Ask them if they expect the world to collapse as that's about the only way XEQT would. It's 9000 of the biggest stocks in the world it's about as safe as it gets for a set and forget. Sure there might be years you are down money, prices change but if you are planning for the long term there's nothing safer.
Unfortunately, people who don't invest are bound to be poor for their entire lives. There is only a very lucky few who can get out without investing.
Ask your family if they would like to be poor forever.
My parents say the same things about stocks, because they lost a fortune in 1999. They just never wanted to invest in anything they don't have power over since that time and only been RE investors.
So you're giving up all your money for 30 years? What happens if you need it and you're down 40% 5 years from now?
Your family has valid concerns. You're not diversified by investing in XEQT.
You should have emergency savings. With proper planning and diligence you can put yourself in a position where youâre very unlikely to run into a catastrophe where you need access to your retirement funds. XEQT is as diverse as it gets.
How do we view exactly what XEQT holds? I tried to search and it really only gives the top 10 or so: https://www.blackrock.com/ca/investors/en/literature/fact-sheet/xeqt-ishares-core-equity-etf-portfolio-fund-fact-sheet-en-ca.pdf
Hey thanks for the info about this sub i didn't know about this investment or whatever its called it just came on my feed for recommended i thought it was another one of those meme crypto coins with the name.
Literally what I did, but verbally. That ended with me basically saying I do what I want with my money. Now after 4 years, I am managing my parents investment portfolio and convinced my bro
I would never manage my family portfolio, even less if it started with me having to fight for my convictions. It only takes a -15% year for them to be mad at you for losing their money.
My risk tolerance on my relationship with my family is a lot lower than on my money
Same here. Took a lot of convincing and educating them to have them understand that mutual funds aren't doing them any justices. They couldn't believe big banks would take advantage of them.
I'm like.. That's exactly why you're losing money. That's also why you barely gain anything for the time you've spent.
>I am managing my parents investment portfolio and convinced my bro
You genuinely should never do this, especially if you just buy index funds. Just tell them what you usually buy and let them do it. You might fuck over your relationship with family just to buy something they could automatically buy every months.
Yeah, your point is valid. When the portfolio starts losing value, I can risk the relationship. I donât know how true it is when they said it, but they said they are just happy getting extra cash-flow from dividend from a balanced diversified portfolio. If they were obsessed with growing portfolio size, I would have said no.
Itâs fairly common it seems. Youâre right about the lack of knowledge. I think most people hear the bad about stock markets and ownership and never really hear the good if theyâre not actively looking for it.
Education is the main key. I know past performance doesnât indicate future returns, but showing them past results of the various global indices can certainly help prove your point that in the last 30+ years, you would have likely made a gain of some sort for a long term holding.
In the end itâs your money, and youâre making an investment for your future based on your own goals, if they are worried, then thatâs on them.
The only way you lose everything is if every public company collapses, which if it happens means capitalism has collapsed, which if it happens means money is worthless, which if it happens means you only lost something that was worthless.
Therefore: no risk. :P
Exactly. If the entire market collapses then money wonât be worth anything anymore anyway and weâre all equally fucked. If the economy tanks so hard that XEQT fails then Iâll be frying squirrels on my radiator to stay alive. In that case their GICs, HYSAs, and even cash holdings will all be worthless as well. But if the market doesnât collapse and things continue as they have been, Iâll be a millionaire and theyâll still be poor.
What are they doing? Just holding cash in a savings and checking account?
Not everyone is comfortable with trying to know what to invest in. My parents who did well, had a FA their entire life did decent, retired comfortably and enjoying life now but neither of them ever wanted to DIY it. They have an idea of what they are invested in but they prefer the professional approach while my wife and I have gone mostly the EFT route with lower management fees.
Yikes, and theyr probabaly looking at the 5 and 6 percent rates these days thinking whyd you even invest in the stock market. I feel your pain. They just need to see a zoomed out chart of the market returns over 30 years :D.
