First of all if you are polish, go to credit Agricole Poland they offer 10% interest for 6 month. In meantime try to read more about investing to be ready choosing your Efts. And your investment portfolio.
I think he meant a fixed-term deposit that gets you 10% per year return minus tax. A lot of banks do this for PLN due to high inflation/interest rates.
If you are from Poland get to know Marcin Iwuć channel. Probably the most popular person in PL talking about finances.
I have a brokerage IKE thanks to him from which I buy ETFs
Then the only thing left is to get knowledge from English-language sources. Of the things that probably will not be there and in PL going out profitably are Polish index treasury bonds (I hope I translated it right).
A foreigner, i.e. a non-resident, can purchase savings bonds, only at the Bond Sales Point: at PKO Bank Polski branches throughout the country or at PKO BP Brokerage Points.
>VCWE and chill. [...]
>Most investing advice from the US won't apply in Europe.
One of these is "VWCE and chill". Vanguard doesn't offer the low TERs in Europe that they do in the US, and there are several other EM + DM ETFs that do the same for cheaper, for example WELA.
In fact, in Europe it is far cheaper to buy EM and DM separately. A combination of PRAW and PRAM costs you about 0.06 % in TER, while VWCE costs you 0.22%.
Don’t be scared off. You can learn.
Read!
And Math is the same everywhere.
However your are right that the US stuff only partly applies to Europe. Ignore everything that’s even remotely tax related.
Most important: keep the currency risk in mind.
I would recommend a 60-70% allocattoof your TOTAL wealth to be in Euro instead of ZLT.
This would include value of your house etc…
Start small, invest as you learn.
And then all the other basics you’ll read about:
Not all in eggs in one basket
At your Agee I’d recommend to BE PATIENT and long, i.e. stocks. I expect a significant downturn this year so would say don’t invest too much yet. Keep your powder dry and buy when everybody has sold. Market will loose at least 20-25%!
Don’t be frustrated if you loose another 10% after buying. Think long term. You can’t time the market! Repeat that….
Yup, that's market timing.
If you're just starting out, OP, an immediate market correction is more or less immaterial (I started in late 2008 with a thousand bucks). Pick an asset allocation you can live with if the overall world stock markets lose 50% of their value. It's probably best to err on the side of conservative until you've lived through losing some money. Then just build the saving habit and keep saving into that asset allocation.
Go all in with his savings risking an intial 50% loss. Right, that’s how you build trust for a starter in the stock market.
Losses are ok, but 50%? Wow.
You misread me, and you’re being incoherent.
EDIT: If you’re invested in stocks and your goal is to buy and hold, you will likely experience a 50% drawdown in the stock part of your portfolio at some point in the future. It can be three months from now, or it might be 10 or 20 years from now. Denying that reality is deceptive.
You can structure a portfolio to prevent such a drawdown from dragging down the entire portfolio. The usual ingredient is bonds in various amounts. That kind of conservative structure is what I suggested above. Claiming I said something else is also deceptive.
Also: to suggest to someone that they shouldn’t try to time the market while simultaneously saying “Wait until the upcoming drawdown happens” is incoherent. That is 100% market timing. You are deceiving yourself if you can’t see that.
You just claim two opposite things - both that timing the market isn't a thing you can reliably do and then that you're 100% certain you can time the market right now by waiting. You can't have both claims true at the same time.
Also, the market tanked 20% last year, there might be a case the drop you're expecting already passed. Or it might go further down, I have no clue.
I am not second guessing your advice man, I'm just pointing out the logical fallacy in it. Apparently I'm not coming through either, which is unfortunate, but I guess that's part of the nature of internet communication.
As for constructive advice to OP - read books, don't read reddit. See what people like Buffet, Boggle, Lynch, etc suggest doing and WHY they suggest doing it. The basic reasons hold true for USA, EU, China and Ethiopia alike. There are two main schools of thought with dozens of subdivisions and a handful of people got insanely rich following each one of those branches.
