Avoid My Mistake | 1 Year Review Investing into the S&P500

Summary

In this insightful video, the speaker shares their one-year investment journey with the S&P 500 Index Fund, detailing their platform choice, Vanguard's VO fund, and the mistakes made along the way. Highlighting the importance of consistent dollar-cost averaging, they reflect on their fluctuating investment amounts and emotional decision-making. Moving forward, the speaker plans to invest $400 monthly to establish a more disciplined strategy. They emphasize diversification and the benefits of automated investing for beginners, encouraging viewers to start their investment journeys with confidence and a clear plan for long-term capital growth.

Takeaways

• 😀 The speaker reflects on a year of investing in the S&P 500 Index Fund, highlighting both successes and mistakes.
• 💡 They use Cytrade for trading due to its offer of two free trades per month, minimizing transaction fees.
• 📈 The chosen fund, Vanguard's VOO, has a low expense ratio of 0.03%, compared to SPY's 0.09%.
• ❌ A key mistake was not setting up recurring buys, leading to emotional decision-making regarding investment amounts.
• 💵 The speaker's investment amounts fluctuated greatly, affecting potential returns.
• 🔮 For 2024, they plan to consistently invest $400 monthly into the S&P 500, focusing on long-term capital growth.
• 📊 Assuming an 8% return, the investment could grow to $730,000 by retirement at age 60.
• 🌍 Diversification is crucial; the speaker also invests in bonds and Singapore banks to balance their portfolio.
• 🛠️ StashAway is introduced as a hands-off investment management platform suitable for busy investors.
• 🤔 Viewers are encouraged to ask questions and engage, reinforcing the community aspect of investing.

Q & A

What was the speaker's primary investment focus for the past year?

The speaker focused on investing in the S&P 500 Index Fund, specifically Vanguard's VOO.

Which platform did the speaker use for trading and why?

The speaker used Cytrade because it offers two free trades per month in the US stock market, helping to minimize trading fees.

What mistake did the speaker identify in their investment approach?

The speaker's primary mistake was not setting up recurring buys, leading to inconsistent investment amounts driven by emotions rather than a fixed strategy.

What were the average monthly investments made by the speaker?

The speaker averaged an investment of approximately $260 per month over the year.

How did the speaker's investment amount fluctuate throughout the year?

The investment amounts varied significantly, with some months seeing higher investments during market dips and lower amounts during rises, reflecting an emotional decision-making process.

What is the speaker's investment plan for 2024?

For 2024, the speaker plans to consistently invest $400 per month into the S&P 500 to implement a dollar-cost averaging strategy.

What potential future value did the speaker project for their investment?

Assuming an average return of 8%, the speaker projects that their investment could grow to approximately $730,000 in 32 years.

What does the speaker emphasize regarding diversification?

The speaker emphasizes the importance of diversification in their investment portfolio, indicating that the S&P 500 will not be the only focus of their overall investment strategy.

What is StashAway and how does it relate to the speaker's message?

StashAway is a wealth management platform mentioned by the speaker as a hands-off investment option that allows professionals to manage a portfolio based on the user's risk preferences.

What overall lesson does the speaker aim to convey to viewers?

The speaker aims to convey that it's important to start investing early, maintain consistency, and manage investments without emotional biases to achieve long-term financial growth.