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The Fat Wallet Show from Just One Lap

The Fat Wallet Show is a show about questions. It’s about admitting that we don’t know everything, but that we’re willing to learn. Most of all, it’s about understanding as much as we can to make us all better investors. Phrases like, “I’m not sure” or, “Let me look that up and get back to you” or, “I don’t know” don’t exist in the financial services industry. If you ever had a financial question you were too embarrassed to ask, you know what we’re talking about. In this business, appearances matter, and nobody wants to seem like they don’t know how things work or what the outlook is for the buchu industry. It’s easy to excuse that little vanity, except that people in the investment industry are meant to service investors - people like you and me who need to figure out what to do with our money. There’s no such thing as a stupid question in this show. If you have unanswered financial questions, this is your opportunity to have them answered in a way that even I can understand. Pop them to us at ask@justonelap.com. Hosted by Kristia van Heerden and Simon Brown
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Now displaying: July, 2019
Jul 28, 2019

FW1_2907We can all assume the chief economist at Stanlib knows a thing or two about the world. Imagine my alarm when I read he thinks we need to fall out of love with equities. Thankfully the headline was just clickbait and Kevin Lings said nothing about Bitcoin. If you let yourself read beyond the headline (lesson learned, I assure you), you’ll find a thoughtful explanation of why the South African equity market is where it is today.

In this week’s Fat Wallet Show, Simon and I discuss what our alternatives are if we don’t love equity. We get to talk about bonds, which makes me so happy. We also delve into stacking your home loan and the right amount of emerging market exposure for equities.

Roberto

What's a general recommendation percentage-wise in ones portfolio allocated to emerging markets? I have been buying Satrix World and Emerging Markets ETFs in my tax-free savings, split 70% and 30% respectively. Is that perhaps too aggressive on Emerging Markets? I have seen online 20% max is usually recommended, at least for investors in Europe.

@layoutordie

Stocks give a 13% return, but (tfsa aside) you pay tax now or later. Paying off home loan gives a 10.5% (or greater) return, tax free.

Am I missing something, or is a tax free return of 10.5% better than equity?



Win of the week: Shane

We recently adopted a rescue cat named Myshka.

She's 18 months old, has all of her vaccinations and has been spayed.

I've been listening closely to your views on funeral cover and thought that the same philosophy could be translated into pet insurance.

We spoke to a veterinarian friend of ours who indicated that Myshka is unlikely to have any health issues during the first 5 to 7 years. She has a life expectancy of at least 15 years. Diet apparently plays a large part in their health, so she's only getting Science Diet (There go our bubbles...) With this information, the plan is as follows:

Step 1: Obtain quotes for the "Rolls Royce" of pet insurance for an 18 month old female cat with no medical history (Let's let the actuaries assess her risk and do the hard work for us for free).

Step 2: Select the most expensive quote (the theory is that we are selecting the most risk averse actuary out of the lot). This quote came to R410 per month.

Step 3: Round up to R500 per month to build in an extra margin of error for risk and invest this amount into an equity ETF and watch our Money Bunnies grow (thanks Stealthy!).

We worked on the following figures and assumptions:

- R500 per month contributions adjusted annually by inflation (assuming 5%)
- Assuming an annual growth of 12% over the 5-7 year period
- Adjusting the 12% growth down by our assumed 5% inflation figure to 7%

We are assuming we are in a relatively safe space regarding kitty health in the first five years After 5 years we enter the "danger zone" but we have almost R30,000 in today's money to pay for vet bills.

Assuming the pet insurance premiums don't increase (which they will), this means that we would be spending in excess of R24,600 in insurance premiums during the first five years of Myshka's life.

This is the same period of time that she is at low risk. This investment is not as liquid as we might want it to be for an insurance, but that's why we have our six-month emergency fund to draw on in case of kitty emergency. We can then slowly replenish the emergency fund or cash out some or all of our investment to replenish the emergency fund when the market allows for it.

By the time Myshka reaches the end of her lifetime at a conservative 15 years and assuming she hasn't had any major health events, we will have a tidy little sum of R215,000, which can be put towards a royal kitty funeral with loads of bubbles or a golden plaque in memoriam of our beloved Myshka (Don't worry, I'm just kidding, I'd never invest in Gold... Bubbles it is!)


Brecht

A few years ago I worked for MTN and they had a share incentive scheme in which the employee received shares after a certain number of years of employment.

