Weekend Reading – Best Bond ETFs & 9 Biggest Mistakes Millennials Make
Weekend Reading is a collection of Investment Research and Lifestyle topics from all corners of the Web.We source the highest quality insights from Wall Street and Main Street that you may apply to your investment process. Unlike the rest of Bankeronwheels.com, this series is provided without additional guidance. As usual, everything is to be used at your own risk. Below is the type of content we shortlist.
Invest Wisely section is dedicated to research on how to invest for the Long Run using Passive Investment Strategies. Read Topics related to (i) Portfolio Construction and Asset Allocation (ii) Acting wisely by avoiding behavioural traps and also (iii) publications that help understand how financial markets work.
Active Investing section relates to improving your knowledge about active investing. If you decide to sin, then sin only a little. Given ample evidence, combined active bets should be ideally a relatively small fraction of your portfolio. This section also includes Sustainable Investing. You can invest in a Socially Responsible way, but there are many ESG traps. Learn how to invest sustainably, and what it means for expected returns, with our definitive guide to sustainable investing.
Personal Finance section is dedicated to UK and European Products. It can also touch on other European jurisdictions outside the Euro-zone.
- Recommeded Reading
- Youtube (Required watch time)
- Podcast (Listening Time)
- Academic Research - May require intermediate/advanced knowledge
- Noteworthy Twitter Thread
If investing wasn't hard, everyone would be rich.
INVEST WISELY
CONSTRUCT YOUR PORTFOLIO
No time to risk- how to pick a bond ETF for the long run (Bankeronwheels.com)
Bond Yields are at decade high, but Bonds are also a shield for your medium and long-term portfolios, including when deflation strikes. This makes them a mandatory component for any portfolio.
Explore how investment horizon, geographical diversification, risk & return tradeoff & the specific ETF characteristics are important pillars of selecting a long term Bond ETF for your portfolio.
We also have a list of Best ETFs.
- Why Aren’t Investors Selling Stocks to Buy Bonds? (A Wealth of Common Sense)
- Market Cap (Weighted) Hated Indexes (Italian Leather Sofa)
- One of the best ways to build and maintain an investment portfolio is by stress testing different scenarios (Morningstar)
- Evidence on the stock-bond correlation (Robeco Qauntitative Investing)
- Does Adding Dividend Stocks Improve Portfolio Performance? (Morningstar)
- Is Gold a Good Inflation Hedge? (Invested with you)
UNDERSTAND FINANCIAL MARKETS
Visualising the $105 trillion economy in one chart (Visual Capitalist)
By the end of 2023, the world economy is expected to have a gross domestic product (GDP) of $105 trillion, or $5 trillion higher than the year before, according to the latest International Monetary Fund (IMF) projections from its 2023 World Economic Outlook report.
In nominal terms, that’s a 5.3% increase in global GDP. In inflation-adjusted terms, that would be a 2.8% increase.
The year started with turmoil for the global economy, with financial markets rocked by the collapse of several mid-sized U.S. banks alongside persistent inflation and tightening monetary conditions in most countries. Nevertheless, some economies have proven to be resilient, and are expected to register growth from 2022.
Read more on Visual Capitalist
- Is Britain really as poor as Mississippi? (FT.com - click on the first link)
- How economic complexity determines which countries become rich (Bloomberg - 51 min)
- The Fitch Downgrade: The Principal–Agent Problem in Modern Finance (CFA Institute)
- A Good Company and a Good Investment Aren't Always the Same (Morningstar)
HOW TO INVEST
Active Investing
FACTOR investing
discretionary investing
7 key valuation lessons from Aswath Damodaran (Daniel)
Aswath Damodaran is the ‘Dean of Valuation.’
For almost four decades, he has been teaching valuation at NYU. He also teaches millions of people online.
Here are 7 Key Valuation Lessons from him
Read more on Twitter
ALTERNATIVE ASSET CLASSES
WALL STREET
SUSTAINABLE investing
crypto
BAD BETS
FROM Bankeronwheels.com
Beat Most Investors with FREE ETF Master Guides
- Get Rich, Slowly but Surely – We designed Equity ETF selection frameworks and then picked the best funds in each category, so you don’t have to.
