This post is about the importance of you investing for your future, regardless of whether you have a pension. At its heart, a pension is simply deferred compensation. Your employer is promising to pay you money when you presumably are no longer able to earn a living. In exchange, you give your loyalty and service for the best years of your life. Undoubtedly, your pension can be a very lucrative part of your compensation. That said, you need to understand that it’s not the be-all and end-all of your retirement planning.

My intention is to motivate you to think about how you’ll survive if your pension up and disappears and you can’t get the pension that was promised to you. I want you to think about this possibility today, not tomorrow. What would you do if that happened to you? You retire then find out that your pension is gone, or that your promised amount has been cut?

It’s never prudent to rely on someone else to secure your financial future. Ultimately, you’re the person responsible for your future financial comfort. While you’re earning a paycheque, it’s in your best interests to always pay yourself first. Having your own investments growing alongside your pension is never a bad idea. The truth? No one cares about your financial well-being as much as you do.

Do Your Own Investing Too.

There are 2 kinds of pensions. Both you and your employer make contributions to your pension. At its core, a defined benefit pension is one where the employer has full responsibility for ensuring that there is enough money to pay you a fixed amount every month once you’re retired. The other kind of pension is a defined contribution pension. This is the one where you have the responsibility for picking the correct investments so that there is money available for your employer to pay you when you retire. Under the DC pension, it’s up to you to decide how the money is invested.

Whichever pension you have, I’m here to tell you that you should always invest outside of your pension. Personal investments are your insurance in case your don’t get the money you were promised, for whatever reason. Pensions are promises to pay you in the future. Sometimes, pensions fail. Think of Sears. When that company went bankrupt, its pensioners – aka: retirees – lost 30% of their promised pension payments. You do not want to be a retiree who, through no fault of your own, loses 30% of your pension.

Your best protection against a possible pension cut is to have your own retirement money. This means that you should be maximizing your contributions to your RRSP and your TFSA. Doing so might take you a long time, but that doesn’t matter. Do it anyway. Once you’ve stuffed those registered accounts to the gills, then go and open a brokerage account so you can start investing in well-diversified, equity-based exchange-traded funds.***

Blue Lobster, I don’t understand. How does investing on the side prevent my employer from cutting or reducing to my pension payment after I’ve retired?

Your Investments Are Your Back-Up Plan.

Good question. Strictly speaking, your personal investments won’t prevent your employer from going bankrupt or from fraudulently raiding the pension funds. Instead, they are going function as the back-up plan in case something very bad happens to your pension. In the extremely unfortunate event that your pension is snatched away from you, your investment portfolio needs to take its place. Instead of a pension, it will be your investments paying you enough to live until your last breath.

Ideally, your standard of living will stay the same when you part ways with your employer. Once retired, you’ll still need to pay for your shelter, your food, your utilities, and all of your other expenses of life. It doesn’t matter if the money comes from your pension or your personal investments. Money is needed and it has to come from somewhere. Do yourself a huge favour and make sure that you have enough on the side just in case something happens to your pension.

Live below your means, regardless of whether you have a pension. The amount between what you spend and what you earn is the money that should be squirrelled away for Future You. Invest a portion of every paycheque you receive. Start where you are. Every year, try to increase that amount by atleast 1%. More is better, but do what you can. Set up an automatic contribution to your investment account. Make sure you have the dividend re-investment plan turned on to automatically re-invest the dividends and capital gains. When it’s time to retire, you can walk out of the workplace secure in the knowledge that your pension isn’t the only bulwark you have against the expenses of the future.

Your Pot of Gold May Be Even Bigger!

If all goes well, your personal investments will be a nice supplement to your pension. There’s also the chance that work become optional because those investments will be enough to sustain you, even without the pension. Early retirement generally means a reduction in your pension payment, but so what? You aren’t going to willingly retire early if you didn’t have money already socked away to cover your future expenses. If you’re very good at picking investments, there’s always the chance that your investment portfolio’s returns exceed your pension payment. If so, well done!

Think positive! If your pension doesn’t fail, then your retirement funds will be there to pay for all those extra luxuries in retirement. At the bare minimum, you’ll have a bigger income in retirement than you’d thought you would – a pension for life + investment cashflow. You’ll have the best of both worlds and there’s absolutely nothing wrong with that.

*** I’m a fan of investing in the stock market. Other people invest in real estate. They run the numbers, then by real estate to rent to others. Eventually, they pay off the mortgages and live off the rental income. Other people start their own businesses. Some people invest in gold or crypto. There’s no one right answer to everyone. Do your own research and figure out what works best for you.

The post Got a Pension? Ensure You’re Investing on the Side. appeared first on Millionaire on the Prairie.

Canadians are sitting on a mountain of cash. Higher rates for savings accounts and GICs were too juicy too resist. But with rates coming down, these income lovers have been moving funds back to struggling dividend ETFs and their favourite dividend stocks. After a brief period of catch up outperformance, many dividend ETFs are lagging the TSX Composite. That said, you’ll discover that a couple of Cut The Crap Investing ETF favourites are still beating the market in 2024. But are most investors missing out on a golden opportunity? All of this and more in the Sunday Reads.

Here’s the post from Tim Kiladze in the Globe & Mail (sub required) that explains the dividend dilemma. Canadians are sitting on $200 billion in cash that might be looking for a new home in the falling rate environment. That money has been flowing to higher dividend stocks and funds. But not all dividend ETFs are keeping pace.

The market is getting a boost from gold stocks that are up over 45% over the last year. Other mining stocks are also on a good run. Canadian tech (XIT.TO) is up over 45%.

Canadian dividend ETF performance

Here’s the Dividend ETF comparison to the TSX Composite. These are annualized returns. The 5-year number is from January of 2020, so not quite 5 years. The 1-year time frame represents the period when the rate cut cycle began to drive dividend stocks higher.

Dividend ETF	1-year	5-year
Vanguard Canadian High Dividend ETF (VDY)	35.0%	12.4%
iShares Core Quality Dividend ETF (XDIV)	34.0%	11.3%
RBC Quant Canadian Dividend Leaders (RCD)	35.5%	11.1%
iShares TSX Composite (XIC)	33.6%	10.8%
iShares Composite High Dividend ETF (XEI)	29.7%	10.0%
BMO Canadian Dividend ETF (ZDV)	32.3%	9.7%
iShares Canadian Dividend Aristocrats (CDZ)	38.2%	8.9%
iShares Select Canadian Dividend ETF (XDV)	34.8%	8.9%
Invesco Canadian Dividend ETF (PDC)	32.6%	8.6%
GlobalX Dividend ETF (HAL)	29.8%	8.0%

We see that VDY is the outperformer. I used that ETF for my wife’s accounts from VDY inception. In essence, that ETF has outperformed because Canadian financials (XFN) have outperformed (as they have done historically). VDY is almost 60% financials.

We enjoyed the outpeformance but I then moved to create a version of the Canadian Wide Moat Portfolio. It includes all of the moat stocks excluding the economically sensitive railways. It has outperformed VDY and XIC in its brief history.

The VDY Plus Portfolio. I will soon update the performance for that portfolio model.

XDIV and RCD have outperformed over the last year and the last 5. Along with VDY, these appear to be the ETFs that you might give serious consideration. That said, the Dividend Aristocrats (CDZ) have a long term history of outperformance. That dividend history can provide a quality skew.

And in the end you might find simply buying the market (XIU) (XIC) is the most sensible approach. Or, one of my favourite ETFs is BMO’s Low Volatility ZLB, that is essentially the ETF version of the Canadian Wide Moat Portfolio.

A dividend reminder

Keep in mind that the dividends at times can help us find certain kinds of stocks (value / profitability/ quality), think of them as a divining rod. But the dividend payments do not contribute to total return. When we are paid a dividend the share price drops (on ex dividend day) by an equal amount to reflect the cash value removed from the stock. The dividend is a value removal, not a value creation. I know dividends can make us feel good, but we should not chase yield for yield sake.

A few more thoughts on gold

Gold is a wonderful portfolio add. As I’ve long reminded readers, gold makes the balanced portfolio better. Gold is present in the new balanced portfolio, and so is new gold – bitcoin. You’ll also find REITs in the mix along with an equity growth booster. That model has greatly outperformed a traditional balanced portfolio model.

Gold and REITs are present in this post – how to boost your retirement income.

Stocks or ETFs?

A very good consideration offered from ETFGo …

As markets continue to rise should investors add more to their single stock positions or their more diversified ETF positions? pic.twitter.com/PpN5GaAeoq

— MS | ETFGo (@TappingOutEarly) October 26, 2024

On that subject I would offer that we can use ETFs for all of the portfolio shaping that may be required. We can shape with more precision with individual stocks, but we need to hold enough of ’em to ensure ample diversification.

Know your knowledge level and comfort level. Adopt the approach that is right for you.

For the greatest simplicity consider the wonderful managed all-in-one global asset allocation ETFs.

You can’t time the market

And making the rounds again, a demonstration that any market timing does not work.

The cost of timing the market: pic.twitter.com/FVc6pzLY4m

— Invest In Assets (@InvestInAssets) October 26, 2024

We adopt an investment plan and put it on auto pilot.