I’ve watched these shares climb very nicely and have watched them drop very nicely.

I am way over invested in one share and was wondering how best to start selling and getting diversified whether in ETFs or other shares. My thinking is to start selling R40,000 a year to not incur CPT and that would be a great start to funding my TFSA and buy some other ETFs with the extra? Your thoughts?

Currently my MTN shares are with ABSA stockbrokers and they charge a +-R80 admin fee every month. Would it be worth moving?


Sexy Bear

Two years ago, I found myself desperate and in a deep, dark hole to the tune of almost R3m.

That was made up of a house, vehicle debt and over R600,000 in unsecured loans and credit card debt. We overspent my income by at least R20,000 per month!

From the outside looking in, I was probably ‘living the dream’. The reality was vastly different! I was unhappy and in debt that I couldn’t even afford to go away for a weekend.

I realised it was absolutely absurd that despite earning a decent salary I was literally broke.

I put the house and my wife’s car on the market, I started frantically paying back debt a little bit at a time, lump sums when I had them.

The legal fees for the divorce set me back a bit in my journey but they were SO worth it, I was divorced within six weeks. I also had an ANC which was helpful…

Today and I am in a much healthier (and happier) financial position!

I only have a few more rehabilitative payments due to my ex-wife.
I am debt free.
I have an emergency fund
I have a credit card with a R 1,000 limit.

The bank initially wouldn’t reduce my R 350,000. I had to threaten to close my account.
I have closed my Allan Gray Equity account.
I have consolidated my RAs into one.
I have fully funded TFSAs for my kids and myself
I am in the process of changing my medical aid from Discovery to Genesis for a R1,500 per month saving.
I have threatened the bank that if they don’t waive my R475 pm account fees, I am changing to Capitec… They have asked for a meeting to discuss…?!?
DSTV is on its way out…
I have life insurance for my kids… and a will…

I max out my RA annually.

This is with 10X now, at 75% local exposure? (Reg. 28) I don’t want any more developing market (or RSA) exposure.

Because I don’t want further rand exposure than already in my RA, I believe the STXWDM is right for the TFSAs. Am I correct in saying that I already have enough emerging market exposure in the RA?

I have a further R500,000 pa that I want to invest in dollars. I prescribe to Patrick McKay’s take on buying the market, so I am interested in the Vanguard world from either Ireland or the US.

Should I use my EasyEquities USD account to buy VT ETFs or try and set up an Interactive Brokers account and buy the VWRD? I am aware of the death duty on the VT, but you can’t control everything (or anything at times!), so it wouldn’t cause me sleepless nights that if I were to croak suddenly there would be a tax liability. If I were to croak slowly I could always sell or move prior to my last croak…

I would need an international will with the VWRD through IB, would I require an international will for the EasyEquities VT?

Is the EasyEquities USD account truly offshore?

If I reach my goal of financial freedom, become an international jet setter and say moved to Croatia, would I be able to access these EasyEquities USDs from there, assuming I have a Croatia bank account?

Do you see any gaping holes in my financial restructuring above?

At this point I will have all my investments in three places: 10X RA, TFSA STXWDM and EasyEquities USD VT, although I feel OK with this do you feel that it is sensible?

Jul 21, 2019

Tax-free savings accounts have an annual limit of R33,000 per year and a lifetime limit of R500,000. It will take 15 years’ full contribution to reach that limit. The money in a tax-free savings account is not liable to any tax, except VAT on brokerage. For as long as you hold the account, you pay no dividend withholding tax, income tax or tax on capital gains. While you can’t make up the contributions you missed, you can continue contributing to the account until you reach your lifetime limit - however long that may take. 

The tax savings on these accounts is what makes them so indispensable to a long-term portfolio, but that by no means implies that these accounts are only for those with a long-term investment horizon. The tax savings start from your first dividend payment, which means they are for everyone who prefers not to give 20% of their dividend to the government. If you listen to this podcast, we’re assuming that’s you. 

Can you be too old for a tax-free account? In this episode, we argue these accounts are not age-dependent. We also spend some time discussing appropriate asset classes as you get older. As Patrick Mckay likes to point out, the tax-free allocation is the last money you ever want to use. If you’re in your 70s, that probably gives you an investment horizon of 10 years or longer.



Joyfully Prosperous is wondering how to handle his mom’s TFSA account.

