The Investing Advice I No Longer Follow
Because not everything works when you start in your 40s.
When I first got serious about investing, I followed every bit of advice I could find.
Learn day trading, that’s where the money is.
Buy technology stocks, they’re the future of the world.
Take advantage of the IPOs, get in cheap to capitalise later.
I also tried to learn options trading, or thought about dipping into FOREX.
Oh, and before Covid, friends were telling me to buy Bitcoin. I remember watching this YouTuber talk about crypto, trying to understand what blockchain even meant.
At the time, it felt motivating. But the more I applied different advice, the more it felt... off.
Not because they were wrong.
But because it wasn’t built for someone starting later in life.
It didn’t account for what it’s like to have less time, more responsibilities, and the pressure of catching up.
So here’s the investing advice I no longer follow — and what I do instead.
1. “Take more risks, buy growth stocks”
This works if you are 25.
You’ve got decades of earning potential ahead, and if you lose money, there’s time to bounce back.
Not when you are 45.
If you get to your 40s and just getting started? A 60% drop hurts. You don’t have a decade to recover or just “wait it out".”
These days, I still invest in growth—but I’m not chasing high-risk, high-volatility stuff.
I check patterns and understand the fundamentals.
I’d rather grow slow and steady than lose sleep over market swings.
2. “Don’t bother with dividends—they’re inefficient”
I used to hear this a lot: "Dividends are tax-inefficient. You should focus on total return."
“How much money do you need to invest to get dividends? Don’t be naive.”
Yes, it’s true that you need to invest a lot to make enough dividends to cover your monthly expenses, but, as a late starter, cash flow matters.
If I can make $1,000 in dividends, it’s $1,000 less I have to work for.
Some mornings, I wake up to a message that puts a smile on my face: “You’ve earned dividends.”
Even if it’s just a few dollars, that’s money I didn’t trade time for. It reminds me that my money is finally working for me.
3. “Buy low, sell high”
That’s the golden rule, right?
But in reality? Trying to beat the market is exhausting.
I have a full-time job, a social life, and a life outside of charts and stock forums.
Plus, I’m in Australia. If I want to buy US stocks, I’m in the wrong time zone. I’m not staying up until the middle of the night hoping to catch the dip—or sell at the peak.
I don’t have a crystal ball. And honestly, I’ve made peace with not needing to “win” every time.
Nowadays, I mostly invest in boring ETFs. I just buy, leave it alone, and let the market do its thing.
Final thoughts
When you start late, your strategy has to fit your life, not someone else’s.
I don’t want to check my portfolio obsessively.
I don’t want to go through any emotional roller coasters.
All I want is to have enough to enjoy my golden years. A nice massage, good food, or maybe a luxurious yoga retreat somewhere in a beautiful coastal destination.
More importantly, I need to always have money in my account instead of worrying about how I will pay my bill next month.
That’s all.
Disclaimer: Information shared in this newsletter is not financial advice. Always do your own research before making any financial decisions.
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Fore, day trading, and IPOs... I can't even put into words how risky all of them are.