More Sunday Reads

Dividend Hawk looks at his stock stories and dividends received. We both hold Texas Intruments (TXN) that reported this past week …

Texas Instruments Incorporated (TXN) Reports Third Quarter 2024 Financial Results; TXN reports third quarter GAAP EPS of $1.47, 21% below last year’s result but $0.10 more than expected. Revenue of $4.15 billion beats analyst estimates by $30 million but decreased 8.4% versus the same quarter last year. Management guides fourth quarter revenue in the range of $3.70 billion to $4.00 billion and earnings per share between $1.07 and $1.29.

At Banker on Wheels there’s always a wide selection of post and podcasts. In the mix, Whitecoat Investor looks at the lessons learned over the last 20 years of investing. Also, 10 books on financial independence from Financially Happy.

Check out Justwealth, Canada’s top robo advisor

Stocktrades looks at Apple, one of my 3 personal U.S. stock picks. I’d agree that Apple is a wonderful franchise and one of the strongest brands (with loyal consumers) on the planet. But it is certainly expensive as it faces trying growth prospects. As I’ve penned in the past, while I have 1000% plus returns, I’m happy to trim here and there to create retirement income.

Findependence Hub has 4 new posts this week including – should we hedge our currency when we invest outside of Canada?

Bob at Tawcan offers his portfolio update for September. Remember it’s total return for the win.

More money is more better.

Dale

More money will greater greater retirement income. In retirement, portfolio success comes down to total return and risk level. That’s it!

Managed total return wins in retirement.

Tweet tweet

Tesla is now a no-growth company. $TSLA https://t.co/nleQbwzl3H pic.twitter.com/1TF9vWz20m

— CutTheCrapInvesting (@67Dodge) October 24, 2024

And as expected, the Bank of Canada cut the currency, er, make that overnight rate by 50 bps (0.50%) …

It’s currency cut, I mean rate cut day in Canada. pic.twitter.com/8JBUNJD9HA

— CutTheCrapInvesting (@67Dodge) October 23, 2024

A reminder that international investments and currency exposure is so important. We can hedge away that risk of a falling Canadian dollar.

Thanks for reading and sharing this post and blog with friends and family.

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ETFs / Stock Portfolios / Retirement Strategies / Wealth Creation

Thanks Partners

Earn a break on fees by way of many of these partnership links.

CANADA’S TOP-RANKED DISCOUNT BROKERAGE

Cut the Crap Investing readers can earn a break on fees at Questrade by way of that partnership link. At Questrade, you can buy ETFs for free. It’s a great place to build your stock portfolio.

Here’s Canada’s top-performing Robo Advisor, Justwealth. You can get advice, planning and low-fee ETF portfolios all at one shop.

Consider Justwealth for RESP accounts. That is THE option in Canada with target date funds that adjust the risk level as the student approaches the College or University start date.

OUR SAVINGS ACCOUNTS

Make your cash work a lot harder at EQ Bank. RRSP and TFSA account savings rates are at 2.5% and 3.0%. You’ll find some higher rates on GICs up to 4.50%. They also offer U.S. dollar accounts. We use EQ Bank, they have been awesome.

OUR CASHBACK CREDIT CARD

We make between $40 to $70 every month! And that’s on everyday spending. There are no fees with …

The Tangerine Cash Back Credit Card

For September we received $51.44 in cash. You can select 3 categories for 2% cash back.

That cash went into my TFSA account to buy some bitcoin, ha.

While I do not accept monies for feature blog posts please click here on the mission and ‘how I might get paid’ disclosures. Affiliate partnerships help me (try to) pay the bills for this site. But they don’t, ha. That will allow me to keep this site free of ads and easy to read.

The post Why are most dividend ETFs underperforming? Plus, the Sunday Reads. appeared first on Cut the Crap Investing.

French companies are known for luxury; think of L’Oreal, Hermes and LVMH. Pernod Ricard is no different and is known for its premium brands, such as Jameson Whiskey. Pernod Ricard is the second-largest spirits company in the world, behind Diageo. Lately, this industry has suffered in terms of share price, as both have seen significant […]

The post [PREMIUM] A deep dive into Pernod Ricard| Newsletter #024 appeared first on European Dividend Growth Investor.

Finding the right virtual assistant can save you tons of time and help you stay on top of things, while working as a VA can be a flexible and rewarding way to earn money. Whether you’re looking to hire a virtual assistant or get hired yourself, there are plenty of platforms to make the process easy.

But with so many options, how do you know which sites offer the best opportunities – and which ones actually match you with the right fit?

I’ll walk you through the best virtual assistant websites to hire or get hired, so you can find the perfect match for your needs.

Best virtual assistant websites

1. Virtual Assistant Finder

For anyone looking for a highly professional VA with actual training in their field, you can’t go past Virtual Assistant Finder.

It allows you to select from a pool of VAs who have all completed the highly acclaimed course, Fully Booked VA course. This means you’re coming into this knowing that the VA you end up getting has an excellent background in VA work, so the support you’ll get will be second to none.

2. Fiverr

Fiverr is a great virtual assistant website, purely because of the range of choice you’ll have. In fact, this can almost be overwhelming given that, at the time of writing this, there are over 20,000 results when searching for a VA.

Fortunately, Fiverr’s rating and review system means it’s very easy to see which VAs have had satisfied clients. It’s also got a great search system for easily being able to narrow down your search based on things like the service you need, your budget and the delivery time.

My favorite part of Fiverr is the fact that you can basically get all your business’ support needs met in the one place for really reasonable prices. For example, do you need a virtual assistant to edit content, a graphic designer to create an infographic and a social media person to create some pins? Fiverr should be your go-to.

Check out how Fiverr can help you to hire your next virtual assistant.

3. Virtual Staff Finder

When it comes to virtual assistant websites with the Philippines being where most of the VAs are based, Virtual Staff Finder is one of the best. It was created by Chris Ducker, who’s the author of Virtual Freedom – definitely recommended reading for anyone who wants to build their business productively.

Virtual Staff Finder really tries to match you with someone who meets your needs to try to make sure that both the client and the VA are happy working together for the long term. This means that it’s better for someone who thinks they need support on a more ongoing basis, rather than just for a one-off task.

Find out more about Virtual Staff Finder here.

4. Time Etc

Time Etc is a solid option for anyone who needs ongoing VA support, as it aims to link clients with a dedicated assistant to help with essentially any task your business needs. You’ll even get a free trial, with your first task costing you nothing.

Fees are based on packages of 10 hours, 20 hours or 40 hours per month – and any that you don’t use rollover into the next month. This means it’s perfect for someone who is looking for a VA who can really get to know how you and your business work over the long term.

You also know you’re getting expertise here, as they state that their US-based virtual assistants have an average of 12 years of experience in companies like Apple, AOL and Virgin.

Find out more about Time Etc’s FREE trial here for your first task.

5. Magic

Magic is a slightly different virtual assistant website in that it’s best for quick, one-off tasks. All you have to do is send a message with the problem you’d like some help with and Magic takes it from there.

Your Magic assistant is available 24/7 and fees are based on a per minute rate, which makes more sense given how services are provided through this platform.

Find out more about Magic here.

6. FlexJobs

FlexJobs works kind of the other way around from some of the other virtual assistant websites in that potential clients add a job listing when they’re looking for a VA. This means that any interested virtual assistants can then approach them – but applicants have to be FlexJobs members to apply, meaning you’re likely to only receive applications from people who are genuinely interested and qualified.

There are over 300 job openings for VAs on FlexJobs at the time of writing this, so there are definitely opportunities whether someone is looking for part time or full time support.

Take a look at your virtual assistant options on FlexJobs here.

7. Woodbows

Woodbows is a virtual assistant website that’s specifically dedicated to just that. That is, they aim to connect clients with VAs based in the US, the Philippines and India, with all their virtual assistants apparently having more than ten years of experience in the field.

Impressively, Woodbows claims that 99.7% of their clients come back to them when they once again need a dedicated virtual assistant.

Fees are based on the number of hours you’d like your VA to work each week, although there’s no contract so you can upgrade, downgrade or cancel at any time, depending on your support needs. It’s also worth mentioning that the fees are quite a bit higher if you’re looking for a virtual assistant based in the US.

Check out Woodbows here to find out more about what they can offer you.

8. Virtalent

If you’re looking for virtual assistant websites with UK-based VAs, then Virtalent may be for you. Its VAs have an average of 15 years of experience and you’ll be assigned someone to walk you through the hiring process, to make sure you can have your new VA on board as quickly as possible – while also ensuring both you and the VA are right for one another.

The different payment plans are based on the number of hours of support you use each month, although any unused hours rollover to the next month, making it great value.

9. Va Va Virtual

Va Va Virtual is a good option for anyone who’s looking for support in several different areas and so needs someone who can meet a bunch of different needs. This is because they pride themselves on their range of VAs with both specialist and general skills, meaning you can get support for anything from updating your website to making travel bookings.

The first step is to call Va Va Virtual and explain what you need. From there, they’ll create a package of what you actually need, so you can be sure that you won’t be paying for anything you’re not going to use.

10. Freelancer.com

Freelancer.com is another one of the virtual assistant websites with jobs in other fields as well. As expected by the name, you can find (or advertise for) almost any sort of freelance job you can think of, making it great for both clients and VAs looking to link up.

How it works is that a client can either choose to post a project which potential VAs can then “bid” on for you to review and select one of them. Alternatively, VAs can post their profiles for potential clients to search through and interview to see if they’re a good fit.

11. Fancy Hands

Fancy Hands is a virtual assistant website for anyone looking for US-based VAs. Pricing is based on the number of “service requests” you make, rather than the number of hours spent doing the tasks you ask your VA to do. Like some of the others, any unused task requests will carry over to the next month.