My mum is 78 years old. Does it make sense to open a TFSA account in her name? If so, would the Satrix 40 ETF be a better option than the Satrix Property (SA) ETF considering that the tax-free benefit will fall away eventually when we inherit shares from the estate.


Win of the week: Jennifer from New York.

I want to express my deep appreciation to you and the Fat Wallet crew for such a thoughtful and informative podcast.

I am 42 and live in New York City. I came across your podcast in a blog post last year while searching for English-language personal finance podcasts from around the world.  I'm painfully aware that my knowledge and cultural biases around finance have been molded by media sources that function as if the United States is the only country in the world that matters.

Through the Fat Wallet Show, I have learned about topics specific to South Africa, and have found connections between those topics and issues we deal with here in the U.S.  In a recent episode, you discussed the fact that some banks to intentionally mislead customers by stating misleading interest rates. Simon pointed out that in the UK, institutions are required to disclose the APR (Annual Percentage Rate). Here in the U.S., banks must also disclose the APR, a fact that I have taken for granted until I heard to this episode. I did a little googling and discovered that in the U.S., this mandatory disclosure only became law in 1968.  This is consumer protection I'm certain most everyone my age here takes for granted.

In addition, I am humbled by your resolve to continue steadily investing through a years-long economic downturn, a situation which we very well may face here at some point. My work colleagues are quick to stop contributing to their retirement accounts as soon as there is any slight downturn in the S&P 500, such as what happened at the end of last year. And of course, they only resume investing when the markets are back up. When the U.S. does enter a real recession, I plan to continue dollar cost averaging into my index funds. I understand that is easier said than done, but I hope I am able to be as steadfast as you are.

As a side note, I've realized that my current top three financial podcasts seem to have a common theme - they are all hosted by women with journalism backgrounds!

  1. The Fat Wallet Show
  2. Afford Anything (hosted by Paula Pant)
  3. This Is Uncomfortable (hosted by Reema Khrais)

Keep up the excellent work, and again, thank you from the bottom of my heart.  If you or Simon ever find yourself in New York City, I'd be happy to take you out for coffee (good coffee, of course).  :)

P.S. Please tell Simon that we here in New York also cannot stand the Orange Man. I must constantly remind myself, although it is a small comfort, that he did not win the popular vote. :(


Kea 

What do you think of a trust for shares?

I am getting married in September. It is difficult for me to convince her family to marry out of community of property.

I want to open a trust to put my ETFs in it. My partner and I have different views about money, I am a saver and she is a spender. I intend paying University and school fees for our children with this investment and am scared she might have different views about the use of this ETFs.

What are the disadvantages and advantages of having ETFs in a trust?


Hong Kong Hans

I'm a new listener and new to researching. I live abroad, so can't deal directly with South African products, but I've learned so much general knowledge from your show and enjoy it tremendously.

You've mentioned several times that buying shares in a company entitles you to a share in the profit. How are we to understand companies that don't pay dividends despite turning a profit? For example, facebook has pretty decent profits, yet have never paid dividends at all.


Fried

So thanks to you guys, I moved my (and my wife's) RA to 10x. Was quick and painless and didn't cost too much. The IT3(a) I received from Sanlam assigned the SARS code 3920 - RETIREMENT FUND LUMP SUM WITHDRAWAL BENEFIT. There's another spot where the code is 3699 but I can't find a description of it on SARS' website. 

I didn't withdraw that money, it was transferred directly to 10x, it didn’t touch my account.

I'm really concerned about this and hope that you would be able to answer 2 questions, and hopefully set my mind at ease.

  1. According to the IT3(a), the lump sum is taxable. Do I now have to pay tax on that money? On money that moved from one provider to another? 
  2. Will this lump sum withdrawal affect my tax-free withdrawal limit when I eventually retire in 44 years, 17 months and 24 days?

Victor

Would the following scenario then make sense as a retirement strategy? My partner retires two years before me.

I continue to work and we cover our living expenses using my salary during this time. 

When I retire two years later, we draw down from her retirement savings (which should then be taxed at a lower rate) to cover our living expenses. Then when I have been retired for two years without earning a salary we start drawing down from my retirement savings as well.


Rudolph

What criteria is used to regard one market as "developed" and another as "emerging"? Does gross domestic product or gross national product per capita play a role, what is the cut-off point?