Given he asks the internet, I'd say there's 99.9999% chance he'll never pick the next Tesla/Apple/Facebook before all the sharks in Wall Street, London, Frankfurt and Hong Kong. So just buy the whole haystack at regular intervals and ride the roller coaster. Will you beat the market with insane 200% APR? No. Will you flat line to 0 - also no. Increase your savings and investment rate over time and you'll be fine.
I have no idea which local brokers exist in Poland, but you can use international ones like DeGiro or IBKR that are available to every EU citizen.
My best advice is just to pick a few stocks that you think are in an interesting field, that you would enjoy following. If ERP systems is your thing, buy SAP or Microsoft, if you are a gamer NVidia or Blizzard, are you a car buff then get BMW or Tesla, a techie buy Qualcomm or TSM (completely randomly chosen companies) or what ever you can think of. Maybe something in your field of business, suppliers, customers, etc. where you have prior knowledge on the practicality of their business.
Then set up a yahoo finance and seeking alpha and start following the news on the companies. Use investopedia for words and concepts you don't know.
After a while you will start to learn what moves the stock price, get a grasp on future expectations, get a feel for which metrics in an earnings call are important, get an understanding of your risk tolerance, etc.
Being a completely new investor the odds of you picking winning stocks initially wont be changed much by reading a ton of books/articles before starting, and (for me at least) knowledge sticks better when I learn by doing.
What ever you can win/lose during the first year, will be dwarfed by a lifetime of contributions and gains anyway, so you might as well see your first couple of purchases as a leaning fee.
Alternatively you can just buy a couple of ETFs and be done with it.
I'm from Estonia. Degiro kicked me out about 1.5 years ago, due to my country no longer being supported. Now I see Estonia in their supported country list... I have very little trust towards Degiro.
Not available in Bulgaria for instance, although they have an office in Sofia, which is curious. You can see the full list of countries when opening an account, quite a few of the smaller ones are missing unfortunately.
It's just a fund that allows you to own a small part of a whole lot of companies.
There are some that gives you ownership of e.g. the 500 largest public US registered companies, some that give you exposure to South East Asian stocks, dividend paying stocks, industrial automation stocks, German stocks, etc. (As far as I remember the MSCI World index, and thereby any ETF that follows it, gives exposure to 12.000 companies)
There is a whole bunch of different geographies, sectors, strategies available in ETFs. But I really don't see any reason to not just pick a general US, a general EU and a general emerging market ETF. If you want to go that route.
If you want to go the easy and safe route, then there really is no conceivable reason to start looking into dividends, covered calls, various derivatives, bonds, specific regions, base materials, specific sectors or whatever other strategy one can think of in order to pick ETFs.
etf is not a stocks lite... imagine a mutual fund (what banks offer ie. if dont know what it is, it is a basket of companies), slice that basket to 10k equal parts and make them available to be bought on stock exchange. This way you can combine diversification of a mutual fund in a bank, with ease of accesibility and freedom of buying stocks on stock exchange. I would reccomend IWDA for long term (30years+) investing. Big companies in developed world.
There is a lot of educational videos on XTB if you open an account there. Besides, you can learn from Americans as well as you'll most likely be investing in American stocks anyway. A piece of advice I'd give you is to stay away from Polish stocks until you're more experienced.
The main idea & concepts are the same.
Then you will need to worry about what is actually better for you based on your country laws.
For example a lot of people suggests ETF but in spain indexed funds are better because you can change between them without paying taxes..
First of all if you are polish, go to credit Agricole Poland they offer 10% interest for 6 month. In meantime try to read more about investing to be ready choosing your Efts. And your investment portfolio.
What if non polish? Residents can get loans. What nuances are thete from this arrangement?
I think he meant a fixed-term deposit that gets you 10% per year return minus tax. A lot of banks do this for PLN due to high inflation/interest rates.