It’s a much quicker process to find a virtual assistant with Fancy Hands, as one is assigned to you automatically based on your needs. This may or may not be a good thing for you, depending on how involved you’d normally like to be in the selection process.

Fancy Hands also has a really good interface that helps you closely manage the support you need, which is especially good if you have more than one VA with them. This is also easily accessible through their mobile app.

How do I become a virtual assistant online?

To become a virtual assistant online, there are some key steps you should follow:

1. Figure out the type of VA work you wish to do
2. Seek financial and possibly legal advice from an advisor
3. Set your fees
4. Create a website and your social media profiles advertising your services
5. Start to reach out to potential clients

Of course, your exact journey towards becoming a VA may be slightly different, but these are the broad steps that everyone should take as a general rule. We’ll go into them in more detail below.

1. Figure out the type of VA work you wish to do

This can be hard to do at first, as it can be tempting to want to offer to do everything in the hope that this will help you to land more clients.

However, you can actually make it more appealing if you advertise yourself by focusing on a few set tasks. This could be focusing on social media, creating or editing content or being a WordPress expert.

To get an idea of the types of services you can offer, take a look at this list of 275+ services offered by VAs. Choosing three to five ideas from this list is a great place to start. 

2. Seek financial and possibly legal advice from an advisor

Many people try to avoid this because they don’t want to spend money on getting this advice. However, it’s important to make sure that everything is above board from the time you start, particularly due to the fact this can save you a lot more money in the long term than what you’ll spend on this advice.

Your exact requirements will depend on your own circumstances as well as where you live, but speaking at least with an accountant is a good place to start. They should then be able to guide you on if legal advice would be needed, especially if you plan to set up certain business structures for your VA business.

3. Set your fees

Setting your fees is always a tough step, as no one wants to undersell themselves. At the same time, you don’t want to price yourself out of the market.

Doing some market research to see what others in a similar position as you are charging is a good place to start. That said, there are a few things you need to make sure you incorporate into your fee structure, including the fact you’ll have to consider taxes and any overheads, like any software licenses you need to get.

For a more detailed explanation on how to set your rates, check out this article on how to become a VA with some great guidance on rate setting.

4. Create a website and your social media profiles advertising your services

Especially in a job like being a virtual assistant, having a solid online presence is key for establishing your expertise to future clients.

While creating a LinkedIn profile may be the bare minimum, a lot of clients will like to see examples of your online expertise through checking out your own site.

It’s also important to have some social media presence, although there’s no need to be active on every single platform. Instead, go where your clients are, which will probably include at least Facebook.

5. Start to reach out to potential clients

Reaching out to potential clients is the fun part! It’s true that it can be a bit frustrating when you don’t start to get immediate yeses, especially when you’re only at the stage of looking for virtual assistant jobs for beginners, but the first steps are always the hardest. Once you get a few people on your client list, you’re almost guaranteed to start to see it grow much quicker as word-of-mouth kicks in.

The exact method to do this will depend on the types of services you’re offering. For example, if you’re targeting bloggers, it’s a good idea to go where they are and start to establish a relationship. This may include, say, offering advice in blogger Facebook groups so you can start to build trust.

How do I train to be a virtual assistant?

There are plenty of online courses that can help you train to be a virtual assistant. Investing in yourself in this way is a good strategy for ensuring you’re able to succeed as quickly as possible as a virtual assistant, while also helping you to start building a network.

While there are several great virtual assistant training courses out there, my pick for the best one for anyone who wants to become successful virtual assistants is easily Fully Booked VA.

It’s incredibly detailed, by walking you step-by-step through the process of becoming a VA. This includes showing you: 

• Just what to do to set up your new VA business, including how to structure your website to best market yourself as well as business-related considerations
• Exactly how to find and pitch prospective clients 
• The steps to take to make as much money as possible from the start of your VA career
• Entry to their community of VAs who have also done this course, where you can share ideas and ask questions
• Exclusive access to their client leads. This is when potential clients reach out looking solely for course graduates as their new VA, giving you the first chance to score this new client.

Take a look at the VA Success Stories here from graduates of the course or find out more about the course here.

What skills do I need to be a virtual assistant?

Some good skills to have as a virtual assistant include:

• Organization – As your work will partly involve helping your clients get organized, having this skill for your own business is crucial. This includes not only that your own work as a VA is organized well, but that you’re able to balance this work with your non-work commitments.
• Time management – As you’ll likely have several clients, managing your time so that all their needs are met is key for making sure they’re satisfied. 
• Communication – It’s important to have a good line of communication with your clients so that your relationship can go smoothly. Establish their preferred way of doing this from the start, whether it’s by email, WhatsApp, Facebook Messenger or others.
• Self motivation – This may be your first time working without a boss, so it’s understandable if you start to find it difficult to motivate yourself to get the job done. This can go hand-in-hand with time management, so it’s good to find a way to manage your tasks that works for you and keeps you on track.
• Eye for detail – Whether your VA services include editing content or social media management, having an eye for the little stuff can really help you to catch anything before it’s published. This will ensure that your work is always up to a professional standard.
• Application-based knowledge – As a virtual assistant, having an understanding of the applications you have to use in your work is critical. These may be as simple as knowing how to use Word and PowerPoint, but it could also include image software like Photoshop. Knowing how to use WordPress will likely be important too.
• Cloud-based knowledge – To ensure you’re able to share everything with your clients, being able to use cloud applications will also be important, although it’s more than sufficient to use free ones like Google Drive or Dropbox.

How to create a virtual assistant website

Creating a virtual assistant website is similar to creating any other website in terms of the technical steps to take. That is, buying a domain name and paying for a host are always going to be the first steps you’ll need to take.

To do that, you’ll want a host that makes sure your site is blazingly fast and with good support for those inevitable moments when you have no idea how to do something – or what just happened.

This is why I recommend Bluehost for this. Not only do they meet all those criteria, but signing up through our exclusive link means you’ll lock in your hosting at less than $3 per month – plus you’ll get a free domain name!

From there, take a look at some other virtual assistant website examples for the specific features you may want to highlight on your own site, to help you start to secure virtual assistant jobs as soon as possible.

Where can I find a virtual assistant?

Your first step for finding a virtual assistant should be to check virtual assistant websites. These are sites where virtual assistants can advertise their services, allowing you to find one that meets your specific needs based on your budget.

The virtual assistant websites listed in this article can definitely help you with this, as all of them have VAs available for all sorts of services that are almost guaranteed to be what you’re looking for.

Are virtual assistants in high demand?

Virtual assistants are in high demand. In fact, this demand is growing as more businesses require the support of skilled virtual assistants and recognize the benefits of hiring a VA for online support compared to having someone in-house.

This includes the fact that virtual assistants are in demand as businesses recognize that they may not always need someone on hand full time. By hiring someone as a freelance VA instead, they’re able to pay for their support when it’s needed, making it much better value for the hirer.

At the same time, this can be an advantage for the VAs themselves. It allows you to take on multiple clients while also letting you choose how much or how little you work, depending on your other responsibilities. 

For example, if you’re looking for an online job as a stay at home mom, you can choose how many clients you take on based on the extent of the support they need, so that you can do this work while balancing your child-related commitments.

It also means you can set your own price – well, to a point. But there’s a reason that working as a VA is considered one of the highest paying online jobs.

Final thoughts on the best virtual assistant websites

It can be tricky to know where to start when you know you need a virtual assistant. After all, the aim in getting a VA is to buy time – so you really don’t want to waste any time in the process of hiring one.

Similarly, if you are a VA looking for clients, you want to make sure you’re going where solid, reliable clients actually are.

This is why it’s a good idea to focus your search on some of the best virtual assistant websites out there. As a client, they’ll be able to make sure that you’re getting the right person for what you need, saving you time and money in the long run by having someone good on board straight away.

This is also a great way, as a VA, for you to build your client list to secure your income for the months, if not years, to come.

The post 11 Best Virtual Assistant Websites to Hire Your Next VA (or Be Hired) appeared first on LogicalDollar.

Cosa è un Lazy Portfolio? Quali sono i Lazy Portfolios più famosi? Come puoi costruirti il tuo Lazy Portfolio?

I Lazy Portfolios stanno guadagnando sempre più popolarità grazie alla loro semplicità e all’efficacia dimostrata nel lungo periodo.

Ma cosa sono esattamente?

I Lazy Portfolios sono portafogli di investimento studiati in modo tale da non non dover richiedere pressoché nessun aggiustamento nel tempo. Il vantaggio? Che non è necessario perdere tempo e soldi in analisi complicate o nella compravendita degli strumenti finanziari.

La filosofia dietro questi portafogli è chiara: “less is more”, meno è meglio. Meno analisi, meno operazioni, meno costi.

Vista la proposta alquanto seducente, andiamo ad analizzare i principali Lazy Portfolios ed i pro e contro di questa strategia d’investimento.

Prima di analizzare i singoli portafogli però andiamo a vedere cosa è un Lazy Portfolio nello specifico.

Cosa è un Lazy Portfolio?

Come puoi dedurre dal nome, un Lazy Portfolio (Portafoglio Pigro)  è un portafoglio di investimento progettato per essere gestito con il minimo sforzo.

L’idea alla base è quella di costruire un portafoglio che richieda poche operazioni nel tempo.

Dopotutto, più operazioni si fanno, più soldi si pagano in commissioni e più tempo si perde.