Are EMs more susceptible to global market volatility, in comparison to DMs? If so, what causes such? Could it be that, their markets, assets, and level-caps, are smaller, therefore less resistant to shocks and volatility?

What type of stocks or asset classes are more profitable in EMs as opposed to DMs? 

In what instance would you rather hold debt and equity in EMs? If the yield is higher in EMs, what determines such yield? How is such yield influenced by political, interest rate, and exchange rate risk?


Rob

As a result I now have about 80% saved in cash and the rest in various ETFs.  I have made the decision to transfer the entire 80% that is in cash into my EasyEquities account and have submitted the relevant forms to EE and FNB already.

Once the cash has been transferred to my EE trading account, should I purchase one or more ETFs immediately or should I buy smaller numbers of shares at a time in order to phase in my investment?

One of my concerns with phasing in is that any cash I have not used to buy shares will attract a cash management fee from EE of 1.75% and only accrue interest of prime minus 3.5%.

Jul 14, 2019

At age 37, Patrick Mckay had amassed enough assets to sustain his lifestyle without ever having to earn an income again. In the biz, this is what we call financial independence. 

The Financial Independence, Retire Early (FIRE) movement has enabled many younger people to think differently about their expenses and assets. Even if you love your job, understanding basic FIRE concepts like the 4% rule is a great framework for making better financial choices.

But what about people who are further along their journey? Is it possible to apply these principles in your fifties? In this show, Patrick and I discuss how older people with insufficient retirement savings can use FIRE to ensure a financially secure retirement. 

Here are some of the tools we discussed in the show. 

https://www.investorchallenge.co.za/com_calc_fire.php

https://investorchallenge.co.za/the-only-way-to-get-rich/



 

Jul 7, 2019

Compiling a financial plan before you earn an income or when you have very little is ideal. You can’t afford any bad financial habits yet and your cost of living is probably as low as you can get it. As it happens, those are the two most important ingredients to rocking your finances.

Generally, our umbrella financial plan, the one-size-fits-all beginning to financial life, goes as follows:

  • Pay off your debts
    Set up an emergency fund of between three and six months’ living expenses
    Protect your assets with dread and disability cover and insurance
    Invest in ETFs using tax-free savings accounts
    Have a retirement annuity

In this episode we use this framework in the context of unemployment or low income. This one’s for you if you’ve never worked, if you worked and then lost your employment and if you have less than R500 per month to invest.

P.S. Remember to mail us if you want to help us sell Just One Lap.

Win of the week: Margharita

Since discovering Just One Lap three months ago, my finances have undergone a HUGE spring cleaning. I'm saving 50% of my earnings; am maxing out my RA; have opened a TFSA; started investing in the stock market through EasyEquities; changed banks (to Capitec); reviewed all my policies and got rid of those that overlapped; started using 22Seven to track my spending and last but not least, did the homework on (and then eliminated) costly financial advisor fees. Thanks for providing a great resource, as well as the encouragement to manage my finances "like a grown up!"

My questions:
1. You both love the Ashburton 1200 ETF. Why do you prefer this to the Satrix MSCI World ETF, when the TER on the latter is slightly lower?
2. If I invest in the Ashburton 1200 ETF, is it best to do this within my TFSA, or in my general investment account? Or both?


 


Santosh

Capital Legacy stated that if someone dies in a hospital, the hospital reports it using the person’s ID and an online system and immediately the bank accounts freeze.

No time to "go to the ATM" as the death will be reported even before the family knows

Desmond

My mum has been waiting five months to receive her pension. We've been to the GEPF and have only been shunted from pillar to post and promises. There has been no assistance from them whatsoever.

Aman

I've just completed a cash out of my EE USD account to my FNB Global account. I'm assuming this would work the same to the similar global-type accounts offered by the other SA banks.

There was no charge on the EE side for the withdrawal. The only fee was the cost of the receiving bank (mine being R55 for the amount of $33/R465).

This gives me peace of mind as EE isn't clear on the cash out process in their FAQ section.

Anton

In the offshore investing with Candice Paine, investors are cautioned to have a will(s) in place that properly deals with any offshore assets.

If memory serves me correctly, in another podcast Kristia mentioned a company well versed in preparing offshore wills. However, for the life of me I cannot find this podcast and it would be quite a challenge to trawl through all the likely podcasts (I have attempted some but without success!).

Do you perhaps recall the relevant podcast and the name of the company?

