Invest Well Seminar
•
17 likes•10,322 views
This document summarizes the key points from an investment seminar for Airbnb. It discusses that investors should invest steadily over time rather than trying to time the market. They should maintain a diversified portfolio and rebalance regularly to control risk. Expenses and taxes are also important to minimize - investors are advised to use low-cost index funds and tax-efficient strategies. The overall message is that by following basic principles of steady investing, diversification and minimizing costs, investors can achieve market returns over the long run.
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Invest Well Seminar
Similar to Invest Well Seminar (20)
Recently uploaded
Recently uploaded (20)
Invest Well Seminar
- 2. ©2014 Wealthfront Inc. • Rising Market • Declining Market • Indifferent 2 When would you prefer to invest? Investment Seminar for Airbnb
- 3. ©2014 Wealthfront Inc. • Rising Market • Declining Market • Indifferent 3 When would you prefer to sell? Investment Seminar for Airbnb
- 4. Actual Behavior Investment Seminar for Airbnb ©2014 Wealthfront Inc. 4 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% $400 $300 $200 $100 $0 -$100 -$200 -$300 -$400 Equity funds net New Cash Flow ($B) 12 month S&P 500 Index Return
- 5. Slow and Steady Wins the Race ©2014 Wealthfront Inc. 5 Investment Seminar for Airbnb
- 6. Which market behavior would you prefer? Investment Seminar for Airbnb ©2014 Wealthfront Inc. 6 500 100 Today + 30 Years 500 100 Today + 30 Years 500 100 Today + 30 Years
- 7. Investment Seminar for Airbnb 7 ©2014 Wealthfront Inc. Don’t Worry About Market Performance
- 8. ©2014 Wealthfront Inc. • The one that previously performed the best • The one that previously performed the worst • It doesn't matter 8 Which investment would you prefer? Investment Seminar for Airbnb
- 9. ©2014 Wealthfront Inc. 9 Investment Seminar for Airbnb
- 10. Investment Seminar for Airbnb 10 ©2014 Wealthfront Inc. Don’t Chase Returns
- 11. Which investment would you prefer? Asset Class Expected Return Standard Deviation US Stocks 6% 17% Foreign Stocks 5% 18% Bonds 3% 6% Risk Adjusted Return 0.35 0.28 0.50 Optimal Mix 4% 7% 0.55 ©2014 Wealthfront Inc. 11 Investment Seminar for Airbnb
- 12. Investment Seminar for Airbnb 12 ©2014 Wealthfront Inc. Diversification Matters
- 13. ©2014 Wealthfront Inc. • Buy more of the winners • Buy more of the losers • Do nothing 13 How do you maintain your ideal risk/reward? Investment Seminar for Airbnb
- 14. Natural Progression of Risk 100% 75% 50% 25% Investment Seminar for Airbnb ©2014 Wealthfront Inc. 14 20% 15% 10% 5% 0% 0% % Equity Standard Deviation
- 15. Investment Seminar for Airbnb 15 ©2014 Wealthfront Inc. Need to rebalance
- 16. ©2014 Wealthfront Inc. • Great mutual fund with 1% management fee • Index fund with 0.05% fee 16 Which investment would you prefer? Investment Seminar for Airbnb
- 17. ©2014 Wealthfront Inc. • Research says both will generate market return • Therefore, index fund will likely outperform by 0.95% 17 Returns Net of Fees Investment Seminar for Airbnb
- 18. Investment Seminar for Airbnb 18 ©2014 Wealthfront Inc. Fees Matter
- 19. Which investment would you prefer? Asset Class Expected Return Standard Deviation Risk Adjusted Return US Stocks 6% 17% 0.35 Real Estate 7% 18% 0.39 ©2014 Wealthfront Inc. 19 Investment Seminar for Airbnb
- 20. ©2014 Wealthfront Inc. • US Stocks: • Real Estate: 20 After Tax Returns Investment Seminar for Airbnb 6%*75%*(1-.25) + 6%*25%*(1-.25) = 4.5% 7%*50%*(1-.25) + 7%*50%*(1-.4) = 4.375%
- 21. Risk Adjusted Returns Asset Class Pre-Tax Risk Adjusted Return After Tax Risk Adjusted Return US Stocks 0.35 0.26 Real Estate 0.39 0.24 ©2014 Wealthfront Inc. 21 Investment Seminar for Airbnb
- 22. Investment Seminar for Airbnb 22 ©2014 Wealthfront Inc. Taxes Matter
- 23. ©2014 Wealthfront Inc. • Different allocations for taxable & IRA accounts • Use index funds • Rebalance with dividends • Tax loss harvest 23 Ways to minimize taxes Investment Seminar for Airbnb
- 24. ©2014 Wealthfront Inc. • Invest steadily • Ignore the market • Don't chase returns • Diversify • Rebalance • Minimize fees • Minimize taxes 24 Summary Investment Seminar for Airbnb
- 25. ©2014 Wealthfront Inc. 25