If you want to get rich quicker, it's worth carving out 5 % — 10 % of your investable assets and / or reinvesting your risk - free income into speculative investments that complement
your plain vanilla investments each year.
Not exact matches
San Diego financial planner Andrew Russell points out that some of Bush's active funds with complicated
investment strategies — like Wasatch Long / Short Investor (FMLSX), with average annual returns of 3.2 % over the past decade, and Wells Fargo Advantage Absolute Return (WABIX), up 4.7 % — have lagged
plain vanilla index funds.
But, if you look at the numbers, you'll see that these types of
investments greatly underperform
plain -
vanilla stocks and bonds.
But, in addition to Bitcoin being a risky
investment for all the reasons that
investments can be risky (i.e. volatility), Bitcoin and other cryptocurrencies suffer from additional security challenges that traditional
investments (such as
plain vanilla stocks and bonds) do not.
Franklin Templeton
Investments is rolling out four more ETFs as part of its lineup of low - cost,
plain -
vanilla ETFs covering different countries and geographies.
If you dig deeper you'll also find that XTR holds only
plain -
vanilla stock and bond funds, while ZIM includes some more exotic
investments such as floating - rate notes, emerging market bonds and a couple of ETFs that write call and put options on their underlying stocks to generate more income.
It's a
plain -
vanilla bond fund tracking the same index as before, with a fixed target of 60 % government and 40 % corporate bonds, all
investment grade.
Throw in the fact that fringe
investments often come with lofty fees (often to pay the person peddling them), and your chances of doing better loading up with alternatives than you would be simply sticking to a
plain -
vanilla portfolio of low - cost index funds and ETFs are slim.
But charitable strategies involving
investments have the potential to deliver greater tax benefits than making
plain -
vanilla cash contributions.
Similarly, while you know that
plain -
vanilla low - cost index
investments are a proven way to reap the rewards of the financial markets over the long haul, you could still find yourself intrigued by a pitch for a high - cost
investment that purports to offer outsize gains with little downside risk.
But the rules concerning qualified
investments can be complex and detailed, especially when your
investment is something other than a
plain vanilla, blue chip Canadian stock.
Ask yourself — why does it fit your
investment plan better than a
plain vanilla index fund or other smart beta fund?