TV Show Review: How to retire at 40 on Channel 4

On the mainstream media, it is quite rare to find anything related to gaining Financial Independence (FI) or early retirement. This is why I was very excited when I found out that Channel 4 (UK) would be showing a show called How to retire at 40. I assumed that the programme, presented by Anne Richardson, Rhik Samadder and Sophie Morgan would give a few of the secrets already well known and discussed in the FI community. However, I was really disappointed with the show and Continue reading

Top 5 Portfolio holdings – Pacific Ex-Japan Index Fund

pacific regionThe fifth and final world region to be considered in the index fund top 5 holdings series is the Pacific Ex-Japan index fund. This fund tracks an index which represent the biggest companies in Australia, Hong Kong, New Zealand, and Singapore Oceania region. This fund excludes Japan which has its own index fund as detailed here. This fund employs a “passive management” investment style, a strategy which is designed to track the performance of the index by investing in all, or a representative sample of the securities of which the index is composed of. Continue reading

The true cost of home bias and currency risk on investments

 mount rushmore us presidents.When looking at stock market investment returns all is not as it initially seems. The returns of the separate funds within your personal portfolio can vary drastically from the actual returns of the underlying funds. This happens if your holdings are diversified; when you are invested in funds from different regions across the world.  The main reason for the difference in performance is the impact of risk caused by the variations in global currency exchange rates and Continue reading

A dollar of passive income is worth two of active income

paasive-income-new-pound-coinImagine getting paid without lifting a finger or breaking some sweat. This situation is a dream to most people and very difficult to achieve without being fortunate enough to win the lottery, receive some inheritance or some other windfall. For the rest of us, it is up to hard work, saving hard and strategic investing to achieve this status. Passive income is the holy grail in the personal finance space and in this article I break down how valuable this type of income really is. Continue reading