Why you should invest only for the long term

long-term-investingIt is often recommended by financial advisors that people should only consider investing in stocks and shares if they intend to not need the money within the next five years. The main reason for this is that the stock market can be very volatile in the short term. For example, the United States’ S&P 500 index lost nearly 40% of its value in 2008. This would not have been a good outcome for an investor wanting to utilise investments in this fund shortly after the drop. However, there are other benefits of adopting a long term approach to investing, which are often overlooked or which are not widely taken seriously. Continue reading

Standoff and Stocks Selloff – Should Investors be Worried

newsweek - equitiesAs Donald Trump and North Korea’s Kim Jong-un keep threatening to have a showdown, the press cannot help but to sensationalise these events in-order to try and predict how the stock market will perform or justify how the markets have performed. It is surprising how potential events in Guam are having significant interest across the world. Here are a few headlines from the past few days: Continue reading

The power and benefits of FU money

FU money

Among the many stages towards financial independence, one of the most important is accumulating enough F-you (FU) money. FU money is when you have accumulated enough savings to enable you to temporarily leave your job without worrying about where the money your next bills will come from. Theoretically, you will be able to sustain your current lifestyle for a certain period of time which you are comfortable with; for example for six months, up to a couple of years or even several years. Here are some of the benefits which workers can obtain due to the power of FU money. Continue reading

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