For early investors, it can be hard to figure out WHAT to buy.
You know you like a few companies, but you don’t know if together they’re a good idea.
That’s where studying ETFs come in 👇🏻
Firstly, what’s an ETF:
Like index funds, ETFs are a fund of multiple stocks. Some have 100 holdings, some less or more. But they give you good diversity matching an index or sector.
Even for experienced investors they can be a great catch-all to passively invest.
👇🏻
There are 2 main types:
Passively managed (cheaper fees) — like $DGRO
Actively managed (more expense because they are closely managed with more buying/selling activity to try to increase the fund earnings) — like $ARKK
They’re boring, they don’t really grow, and they pay... almost nothing.
Let’s go through a few types of bonds — AND why I currently hold hold them (*disclaimer - not investment advice for YOU)
1️⃣ WHY?
Current savings account interest rates are low. Like REALLY low (Ally just lowered to 0.60% down from 2.25% two years ago or so).
Inflation is pegged around 2%. That means your bank is actually losing money over time.
It’s like having a hole in your wallet...
👇🏻
This is where bonds and bond like funds come in, for me.
After talking with @andyisom100K and @javyandrade , I started tinkering with a portfolio of several types of these funds to park some of my savings (not all!) — to allow it to grow.
Precious Metals (Gold, Silver) have been a 🔥 topic lately with the wild US monetary policy —
Here’s a breakdown of all the ways you can invest in precious metals, as well as whether I think it’s good investment (for me).
\*thread*\ ☕️
There are generally 3️⃣ main ways to invest in precious metals:
• Physical metal (coins, stored gold, etc)
• ETFs that track the spot price of the metal (and shares are often backed by physical metal)
• Mining companies 💰 ⛏ — they dig the stuff up and sell it.
First, the physical metal —
Some people love collecting gold and silver coins or bars.
The upside is you physically own it!
Two issues I don’t like: You need to safety store it (get a good safe or pay someone) and they’re hard to move (not very liquid if you want to sell).