ZAQfin

Kieran

I have grown to be an advocate for low-cost, index-tracking long-term investing. I have begun to advise my younger sister financially in this regard, as she has recently started earning. Personally, my investments are simply split between:

- S&P500 (Sygnia), MSCI World and Emerging Markets (both Satrix) ETFs in TFSA (27% of total);
- 10X High Equity RA (41% - aiming for lower but contributed a big lump-sum a few years ago);
- Cash balance in Capitec account (32%).

I’ve advised my sister to first and foremost use her full TFSA allocation and buy S&P and MSCI World. Thereafter, to purchase the same ETFs in her standard non-TFSA brokerage account. In addition, an emergency fund of somewhere between 5 and 10 months of expenses, obviously in a savings account with high interest (Capitec/Tyme).

Assuming she still has additional funds to invest, is an RA the right way to go? I like 10X because it maximises Reg28 allocations and mirrors the low-cost, index-fund strategy of just buying ETFs, the major benefit of course being the tax-deductible contributions.

But the money is 'locked away' for much longer, and potentially shielded from the full returns of its underlying indices (S&P, MSCI World, etc), because of the Reg28 limitations. Would love to hear your thoughts on when and why one might or might not begin contributing to an RA

Jul 1, 2019

I grew up with the idea that you can lose “all your money” in the stock market. I’m sure many people did. Movies about the stock market don’t do much to put us at ease - if it doesn’t end with someone losing their last penny, it’s not very entertaining.

This week, Nadia got us thinking about what it really means for your portfolio when there’s a stock market crash. Her anxiety was provoked by Rich Dad, Poor Dad author Robert Kiyosaki, who stated in a recent interview that all money is fake and we should all buy gold and silver. Fat Wallet veterans can guess how we take this news.

We talk about what we actually mean by a stock market crash and the different ways that could affect your portfolio. We also share some gems from our Twitter community.



Nadia 

I was wondering if you guys could help ease my mind a little. 

I've been wanting to do a lump sum deposit into my TFSA and split it between the Satrix top 40 and the Satrix MSCI world. I have most of my TFSA in the Coreshares equally weighted but I think I've given up hope for that ETF and I'd like to cut it out once it's back in the green (if that happens). 

When I was about to do my lump sum, I came across this article "Rich Dad Poor Dad' author warns South Africans of 'biggest financial bubble' ahead".

This made me a little nervous and got me thinking about a market crash. I don't know if I understand exactly what happens to all your investments when the market crashes. What will happen to my TFSA investments, my RA, Unit trust etc if the day comes where the markets crash. 

What do you do in that situation? Do you just wait a few years for it to restore itself? Should you buy while the price is low and hope for it to climb up the ladder again? For example, if I had 50k in a Top 40 ETF, does this mean I could potentially lose that 50k if all those top 40 companies fall flat? Could this happen in a market crash or would it only be a few companies who take the plunge? 

I think having a better grasp on what situations could unfold in the future would help me feel more confident about where I'd like to put my money and it'd help me understand what to do or how to handle things if shit hits the fan.

Thanks again for the amazing work you guys do. Honestly, I'd be completely lost without you.

From Twitter

@SammyJoeD

Lol I don't know but I'd like to think it's a closed system (don't ask me to elaborate, it makes sense to me that way), the money goes into someone else's pocket, say someone who has placed a bet on the option that the market will crash. 🤷

@andrevdwal

It hits the vehicle's windshield!

@Gerda04288858

Peeps panic and jump out of windows. Some unlock the safe and use their gun. Bad stuff. 

@adelinerodd

Nothing

@tshidadoz1

When the market crashes, u loose all your investment... then other  non- finance people laugh at you for wasting money by investing so it would have been better to chow it🤷🏽‍♀️

@adriaan222

Is the money invested in shares, or in cash form? I think it stops being money when in share form.. 

@OneAfrica12

It immediately stops growing. Waits for market recovery and grows very very slowly while investor recovers his losses.


Win of the week: Brett

My short journey started in 2017 when I became a financial advisor/broker (not an IFA) with Liberty. I’ve always wanted to be someone who made a positive difference in people’s lives and I thought that this was the perfect opportunity. I drove to all my clients, so this gave me loads of time to listen to podcasts. Then I started listening to your podcast.

This is when I started to understand what was actually going on. I looked deeper into the investments I was recommending, and the fees charged for them. I always knew there were fees involved, but I did not fully understand the impact they can have on your investments over time.

