A Life in Education: What’s Better, Investing In The Stock Market or Investing In Properties?

What’s Better, Investing In The Stock Market or Investing In Properties?

This is one of the most common questions I get asked.

I tackle that question with Keith O’Malley-Farrell and Caroline Leon for for their video podcast: A Life of Education. 

 

 

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Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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4 Responses

  1. Mike says:

    Great interview, Andrew. I have a question. If you are so happy for stock markets to fall, why do you voluntarily reduce the amount it can fall by limiting your stock market exposure to 60%?

    Mike

    • Hi Mike,

      I’m happy to see stocks fall. But I haven’t emotionally had to pass the test of a 1929/1930, when stocks fell 90%. In addition, my 70% stock / 30% bond portfolio (in 2000) beat 100% stocks from 2000-2019. My 65% stocks, 35% bond portfolio also beat 100% stocks from 2008-2019. When stocks fall, bond allocations let you buy on the low, when rebalancing. Without bonds, you would just have to ride it out. With bonds, you can be greedy when others are fearful. 🙂

      Cheers,
      Andrew

  2. Jim says:

    Hi Andrew,
    I read your books, followed your advice but there is something that still confuses me. From what you also have mentioned in p35 of your book, divident reinvestment is crucial.
    But all the ETFs you suggest and I think all in general have very low divident payout; so low that one has to have over 800K account for instance in order to have such dividents as to actually have a visible difference by re-investing them.
    So it seems that the whole compounding interest benefit is only the x% of the increase of the ETF over y number of years. E.g. buy an ETF at 100$ and its worth 150$ after 20 years. That’s 50% increase on the original amount e.g. 30K$ gone up to 45K$ but it is not the amount I would expect based on the compounding calculators you present in pages 7 or 8 (Setting your bull’s eye).
    What am I missing here?

  3. John says:

    Would it be better to have money in Vanguard money market, safe, since it yields similar to bond fund , bonds should go down at some point if interest rates go to more normal historical level?

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