K.I.S.S. investing (Keep it simple, stupid)

K.I.S.S. investing (Keep it simple, stupid)

What advice would you give to someone who’s on the fence about investing? I asked the RadReads community for their best tips, here’s what y’all came back with:

  • You don’t need a lot of money to start investing. Start now.
  • Don’t check your investments everyday (or even every week).
  • Automation = simplicity. Set up a recurring deposit and leave it.
  • Don’t try to time the market.
  • Understand that there’s no “magic solution,”¬†and this includes¬†passive investing.
  • The best plan is the one you can stick with (consistency > everything).
  • General baseline expectation = 6-8% as a long term real return of equities.
  • Passively managed portfolios > actively managed portfolios.
  • Learn how (powerfully) compounding works for both investments and for debt.
  • Retirement savings isn’t just for your 40s and 50s. What really matters is what you do in your 20s and 30s.
  • Buy index funds or ETFs. Fees make a big difference.
  • Learn the priority pyramid – start at the bottom and work your way up.
  • Don’t jeopardize your savings/retirement plan by experimenting with stock picking.
  • If you want to buy individual stocks, open an account at a low cost custodian with <5% of your investable assets and learn by doing.There is no better way to learn than by doing – even if it means losing some money.
  • Have humility.

Here are the follow-up links:

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Khe Hy
[email protected]

Khe Hy is the creator of RadReads.