What are the best ways to invest your money for long-term financial security?

A verdade é uma só: Ou você constrói a sua própria aposentadoria ou você não vai se aposentar. E quando digo construir a própria aposentadoria eu quero dizer poupar e investir agora e durante a vida de trabalho, enquanto tem energia para isso. O tempo e os juros compostos irão potencializar o seu esforço e a sua visão de longo prazo. O seu eu do futuro irá agradecer.

Now that I have retired and have no regular pension, I realise the importance of every penny that I saved from my running income during my service years in the form of bank deposits, insurance and mutual funds. My mantra for a comfortable retired life is - “ start saving at least 10% of your monthly take home right from your first salary. Expenses can wait; saving must be a top priority.

Explore other avenues yielding competitive returns and diversify investment portfolios beyond the conventional stock and bond mix. Eg. Green bonds. By embracing such emerging investment opportunities, individuals can potentially enhance their retirement funds, ensuring a more robust financial cushion for the future.

In my opinion, a diversified retirement portfolio (or indeed any investment portfolio) should include three "buckets": 1) A bucket of liquid assets, normally a mix of stocks, bonds and cash. The proportion of total assets in this bucket will fluctuate as opportunities in the other buckets appear of disappear, but the idea is about 33% in each. 2) A bucket that gives an income. Normally this would be property, thus receiving an income at the same time as the capital gain (overall, and on average) increases at about the rate of inflation, historically more, but depending on when the property is purchased. 3) A bucket of alternatives, which, if selected properly, offer high rewards, but also high risk.

Before saving for retirement, we must build an emergency corpus of 3/6 months of expences depending on how easy it is to get a job in given scenarios. This technique will help you assess your present financial situation (when you are in the stage of a job quit/switch/career break). 1. For Early retirement purpose, I think FIRE method (Financial Independence, Retire Early) do quite good as early you opt for it because it require a saving of 50-70% of your income which only possible in your early age. 2. Other method is to invest in NPS, PPF, ELSS funds (better as compared to NPS, PPF).

“My basic point here is that neither the Financial Analysts as a whole nor the investment funds as a whole can expect to ‘beat the market,’ because in a significant sense they (or you) are the market." - Ben Graham (1963) ******************** Ben Graham is regarded as the founder of value investing, but he also recognized that market efficiency had become so strong by the 1960s that active management no longer made sense for even the most skilled securities analysts. The best solution for most institutions and individuals is to invest in low-cost index funds. Those who battle with the powerful and ruthless force of market efficiency face the overwhelming probability that they will lose in the long run.

Prof. Eugene Fama put forth the through his research that it is virtually impossible to consistently “beat the market” and gave the theory of Efficient Market Hypothesis. Many practitioners have challenged this theory highlighting its shortcomings and some of the capital market aspects, it is not able to explain. Many modern researchers through their empirical research work have proven that a very large percentage of Fund Managers are actually not able to beat the market. NIFTY 50 and BSE 200 Index in India have generated a return of 15-16% over the last 2 decades so in my opinion an Exchange traded fund with underlying asset as an Index could be a great option because of substantially low expense ratio for long term returns.

Problem with the efficient market hypothesis and most of financial fundamentals is that it can explain the past very well but lacks in predicting the future.

Popularizados por Jack Bogle, o lendário fundador da Vanguard, um ETF nada mais é que um fundo que replica um índice (p.ex: ações de empresas envolvidas com IA), e que negocia suas cotas em bolsa, normalmente com desempenho muito próximo, mas com valores mínimos e custos bem menores que os ativos que compõem esse índice. Existem diversas corretoras no Brasil que já oferecem acesso a eles, inclusive ETFs relacionados à IA (legal não?). Basta ter um conta aberta. Como qq produto de investimento, estude suas caracterizadas (ativos, valor mínimo, rentabilidade, risco, proventos, limitações, etc.) antes de por o seu suado dinheiro. Minha recomendação? Consulte um bom Assessor para definir a “sua estratégia” e bons investimentos!

