For an overview of which Index Fund to choose start here. This article is to help you decide whether to invest in the Vanguard Developed World Ex. UK Fund or the Vanguard FTSE Global All-Cap Index Fund and what the differences are!
âWe are going to break down the differences between the two funds and, given that nearly all of our money in invested in the Developed world fund, whether we are going to change that going forwards.
I didn't notice the weight slowly piling on week by week. A year passed and I was obese! I hadn't noticed the small change each week until it was too late.
Fees are very similar. They are small enough that you don't really notice them at the time, they are hidden from you and they just gradually erode your wealth over time. You wake up a decade or two later and you aren't worth what you thought you would be! Fees are the hidden element in investing that makes everyone else wealthy apart from you! Let's tackle fees together
Therefore success is determined not by the elimination of problems but by how you react to them. This week I and Katie have had some problems. The Donegans are human after all. It is how we react that is important.
You panic, close the laptop and go back to watching Netflix! When Katie and I started to look at the Vanguard site to choose which fund we had several false starts and were nearly put off investing! Open up the Vanguard site and let's go through it line by line together...... (this is the UK site but most of the terms are the same globally)
In fact all of us have access to this knowledge. We have YouTube, the internet, podcasts and a wealth of knowledge that our ancestors could only have wished they could have access to. So why aren't we all millionaires with Lamborghinis and philanthropic foundations that cure diseases? Is more information the answer?
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...….
The first thing I did was create a graph obviously. Scroll down to see which way my belly is heading! And FAR more importantly to start to think about where you are heading? Where's your destination is likely to be? Are you are going to like it or not!???
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