L’idea di un portafoglio che funziona bene, che ti fa guadagnare quando il mercato sale, e ti protegge quando il mercato scende, e richiede una gestione minima, è sicuramente molto attraente.

Come si crea dunque un Lazy Portfolio?

Ne parleremo in maniera più approfondita più avanti. Per ora ti basti sapere che Il principio guida per la costruzione di un Lazy Portfolio è selezionare un insieme di asset diversificati e mantenerli invariati nel lungo periodo, con poche operazioni di ribilanciamento per mantenere l’allocazione degli asset in linea con l’obiettivo prefissato.

Ma cosa rende questi portafogli “lazy”, ovvero pigri?

La loro composizione è solitamente basata su asset ampiamente diversificati e su una strategia di buy-and-hold, che riduce la necessità di interventi frequenti. Questo non significa che siano inefficaci o poco sofisticati, anzi.

Molti di questi portafogli sono stati creati da esperti di fama mondiale e hanno dimostrato nel tempo di poter competere con strategie più attive!

Il concetto di Lazy Portfolio nasce dalla consapevolezza che battere il mercato è difficile e che le emozioni possono portare a decisioni sbagliate (maggiori dettagli qui). Quindi perché non pianificare per gestire i momenti difficili in modo da poterli affrontare “senza stress” (o comunque con uno stress molto più limitato) e limitarsi a a cavalcare il mercato quando sale?

Minimo sforzo. Massimo risultato

Vista la premessa interessante. Andiamo a vedere alcuni esempi di Lazy Portfolio.

Esempi di Lazy Portfolios

Esistono diverse varianti di Lazy Portfolios, ognuna con una propria filosofia di asset allocation. Vediamo alcuni dei Lazy Portfolios più famosi e apprezzati.

Permanent Portfolio

Creato da Harry Browne negli anni ’80, il Permanent Portfolio è progettato per resistere a tutte le condizioni economiche. La sua struttura si basa sul concetto del ciclo economico degli asset: l’economia è un ciclo di 4 fasi (prosperità, inflazione, deflazione e recessione) e il portafoglio deve essere preparato per ciascuna di queste fasi.

È composto da:

• 25% Azioni: per beneficiare della crescita economica.
• 25% Obbligazioni a lungo termine: per approfittare dei periodi di prosperità e inflazione.
• 25% Oro: come protezione contro l’inflazione e le crisi monetarie.
• 25% Liquidità o titoli di stato a breve termine: per stabilità durante la deflazione o recessioni.

Questo portafoglio è pensato per essere estremamente stabile e per minimizzare le perdite durante i periodi di crisi, anche se il rendimento in periodi di forte crescita potrebbe essere inferiore rispetto ad altri portafogli più aggressivi.

Golden Butterfly Portfolio

Il Golden Butterfly Portfolio è un’evoluzione del Permanent Portfolio, progettato per migliorare il rendimento mantenendo un rischio relativamente basso. La sua caratteristica distintiva è la presenza di asset poco correlati tra loro, che bilanciano i rendimenti nei vari cicli di mercato. La composizione tipica include:

• 20% Azioni del mercato totale: per la crescita a lungo termine.
• 20% Small Cap Value: per catturare il potenziale di crescita delle piccole imprese.
• 20% Obbligazioni a lungo termine: per la stabilità.
• 20% Obbligazioni a breve termine: per una maggiore sicurezza e liquidità.
• 20% Oro: per protezione contro inflazione e crisi.

Questo portafoglio è particolarmente apprezzato per la sua capacità di bilanciare rischio e rendimento, offrendo una buona stabilità nei periodi difficili e rendimenti competitivi in quelli di crescita.

All Seasons Portfolio

L’All Seasons Portfolio è stato ideato da Ray Dalio, fondatore di Bridgewater Associates, uno dei più grandi hedge fund al mondo. Questo portafoglio si basa sulla stessa filosofia del Permanent Portfolio, ma con una maggiore diversificazione. È progettato per funzionare bene in tutte le condizioni economiche. La sua composizione tipica è:

• 30% Azioni: per la crescita a lungo termine.
• 40% Obbligazioni a lungo termine: per la stabilità nei periodi di recessione.
• 15% Obbligazioni a medio termine: per un equilibrio tra rendimento e sicurezza.
• 7,5% Materie prime: per proteggersi dall’inflazione.
• 7,5% Oro: come ulteriore protezione contro l’inflazione e le crisi finanziarie.

L’All Seasons Portfolio è una scelta solida per chi cerca un equilibrio tra protezione e crescita, con una buona diversificazione che riduce il rischio complessivo.

60/40 Portfolio

Il 60/40 Portfolio è uno dei portafogli più classici e utilizzati dagli investitori. Semplice ma efficace, è spesso il punto di partenza per chi desidera un portafoglio bilanciato. La composizione è:

• 60% Azioni: per la crescita a lungo termine.
• 40% Obbligazioni: per ridurre la volatilità e offrire stabilità.

Questa allocazione è stata a lungo considerata un punto di riferimento per gli investitori a lungo termine, bilanciando la crescita con una certa protezione dai rischi di mercato. Sebbene semplice, può essere adattata aggiungendo ulteriori asset per chi cerca maggiore diversificazione.

Swensen Portfolio

Ideato da David Swensen, il responsabile del fondo di investimento di Yale, questo portafoglio è conosciuto per il suo approccio innovativo alla diversificazione. Lo Swensen Portfolio mira a combinare diversi tipi di asset per massimizzare i rendimenti mantenendo sotto controllo il rischio. La composizione tipica è:

• 30% Azioni del mercato statunitense.
• 15% Azioni internazionali sviluppate.
• 15% Mercati emergenti.
• 20% Real Estate Investment Trusts (REITs).
• 15% Obbligazioni a lungo termine.
• 5% Liquidità o titoli a breve termine.

Questo portafoglio è più complesso rispetto agli altri Lazy Portfolios, ma offre una diversificazione più ampia e un potenziale di rendimento superiore, sebbene con una maggiore esposizione al rischio.

No-Brainer Portfolio

Il No-Brainer Portfolio è stato proposto dal noto finanziere William Bernstein ed è simile al 60/40, ma con un pizzico di diversificazione in più. È composto da quattro asset principali:

• 25% Azioni del mercato statunitense.
• 25% Azioni internazionali.
• 25% Obbligazioni statunitensi.
• 25% Titoli di stato a breve termine.

L’idea è di mantenere il portafoglio semplice ma con un po’ più di diversificazione rispetto al classico 60/40.

Merriman Ultimate Buy and Hold Portfolio

Proposto da Paul Merriman, il Ultimate Buy and Hold Portfolio è un po’ più complesso rispetto ad altri Lazy Portfolios, ma è ancora considerato “pigro” perché non richiede molta manutenzione. La sua composizione tipica è:

• 10% Azioni statunitensi a grande capitalizzazione.
• 10% Azioni statunitensi a piccola capitalizzazione.
• 10% Azioni statunitensi value.
• 10% Azioni internazionali a grande capitalizzazione.
• 10% Azioni internazionali a piccola capitalizzazione.
• 10% Azioni internazionali value.
• 10% Azioni dei mercati emergenti.
• 10% REITs (Real Estate Investment Trusts).
• 20% Obbligazioni statunitensi a breve termine.

Questo portafoglio offre una diversificazione ampia con esposizione a vari settori del mercato azionario e obbligazionario.

Larry Portfolio

Proposto da Larry Swedroe, il Larry Portfolio è una combinazione di azioni ad alto rischio (come le Small Cap Value) e obbligazioni a bassa volatilità. La composizione tipica è:

• 30% Small Cap Value: per catturare la crescita potenziale delle piccole imprese.
• 70% Obbligazioni a breve termine o titoli di stato: per mantenere la stabilità.

L’idea è di massimizzare il rendimento potenziale mantenendo il rischio complessivo sotto controllo attraverso una forte componente obbligazionaria.

Core-Satellite Portfolio

Il Core-Satellite Portfolio è un approccio in cui la maggior parte del portafoglio (il “core”) è investita in fondi indicizzati a basso costo, mentre una parte più piccola (i “satelliti”) è destinata a investimenti in asset più rischiosi o settoriali che possono offrire un extra rendimento. Un esempio potrebbe essere:

• 80% Core (azioni globali e obbligazioni).
• 20% Satelliti (azioni di settori specifici, REITs, materie prime, ecc.).

Questo portafoglio offre flessibilità e la possibilità di aggiungere un tocco personale alle scelte di investimento.

3-Fund Portfolio

Il 3-Fund Portfolio è estremamente semplice e popolare tra gli investitori fai-da-te che cercano una strategia minimalista ma efficace. È composto da tre fondi principali:

• Azioni del mercato statunitense: rappresenta la parte di crescita del portafoglio.
• Azioni internazionali: per diversificazione geografica fuori dagli Stati Uniti.
• Obbligazioni: per stabilità e protezione contro la volatilità del mercato azionario.

Questo portafoglio è molto flessibile e può essere adattato alle preferenze di rischio dell’investitore variando le percentuali assegnate a ciascun fondo.

2-Fund Portfolio

Simile al 3-Fund Portfolio ma ancora più semplice, il 2-Fund Portfolio si basa su due soli fondi:

• Azioni globali: un fondo che rappresenta l’intero mercato azionario globale, inclusi sia i mercati sviluppati che quelli emergenti.
• Obbligazioni globali: un fondo che copre le obbligazioni globali, offrendo diversificazione e stabilità.

