able to answer that question you need to be able to know whether you are going in the right direction or not. The only way to do this is to measure something...….
Alan Donegan: PopUp Business School Co-Founder, Entrepreneur, Financially Independent Pizza Lover, Marvel Movie fan and soon to be Script Writer
I built this website to share the life lessons I learn along the way, the cool stories, the adventures, the amazing people and everything I learn from all the stupid mistakes I make! If you want to keep up to date then stick your email in below. I promise to never share your email address or spam you! Alan