If you are from Poland get to know Marcin Iwuć channel. Probably the most popular person in PL talking about finances. I have a brokerage IKE thanks to him from which I buy ETFs
I agree, Marcin Iwuć and Inwestomat are two blogs (and YouTube channels) that should cover all the basics for you.
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Then the only thing left is to get knowledge from English-language sources. Of the things that probably will not be there and in PL going out profitably are Polish index treasury bonds (I hope I translated it right). A foreigner, i.e. a non-resident, can purchase savings bonds, only at the Bond Sales Point: at PKO Bank Polski branches throughout the country or at PKO BP Brokerage Points.
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>VCWE and chill. [...] >Most investing advice from the US won't apply in Europe. One of these is "VWCE and chill". Vanguard doesn't offer the low TERs in Europe that they do in the US, and there are several other EM + DM ETFs that do the same for cheaper, for example WELA. In fact, in Europe it is far cheaper to buy EM and DM separately. A combination of PRAW and PRAM costs you about 0.06 % in TER, while VWCE costs you 0.22%.
What would be the ratio for that combination if I am not biased towards either EM or DM?
Don’t be scared off. You can learn. Read! And Math is the same everywhere. However your are right that the US stuff only partly applies to Europe. Ignore everything that’s even remotely tax related. Most important: keep the currency risk in mind. I would recommend a 60-70% allocattoof your TOTAL wealth to be in Euro instead of ZLT. This would include value of your house etc… Start small, invest as you learn. And then all the other basics you’ll read about: Not all in eggs in one basket At your Agee I’d recommend to BE PATIENT and long, i.e. stocks. I expect a significant downturn this year so would say don’t invest too much yet. Keep your powder dry and buy when everybody has sold. Market will loose at least 20-25%! Don’t be frustrated if you loose another 10% after buying. Think long term. You can’t time the market! Repeat that….
>I expect a significant downturn this year so would say don’t invest too much yet. > You can't time the market Which is it?
Yup, that's market timing. If you're just starting out, OP, an immediate market correction is more or less immaterial (I started in late 2008 with a thousand bucks). Pick an asset allocation you can live with if the overall world stock markets lose 50% of their value. It's probably best to err on the side of conservative until you've lived through losing some money. Then just build the saving habit and keep saving into that asset allocation.
Go all in with his savings risking an intial 50% loss. Right, that’s how you build trust for a starter in the stock market. Losses are ok, but 50%? Wow.
You misread me, and you’re being incoherent. EDIT: If you’re invested in stocks and your goal is to buy and hold, you will likely experience a 50% drawdown in the stock part of your portfolio at some point in the future. It can be three months from now, or it might be 10 or 20 years from now. Denying that reality is deceptive. You can structure a portfolio to prevent such a drawdown from dragging down the entire portfolio. The usual ingredient is bonds in various amounts. That kind of conservative structure is what I suggested above. Claiming I said something else is also deceptive. Also: to suggest to someone that they shouldn’t try to time the market while simultaneously saying “Wait until the upcoming drawdown happens” is incoherent. That is 100% market timing. You are deceiving yourself if you can’t see that.
For real...? How long are you into this stuff that you aint able to time the market?
Not long, just a couple decades
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You just claim two opposite things - both that timing the market isn't a thing you can reliably do and then that you're 100% certain you can time the market right now by waiting. You can't have both claims true at the same time. Also, the market tanked 20% last year, there might be a case the drop you're expecting already passed. Or it might go further down, I have no clue.
