A blog on personal finance (banking, saving, budgeting and investing) and personal entrepreneurship.
What about forex investing? Oil? The middle east?
July 17 6 Comments latest by Moneymonk
Welcome to I Will Teach You To Be Rich, a blog on personal finance and entrepreneurship
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I get these emails all the time and they drive me nuts.
Victor writes:
I read your blog often, and I’ve been looking into trading currency on FOREX. I know there is lots of risk to it, as there is to any type of investing. What is your advice and idea on it?
My response:
Have you set up a proper asset allocation already, with automatic investing and at least 10% of your money being invested each month?
I never heard from Victor again.
Sometimes we get too fancy with all the choices available to us, forgetting the most important part. Remember, 90%+ of your investment returns are due to your asset allocation. See some sample asset allocations here (or just invest in a target-date fund).
New feature: Money Diaries. I’m launching something called Money Diaries, and I’m looking for people who want to (anonymously) write about their most ridiculous and interesting money experiences in day-to-day, minute-by-minute style. Did you feel guilty about buying that purse? Or did you just save $1,000 by bargaining with the car salesman?
Check out Sex Diaries to get an example.
It’s anonymous (what do you have to lose?), so if you’re interested, apply to be featured in Money Diaries.
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I'm Ramit Sethi.
I'm a recent graduate of Stanford, where I studied technology and psychology. Now I'm the co-founder & VP of Marketing for PBwiki, a wiki startup in Silicon Valley.
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COMMENTS
Leave yours...
Ryan McLean
July 17th, 2008
Sometimes there are easier ways to invest rather than the super risky and hard to understand investments.
Simply setting a budget and investing your excess is a form of investing we can all do. It may be a little work, but it will definately pay off in the long run.
One of the greatest investments you can make (I believe) is in yourself. There is no greater return on investment than investing in your own skills and knowledge. Then you can seek to EARN more money, not just sacrifice more money
Eric
July 17th, 2008
When you say 10% of money being invested each month, are you referring to money from your net paycheck amount? Today I'm investing 20% of my paycheck into my 401(k).
I'm wondering whether you are referring to disposable income...
GP
July 17th, 2008
Ramit - I was wondering what your take is on using options (as a supplement not replacement to index funds). With my "play" money, I have small positions with long term calls and found the return is generally pretty good, given the risk involved...
Ramit Sethi
July 17th, 2008
GP -- My take is the same as my above advice!
ekrabs
July 18th, 2008
Oh yes, I fully agree. Though, I don't get those kinds of question directly (because I don't have a direct web presence), I do see that kind of question often. And usually, it involves the latest hot "investment". For example, ultrashort funds are getting a lot of traffic as of late.
I can only shake my head.
Moneymonk
July 21st, 2008
I have 2 buckets of money ----long term growth and savings and risk capital
I usually do 10% also for individuals or any other risk taking investments, the rest is for security