After asking my Regional Manager why the fees were so high I was told:  “There are loads of costs from our side and you need to earn an income too.” This made me mad, but I did have to earn an income as I was earning on a commission-only basis (another huge problem with the industry). 

When you start out, all you want is to be as successful as you can. But that success often comes at a cost to someone else, someone else can only afford to put R400 away per month for their retirement but would have to pay a fee of 4.2% per annum. 

Most of the time they were not even aware of this. As Simon says, ”It should be illegal”. I also found out that 90% of active fund managers underperform the index, so I was basically being paid for poor returns since I could only provide active funds to clients. 

It got tougher and tougher with each passing week and I felt the main reason I had started the job had been compromised. I could not carry on so I quit and hoped for the best.

Since then, I have learnt more and more about investing and saving, and even got a job at one of my favourite companies (10X Investments) as a consultant. I am paid like a normal person (basic salary) and don’t take any fees. 

I believe the problem is not with the advisors/brokers/wealth managers. The problem is with the companies that do not educate or train them properly, especially when it comes to passive investing and low fees. It’s just sad to see that the people who need the most financial help are the ones being screwed over the most by the big companies.

I have never been happier since I left ’the dark side’ and believe that I have helped more people now than I ever would have previously. So I just wanted to say thank you to you and others, like Sam Beckbessinger, for shining the light.


Smith 

I have a few thousand to invest over 10 to 15 years. Are the current open Barloworld KhulaSizwe shares are attractive in large volumes - in my situation between 1,000 and 10,000 shares.

Should I buy 1,000 shares only and invest in other investment vehicles. What would be suitable ETF to buy with the remaining money with relatively good returns in the next 10 to 15 years.


Robyn

In the five concepts podcast, you mentioned that dividends were paid out to you and you got R500 odd for doing nothing.  I recently bought my first shares and ETFs through the Standard Bank Online Trading platform and want to know HOW the dividends are paid out?  Does the money go into my trading account or into a personal account? Also, when are dividends usually paid? Is there a specific time of year or is it different for all companies?


Andy 

I have a significant amount of money invested in the Liberty Evolve Capped Tracker, which is a Top 40 Tracker.

I’m not 100% sure the costs involved but the Financial advisor who sold it to me said that there are no costs but the returns are capped at 8% for the first three years (any returns in excess of 8% is shared with Liberty) and thereafter returns are uncapped.

The Effective Annual Cost (EAC) is at 0.6%. 

The investment to date has grown by 3.1% pa (lost all first quarter gains in May unfortunately)

Should I exit as soon as I can (August 2019) and move it into the Satrix 40 on my STD BNK OST account? I will have to pay CGT on this,  but I don't understand the product and not sure what costs are hidden. 

Would you also suggest putting a portion of it into STXWD? The amount in question makes up about 40% of my net worth. I have the other 30% of my net worth in a residential flat in Cape town (Access bond completely paid off) earning a nice yield (11%pa) and the other 30% is made up of individual shares (more speculative smaller caps) on OST, an Allan Grey RA and a small amount in STXWDM.


Jonathan

My financial advisor friend says the better funds in SA have a proven track record of 10  years beating the index

Because 10x reports before fees while all other funds report after fees, 10x is obscuring a true comparison.

10x released a video today showing their performance comparison after fees, against "average fund managers", which isn't pretty for fund managers. However, he argues that calculating the average with a 10x hat on will include all the worst funds to push down the performance.

Could you comment on these figures from 10x, allan gray and investec opp:

10 year performance:

10x: 10.2 before fees

Allan gray: 12%

Inv opp: 11.3%T


Gerhard

“Most active managers have a hard time beating the index. Why do they have a hard time beating the index? The index owns the haystack. In the haystack are several needles. The index doesn’t need to go hunting to find the needles. They just bought the entire haystack and all those needles came with it. The S&P500, Apple, Microsoft, Google, Facebook comes with it - all kinds of businesses that have incredible economics and tailwinds are just part of that haystack. An active manager goes and tries to find the needles in the haystack. What ends up happening is they also end up owning haystacks, but those haystacks have no needles in them. The index is too dumb to know it owns Amazon. The active manager is too smart to pay up for Amazon.”


Adam M sent a link that explains the debt snowball method we’ve discussed before. 

Find the Just One Lap DIY debt repayment plan here.

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