Month: October 2022

Correlation and Diversification

Uncorrelated assets lower the investment risk. Let’s see what correlation and diversification mean for a moment. Correlation between 2 assets In finance, correlation is the relationship with which 2 investment instruments move. The correlation varies between +1 and -1.+1 means that the instruments move in the same way.-1 means that the instruments goes in exactly […]

Risk and Investment Funds

Put money into investment funds reduces the risk, Always. Why? Let’s look at the types of risks involved in investing in an asset and why diversification helps. Risk Risk refers to the possibility that the actual return of an investment differs from its expected return. There are two types: The risk premium for diversifiable risk is […]

The concept of investing

The concept of investing can be summarized in “allocating a resource, so that it can have a return in the future” .Simple and straightforward end of the post. Ok, that’s not true, it’s not that simple. Everything is investing I can allocate various resources, money, time, know-how and receive others in return.Examples of different investments: […]

Where to spend your Dolce Vita?

What is the Dolce Vita?It is a life of heedless pleasure and luxury And that’s what we should expect if we become financially independent, perhaps already at 40, 45 or 50. Or maybe not 😕. See here to understand what you need to calculate to retire earlier. Anyway,Today let’s see where to spend our early retirement.That […]

Numbers to be financially independent

Today we need some numbers to understand how to be financially independent. Let’s start with a brief recap.You are financially independent if your assets make more than what you spend. FU Number Let’s start by imagining how much you spend annually to maintain your standard of living. Let’s put 24,000 (without currency which does not […]