I've officially already reached my target portfolio size. How do I start to withdraw? Ive only been invested for 2 years but started with large amounts (which I had saved from self-employment throughout 10 years)
When one is ready to start withdrawing, it is important to check your portfolio allocation and make sure you are not taking too much risk. Usually in the withdrawal stage one will not have a 100% stock allocation but will have a mix of stocks and bonds. Then one has to choose a withdrawal rate (the standard in the FIRE movement is 4% of the amount, indexed for inflation every year - but some people argue for different percentages). Plus of course one has to pay attention to taxes. It gets a bit complicated, which is why in my training programs we spend quite a lot of time on this.
The statistic that 80 something stocks out of 26,000 being profitable over X years is only accurate for long term investors, active investors by nature are more short term as they want to capitalize on market inefficiency and thus you can not just use a linear model by backdating every stock and equating it to todays valuation because you might of sold at a different date. I don't get people that only think passive long term investing is viable, you can actively invest and beat the market and many people do consistantly, it does however take more of your time which may or may not be worth it to you.
Unfortunately not. But in Spain qualifying index mutual funds have a tax advantage - moving between funds can be possible without paying capital gains tax - which allows tax deferral. For this, it is necessary to invest through a Spain-based fund platform.
Great info! This channel is underrated
A video packed with really interesting info! Keep more like this coming!
Seriously Tom, you're great. Ever come to Lithuania? Lemme know!
I've officially already reached my target portfolio size. How do I start to withdraw? Ive only been invested for 2 years but started with large amounts (which I had saved from self-employment throughout 10 years)
When one is ready to start withdrawing, it is important to check your portfolio allocation and make sure you are not taking too much risk. Usually in the withdrawal stage one will not have a 100% stock allocation but will have a mix of stocks and bonds. Then one has to choose a withdrawal rate (the standard in the FIRE movement is 4% of the amount, indexed for inflation every year - but some people argue for different percentages). Plus of course one has to pay attention to taxes. It gets a bit complicated, which is why in my training programs we spend quite a lot of time on this.
The statistic that 80 something stocks out of 26,000 being profitable over X years is only accurate for long term investors, active investors by nature are more short term as they want to capitalize on market inefficiency and thus you can not just use a linear model by backdating every stock and equating it to todays valuation because you might of sold at a different date.
I don't get people that only think passive long term investing is viable, you can actively invest and beat the market and many people do consistantly, it does however take more of your time which may or may not be worth it to you.
Are there any special tax beneficial accounts/investing for people living in spain like the way the UK has ISA and the US has Roth IRA
Unfortunately not. But in Spain qualifying index mutual funds have a tax advantage - moving between funds can be possible without paying capital gains tax - which allows tax deferral. For this, it is necessary to invest through a Spain-based fund platform.