Expat Money Blueprint:
Invest in the stock market
So you need to do something with your savings – where do you put them? Well, for most expats I think investing in the stock market makes sense. Let me clarify what that means:
- Remember your pension is invested in the stock market
- I’m talking about buying low-cost tracker funds or ETFs, not stock picking
I think this route is suitable because they are easy to set up, low-cost, low hassle factor and you can just put your money in per month and get on with other things!
Compare this to property:
- firstly returns are lower
- more hassle – more time to put in
- YES, you can leverage which can be good, and YES, it can be a useful alternative to investing in the stock market.
- But most people I’ve met can’t be bothered to put the effort in to do it properly
- Hence tracker funds are your new best friend.
Here’s a clip from my SORT YOUR FINANCES IN A WEEKEND course which takes you through a basic portfolio that you could build – called the '60:40'.
So, as you’ve seen, historic returns of 10% are possible, and even if we assume returns are lower going forward at 5%, it would be hard to find such an efficient and elegant solution as putting your money in tracker funds.
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