Questo portafoglio è l’essenza della semplicità, offrendo una vasta diversificazione con il minimo sforzo di gestione.

Vantaggi e Svantaggi dei Lazy Portfolios

I Lazy Portfolios sono amati da molti investitori per la loro semplicità e la capacità di ridurre lo stress nella gestione del portafoglio. Tuttavia, come qualsiasi strategia di investimento, hanno dei vantaggi e svantaggi. Vediamoli.

Semplicità e Facilità di Gestione

Uno dei principali punti di forza dei Lazy Portfolios è la loro semplicità di gestione. Una volta definita l’asset allocation non c’è più molto da fare. Non devi monitorare i mercati, leggere i giornali, spaccarti la testa per capire cosa farà la Banca centrale. Puoi semplicemente limitarti a ribilanciare il portafoglio 1-2 volte all’anno.

Diversificazione

La diversificazione è il punto di forza dei Lazy Portfolios. I Lazy Portfolios sono progettati per essere ben diversificati, ridurre il rischio specifico e ridurre quindi il rischio complessivo del portafoglio.

Costi Ridotti

Poiché i Lazy Portfolios richiedono una gestione molto passiva, sono necessarie poche operazioni l’anno e quindi le spese di transazione sono generalmente basse. Inoltre, come vedremo, molti di questi portafogli utilizzano ETF, fondi indicizzati a basso costo, per mettere in pratica queste strategie.

Riduzione dell’Influenza delle Emozioni

Visto che la strategia di investimento è stabilita a tavolino e non devi fare molte operazioni all’anno se non i ribilanciamenti, si riduce di molto il rischio che tu ti faccia prendere dalle emozioni e reagisca ai movimenti di breve termine del mercato (cosa che non fa mai bene a meno che tu non sia un professionista e sappia esattamente quello che stai facendo).

Adatti al Lungo Termine

Questi portafogli sono ideali per gli investitori che mirano a obiettivi di lungo termine. Il focus su asset a crescita lenta ma costante consente di costruire ricchezza in modo relativamente “stabile e prevedibile” (anche se non isolano completamente dalla volatilità del mercato).

Svantaggi

Rendimenti Potenzialmente Inferiori

I Lazy Portfolios siano progettati per bilanciare rischio e rendimento. Questo richiede necessariamente un compromesso che può portare a rendimenti inferiori rispetto a strategie a più alto rischio come un investimento 100% azionario (es. “VWCE and Chill“) o l’investimento in criptovalute o altri investimenti alternativi.

Limitata flessibilità

I Lazy Portfolios NON sono progettati per adattarsi rapidamente ai cambiamenti del mercato o alle nuove opportunità di investimento. Questa mancanza di flessibilità può essere un limite in mercati volatili o in rapido cambiamento.

Richiesta di disciplina

Sebbene semplici, i Lazy Portfolios richiedono una notevole disciplina. Gli investitori devono essere disposti a resistere alla tentazione di apportare modifiche frequenti, anche in risposta a eventi di mercato apparentemente significativi.

Non per tutti

Nonostante la gestione del rischio sia di centrale importanza, i Lazy Portfolios potrebbero non essere adatti a investitori con un profilo di rischio molto basso, visto che rimangono comunque portafogli piuttosto aggressivi.

Molti degli esempi di Lazy Portfolios che abbiamo visto hanno una composizione molto esposta all’azionario e quindi potenzialmente molto volatile.

Come Costruire il Proprio Lazy Portfolio ed Errori da Evitare

Abbiamo visto numerosi esempi di Lazy Portfolio, ma se volessi creartene uno su misura cosa dovresti fare? Scopriamolo!

Seleziona gli ETF per il Tuo Lazy Portfolio

Gli ETF (Exchange-Traded Funds) sono probabilmente lo strumento ideale per costruire un Lazy Portfolio grazie alla loro diversificazione, liquidità e costi ridotti. 

Vediamo quindi come selezionare e acquistare i giusti ETF per il tuo Lazy Portfolio.

Identifica le Asset Class di Interesse:

Decidi quali asset class vuoi includere nel tuo portafoglio. Le più comuni sono: azioni (nazionali e internazionali), obbligazioni (governative e corporate), materie prime e, eventualmente, immobili tramite REITs. La scelta delle asset class dipende dal tuo profilo di rischio e dai tuoi obiettivi finanziari.

Se non sai da dove iniziare, puoi prendere ispirazione proprio dagli esempi di Lazy Portfolios che abbiamo analizzato prima! Inoltre ti consiglio di leggere questa guida all’asset allocation.

Ricerca gli ETF migliori

Una volta selezionata l’asset class puoi utilizzare piattaforme come Morningstar, JustETF, o Yahoo Finance per cercare gli ETF che replicano l’andamento delle asset class che ti interessano. Filtra gli ETF in base a criteri come costo totale annuo (TER), dimensione del fondo, liquidità e tracking error (differenza tra l’andamento dell’ETF e quello dell’indice di riferimento).

In particolare ti invito a fare attenzione ai costi associati agli ETF. Gli ETF con un basso TER (Total Expense Ratio) sono preferibili perché i costi erodono i tuoi rendimenti nel lungo termine!

Visto che voglio che questa sia una guida pratica, vediamo alcuni esempi di ETF per un Lazy Portfolio. Ribadisco che questi sono solo esempi e non è in alcun modo un invito ad investire in questi ETF.

• Azioni Globali: iShares Core MSCI World ETF (SWDA); Vanguard FTSE All-World ETF (VWCE).
• Obbligazioni Governative: iShares Global Government Bond ETF (IGLO); Vanguard Global Aggregate Bond ETF (VAGF).
• Obbligazioni Corporate: iShares Euro Corporate Bond ETF (IBCS); Vanguard ESG Global Corporate Bond ETF (V3GE).
• Materie Prime: Invesco Bloomberg Commodity (CMOD); iShares Diversified Commodity Swap (SXRS)
• REITs: Xtrackers FTSE EPRA/NAREIT Developed Europe Real Estate (XDER); iShares Developed Markets Property Yield (IWDP)

Maggiori dettagli nella guida agli ETF.

Apri un Conto Titoli

Per acquistare ETF, devi avere un conto titoli presso una banca o un broker online.

Puoi aprire un conto titoli presso la tua banca di fiducia o scegliere un broker online. I broker online come Fineco, Directa, Scalable Capital, Trade Republic sono spesso preferiti per i loro costi inferiori e la vasta gamma di ETF disponibili.

Maggiori dettagli in questa analisi dei migliori broker per ETF.

Esegui l’Acquisto degli ETF

Una volta che hai aperto il conto titoli con un broker, sei pronto per acquistare gli ETF che hai selezionato! Entra nella piattaforma del tuo broker o banca, solitamente accessibile da web o tramite un’applicazione mobile. Inserisci il nome o il codice ISIN dell’ETF nella barra di ricerca per trovare il prodotto specifico che vuoi acquistare.

Se ti compaiono più ETF con lo stesso nome è probabile che si tratti dello stesso ETF quotato su più borse. Per scegliere la borsa ideale ti invito a leggere questo articolo.

Una volta che sei sicuro di star acquistando l’ETF giusto sulla borsa giusta, Imposta l’ordine di acquisto. Puoi scegliere tra diversi tipi di ordini:

• Ordine a Mercato: L’ordine viene eseguito immediatamente al miglior prezzo disponibile. È l’opzione più veloce, ma non garantisce un prezzo specifico.
• Ordine Limite: Specifichi il prezzo massimo che sei disposto a pagare. L’ordine viene eseguito solo se il prezzo dell’ETF scende al livello desiderato.
• Ordine Stop: Usato per limitare le perdite, esegue la vendita solo se il prezzo scende sotto un certo livello.

Una volta selezionato il tipo di ordine, conferma l’acquisto. L’ordine verrà eseguito secondo le condizioni del mercato, e gli ETF acquistati saranno visibili nel tuo portafoglio entro pochi minuti.

Ribilancia il Portafoglio Periodicamente

Alcuni dei tuoi investimenti saliranno (o scenderanno) più di altri. Ogni tot quindi dovrai ripristinare le proporzioni tra i diversi asset se vuoi mantenere il giusto rapporto rischio rendimento. Quindi ti troverai a svolgere due attività

• Monitorare il tuo portafoglio: Controlla il portafoglio ogni 6 o 12 mesi per vedere se le percentuali delle asset class sono cambiate in modo significativo rispetto all’allocazione iniziale.
• Ribilanciare il portafoglio: Se necessario, ribilancia il portafoglio in modo tale da ristabilire il corretto bilanciamento tra i vari componenti del portafoglio. Questo processo aiuta a mantenere il rischio complessivo del portafoglio in linea con i tuoi obiettivi.

Revisione del Portafoglio

I Lazy portfolios sono ottimi per gestire passivamente i nostri investimenti. Ma se cambiano le nostre necessità di vita?

Se la tua situazione finanziaria cambia significativamente (ad esempio, ricevi un’eredità o pianifichi la pensione)è probabile che cambieranno anche i tuoi obiettivi d’investimento, e quindi potrebbe essere necessario aggiustare la tua asset allocation!

Quindi se ci sono grandi cambiamenti nella tua vita, assicurati di verificare se ha senso modificare anche la tua strategia di investimento!

Lazy Portfolios – Conclusioni

I Lazy Portfolios offrono un approccio semplice e passivo per chi desidera investire senza dover monitorare costantemente i mercati.

