From the Bunker: Finding a strategy that suits you
This week on From the Bunker does Bootcamp, Evan and I looked at Finding a Strategy that suits you.
Not sure what Bootcamp is?
The InvestSMART Bootcamp is an online course designed to provide an introduction to investing. There are a total of six modules delivered over a four-week timeframe.
You can start anytime and go at your own pace as you have three months of access to the course material.
Here are the modules covered:
- Investment Planning
- Diversification
- Investment Vehicles
- Investment Strategies
- Investor Psychology
- Next steps (Putting this into practice)
Each Thursday, a live webinar is held covering the learning content for that week. The weekly webinars are an opportunity to follow up course concepts you need more help with or to reinforce your learning. If you can’t make that week’s webinar don’t worry. The webinars are uploaded into the Bootcamp platform so that you can re-watch at your own pace.
The InvestSMART Bootcamp is $49 and includes one-month complementary access to both Eureka Report and Intelligent Investor, which both assist in supercharging your learning experience.
Enrol Now and start your investing journey.
This week’s From the Bunker complements Bootcamp’s Module 4 – Investment Strategies.
In Bootcamp, we look at the difference between Active and Passive strategies. We examine the Core and Satellite strategy, along with a brief rundown of value investing, technical analysis, income strategies, and market timing.
One obvious benefit of having an investment strategy is that it gets you away from day watching your investment portfolio. When you’re comfortable with your plan and strategy, it allows you to have the confidence to get on with other things and not need to frequently check-in to see if everything is still ok.
Evan ran through the importance of understanding total returns and how leaving dividends or distributions to be reinvested in the portfolio, help your wealth grow due to compound returns. The ability to reinvest distributions does depend on your timeframe and personal situation.
We used the example of Saving for a happy retirement and pointed out the calculators that InvestSMART provides to help you visualise this scenario more easily. Again, we felt that diversified portfolios were among the choices in reach to reach your goals.
One crucial factor that can impact growing your wealth is the fees that some managers charge. Evan relied on data prepared by Eureka Report’s Alan Kohler showing the impact that uncapped fees can have on long term wealth.
InvestSMART has a range of diversified capped fee managed portfolios. Take a look here.
Finally, Evan walked us through the Bucket Strategy, which he has previously written about here. The Bucket Strategy also features in the Bootcamp learning content.
Join us next week, when we chat live with Nathan Bell, Head of Research, at Intelligent Investor about the Intelligent Investor Growth Fund listing on ASX.
You can register for next week’s webinar here.
You can watch this week’s episode below:
Frequently Asked Questions about this Article…
The InvestSMART Bootcamp is an online course designed to introduce you to investing. It consists of six modules delivered over four weeks, covering topics like investment planning, diversification, and investment strategies. You can start anytime and have three months to access the material, making it a flexible way to learn at your own pace.
The InvestSMART Bootcamp costs $49 and includes one-month complementary access to both the Eureka Report and Intelligent Investor. These resources are designed to enhance your learning experience and provide additional insights into investing.
Having an investment strategy helps you avoid constantly monitoring your portfolio. It provides confidence in your plan, allowing you to focus on other aspects of life. A well-defined strategy can also help you understand total returns and the benefits of reinvesting dividends for compound growth.
Active investment strategies involve selecting stocks or assets to outperform the market, while passive strategies aim to match market performance by investing in index funds. The Bootcamp covers these strategies in detail, helping you decide which approach suits your goals.
The Bucket Strategy involves dividing your investments into different 'buckets' based on timeframes and risk levels. This approach helps manage risk and ensures you have funds available for short-term needs while allowing long-term investments to grow.
Diversification spreads your investments across various assets, reducing risk and increasing the potential for stable returns. It helps protect your portfolio from market volatility and is a key concept covered in the InvestSMART Bootcamp.
High fees can significantly reduce your long-term investment returns. The Bootcamp discusses the importance of understanding fee structures and choosing investments with capped fees to maximize your wealth growth.
InvestSMART provides calculators to help visualize retirement scenarios and plan effectively. These tools, combined with diversified portfolios, can assist you in reaching your retirement goals.
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