Bankeronwheels.com Guide Methodology
How Do I Use This Site?
Meet The Golden Retriever, The Cyclist and The Banker
We have created three characters to help you on your investing journey.
Pick one of them depending on your objectives, time you want to spend managing your portfolio and willingness to increase your knowledge about financial markets.
Types of Resources
| CHARACTER | MINIMUM LEVEL | TYPE | INITIAL SETUP | PORTFOLIO MAINTENANCE |
|---|---|---|---|---|
| Golden Retriever | Beginners | Passive Investing | 4-8 weeks | Few Hours per Year |
| Cyclist | Intermediate Investors | Semi-Passive | 2-3 months | Couple of days per quarter |
| Banker | Advanced Investors | Factor Investing | 3+ months | Couple of days per quarter |
Each investing type has its pros and cons, as explained below.
How Do I See If An Article Is for me?
Each resource on this website is tagged according to the path you want to choose.
- Icons – Look for an icon in the top left corner of the article’s picture.
- Investing Type – The Icon reflects your style. From Passive (Golden Retriever), through semi-passive (Cyclist) to Factor Investing (Banker).
- Level – The icon also implies a minimum level of knowledge to understand the article, as per the above table.
How To choose a character
1. The Golden Retriever
The Golden Retriever, aka Wise Passive Investor – has the simplest and easiest to understand portfolio with minimum maintenance as he (probably correctly) assumes that a dog is just as likely to beat the market in the long run as a professional investor. The Golden Retriever follows the bone (aka money) in the most efficient and transparent way.
The Golden Retriever, aka Wise Passive Investor – has the simplest and easiest to understand portfolio with minimum maintenance as he (probably correctly) assumes that a dog is just as likely to beat the market in the long run as a professional investor. The Golden Retriever follows the bone (aka money) in the most efficient and transparent way.
Should You be a Golden Retriever?
Here are some of the practicalities of being a Golden Retriever:
- For whom: All Investors can set up this type of portfolio, including very beginners.
- Type: Assumes Fully Passive Investor Behaviour
- Why To Be A Dog: Investing requires minimal effort. You can live your life without spending time managing your portfolio, but still following best market practices.
- Initial Time Required: You will need 4–8 weeks to become familiar with the materials to set up a portfolio and implement it.
- Ongoing Portfolio Maintenance: You only need a day or two per year to rebalance a portfolio and optimise it from a tax perspective.
- Main Challenges: Sticking to your strategy can be challenging during market crashes, and when certain markets that your friends are invested in outperform.
- Number of ETFs: You won’t need more than a couple of ETFs.
- Examples of Funds: Vanguard Lifestrategy, World ETFs, S&P 500.
- Bankeronwheels.com Resources: A significant part of our guides are targeting Golden Retrievers.
2. The Cyclist
The Cyclist, aka Semi-Passive DIY Investor – accepts that markets are usually efficient but given her experience in travelling across the globe wants to incorporate some marginal high level tweaks to her index portfolio. She also won’t bother overdoing this because, after accounting for costs and time doing research, trying to beat the market can’t compete with real life experiences like cycling the world.
The Cyclist, aka Semi-Passive DIY Investor – accepts that markets are usually efficient but given her experience in travelling across the globe wants to incorporate some marginal high level tweaks to her index portfolio. She also won’t bother overdoing this because, after accounting for costs and time doing research, trying to beat the market can’t compete with real life experiences like cycling the world.
Should You be a Cyclist?
- For whom: Intermediate or Advanced Investors
- Type: Index portfolio with some active investor behaviour
- Why to be a Cyclist: Allows to (i) Invest in a customised way, improving tax efficiencies, reducing fees, implementing some personal views for example related to Sustainability, and potentially increase risk-adjusted returns.
- Initial Time Required: You will need 2–3 months to become familiar with the materials to set up a portfolio and implement it.
- Ongoing Portfolio Maintenance: You will likely need a day or two per quarter to rebalance a portfolio and optimise it from a tax perspective.
- Main Challenges: May require more research and maintenance. You will be prone to potential behavioural biases, and may find it challenging keeping the active part relatively small and a consistent over time.
- Number of ETFs: Usually involves at least three funds.
- Examples of Funds: Regional tilts to capitalization-weighted indices, adding diversifiers, Socially-responsible Screening or Tax-efficient regional ETFs.
- Bankeronwheels.com Resources: Most of our guides target cyclists, including the portfolio construction and portfolio protection sections.
Due to changes to our methodology, we are currently re-labelling most of our resources. You may find that some of the cyclist resources now have a banker icon. We apologise for this transitory period.
3. The Banker
The Banker, aka Evidence-Based Investor – knows that markets are not fully efficient. Behavioural and Risk considerations make Factor investing, in theory, superior. But Equity Risk Factors underperform over long periods of time, and sticking to his guns will be challenging.
The Banker, aka Evidence-Based Investor – knows that markets are not fully efficient. Behavioural and Risk considerations make Factor investing, in theory, superior. But Equity Risk Factors underperform over long periods of time, and sticking to his guns will be challenging.
Should You be a Banker?
- For whom: Advanced Investors
- Type: Investing incorporating Equity Risk Factors
- Why To Be a Banker: Allows for potential outperformance compared to capitalisation-weighted indices.
- Initial Time Required: You will need at least months to become familiar with academic research related to risk factors, and implement it.
- Ongoing Portfolio Maintenance: You will likely need a day or two per quarter to rebalance a portfolio and optimise it from a tax perspective.
- Main Challenges: Substantial research, maintenance and adequate ETF selection. Potential behavioural biases, keeping the active, underperforming parts consistent over long periods of time.
- Number of ETFs: Usually involves at least three funds, but multifactor funds can make implementation simpler.
- Examples of Funds: Multi-factor ETFs, Small Cap Value Funds, CTA Funds.
- Bankeronwheels.com Resources: Currently, only a few guides target bankers. This will increase over time.
Our Community
Current Complexity of our Community Members' Portfolios
- Golden Retrievers – About a third of our readers want to keep it extremely simple and efficient by using 1 to 2 ETFs for their entire portfolio.
- Cyclists – 58% of our readers are passive but are experimenting with tweaking their portfolio, including tax optimisation and customisation or sometimes a few active bets.
- Bankers – 12% of our readers are experienced enough to implement factor investing.
Good Luck and Keep’em* Rolling!
(* Wheels & Dividends)
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All information found here, including any ideas, opinions, views, predictions expressed or implied herein, are for informational, entertainment or educational purposes only and do not constitute financial advice. Consider the appropriateness of the information having regard to your objectives, financial situation and needs, and seek professional advice where appropriate. Read our full terms and conditions.