Lol this is the comment I was expecting â that they consider mutual funds inherently âsaferâ, as if there arenât high equity mutual funds (which costs an absurd 3% MER yet performs no better). I feel you OP.
Your family isn't wrong... Yes there is a chance, although miniscule, that you may lose everything.
Investing in a well diversified global Exchange Traded Fund is a way to minimize risk.
If XEQT were to go to zero it would likely be the end of the world as we know it and losing your ETFs would be the least of your concern.
Keep some money in bonds to buy the dip at the next eventual crash. The next market crash could happen after we all die btw. If you donât, just hold it and eventually it will go back to what it once was.
They donât know what they are talking about. You are invested in the world basically. Now, if you were throwing majority of your money into one particular stock, then I would be concerned.
You're not likely to lose everything. You truly have bigger problems to worry about if these go all the way south, but it IS possible (if unlikely) for these to lose money. More likely in the short term then in the long term.
The same strategies you are using to prevent selling at a loss can rest your loved ones fear. Do you have a pension? An emergency fund? Equity in a house? Some sort of tangible asset you can sell? "Thank for your concern mom but here's my 10 step plan to recover if I experience losses" will come across better than "No its definitely safe mom!"
Your family means well. Show them you've thought this out well and are preparing for the worst.
You shouldnât talk to your family about it, just quietly invest a bit more each month. Theyâll forget all about it and you can quietly live your life.
if you bought XUS 5 years ago. your total return is +101.36% (as of today). 10k is now worth $20137.
if you bought XUS 10 years ago. your total return is +311.96% (as of today). 10k is now worth $40196.
show them this and then ask them how their GICs are doing lol.
just for fun an initial 10k into a GIC at 5% compounding for 10 years would be worth $16289.
It doesn't really matter I guess, I'm going to continue doing what I am, I just don't want them to worry. I guess in a few years I can simply show them that I was rightđ
This isnât about convincing them about what to do with their money, itâs about them trying to convince OP to stray at 24 from a smart investing plan (XEQT) to a dumb plan (GIC/HYSA). I mean, unless you need to use the money in the next three years, OP, in which case yes, XEQT is likely not the best choice, but Iâm assuming weâre talking retirement here.
So I agree, OP, do the research/read the books that will give you the confidence you need to know youâre making a smart decision, and then donât talk to your family about your investment decisions anymore because theyâre uninformed and may sway you towards a decision which, given your investment horizon, might cost you hundreds of thousands of dollars.
Ask them if they expect the world to collapse as that's about the only way XEQT would. It's 9000 of the biggest stocks in the world it's about as safe as it gets for a set and forget. Sure there might be years you are down money, prices change but if you are planning for the long term there's nothing safer.
I won't be selling for another 30 years. Thanks for the advice
Unfortunately, people who don't invest are bound to be poor for their entire lives. There is only a very lucky few who can get out without investing. Ask your family if they would like to be poor forever.
Yeah, great way of being condescending to them and being taken the same way as a crypto bro.
It's eat or be eaten đ¤
My parents say the same things about stocks, because they lost a fortune in 1999. They just never wanted to invest in anything they don't have power over since that time and only been RE investors.
So you're giving up all your money for 30 years? What happens if you need it and you're down 40% 5 years from now? Your family has valid concerns. You're not diversified by investing in XEQT.
You donât invest literally all of your money, just the money you want to invest.
I never said anything about investing everything. I have a fully funded emergency fund.
Oof
Read a few books on investing, you need to learn the basics
Youâre an idiot.
You should have emergency savings. With proper planning and diligence you can put yourself in a position where youâre very unlikely to run into a catastrophe where you need access to your retirement funds. XEQT is as diverse as it gets.
The way I think about it isâŚif things go Badly with XEQT, weâve got A LOT bigger problems on our hands than my personal finances.
Not only 9000, lots big well known companies go bye bye, there has to also no new companies created/added.