- Become a Passive Investing Ninja – Have no mercy for Financial Institutions. Cut TERs, Taxes, FX Fees and Invisible Costs.
- Licence to Yield – Which Bond ETFs for your goals? How do price change? Should you hedge currencies?
- Don’t get fooled by Wall Street – ESG Ratings are not designed to protect the planet. Adjusted for risk, ESG ETFs will also inevitably underperform. So how can you invest Sustainably?
From Bankeronwheels.com
Beat Most Investors with FREE ETF Master Guides
- Get Rich, Slowly but Surely – We designed Equity ETF selection frameworks and then picked the best funds in each category, so you don’t have to.
- Become a Passive Investing Ninja – Have no mercy for Financial Institutions. Cut TERs, Taxes, FX Fees and Invisible Costs.
- Licence to Yield – Which Bond ETFs for your goals? How do prices change? Should you hedge currencies?
- Don’t get fooled by Wall Street – ESG Ratings are not designed to protect the planet. Adjusted for risk, ESG ETFs will also inevitably underperform. So how can you invest Sustainably?
PERSONAL FINANCE
Wealth Management
Paychecks, Not Portfolios: Why Income is the Key to Financial Success (Of Dollars and Data)
What’s the most important thing when it comes to building wealth? Is it what you invest in? Is it when you start? How about your mindset? The consensus is that the best predictor of whether someone is likely to build wealth is—their income. It’s not their asset allocation, their investment knowledge, or their financial goals that matter but What about someone’s spending? There are plenty of celebrities who had very high incomes but still went broke!
Read more on Of Dollars and Data
Early Retirement
FINANCIAL PRODUCTS
COST OF LIVING
OUR Community
Question of the week
From Bankeronwheels.com
We Help You Avoid Costly Investing Mistakes.
Most coaching participants come from the EU or the UK.
But we have consistent demand from all around the world. We provided coaching sessions to individual investors stretching from Argentina to New Zealand, or Guatemala to Japan.
A significant part of our clients are professionals in the Tech sector, Lawyers or Doctors that want to avoid costly mistakes when investing.
We also coach 25-30 year old young professionals that want to maximise assets for early retirement. We also have a large group of entrepreneurs that e.g. receive large lump sums after selling their company and want to invest it in financial markets. We speak to Crypto millionaires that want to reduce their risks.
Finally, some of our coaching clients are in their 40s or 50s and want to set up customised, income-producing portfolios or create Bond ladders for their retirement.
Most of the coached investors are in the 25–60 year old range.
Yes, some of our coaching clients have shared reviews on Google.
Some considerations are included below. For more details, consult your regulator’s website.
A financial coach is:
- Trained but not regulated
- Skilled at reviewing your overall financial situation and goals
- Able to help you develop a financial plan to achieve those goals
- Happy to discuss the pros and cons of various financial products but can’t recommend a specific one for you
- Comfortable working with anyone, whatever their situation
- Going to charge for their time
A financial adviser is:
- Regulated and authorised by the regulator to recommend specific products to clients or is independent and able to offer ‘whole of market’ solutions
- Often, going to charge an annual management fee, typically 1-2% of their client’s assets with initial fees on top.
We are proud to say that our coaching service has empowered a number of clients to reconsider their financial advisers’ offerings. From our clients’ feedback, in a number of cases, clients were overcharged, and offered unsuitable products, often due to conflicts of interest. However, this is not a rule. The best choice between a financial coach and adviser depends on an individual’s unique circumstances, including their financial literacy, time availability, comfort with managing their finances, and complexity of their financial situation.
Beginners often ask us:
- How do I reach my goals – What investments do I need to take into consideration for e.g. Taking a Sabbatical, buying a House or saving for Early Retirement?
- When should I invest – I fear that investing a lump sum in this market may have a negative impact on my returns. How can timing of buying ETFs affect my performance?
- How do I Invest – What are the pro and cons of investing with a Bank? Why should I diversify brokers?
- What should I consider investing in – What are some risks of portfolio diversifiers like Gold or Crypto?
