Good morning.
I have been doing some reading lately about PF/FI and have come across Index Funds and want to know if I'm falling for some kind of trick or meme.
My wife and I are British nationals living overseas in a tax-free country so don't have access to LISA/ISA/workplace pensions etc so we have been talking about investing a small portion of our income into Index Funds either on a monthly or quarterly basis. We're not yet sure exactly which funds but we're probably looking at investing into VWRA and IGLA at the moment through Interactive Brokers.
So far, everything I have read seems to tell me that as long as you regularly add to it and don't touch the fund, it's a solid long-term investment strategy (20-30 years). This is the part where I don't know if I'm missing something and thought it best to ask.
- Are Index Funds really as low-risk as they say they are?
- What are the chances of us losing everything we put into it (is it even possible to quantify the realistic chance of that happening?)
- Is it better to invest a lump sum and then add to it or just start investing a set amount and stick to it?
- Add monthly or quarterly?
- Is now a bad time to start?
Anything else am I missing on asking, too? I'm pretty new to all of this so forgive any ignorance.
Some info, just in case, we're under both under 30 and have between 9-12 months of expenses saved up. I'm self employed and she works full-time. We have around $5k CC debt but that's 0% interest and being paid off in instalments.
Thank you all in advance.
Submitted December 06, 2020 at 01:51AM by thismightbemymain https://ift.tt/37Drlkp