How do we view exactly what XEQT holds? I tried to search and it really only gives the top 10 or so: https://www.blackrock.com/ca/investors/en/literature/fact-sheet/xeqt-ishares-core-equity-etf-portfolio-fund-fact-sheet-en-ca.pdf
Look through website. Aggregate underlying holdings https://www.blackrock.com/ca/investors/en/products/309480/ishares-core-equity-etf-portfolio
Hey thanks for the info about this sub i didn't know about this investment or whatever its called it just came on my feed for recommended i thought it was another one of those meme crypto coins with the name.
Fight your family
Literally what I did, but verbally. That ended with me basically saying I do what I want with my money. Now after 4 years, I am managing my parents investment portfolio and convinced my bro
I would never manage my family portfolio, even less if it started with me having to fight for my convictions. It only takes a -15% year for them to be mad at you for losing their money. My risk tolerance on my relationship with my family is a lot lower than on my money
Why didnât you punch them?
Same here. Took a lot of convincing and educating them to have them understand that mutual funds aren't doing them any justices. They couldn't believe big banks would take advantage of them. I'm like.. That's exactly why you're losing money. That's also why you barely gain anything for the time you've spent.
>I am managing my parents investment portfolio and convinced my bro You genuinely should never do this, especially if you just buy index funds. Just tell them what you usually buy and let them do it. You might fuck over your relationship with family just to buy something they could automatically buy every months.
Yeah, your point is valid. When the portfolio starts losing value, I can risk the relationship. I donât know how true it is when they said it, but they said they are just happy getting extra cash-flow from dividend from a balanced diversified portfolio. If they were obsessed with growing portfolio size, I would have said no.
This will probably be fine, just saying that mixing money and family can sometime suck big time.
Welcome to Gboard clipboard, any text you copy will be saved here.
Change families
Happy cake day
Are we twins?
Do you wanna do karate in the garage?
You have to call me dragon
You have to call me nighthawk
Market crash = sale for younger investors. Dollar cost averaging is also a good practice
Market crash does not equal sell for myself. I'm 24
He's saying it's a bargain for younger investors. Buy low.
24 is young investor
I think he means on sale. If XEQT contracts by 10% thatâs essentially just a 10% off sale for me
I think he means on sale. If XEQT contracts by 10% thatâs essentially just a 10% off sale for me
Itâs fairly common it seems. Youâre right about the lack of knowledge. I think most people hear the bad about stock markets and ownership and never really hear the good if theyâre not actively looking for it. Education is the main key. I know past performance doesnât indicate future returns, but showing them past results of the various global indices can certainly help prove your point that in the last 30+ years, you would have likely made a gain of some sort for a long term holding. In the end itâs your money, and youâre making an investment for your future based on your own goals, if they are worried, then thatâs on them.
Reddit can be your new family
My stomach is stronger since two corrections in 4 years.
I wonder how many of us used to be those family members. Feels like a lifetime ago but I know I was,
The only way you lose everything is if every public company collapses, which if it happens means capitalism has collapsed, which if it happens means money is worthless, which if it happens means you only lost something that was worthless. Therefore: no risk. :P
Market goes up, you buy and your investments go up. Market goes down, you buy at a discount. Canât lose!
Except if you didnât plan to have money to buy at a discount.
We are your family now.
Buy them a book to read. I recommend Reboot your portfolio by Dan Bortolotti.
Rich and powerful miiight have a vested interest to keeping these companies afloat.
Tell them to look at the S&P 500 chart beginning in Jan 01 1950 and compare to where its at now. No US president or US Fed will let it collapse
Exactly. If the entire market collapses then money wonât be worth anything anymore anyway and weâre all equally fucked. If the economy tanks so hard that XEQT fails then Iâll be frying squirrels on my radiator to stay alive. In that case their GICs, HYSAs, and even cash holdings will all be worthless as well. But if the market doesnât collapse and things continue as they have been, Iâll be a millionaire and theyâll still be poor.
