Investing

Would you like to earn 5 to 10 percent per year in investment returns? It’s easy right now. An opportunity not to be missed.

Sounds like one of those advertisements for a risky unreal investment, doesn’t it?

“Hey, watch, listen, I’ve got an unbelievable offer for you. A secret no one knows about, just you and I. So give me your money. Just invest all your hard-earned cash in my fantastic secret and become rich. … well, maybe not, but at least I will fill my pockets. Hohoho.”

Buying property as an investment - whether it is for your retirement, a regular income, or diversification of your assets - should be a rewarding venture. First and foremost, however, it needs to be an enjoyable and successful investment earning you money and making you wealthier.

First and foremost, however, decide on what type of investment you want to make.

What to invest in when you are just starting out?

With the low interest rates everyone is in the search for better returns. And the longer the rates stay that low, the greater the urge to find that holy grail that will pay higher rewards.

It probably explains why recently I have been asked similar questions by different folks:

Someone recently asked me where the name Blue Chips comes from. For those not familiar with the term: Blue Chips - or large caps, as they are also known - are those companies that have a high market capitalization (share price * number of shares).

The name derives from the most valuable chips in poker, the blue chips.

Buying property is really exciting. An awesome project that holds fantastic investment potential but similarly this major financial commitment carries a number of challenges along the way.

It has been quite some time now since I last published something on Captain Finance. The reason being: our property project. It was much bigger than we had anticipated. Regular life and working on the apartment left absolutely no room for anything else. But with the apartment now successfully renovated, a lot of time is freed up that will also be reflected in the publication frequency on Captain Finance.

As with everything in life, the more we do something, the more we learn. Some things are really useful, others not so much, and then there are those things that make you a better person, partner, employee, manager, leader, or, most importantly here on Captain Finance, a better investor.

So here are the ten things I have learned over the last 25 years of investing.

The time has come for Mrs. Captain Finance and me to take the next step. We have finally found an apartment that we both love and where we can see ourselves live. It is a little gem in the challenging and wide property ocean that is Paris. A gem that is not only architecturally different but also its price.

Our old gem

For quite some time now, we have been looking for an apartment to buy. Just as in many other places, property prices in Paris have gone through the roof and it has become increasingly difficult to buy.

How to build wealth? Whether your goal is to have enough for a retirement nest egg or millions to enjoy the fabulous lifestyle of the rich and famous, the process is always the same: 4 simple steps.

If you asked your grandparents about growing up in the mid to late 20^th century, especially those who had experienced the tough times after World War 2, the most common advice you will hear is 1) work hard 2) spend less than you earn 3) save.

The limitations of stock market predictions

A major advantage of long-term over short-term investing also lies in the reduction of the psychological pressures that come with trying to make sense of why stocks move in a certain direction. Picture yourself sitting in front of your computer or television screen trying to anticipate and react to every news feed that pops up on your screen. It is like reading a crystal ball. The overload of information fuels a feeling of distress if predicting the market is the core business model of your investment career.