All the points already raised are spot on in my opinion especially regarding the fact that beating the market is very unlikely if you actively trade. It is not to say you cannot have an active impact on your portfolio every time you invest, but leverage instruments requiring less maintenance. Another angle I always like to emphasize is the cost of index funds. With low costs, they mitigate the impact of the compounding cost structure that other instruments might have. Don't forget that compound interest also can work against you with costs so invest on low cost instruments like ETFs.

Buying and holding quality stocks is called the "consistent compounding" strategy. You'll witness steady growth in revenue and profitability over time. If you do not have the time and acumen to research stocks then it's a good strategy to have. But your strategy should depend on your risk appetite. You can also dedicate a small portion of your portfolio toward a momentum strategy.

Em primeiro lugar: Investir em ações não é comprar barato e vender caro. É ser sócio de boas empresas e ganhar com seu crescimento e lucros. Assim, alguns parâmetros a se analisar são: 1. Patrimônio 2. Receita líquida 3. Lucro Líquido 4. ROI 5. Margem 6. Dívida Líquita / Ebitda O importante nesses itens é avaliar a evolução e o histórico, para garantir que a empresa está se mantendo saudável, gerando valor, lucros e em crescimento. É mais fácil do que parece. Na dúvida, procure um bom mentor para te orientar.

The definition of "quality stocks" is subjective and often different from the textbook definition. Fundamentals are difficult to evaluate, cash flows and earnings growth can be misleading, and the competitive landscape is dynamic. Buy-and-hold strategy needs two things - time and discipline. Most decent companies will generate good returns over a long period of time. A mix of such quality stocks can make a portfolio that stands the test of time. Some companies will invariably do better than others, but we need only a few winners in the portfolio to win as a whole.

Find businesses that will compound over time. Which means they have quality assets that build equity. Examples include an industry-leading product, a loyal customer base or a network effect, strong brands, and much more. Areas that are tough to compete in. Buying these unique qualities will give your portfolio a unique competitive advantage over the market. It will also compound returns over the long run.

There is a lot of evidence that buying and holding shares of profitable dividend paying companies growing more or less in line with the economy will produce better returns than any other approach. Ideally buy when they are out of favour.

One of the most powerful concepts in asset allocation is diversification. That means that by adding non perfectly correlated assets to your portfolio, one can reduce the total level of risk (i.e., volatility) without having to sacrifice on the expected return. The more difficult question is to decide how to blend different assets to reach the desired level of portfolio return or risk. In my experience, this part is the most challenging and subject to estimation risk, especially when it comes to estimating expected returns. Also, there are different types or 'risks' to consider when looking at assets to add to a portfolio, volatility being just one of them. Tail risk, liquidity, reinvestment risk are other important ones to factor in.

A diversificação te protege e diminui o seu risco. Além disso você ao se expor a diferentes classes de ativos você consegue manter bons retornos independente do cenário. Tenha na carteira renda fixa, títulos públicos, ações de boas empresas, fundos imobiliários e até mesmo bitcoin em menor pencentual. Menor risco, maior retorno e, principalmente, maior paz e tranquilidade pra você.

Gerir uma carteira de forma estratégia através da diversificação entre classe de ativos é fundamental para gerenciar riscos e buscar retornos consistentes ao longo do tempo. Isto significa que, adicionando ativos não perfeitamente correlacionados a carteira, pode resultar em uma redução da volatilidade, sem ter que abdicar de um retorno esperado satisfatório. Existem alguns tipos de riscos a considerarmos antes de adicionarmos ativos em uma carteira, “volatilidade” é apenas um destes, importante destacar que ao diversificar devemos considerar: tolerância ao risco, horizonte de investimento, objetivos, além de um acompanhamento próximo e assertivo.

Diversificar é um ponto chave na aplicação. A Aplicação em ativos de natureza diferente especialmente se tiverem uma correlação negativa permite diminuir o risco diversificável (risco inerente a cada classe de ativo e particular da classe).