Nonostante richiedano una gestione minima, questi portafogli permettono di godere della rivalutazione del capitale ma di mantenere contemporaneamente anche il rischio sotto controllo.

Costruire un Lazy Portfolio nella pratica è semplice: definisci la giusta proporzione tra gli asset, selezionare gli ETF giusti, apri un conto titoli, monitora il portafoglio di tanto in tanto e ribilancia se necessario.

Se vuoi scoprire di più su come impostare l’asset allocation del tuo Lazy Portfolio, ti invito ad approfondire in questa guida:

Economic performance

Identifying a company as a potential seven-footer

The focus today will be on the metric Return on Invested Capital (ROIC), reckoned by many to be the best ratio to measure and assess a company’s economic performance.

Best business to own creates value

Before we turn to ROIC, let’s reference Warren Buffett. He has written: “Leaving the question of price aside, the best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return.” (Buffett W. E., The Essays of Warren Buffett: Lessons for Corporate America. 1998) p86

There are two sides to this. First, generating large amounts of incremental capital and, second, employing it at very high rates of return. Both are critical.

Let’s add a third side and a separate concept. “A company creates value when the present value of the cash flows from its investments are greater than the cost of the investments.”

This quote is from a 2022 report, Return on Invested Capital -How to Calculate ROIC and Handle Common Issues, October 6, 2022, by Michael J. Mauboussin and Dan Callahan, the Consilient Research duo at Counterpoint Global Insights of Morgan Stanley.

The third side is the idea that investments only create value if they produce returns greater than their cost, in this case, the cost of capital. Buffett covers this off by his requirement of “very high rates of return”.

The separate concept is that the creating of value relates to the present value of future cash flows. This, of course, is how the intrinsic value of a company is determined, the heart of the valuation process. So, it’s the greater spread between the incremental capital generated and the cost of capital that produces greater value to the shareholders.

ROIC is just a number

People call ROIC a metric or indicator. Giving it an acronym or calling it a metric or indicator doesn’t make it any more useful or reliable. Supporting it with masses of data and calculations also doesn’t make it any more reliable. 

For those with a quant bent, quantitative analysts, the formula would look something like this:

Where ROIC – WACC > some big number, say 15, = a seven-footer (to use Warren Buffett’s metaphor about building a great basketball team with seven-footers).

There are many problems with the calculation and use of ROIC. There are also problems with WACC, the weighted average cost of capital. But that is for another day.

As for ROIC, let me start with a key question. When an investor has in hand an ROIC for a potential investment which they understand and have confidence in, is that the end point of the process of assessing the quality of the company or is it the beginning? If it’s the beginning, what comes next?

ROIC is calculated from financial statements. Analysts will often adjust the inputs, but those adjustments are always derived from the company’s accounts.

Reflect on this: “…accounting is but an aid to business thinking, never a substitute for it.” Warren Buffett wrote that in his 1986 Chairman’s letter. So, a calculation of ROIC, at its best, it is no more than an aid to business thinking. I use the expression ‘business thinking’ advisedly.

Warren Buffett says that his attitude when buying common stock is to “approach the transaction as if we were buying into a private business…When investing, we view ourselves as business analysts – not as market analysts, not as macroeconomic analysts, and not even as security analysts.” (Buffett, 1998, p.63) Thus, at its best, the use of a metric like ROIC is as an aid to business thinking

A business analysis is as much, if not more, a qualitative analysis as a quantitative analysis. It must be done with common sense and business sense. We must always remain skeptical of the numbers.

So, to answer the question above, when we have a good ROIC for a company and want to use the ROIC–WACC approach, it is the beginning of an investor’s business analysis of the company.

Return on Invested Capital (ROIC) and the investment process

In a June 2023 report titled ROIC and the Investment Process, Michael Mauboussin and Dan Callahan offer some great insights. Let’s reflect on three quotes from that report.

“A company creates value when its ROIC is in excess of its cost of capital.”

“…two companies may have the same five percentage point positive spread between ROIC and WACC, but the company that can invest more at that spread will create a greater amount of value.”

“ROIC helps us understand the free cash flows of tomorrow, which is important because the value of a financial asset is the present value of future free cash flows. Free cash flow for a given year equals NOPAT minus investment in future growth. NOPAT is the numerator of ROIC and change in invested capital is the investment in future growth. If you have a good estimate for ROIC and a forecast for growth, you have the ingredients to estimate free cash flows.” (Emphasis added)

I’ve introduced a new acronym –NOPAT. This is net operating income after taxes. More on this below.

The formula

ROIC =   NOPAT (operating income after taxes) / Invested Capital (Book Value of Equity + Book Value of Debt – Cash & Marketable Securities)

I’ll let Mauboussin and Callahan explain this: “NOPAT, the numerator of the ROIC calculation, is the cash earnings a company would have if it had no debt or excess cash. That means that NOPAT, unlike earnings, is the same whether a company is financed with all equity or if it has a lot of debt. Removing the issue of capital structure allows for effective comparison between businesses.”

“The calculation of NOPAT starts with operating income, or earnings before interest and taxes (EBIT). You then add amortization from acquired intangible assets (A) and the embedded interest component of operating lease expense. Operating lease interest expense is added back because it is a financing cost rather than an operating expense. Finally, you subtract cash taxes, which include the tax provision, deferred taxes, and the tax shield.” (Mauboussin and Callahan, 10/2022)

Problems with ROIC

There are a host of problems with ROIC. I’ll list them in order of seriousness from least serious to much more.

Problem 1

“ROIC is straightforward in principle but requires numerous judgments in implementation. Shoddy calculations are common.” (Mauboussin and Callahan, 10/2022)

Problem 2

Different folks define ROIC differently. I’ve seen this one, for example: Return on invested capital (ROIC) = quarterly average, net operating profit after tax (NOPAT) adjusted for non-controlling interest, non-service pension, acquisitions and divestiture earnings, one-timers, restructuring, material one-time tax charges and the impact of foreign exchange fluctuations /invested capital, adjusted for accumulated other comprehensive income, cash and equivalents, acquisition and divestiture borrowings, short-term borrowings and material one-time tax charges.

This kind of fine tuning may be all well and good to plug into the compensation formula for the CEO but it is unnecessary for investors and in fact is designed to flatter the CEO rather than assist investors, which gives the CEO an incentive to game the system to juice ROIC and their own compensation.

Problem 3

As note above, NOPAT, the numerator of the ROIC calculation, is the cash earnings a company would have if it had no debt or excess cash. This may be all well and good to compare two or more companies with more and less debt and debt service payments, but it isn’t helpful in understanding the cash a company can generate if you ignore the interest it has to pay. A company with high debts may appear to have a higher return on its invested capital, if you ignore interest payments.

Problem 4

This next problem relates to the calculation of NOPAT.

We can let Professor Damodaran explain it. Aswath Damodaran is a professor of finance at the Stern School of Business at New York University. His area of focus is corporate finance and equity valuation. He has been described as the world’s foremost expert on the subject of corporate valuation.

In his new book titled The Corporate Life Cycle – Business, Investment, and Management Implications published in 2024, he writes: “While the accounting return (return on equity or capital) is easy to compute and reflects data that should be easily available for any business in its financial statement (earnings and book value), its weaknesses lie in its accounting roots.”

He goes on: “When accountants misclassify expenses…as they continue to do with R&D expenses, a capital expense if you follow first principles but one that is treated as an operating expense – the accounting earnings can be skewed significantly.” (Damodaran, 2024) p.132 (Emphasis added)

What this means is that accounting earnings are artificially depressed to the extent of major corporate investment in intangibles of lasting value. This reduces accounting earnings and upsets the reliability of NOPAT calculations. Adjustments have to be made. But the adjustments are problematic. Investors have no way of knowing what R&D expenses actually create intangibles of lasting value. It’s not like buying a building of bricks and mortar.

Mauboussin and Callahan weigh in on this: “We calculate ROIC two ways. The first is the traditional approach, where we derive NOPAT and invested capital from the financial statements that companies report. The second includes an adjustment that considers some fraction of research and development (R&D) and non-R&D selling, general, and administrative (non-R&D SG&A) expenses, as intangible investments. We reflect these investments on the balance sheet and amortize them over their assumed asset lives. The percentage of R&D and non-R&D SG&A that are treated as an expense, as well as the asset lives, vary by industry. This adjustment increases NOPAT and investment (and by definition invested capital) but leaves free cash flow unchanged.” (Emphasis added)

That is, they add back some portion of R&D outlays that have reduced accounting earnings and thereby increase accounting earnings and thus NOPAT.

“Measuring ROIC accurately has become more of a challenge in recent decades as the result of the rise of intangible investments relative to tangible investments. Internal intangible investments appear as an expense on the income statement but do not show up on the balance sheet, which means that earnings and invested capital are understated. To correct for this, we capitalize intangible investments and amortize them over an estimate of their useful lives.” (Mauboussin and Callahan, 06/2023) (Emphasis added)

Problem 5

The calculation of a company’s ROIC requires numbers for both ‘return’ and also ‘invested capital’. Problem 4 dealt with difficulties around calculating NOPAT. That discussion led into the problem around invested capital. As Mauboussin and Callahan put it: “We reflect these investments on the balance sheet and amortize them over their assumed asset lives.”

Does this do the trick? Does it solve the problem that in a world of companies with most of their assets classed as intangible, a lot don’t show up on the balance sheet?

Why is this important? Let’s turn to Warren Buffett. Even before the rise of the magnificent seven, he was onto the importance of asset light companies.