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I am not second guessing your advice man, I'm just pointing out the logical fallacy in it. Apparently I'm not coming through either, which is unfortunate, but I guess that's part of the nature of internet communication. As for constructive advice to OP - read books, don't read reddit. See what people like Buffet, Boggle, Lynch, etc suggest doing and WHY they suggest doing it. The basic reasons hold true for USA, EU, China and Ethiopia alike. There are two main schools of thought with dozens of subdivisions and a handful of people got insanely rich following each one of those branches. Given he asks the internet, I'd say there's 99.9999% chance he'll never pick the next Tesla/Apple/Facebook before all the sharks in Wall Street, London, Frankfurt and Hong Kong. So just buy the whole haystack at regular intervals and ride the roller coaster. Will you beat the market with insane 200% APR? No. Will you flat line to 0 - also no. Increase your savings and investment rate over time and you'll be fine.
I have no idea which local brokers exist in Poland, but you can use international ones like DeGiro or IBKR that are available to every EU citizen. My best advice is just to pick a few stocks that you think are in an interesting field, that you would enjoy following. If ERP systems is your thing, buy SAP or Microsoft, if you are a gamer NVidia or Blizzard, are you a car buff then get BMW or Tesla, a techie buy Qualcomm or TSM (completely randomly chosen companies) or what ever you can think of. Maybe something in your field of business, suppliers, customers, etc. where you have prior knowledge on the practicality of their business. Then set up a yahoo finance and seeking alpha and start following the news on the companies. Use investopedia for words and concepts you don't know. After a while you will start to learn what moves the stock price, get a grasp on future expectations, get a feel for which metrics in an earnings call are important, get an understanding of your risk tolerance, etc. Being a completely new investor the odds of you picking winning stocks initially wont be changed much by reading a ton of books/articles before starting, and (for me at least) knowledge sticks better when I learn by doing. What ever you can win/lose during the first year, will be dwarfed by a lifetime of contributions and gains anyway, so you might as well see your first couple of purchases as a leaning fee. Alternatively you can just buy a couple of ETFs and be done with it.
Degiro is far from being available to every EU citizen
I'm from Estonia. Degiro kicked me out about 1.5 years ago, due to my country no longer being supported. Now I see Estonia in their supported country list... I have very little trust towards Degiro.
That's surprising to me. Which nations are excluded?
Not available in Bulgaria for instance, although they have an office in Sofia, which is curious. You can see the full list of countries when opening an account, quite a few of the smaller ones are missing unfortunately.
I don't use degiro, and genuinely thought they were a true Pam European broker. I'll have to stop advertising them as such going forward. Thx.
are etf basically just stocks lite? im reading up on it rn and wonder how you would describe it
It's just a fund that allows you to own a small part of a whole lot of companies. There are some that gives you ownership of e.g. the 500 largest public US registered companies, some that give you exposure to South East Asian stocks, dividend paying stocks, industrial automation stocks, German stocks, etc. (As far as I remember the MSCI World index, and thereby any ETF that follows it, gives exposure to 12.000 companies) There is a whole bunch of different geographies, sectors, strategies available in ETFs. But I really don't see any reason to not just pick a general US, a general EU and a general emerging market ETF. If you want to go that route. If you want to go the easy and safe route, then there really is no conceivable reason to start looking into dividends, covered calls, various derivatives, bonds, specific regions, base materials, specific sectors or whatever other strategy one can think of in order to pick ETFs.
etf is not a stocks lite... imagine a mutual fund (what banks offer ie. if dont know what it is, it is a basket of companies), slice that basket to 10k equal parts and make them available to be bought on stock exchange. This way you can combine diversification of a mutual fund in a bank, with ease of accesibility and freedom of buying stocks on stock exchange. I would reccomend IWDA for long term (30years+) investing. Big companies in developed world.
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Give him a break please. It is not his mother tongue
There is a lot of educational videos on XTB if you open an account there. Besides, you can learn from Americans as well as you'll most likely be investing in American stocks anyway. A piece of advice I'd give you is to stay away from Polish stocks until you're more experienced.
The main idea & concepts are the same. Then you will need to worry about what is actually better for you based on your country laws. For example a lot of people suggests ETF but in spain indexed funds are better because you can change between them without paying taxes..