Best Medium Term Investment Options (3 - 5 Years)

Most of the time I talk about long-term investing but not everyone has a long time to invest. What if you are saving for a house deposit or your children’s education and you only have three to ten years? In this video, I develop some principles to guide your investments over these shorter periods of time.

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Timestamps
00:00 Introduction
00:34 Drift risk & return
02:03 Short term investing is unpredictable
03:38 What matters?
5:20 Three principles
09:23 How many years for 1% chance of loss?
10:25 Conclusion

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.
#Investin #StockMarket #PensionCraft

[stlouisix]

Pension-craft videos are always very informative💯💫👍🏻

[jespersahnerpedersen]

In Denmark, we have pension products with built-in benefit guarantee options, e.g. you can decide to turn on the guarantee (secure the benefit) 10 years before retirement (at the price of a risk premium). Moreover, if your goal solely is your own economy buying a life annuity (with no guarantee) is an option since you earn the negative death risk premium (which increases with age). This extra return can be quite substantial (and even tax-free), especially in a low-interest environment.

[blumousey]

Better than cash can be premium bonds and high interest current accounts.

[deeps]

Looking to invest in this way, so a super useful video. Cheers

[jroig]

Could you do one about REITs? They look really cheap atm

[neijiagongfu]

Totally underestimated topic, many say that you can make money in the long term with stocks, but i don't think so many people have a time horizon of 50+ years. 100% equity portfolios are often not the best advice and I would like to see more contributions for medium term investments, meaning less than 10 years.

[agsmith]

Hi Ramin, I felt like covered call funds would help mitigate risk for medium term, which is my horizon. I am still kind of on the fence about it (as you may know from my previous comments) but it still seems like a safer bet than pure equity funds or leveraged CEF's (which i like for their income production but not for expenses or leverage). Currently I have a lot of JEPI, QYLD, RYLD and HNDL. My portfolio is only down 1.7% for the year so I guess it has been a good strategy at least for this year.

[mattsennett]

Really good video. I have the 40% markets / 60% bonds fund which I use for 15% of my portfolio.
I am a long term holder, 5 more years minimum, so don't want too much leaning towards bonds but value having some sort of hedge there.

[AreaCode]

I really appreciate these videos Ramin, thank you very much for your detailed and systematic, unemotive approach.

I have always been suspicious of financial advisors who in my experience have chiefly promoted their profit. My extremely cautious approach though, has meant I have missed out on any investment opportunities in my 30 year career. I had recently contacted a financial advisor with a rather significant amount to invest. To my amazement, they weren't interested. Even at a rather high (I thought) percentage commission of what I wanted to invest, they weren't interested.

I'm still cautious about investing in equities, but will be keen to invest if markets drop substantially. I know I need to listen to you re 'time in the market' ... I'm getting there! Thanks again, I'm going to keep watching and listening

[shannonoliver]

In my opinion, the Goldenbutterfly portfolio or the Permanent Portfolio is the perfect solution for this scenario. Your drawdown is very limited, and the upside is much higher. Vanguard Wellesley or Wellington would work, too, depending on your risk tolerance. Wellesley ( more Bonds) more than Wellington ( more equities), perhaps

[djayjp]

There's no difference, in the end, in terms of risk of loss, between currency hedging or not. It's an illusion (in fact I bet hedging has a higher risk due to the costs associated of doing so).

[AlessandroBottoni]

Great video! Kudos! You just conquered a new subscriber (and a "like") from Italy.

[equestrianadvice]

Again a very helpfull presentation on the mechanisms which influence investment results. Congratulations on the briljant didactic effort!

[djayjp]

Money market funds lol. Good luck beating inflation. Negative real return locked in.

[garethg]

I prefer premium bonds to money market funds for short term cash with zero risk, then a few 0-3 treasury bonds and 0-5 corporates. But if I was really risk averse I'd just stick to the premium bonds and hope to win the million in the prize draw :)

[Descrypto]

Do these analysis take inflation into consideration?

[jemimaunicorn]

Good video, can you look to add chapters please

[ruborenyt]

I think it's a mistake to dismiss gold because of that very long term comparison. If the comparison starts in 1971, the gold price is much more competitive. It would be interesting to repeat the analysis by replacing gold for bonds in these 20%-80%, 40%-60% etc. portfolios. Who in his right mind invests in bonds right now?

[waelfarah]

Hi Ramin. Thank you for the great video, I just subscribed to your channel.
In your Monte Carlo simulations, how was the money invested? Single one-time buy-in at the start of the investment period or Dollar Cost Averaging over the simulation's investment period? If the former, I would like to learn what you think about DCA and its effects on softening market fluctuations in the short-mid term.
Thanks!

[alphasecurity]

I loooove your graphs ramen, best noodle man about