He wrote twenty-five years ago: “[Tangible] asset-heavy businesses generally earn low rates of return – rates that often barely provide enough capital to fund the inflationary needs of the existing business, with nothing left over for real growth, for distribution to owners, or for acquisition of new businesses.

In contrast, a disproportionate number of the great business fortunes built up during the inflationary years arose from ownership of operations that combined Intangibles of lasting value with relatively minor requirements for Tangible Assets.” (Buffett, The Essays of Warren Buffett: Lessons for Corporate America. 1998) p176 He could have written this yesterday with reference to the tech giants that have appeared onstage since 1998.

Mauboussin and Callahan offer the same thought: “Firms with high ROICs, sometimes called “superstar” firms, have been the most aggressive in investing in intangible assets. Including internal investments in intangibles would lower the ROICs for many of these companies.”

This creates a situation where, on average, companies that are tangible-asset-intensive have high NOPAT and high invested capital and companies that are intangible-asset-intensive have low NOPAT and low invested capital. If you have heard of an executive or investor refer to a business as being “asset light,” you are safe to assume the company invests largely in intangible assets.”

Problem 5 – Let’s put some numbers on it

Mauboussin and Callahan have done some calculations to see what impact there is on ROIC in making an adjustment that considers some fraction of research and development (R&D) and non-R&D selling, general, and administrative (non-R&D SG&A) expense as intangible investments.

They looked at the numbers for Microsoft for fiscal 2020-2022. “When we recalculate ROIC we see the number goes from 49 percent (on the left of exhibit 14) to 34 percent (on the right). The adjusted ROIC is still fabulous but it’s considerably more modest. This is consistent with academic research.”

Problem 5 is even bigger than that

The problem is that even after adjusting invested capital to capitalize investment in intangibles of lasting value, the exercise doesn’t pick up the real value of the company’s intangible assets. The company’s fiscal year end 2022 balance sheet put shareholder’s equity at $166,542 million, or rounded to $167 billion. This is the value the company’s books put on the common shares of the company.

One way to think about this is to see what price the stock market puts on the equity of the company. At 2022 fiscal year end the stock market put a price on the common share of approximately $1.85 trillion. We know that stock prices and stock values are not the same thing. But they do bear some relation and over time one should reflect the other.

We can use market cap as a stand in for the value of the intangible assets of the company. Think of it this way. If Microsoft were sold to a single company at the price set by the market, the buyer would book the excess price over balance sheet assets as accounting goodwill, i.e. as intangible assets which would appear on the balance sheet of the buyer as such.

Management of Microsoft have intangible assets to employ in the business that are not recognized on the financial statements and the best way to understand the value of those unrecognized intangible assets is to see what price the stock market places on them.  

The unadjusted ROIC calculation puts Microsoft’s 2022 ROIC at 49%. The adjusted ROIC comes in at 34%. If we use the market cap of equity as a stand in for Invested capital, the ROIC is 4.32%.

If we get into ways of putting a fair value on a company’s equity, we have moved away from ROIC and into the realm of ROCE (return on capital employed) and simple ROC (return on capital). But, changing the metrics used doesn’t solve the problems I have noted.

The solution

Let’s come back to the quote from Warren Buffett that I started with: “Leaving the question of price aside, the best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return.” (Buffett W. E., 1998) p86

Let’s do a business analysis not using any metrics. Remember, in this analysis we are leaving aside the question of price. We are not trying to put a value on the company. We are just trying to decide if the company is one that “over and extended period can employ large amounts of incremental capital at very high rates of return.”

We can look at Microsoft again. This time not through the eyes of ROIC and WACC. I have no axe to grind. I have never owned Microsoft stock. We will use the company’s accounts as an aid to the analysis.

Microsoft Corporation

Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. It currently has a market cap of USD 3.2 trillion.

In its last twelve month report that ended June 2024 it recorded $44.48 billion in capital spending. During this same period, it incurred $29.51 in R&D expenses, all of which was expensed and served to reduce reported income. Much of the capital spending would have been on tangible assets. A limited amount of the spending on intangibles of lasting value would have been capitalized and included in the capital spending figure. Much of the R&D spending would have created intangibles of lasting value but they do not and will not appear on the balance sheet.

It is apparent from the numbers below that Microsoft is growing its revenue, operating income and operating cash flow. From its growing operating cash flow, it is able to fund growing capital spending and also fund growing R&D expenditures. Of note, it seems to be able to maintain and even improve its operating margins. It is easily able to fund the capex needed to maintain it long-term competitive position in its various markets. It is also easily able to fund the capex it chooses to make to grow the company and fund healthy R&D expenditures. That is, it seems to be a company “that over an extended period can employ large amounts of incremental capital at very high rates of return.”

 In addition, in its last fiscal year, it had $72.5 billion of free cash flow to do with as it chooses. All of these investment decisions call on the capital allocation skills of management. It’s a cash machine.

The balance sheet as at June 30, 2024 shows $268.5 billion of shareholders equity which includes $27.60 billion of intangible assets net of depreciation. Here’s the kicker. Currently the market cap is $3.2 trillion. The stock market is pricing shareholders equity at $3.2 trillion. The balance sheet values shareholders equity at $268.5 billion. So, naturally, a metric like ROIC that uses shareholders equity in toting up invested capital or capital employed, it going to be distorted by the huge amount of equity capital that isn’t shown on the balance sheet.

Fiscal                                             2016    2017      2018      2019      2020      2021     2022     2023     2024

Revenue(Bil)                                   85.32    89.95    110.36 125.84 143.02 168.09 198.27 211.92 245.12

OperatingIncome (Bil)                    21.29    22.63    35.06    42.96      52.96     69.92   83.38   88.52  109.43

OperatingMargin (%)                      24.96    25.16    31.77    34.14      37.03     41.59    42.06   41.77    44.64

OperatingCash Flow (Bil)               33.33    39.51    43.88    52.19      60.68     76.74    89.04   87.58  118.55

CapitalSpending (Bil)                        8.34      8.13     11.63   13.93      15.44     20.62    23.89    28.11    44.48

FreeCash Flow (Bil)                       -30.01   -37.99    11.79    34.39    46.72     57.05    64.70   61.86  72.25

Source: Morningstar

Conclusion

As I noted at the beginning of this post, metrics like ROIC can be useful in assessing the investment merits of a company. There are problems as I have noted. Screening stocks based on a high ROIC and a high spread between ROIC and WACC is a valid exercise to get started. But ultimately, investors need to assess the ability of the company to generate the cash needed to maintain the company’s current market position and also invest that  incremental cash in growth at very high rates of return. Inspecting a number of years of financial data from a company are also a good aid to a business assessment of its investment merits. And there is more that should be done, but this is also a good start.

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Not all cash flow generators are superb companies. In the following recent post I looked at a stock popular with dividend investors that didn’t make the cut; even with $3 billion a year in free cash flow.

How to distinguish a superb value creator from an also ran

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You can reach me by email at [email protected]

I’m also on Twitter @rodneylksmith

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Want to dig deeper into the principles behind successful investing? Click on the ABOUT tab to read an introduction. It will help readers get the most out of the Nuggets of Investing Wisdom blog.

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Check out the Tags Index on the right side of the Home page that goes from ‘accounting goodwill’ to ‘wisdom of crowds’. This will give readers access to a host of useful topics.

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You can also use the word search feature on the right-hand side of this page to find references in both Nuggets blog posts and also in the Motherlode.

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To explore the Motherlode, click on the Motherlode tab

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It happened. The frontrunner for the Presidency said “Sure, . . . why not?” when asked if he would eliminate the income tax on the Joe Rogan podcast. Whoa!!! Okay, let’s calm down. Let’s not plan on never filing a tax return again just yet. Tax planning is all about probabilities. Over the 2024 presidential […]

Gone are the days when you needed to be tied to a desk to earn a living. Today, it’s amazing how many jobs can be done right from your phone, including anything from social media manager to online tutor and virtual assistant, among tons of others. 

So in this article, I’ll dive into the full range of phone-based job opportunities that may just  have you rethinking the way you work. 

Ready to discover a world of flexibility, freedom, and…phones? Ok, that may have worked better if “phone” started with an F, but you get the point…

1. Social Media Manager

Got a knack for crafting the perfect tweet or Instagram caption? Well, why not turn that talent into a career as a social media manager! 

As a social media manager, you’ll have the opportunity to work with businesses and individuals to create, schedule, and analyze social media content. You’ll be responsible for maintaining a consistent brand voice across platforms, engaging with audiences, and staying current on social media trends. 

And the best part? You can do all of this from your trusty phone! With so many apps for scheduling posts and checking the data on audience engagement, this is definitely a job you can do with your phone.

You can even focus your services on one specific social media platform to really show off your expertise. A great example of that is becoming a Pinterest Manager where you’ll help online businesses expand their reach on that platform.

And if you love playing on that site as a user, this can be a great way to make money on Pinterest while having a good time as well!

2. Online Tutor

Do you have a passion for teaching and helping others learn? Great news: you can put your expertise to use as an online tutor, all from the comfort of your phone! 

Online tutoring allows you to connect with students in need of academic support, whether it’s for a specific subject or general study skills. Thanks to platforms like Tutor.com, VIPKid, and Wyzant, you can easily connect with students of all ages and provide one-on-one instruction via video calls, text, or chat. 

Not only will you be making a difference in someone’s education, but you’ll also enjoy the flexibility of setting your own hours and working from anywhere with a stable internet connection. 

