The truth about preparing for retirement


I’m amazed by the proliferation of articles and content on methods to make big money online. On forums, ordinary men try to give advice on which broker to use, which product to buy.
The truth is simpler. People simply want to earn commissions on your investment. The more you trade, the more they earn. The more you buy into mutual funds, the more fees you pay to agents. Investments should be boring. Put your money in a globally diversified fund and leave it there. Do not move money. Companies layer fees when you try to move money.
Start young, have a long investment horizon. Go for globally diversified passive funds. I like ETFs in Singapore because we cannot buy Vanguard funds direct yet.
Avoid actively management funds. I wrote a few articles consolidating evidences on why active managed funds don’t work.
Also read vanguard’s studies. See the truth about active funds here. Don’t trade actively. Don’t invest in active funds. You are simply funding the high salaries of managers. More than 80% don’t even beat the benchmark market returns.
There are only 3 simple steps to investing:
  1. Save monthly, 20 to 30% is a good figure.
  2. Invest the money in index passive funds.
  3. Leave it. Don’t touch the pot of gold.
Run away from people who are trying to sell you active investments. Don’t even talk to people who want you to believe trading leisurely will make you rich. Let your money work for you. Leave your money in a passive fund.
Below you can see few examples of low-fees passive funds: