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Passionate about the stock market and already well invested in mainly American dividend-growing stocks, my brother, who is in his forties and, despite a comfortable income, has never put a penny aside, is apparently starting to worry about his future, his retirement and is asking me if I would agree to manage a stock portfolio for him with the same perspective as mine. Having a very good relationship with him, I am ok and, given the current high valuation, am asking for your opinion knowing that he does not currently hold any shares on the stock market.
He has a starting capital of 20,000 euros following a property sale last month which he suggests I invest and then agrees to save 1000 euros monthly.
What would you do in my place? Invest the 20,000 right away on KO CL PG WMT ... or wait for a drop in these stocks may be in vain? and the 1000 monthly? Thank you for your opinions.Hello Phil
Well first of all 40 is not too late. He has about twenty years left, so he has plenty to see him through.
The fact that he didn't put much aside isn't too much of a problem either. With my e-book I propose an Excel tool that allows you to do various simulations, depending on savings, time available and initial wealth. Unless the latter is really comfortable, it does not have a big impact, and that is very good. In addition, and as you say, the market is relatively high these days, so you might as well start quietly. It is never in vain to wait for a drop in stocks. Sometimes it takes time, but inevitably good entry points always end up arriving. However, dividend-increasing stocks fluctuate less than others, so you should not expect to be able to enter on a monstrous drop. Or if it is the case, it is because there is really a problem…
For the 1000 EUR per month it is a good idea, even if you are not obliged to buy a security every month. It will save you unnecessary brokerage fees.
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