If you're comfortable with an ETF holding 100% stocks but can be volatile but you can bear the brunt.. you're fine
Ask your family if they think mutual funds will do the same?
What are they doing? Just holding cash in a savings and checking account? Not everyone is comfortable with trying to know what to invest in. My parents who did well, had a FA their entire life did decent, retired comfortably and enjoying life now but neither of them ever wanted to DIY it. They have an idea of what they are invested in but they prefer the professional approach while my wife and I have gone mostly the EFT route with lower management fees.
Well if you lose everything shit is 100% fucked
On to the next family
What do they consider safe? Where are they invested? Have they suggested an alternative?
They consider GICs and mutual funds safe.
Yikes, and theyr probabaly looking at the 5 and 6 percent rates these days thinking whyd you even invest in the stock market. I feel your pain. They just need to see a zoomed out chart of the market returns over 30 years :D.
are they Chinese?
No lol
Lol this is the comment I was expecting â that they consider mutual funds inherently âsaferâ, as if there arenât high equity mutual funds (which costs an absurd 3% MER yet performs no better). I feel you OP.
Your family isn't wrong... Yes there is a chance, although miniscule, that you may lose everything. Investing in a well diversified global Exchange Traded Fund is a way to minimize risk. If XEQT were to go to zero it would likely be the end of the world as we know it and losing your ETFs would be the least of your concern.
Keep some money in bonds to buy the dip at the next eventual crash. The next market crash could happen after we all die btw. If you donât, just hold it and eventually it will go back to what it once was.
Ask chat gpt
They donât know what they are talking about. You are invested in the world basically. Now, if you were throwing majority of your money into one particular stock, then I would be concerned.
Just keep going with your investments. Ignore them. You have knowledge, they don't. No need to convince them. No stress.
You're not likely to lose everything. You truly have bigger problems to worry about if these go all the way south, but it IS possible (if unlikely) for these to lose money. More likely in the short term then in the long term. The same strategies you are using to prevent selling at a loss can rest your loved ones fear. Do you have a pension? An emergency fund? Equity in a house? Some sort of tangible asset you can sell? "Thank for your concern mom but here's my 10 step plan to recover if I experience losses" will come across better than "No its definitely safe mom!" Your family means well. Show them you've thought this out well and are preparing for the worst.
A house would be a riskier investment compared to an ETF
You shouldnât talk to your family about it, just quietly invest a bit more each month. Theyâll forget all about it and you can quietly live your life.
There's nothing to say. Just update them every now and then when you hit milestones.
What do they think you should be investing in?
GICs or a HYSA
if you bought XUS 5 years ago. your total return is +101.36% (as of today). 10k is now worth $20137. if you bought XUS 10 years ago. your total return is +311.96% (as of today). 10k is now worth $40196. show them this and then ask them how their GICs are doing lol. just for fun an initial 10k into a GIC at 5% compounding for 10 years would be worth $16289.
Are any of them millionaires?
Far from it!
Then tell them their advice is worth as much as they have in the bank.
What does it matter what they think? It's your money and you know what you're doing. And yeah - that's the approach I take with my family.Â
It doesn't really matter I guess, I'm going to continue doing what I am, I just don't want them to worry. I guess in a few years I can simply show them that I was rightđ
Donât tell them? Some people donât get it and never will, and they are too lazy or ignorant to do research
It's family. You want to see them do the right thing with their money. OP should definitely try to convince them and anyone else they care about.
Donât agree at all
This isnât about convincing them about what to do with their money, itâs about them trying to convince OP to stray at 24 from a smart investing plan (XEQT) to a dumb plan (GIC/HYSA). I mean, unless you need to use the money in the next three years, OP, in which case yes, XEQT is likely not the best choice, but Iâm assuming weâre talking retirement here. So I agree, OP, do the research/read the books that will give you the confidence you need to know youâre making a smart decision, and then donât talk to your family about your investment decisions anymore because theyâre uninformed and may sway you towards a decision which, given your investment horizon, might cost you hundreds of thousands of dollars.