- Avoiding Extra Costs – I have shortlisted a few ETFs, can you help me to compare them before I decide which one to buy?
- Benchmarking – What are educated investors doing in a similar situation to mine?
We are flexible. For example, answering some of these questions could help you avoid very costly mistakes:
- Challenging My Portfolio – Here is my portfolio – what am I missing? What could derail my strategy?
- Accelerating My Understanding – What are inflation linked Bonds? How are they different to Nominal Bond ETFs? What makes them outperform? Why do some investors add small cap value stocks to their portfolios? I want to exclude Tobacco companies from my portfolio – what are my options? What is Factor Investing?
- Simplifying Portfolio Maintenance – How can I diversify my investments? What is historically highly correlated so that I can consider removing it to keep my portfolio simple? How do I perform rebalancing? Does frequency matter?
- Reducing Risks – I want to understand the risks of investments – what are the different measures and how does it impact me? What are the risks of different types of brokerage accounts?
- Understanding the Impact of Recent Events – How do recent events impact my portfolio? What can I do to protect my savings from shocks?
- Investing Goals – I am investing for a specific goal e.g. Early Retirement, what is the research saying about e.g. the amount I need to have accumulated, how much can I withdraw annually? What are some calculators available and how to run them? What are the assumptions/shortcomings of these models?
- Comparing Equivalent ETFs – I have certain constraints in my tax-wrapper and can only select certain funds (e.g. I live in France and limited to specific synthetic ETFs). Which ETF characteristics should I pay attention to?
From Bankeronwheels.com
Get personal help To Set up your portfolio
We Help You Avoid Costly Investing Mistakes.
Sometimes individual sessions are very helpful to get past your investing concerns. Our readers asked us to create coaching sessions. And we’re proud to say, that some of them even ditched their Financial Advisors, after experiencing the value we provide.
Most coaching participants come from the EU or the UK.
But we have consistent demand from all around the world. We provided coaching sessions to individual investors stretching from Argentina to New Zealand, or Guatemala to Japan.
A significant part of our clients are professionals in the Tech sector, Lawyers or Doctors that want to avoid costly mistakes when investing.
We also coach 25-30 year old young professionals that want to maximise assets for early retirement. We also have a large group of entrepreneurs that e.g. receive large lump sums after selling their company and want to invest it in financial markets. We speak to Crypto millionaires that want to reduce their risks.
Finally, some of our coaching clients are in their 40s or 50s and want to set up customised, income-producing portfolios or create Bond ladders for their retirement.
Most of the coached investors are in the 25–60 year old range.
Yes, some of our coaching clients have shared reviews on Google.
Some considerations are included below. For more details, consult your regulator’s website.
A financial coach is:
- Trained but not regulated
- Skilled at reviewing your overall financial situation and goals
- Able to help you develop a financial plan to achieve those goals
- Happy to discuss the pros and cons of various financial products but can’t recommend a specific one for you
- Comfortable working with anyone, whatever their situation
- Going to charge for their time
A financial adviser is:
- Regulated and authorised by the regulator to recommend specific products to clients or is independent and able to offer ‘whole of market’ solutions
- Often, going to charge an annual management fee, typically 1-2% of their client’s assets with initial fees on top.
We are proud to say that our coaching service has empowered a number of clients to reconsider their financial advisers’ offerings. From our clients’ feedback, in a number of cases, clients were overcharged, and offered unsuitable products, often due to conflicts of interest. However, this is not a rule. The best choice between a financial coach and adviser depends on an individual’s unique circumstances, including their financial literacy, time availability, comfort with managing their finances, and complexity of their financial situation.
Beginners often ask us:
- How do I reach my goals – What investments do I need to take into consideration for e.g. Taking a Sabbatical, buying a House or saving for Early Retirement?
- When should I invest – I fear that investing a lump sum in this market may have a negative impact on my returns. How can timing of buying ETFs affect my performance?
- How do I Invest – What are the pro and cons of investing with a Bank? Why should I diversify brokers?
- What should I consider investing in – What are some risks of portfolio diversifiers like Gold or Crypto?