▶ There’s a nuanced point here - the greatest returns are always made with the least diversification - eg. If you’d invested all your money into Monster Beverage, Apple or Nvidia (50,000-100,000% returns in the last 20 years vs. The S&P 500 at 350%) ▶ Or if as an angel, you put all your money into Uber at the seed round & held you’d be marked at 10,000x your money ▶ It is v. difficult it is to spot an outlier, so to capture them ~> diversifying within & across asset classes depending on risk tolerance & income needs is sensible. ▶ But more important than diversification, is holding on to your positions to allow the magic of compounding to take place. ▶ TIME is exponent we must all bow down to more than any other when investing.

Another perspective involves focusing on mental wellbeing and emotional intelligence. Activities such as mindfulness retreats, emotional intelligence workshops, and stress management courses offer longterm benefits. These investments also indirectly contribute to professional success. High emotional intelligence is linked to better leadership and interpersonal skills, which are invaluable in any career path, thereby indirectly contributing to financial stability and growth.

Be a learning machine. As the late Charlie Munger put it: "I constantly see people rise in life who are not the smartest, but they are learning machines. They go to bed every night a little wiser than when they woke up."

Investing in yourself is a key strategy for long-term financial security. By dedicating resources to personal growth, education, health, and well-being, you're laying a foundation for future success. Whether it's through courses, books, coaching, fitness, or experiences, these investments can pay dividends by enhancing your skills, knowledge, and overall fulfillment. Ultimately, the returns from investing in yourself extend far beyond monetary gains, enriching both your professional and personal life in meaningful ways.

For anyone who is not 25 years old, I would advise them to invest in knowledge and experiences. Investing in learning new skills and investing in experiences will give you much more return than any other investment. and only after that, I would advise anyone to start investing in Retirement.

Investing in yourself is like planting a seed that grows into a strong and fruitful tree. When you spend money on learning, health, and personal growth, you nurture your own potential. Just like a healthy tree bears abundant fruit, you'll reap the rewards of your investments in the form of increased knowledge, improved skills, and a happier, more fulfilling life. It's a long-term investment that can provide lifelong dividends.

What does Long term financial security mean? It means knowing how much money you will require in the next 5/10/15/20/30 yrs, and having the confidence that you are on the right path to achieve it! The best and easiest way to get this clarity is to do a basic financial planning exercise. That captures all aspects- budgeting, goal planning, retirement planning, etc And that will help you decide your asset allocation as well. A 50yr old will have very different goals and requirement vs a 30yr old person. And hence their investment choices will also be different. But the common thing about long term investing is to keep emotions out of your decisions!

One important thing that is often overlooked in the equation is what long term financial security means to each individual. There is an assumption here that it means investing stocks or etfs to make more money in the future. But this is not always the case. Depending on people’s background, they have different views of the stock market. Building a business or brand is a good way of investing in the long term security. The brand makes money in the present and can be sold for billions in just a few years, depending on how strong it is. This is another way thats different from stocks, and can be faster to achieve security depending on what it means.

Investing for long-term financial security in Singapore requires a thoughtful approach, considering factors such as high-interest rates, inflation and geopolitical tensions. Here are some strategies Singaporeans can consider: 1. Diversified Portfolio: Build a diversified investment portfolio that includes a mix of asset classes such as stocks, bonds, and real estate. Diversification helps spread risk and enhances the potential for returns. 2. Real Estate: Real estate is a popular investment option in Singapore. You can invest directly in properties or consider real estate investment trusts (REITs). 3. CPF The Ordinary Account and Special Account have guaranteed minimum interest rates which is a secure way to grow your savings.

Retirement planning is simple but not easy. It's about creating and building multiple income streams so you don't have to stress about money 24/7 when you choose to retire. - Leverage Retirement accounts, such as 401(k)s, IRAs, and Roth IRAs in the US, CPF or SRS in Singapore or the equivalent in your home country - Save and also invest as investing will fuel long-term appreciation of your savings - Consider Investment-linked plans or endowment plans as part of retirement planning Above all, have fun, and celebrate small wins and milestones along the way!

Remember that all investments carry some level of risk, and past performance is not indicative of future results. It's advisable to consult with a financial advisor to tailor an investment strategy that aligns with your specific financial situation and goals.