WHY INVEST?

"YOU, OWNER OF PROFITABLE COMPANIES"

You won't get rich working for others - or even for yourself - from 9 am to 6 pm every day.

"FREE TIME IN THE FUTURE"

To ensure a decent retirement, you need to put your money to work for you and wait the time (and compound interest) to act on it.

WHY PASSIVE INVESTING?

"IF YOU CAN'T BEAT IT, JOIN IT"

In the long run, very few investors are able to consistently "beat the market", with low risk.

Studies show that in more than 80% of cases, active investment strategies - such as stock picking, day trading and timing the market - lose to "the average market" in the long run (5+ years).

"INVESTING SHOULD BE AS BORING AS WATCHING THE GRASS TO GROW"

Do not waste your time reading reports and balance sheets aiming to find "the next Tesla": it is the time in the market and the regular contributions that will buy you "free time in the future".

Dedicate your hours to your current source of income (or even to develop new ones), but put your savings (and time) to work for you!

3 STEPS TO IMPLEMENT THE PASSIVE STRATEGY

Step 1: Objectives, profile and portfolio

Define your investment goals (ex: 10% return per year) and build a portfolio with assets that have the capacity to achieve these goals but that also fits your profile as an investor (conservative, moderate, aggressive, etc.).

Step 2: Stay invested

Contribute periodically to your portfolio (and re-balance whenever needed), using the broker of your choice.

Step 3: Time and opportunities

Do not panic about crises or negative news: take advantage of opportunities and market conditions/cycles.
Let the time (ie. compound interest!) to act, protecting and monetizing your capital in the long run.

EXAMPLE: A SIMPLE PASSIVE PORTFOLIO, WITH JUST 4 ETFs:

25% in New Zealand Equities

Invest in the local New Zealand listed companies.

Examples of possible assets: Smartshares S&P/NZX 50 ETF (NZG) or Smartshares NZ TOP 50 ETF (FNZ)

25% in Australian Equities

Invest in Australian listed companies.

Examples of possible assets: Smartshares S&P/ASX 200 ETF (AUS) or Smartshares AUS TOP 20 ETF (OZY).

25% in Developed Markets Equities

Invest in listed companies from developed markets: US, Europe, Japan, etc

Examples of possible assets: Vanguard International Shares Select Exclusions Index Fund, Smartshares Global ESG ETF (ESG), Smartshares US Equities ESG ETF (USA), Smartshares US 500 ETF (USF), etc

25% in Emerging Market Equities

Invest in listed companies from Emerging Markets: China, South Korea, Mexico, etc

Examples of possible assets: Smartshares Emerging Markets Equities ESG ETF (EMG) or Smartshares Emerging Markets ETF (EMF)

Course:

3 steps to implement the Passive Investing strategy

CONTACT:

TRENDSET Financial Education
www.trendsetconsulting.com/en
New Zealand
arthur@trendset.com.br twitter: @ArthurVallePhD

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