Money is probability the second most important thing after health, and unfortunately, in today’s society sometimes you need money to afford health.
Everyone is saying Passive Investing is the best for the average investor, but they never tell you what index fund to buy and more importantly when exactly.
Just holding an index fund for the long term can be actually a mistake and if you’re in the wrong index at the wrong time, it can take you 5, 10, or even 15 years just to break even…
Let’s face it, most people do more research about buying a new car, restaurant or TV, than investing for retirement or any other major purchase, like house, etc.
If you think about it, the average portfolio is either at all time high or losing money (so called period of a drawdown) and the next crisis is always around the corner, could be this year, or next, but it is coming, make no mistake about it...
In last 20 years or so, we had 2 major black swan events resulting in two 50% drawdowns and drawdowns are very important to avoid, because the market might remain under water for very, very long period of time, just check Japan, the strongest market in the world at the time, is still almost 50% down from it's peak for 30 years and counting! Imagine being buy and hold investor about to retire...
On top of that, every 50% drawdown or loss will require 100% gain, just the break even.
In the end, the Passive Investing is an active decision by itself and we are here to help you do it the smart way to avoid the losses you cannot simply afford.
It gets even worse at the bottom of a recession/financial crises. This is where people lose jobs and needs those funds to survive and if you are down already 50% and take half of the rest to live off until you find the next job, there is no coming back from this as if you are down 80%, you will need 400% gain to break even.
In the end, the Passive Investing is an active decision by itself and I we are here to help you do it the smart way to avoid the losses you cannot simply afford.
We are just starting, so please visit often, enjoy the site and let us know what you think about it.