- Avoiding Extra Costs – I have shortlisted a few ETFs, can you help me to compare them before I decide which one to buy?
- Benchmarking – What are educated investors doing in a similar situation to mine?
We are flexible. For example, answering some of these questions could help you avoid very costly mistakes:
- Challenging My Portfolio – Here is my portfolio – what am I missing? What could derail my strategy?
- Accelerating My Understanding – What are inflation linked Bonds? How are they different to Nominal Bond ETFs? What makes them outperform? Why do some investors add small cap value stocks to their portfolios? I want to exclude Tobacco companies from my portfolio – what are my options? What is Factor Investing?
- Simplifying Portfolio Maintenance – How can I diversify my investments? What is historically highly correlated so that I can consider removing it to keep my portfolio simple? How do I perform rebalancing? Does frequency matter?
- Reducing Risks – I want to understand the risks of investments – what are the different measures and how does it impact me? What are the risks of different types of brokerage accounts?
- Understanding the Impact of Recent Events – How do recent events impact my portfolio? What can I do to protect my savings from shocks?
- Investing Goals – I am investing for a specific goal e.g. Early Retirement, what is the research saying about e.g. the amount I need to have accumulated, how much can I withdraw annually? What are some calculators available and how to run them? What are the assumptions/shortcomings of these models?
- Comparing Equivalent ETFs – I have certain constraints in my tax-wrapper and can only select certain funds (e.g. I live in France and limited to specific synthetic ETFs). Which ETF characteristics should I pay attention to?
DESIGN YOUR LIFESTYLE
Personal Development
Tim Ferriss Is Changing His Mind (Rich Roll - 2 hr 8 min)
While Tim is known and revered for his wisdom regarding optimization and productivity, it’s his arc as a human that is equally impressive. He’s been through a lot. He’s grown considerably. And he’s shared his personal and professional struggles with a laudable degree of courage and vulnerability. This exchange centers on Tim’s inward journey. How he grapples with anxiety and depression. The ways he learned to face difficult emotions. And the various modalities he has explored from silent meditation and psychotherapy to psychedelics.
- The secret to happiness - how to let go & stop worrying (The daily stoic - 13 min)
- In conversation with Dustin Moskovitz on coaching for endurance, no meeting Wednesdays, AI and more (The Tim Ferris Show - 1 hr 58 min)
- The Science of Joy: Why You Need It and How to Get It (Ten Percent Happier - 1 hr)
Health & Wellness
CAREERS
From Bankeronwheels.com
From Bankeronwheels.com
Join Some Of The Smartest Investors
Do You Want to Know What Other Wise Investors Are Doing?
Our community forum has over 500 members, with decades of investing wisdom and index investing experience. Join us and get your answers.
TECH AND SCIENCE
Travel
How can you cycle the world? - A practical guide (Bankeronwheels.com)
While you may be here to read about investing, there will be many of you who are curious about ways to travel the world on a bike while lowering the costs of travel, in general. Here are some key practical insights to get started, and an example of setup that can help you discover some of the most unique, and untapped places on our beautiful planet. From setting up, flights, accommodation, technology & leveraging local communities, this is an adventure worth taking second to none!
From Bankeronwheels.com
Get Wise The Most Relevant Independent Weekly Insights For Individual Investors In Europe & the UK
Liked the quality of our guides? There is more. Every week we release new guides, tools and compile the best insights from all corners of the web related to investing, early retirement & lifestyle along with exclusive articles, and way more.
Probably the best newsletter for Individual Investors in Europe and the UK. Try it. Feel free to unsubscribe at any time.
miscellaneous
Fool Me Once author Kelly Richmond Pope explains how fraud became a trillion-dollar industry and helps us avoid becoming its latest victims. Join in on a fascinating discussion on what types of people commit fraud, what is the fraud triangle, Why fraud seems more common and more severe, the multifarious faces of fraud & how businesses and individuals can avoid becoming the next victims
OUR Community
Last Week We asked you
How would you describe your current life situation?
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(* Wheels & Dividends)
Good Luck and Keep’em* Rolling!
(* Wheels & Dividends)
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