Hi guys, I'm new here, but not entirely new to the concept of financial independence. I'm 30 years old, and have been pursuing independence for the past 3-4 years more or less seriously. I'm still far away, but I'm motivated.
I recently graduated with a PhD in economics, and now work in the finance industry, so trying to understand the markets has been pretty much my job and a passion for the past few years.
However, I'm not very happy in my current job - it is rather stressful and I work long hours. Ultimately, my goal is to become financially independent, managing my own wealth via a private asset management firm. I have a few (quite preliminary) thoughts and questions about this, and I would appreciate your input
1) So many people dream about running their own hedge fund with other people's money invested. Sure, if you are good, this can be the best way to riches quickly. However, it also comes with huge responsibility, and I think I would not be comfortable "placing bets" with other people's money (also, I don't think I'm skilled enough).
What are your thoughts on starting a private asset management company with your own funds only? These days, trading costs and access to data are not too expensive, so one could get started with a relatively modest amount of money (I'm thinking as low as 200k). And I'm not talking about high-frequency or algorithmic trading, but mostly simple stock picking.
2) I don't really care about having a lot of money. What's more important to me is freedom. Let's say you start with 200k and are able to generate profits of roughly 10% per year. Would you consider moving to a country with cheap living costs and low taxes in order to do this?
E.g. let's say that out of 200k, you pocket, on average, 15k a year after taxes, commissions and fees. This would leave you with over 1000 USD per month for living costs, which should be plenty if you live in a cheap country.
Some years you will make more, some years less due to variance. You would balance this out by either adding or subtracting from your wealth to get a relatively steady income level.
To accumulate wealth, you might get a relatively laid back or a part time job, and you use the entire income from that job to add to your investment portfolio. So live off investment profits, and add any extra income to your portfolio (exactly the opposite to what is traditionally done).
I have many other questions as well, but I'd very much like to hear your thoughts on this.
I recently graduated with a PhD in economics, and now work in the finance industry, so trying to understand the markets has been pretty much my job and a passion for the past few years.
However, I'm not very happy in my current job - it is rather stressful and I work long hours. Ultimately, my goal is to become financially independent, managing my own wealth via a private asset management firm. I have a few (quite preliminary) thoughts and questions about this, and I would appreciate your input
1) So many people dream about running their own hedge fund with other people's money invested. Sure, if you are good, this can be the best way to riches quickly. However, it also comes with huge responsibility, and I think I would not be comfortable "placing bets" with other people's money (also, I don't think I'm skilled enough).
What are your thoughts on starting a private asset management company with your own funds only? These days, trading costs and access to data are not too expensive, so one could get started with a relatively modest amount of money (I'm thinking as low as 200k). And I'm not talking about high-frequency or algorithmic trading, but mostly simple stock picking.
2) I don't really care about having a lot of money. What's more important to me is freedom. Let's say you start with 200k and are able to generate profits of roughly 10% per year. Would you consider moving to a country with cheap living costs and low taxes in order to do this?
E.g. let's say that out of 200k, you pocket, on average, 15k a year after taxes, commissions and fees. This would leave you with over 1000 USD per month for living costs, which should be plenty if you live in a cheap country.
Some years you will make more, some years less due to variance. You would balance this out by either adding or subtracting from your wealth to get a relatively steady income level.
To accumulate wealth, you might get a relatively laid back or a part time job, and you use the entire income from that job to add to your investment portfolio. So live off investment profits, and add any extra income to your portfolio (exactly the opposite to what is traditionally done).
I have many other questions as well, but I'd very much like to hear your thoughts on this.
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