Free Investing Course, Set Up Automatic Investing

Happy Monday, wealthy people! 

Have you taken our free Introduction to Investing Course yet? As the name implies, it is for those in the early stages of their investing education who want to understand holistically how investing works. Enroll in this on-demand course here (scroll down to find the free course), get comfortable on your couch and click “play” to start your investing journey. 🎉

We’re also excited to introduce a new column called “Ask Me Anything,” where we get to answer YOUR questions. Got questions? Simply respond to this email and ask away.

In today’s email:

👉 Stock Market Update - The S&P 500 reached another milestone

👉 Maximizing Wealth 💸 vs. Life Experiences

👉 Ask Me Anything - How do I set up automatic monthly investing?

👉 Sip of Learning - Margin Accounts

Grab your latte and let’s get started!

Margarita T., CFA

Founder, Finance Latte

AI FUNDS EVENT - March 1

There are many mutual funds and ETFs in the market investing in companies involved in the Artificial Intelligence (AI) ecosystem, from LLMs to chips to tangential services and products in the industry.

👉 Join us for a fika in Stockholm to discuss the number of AI funds investing options and meet other like-minded women. Register here.

WEALTH BUILDING STRATEGIES

Maximizing Wealth 💸 vs. Life Experiences 🎆

Maximizing life experiences goes hand in hand with wealth building. As Bill Perkins, the author of the popular book “Die with Zero” (as in, die with zero money so that you can spend every penny) advocates, there are several windows of opportunities in life that one should not miss.

🚗🚄 Whether it’s backpacking in Europe before or after college, taking a meditation break for self-discovery, or going on vacation with both your children and parents, some opportunities come and go at different stages in your life.

📝 Recognizing them, planning for them, and yes, saving/investing so you can achieve them are complementary ways to optimize your life.

A window of opportunity can permanently close.

Consider the limited years when a family holiday can be shared with both your children and grandparents. As time progresses, the children grow older, and the grandparents may become less mobile, making that life goal increasingly unlikely.

Taking advantage of these windows of opportunities, and yes, planning to financially prepare for them as well, can lead to a rich and fulfilling life.

ASK ME ANYTHING

Question: “I loved the idea of saving and investing for one’s kids you shared in the last newsletter. How do I set up the automatic monthly investing for my kids?”

– Lily H.

Answer: 

First off, congrats on putting an investing plan in place for your kid(s). 🎉🥳 

Here are a few pointers on what you may need:

  1. You will need a good broker/ trading platform that allows automatic investments, meaning automatically taking an amount from your bank account every month and then investing it.

  2. A good platform should charge zero fees when you set this up. If they charge you $10 per transaction each month, when you invest $100, then that's way too expensive, right? You would be losing 10% of your capital that way. 👎 Hard pass.

  3. You can set this up so that A) YOU pick the fund(s) that your $100 will be invested in, or B) the trading platform will pick the fund(s) for you. If you choose A, prefer low-cost index funds; if you choose option B, watch for how much this service costs (anything below 0.2% is reasonable) and also monitor the fees of the funds they choose for you.

  4. You can save directly in your child's name or in your own. Check the tax rules in your country to determine what method is more tax-efficient. The disadvantage with investing in your child's name is that once they are 18, they get full access to all the money and you have zero control after that point (just have to hope they don’t gamble it all away in Vegas 🙃). Alternatively, there are some insurance-like investment accounts that allow you to set another age limit as to when the kid accesses the money.

  5. Remember, buying any type of stock fund, even a very diversified one tracking the 1,500 stocks of the MSCI World Index, involves risk, including the loss of principal. By setting up the investments automatically EVERY month, you would keep buying index funds at different price points and you reduce the risk of buying into the market only once and at the worst possible time. The earlier you start investing for your kids, the longer the time horizon you have until they are adults, which stacks the odds in your favor.

  6. When in doubt, always ask a financial or tax advisor for personalized advice. This is general information not tailored to your needs.

    – Margarita T., CFA

Got a question for me? Ask it by simply responding to this email.

BINGEWORTHY

🗞️ Article: MIT’s 10 Breakthrough Technologies of 2024.

🗞️ Article: New Hampshire tried to make investing in ESG illegal, with up to 20 years of imprisonment. (ESG = Environmental, Social and Governance).

🎬 Show: Fair Play. A Wall Street thriller where a young woman working at the same asset management firm as her boyfriend, gets promoted over him and her world crumbles...

📚 Book: Quite Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required. An inspiring read of self-made millionaire Kristy Chen, who retired at age 31.

🗞️ Blog: Ripe has fantastic tips for fearless solo women travelers.

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Finance Latte AB is not a registered investment advisor. This content is for informational purposes only and should not be interpreted as investment or tax advice. Investors should make investment decisions based on their unique investment objectives and financial situation. While the information is believed to be accurate, it is not guaranteed and is subject to change without notice. Past performance does not guarantee future results. Market indexes are unmanaged and cannot be invested into directly and are not meant to depict an actual investment. From time to time Finance Latte AB might include affiliate links in its newsletter or website where we might earn a commission if you subscribe to a publication, or purchase a product you found through us at no extra cost to you. We will not promote any type of investment product, and will only include non-investment/non-finance services or products we believe in. View our Privacy Policy and Terms of Service.

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