So grab your phone, check out these online tutoring jobs and get ready to share your knowledge with the world! 

3. Blogger

Got a passion for sharing your thoughts, experiences, or expertise with others? Then becoming a blogger might be the perfect opportunity for you! 

Bloggers create and publish articles on various topics, from travel and fashion to personal finance and technology (or any of the 900 lifestyle blog post ideas I listed at that link!). 

And with your phone, you can easily write, edit, and publish blog posts. Sure, it’s easier to do that with an actual computer, but I personally love to use my phone to write blog posts using the voice-to-text feature in Google Docs. It’s a super fast way to get a first draft done before going back to tidying it up on a laptop later.

And your phone continues to be handy here as you can use social media to promote your blog and engage with your audience. As your blog gains traction, you can potentially earn income through advertising, sponsored content, or affiliate marketing – which I’ll get into further a bit later in this article…

4. Content Creator

If you have a gift for storytelling and a love for engaging with audiences, then you might just have what it takes to be the next great influencer on the block. 

Content creators are responsible for producing various types of content, including long and short form videos and podcasts, to entertain and inform their audience. Thanks to user-friendly apps like TikTok, YouTube, and Instagram, you can easily create content and then share it directly from your phone. 

Whether you’re sharing your thoughts on the latest fashion trends or teaching others how to cook your favorite dish, the opportunities are endless! 

Related: 6 Proven Ways to Make Money on Snapchat

5. Virtual Assistant

Are you an organization whiz with a knack for multitasking? Then you might find your calling as a virtual assistant! 

Virtual assistants (VAs) are in high demand, providing administrative support to entrepreneurs, small businesses, and busy professionals. Your tasks as a VA might include managing emails, scheduling appointments, booking travel, or even social media management. 

With communication and project management apps like Slack, Trello, and Asana available right from your phone, you can be the right-hand person your clients need, all from your pocket-sized office.

The best part about becoming a virtual assistant? You can work from anywhere, on your own terms, and with a variety of clients. 

6. Customer Service Representative

If you’re looking for work from your phone jobs where no experience is needed, a customer service representative role could be just what you’re looking for.

Customer service representatives are responsible for providing support and assistance to customers via phone, email, chat, or social media, with most companies providing on-the-job training. They help resolve issues, answer questions, and ensure that customers have a positive experience. 

And guess what? You can do all of this as a smartphone job from home! Thanks to apps like Zendesk and Freshdesk, you can manage customer interactions and provide top-notch support, all while enjoying the flexibility of working from home or on-the-go as you get paid to chat.

7. Voiceover Artist

Do you have a unique, captivating voice that can bring characters and stories to life? If so, you might want to consider becoming a voiceover artist! 

Voiceover artists lend their vocal talents to projects like commercials, audiobooks, animation, and video games. With a smartphone, a quality microphone, and some basic sound editing apps, you can get paid to record your voice.

You can search for voice over jobs for beginners on platforms like Voices.com and Voice123, which offer opportunities for voiceover artists to connect with clients and showcase their talents. It’s a super fun side hustle to get into so, if you’re ready to make your voice heard, grab your phone and start your journey as a voiceover artist!

8. Online Seller

Are you passionate about buying, selling, or creating unique items? If so, becoming an online seller to make money on Etsy might be your perfect fit! 

As an online seller, you can use your phone to run your own virtual store through platforms like Etsy. Whether you’re selling handmade crafts, vintage treasures, or stylish clothing (or any of the other 10,000 Etsy shop ideas out there!), there’s a marketplace out there for your niche. 

With your phone, you can manage your listings, communicate with buyers, and even promote your shop on social media. Embrace your entrepreneurial spirit and turn your passion into profit—all from the palm of your hand! 

9. Transcriptionist

Are you a typing whiz with a sharp ear for detail? If so, a career as a transcriptionist might be the perfect fit for you!

Transcriptionists are responsible for converting audio recordings into written documents, often for industries like legal, medical, and media. With transcription jobs available on websites like Rev and TranscribeMe, you can easily complete transcription tasks right from your phone. 

All you need is a good pair of headphones and a keen sense of focus to get started. The flexible schedule and work-from-anywhere nature of this job make it an ideal option for those looking to make some extra cash or build a full-time career from their smartphone. 

So, get ready to put your listening skills to the test! 

10. Delivery Driver

Do you tend to be dependable and friendly with a reliable set of wheels? Why not make some extra cash as a delivery driver? 

Delivery drivers are in high demand, especially with the rise of on-demand delivery services like DoorDash, Uber Eats, and Postmates. With just your smartphone and a vehicle, you can deliver food, groceries, or other items to customers in your area. 

Simply download the app, sign up, and start accepting orders on your schedule. The flexibility and independence of this gig make it an ideal option for anyone looking to supplement their income or build a full-time career on-the-go. 

11. Survey Taker

Are you interested in sharing your opinion and making some extra money while you’re at it? Becoming a survey taker might be right up your alley! 

Many companies and research organizations are willing to pay for your feedback on various products, services, and topics. All you have to do is complete surveys from your phone whenever you have some spare time to get some extra cash in your wallet!

While you won’t get rich overnight, taking surveys can be a fun and easy way to make a little extra money from your phone. So, grab your device and start sharing your thoughts with the world! 

12. Focus Group Participant

…And want to make even money from sharing your opinions and providing valuable insights? If so, becoming a focus group participant might be a fantastic opportunity for you!

Paid focus groups are used by companies and researchers to gather opinions and feedback on products, services, or ideas. Participants can join virtual focus groups from the comfort of their smartphones, engaging in discussions or answering questions via video call or chat. 

Platforms like Survey Junkie and Respondent can connect you with opportunities tailored to your interests and demographics. Not only will you be influencing future products and services, but you’ll also get paid for your time and input.

So, get ready to make an impact, all from your trusty phone!

13. App Tester

If you’re an app enthusiast who’s always on the lookout for the next big thing, why not turn your passion into profit by getting paid to test apps!

App developers often need feedback from real users to improve their products before launch. As an app tester, you’ll have the chance to try out new and upcoming apps on your phone, providing valuable feedback on usability, design, and functionality. 

And what’s great about this job you can do from your phone is that not only will you be making money, but you’ll be helping to shape the future of mobile technology too!

14. Freelance Writer

Calling all wordsmiths! If you have a way with words and a knack for storytelling, you might find your calling as a freelance writer – even with no experience! 

Freelance writers create content for various clients, including blog posts, articles, marketing copy, and even e-books. With your smartphone, you can easily draft, edit, and submit your writing assignments using apps like Google Docs, Microsoft Word, or Evernote. 

Platforms like Upwork, Freelancer, and Fiverr make it simple to find and connect with potential clients. So embrace your creative side and turn your passion for writing into a rewarding career, all from the convenience of your phone!

15. Language Translator

Are you a language whiz who can effortlessly switch between two or more languages? If so, you might want to consider becoming a translator! 

In this role, you can put your linguistic skills to good use by helping clients translate text, audio, or video files right from your phone. With translation apps and websites like Gengo, ProZ, and Unbabel, you can access translation jobs in various industries, including legal, medical, and technical. 

Not only will you be able to work from anywhere with a stable internet connection, but you’ll also enjoy the flexibility of setting your own hours and choosing projects that suit your interests. All you need is your phone to start bridging those language barriers!

16. Affiliate Marketer

Are you a persuasive person with a talent for promoting products and services? If so, you might want to explore the world of affiliate marketing! 

Affiliate marketers earn commissions by promoting other companies’ products or services through unique affiliate links. You can share these links on your blog, social media, or even in your email newsletter. 

You’ll need some sort of audience already, so this is perfect even if you’re an amateur blogger with at least some sort of engaged social media following. But with such great money to be made here, it’s definitely a world worth exploring.

17. Online Course Creator

This is a great job you can do from your phone as you can apply it to literally any topic you can think of.

That is, if you’re an expert in a particular subject – again, literally anything – and love teaching others, why not turn your passion into a career by becoming an online course creator? 

Online course creators develop and sell educational content in various formats, such as video lessons, audio files, or written materials. You can use your phone to easily record and edit content, manage your courses, and communicate with students using apps like Teachable, Udemy, or Skillshare. 

The best part about this is that you can earn passive income from your courses once you’ve got them all ready, giving you the freedom to focus on creating even more amazing content. 

So, if you’re ready to share your wisdom with the world, grab your phone and start teaching! 

18. Photographer

Do you have an eye for capturing stunning visuals and memorable moments? Why not use your phone to kickstart a career as a photographer? 

While professional photography often requires high-end equipment, smartphone cameras have come a long way and are now capable of producing high-quality images. You can use your phone to take and edit photos (including to sell photos of yourself online), and then sell them on stock photography websites like Shutterstock, Adobe Stock, or iStock. 

You can also promote your photography services on social media or use apps like Snapwire to connect with clients. With a bit of practice, get ready to unleash your inner shutterbug and turn your phone into a source of income! 

19. Product Tester/Reviewer

Everyone loves a good freebie and many of us also love sharing our opinions. So if both these things sound interesting to you, becoming a product tester or reviewer might be right up your alley! 

Product testers and reviewers receive products, often for free or at a discounted price, in exchange for providing honest feedback and reviews. These reviews can be shared on websites like Amazon, social media, or your own blog or YouTube channel. 

Your phone lets you test products, write reviews, and even record video reviews using apps like YouTube or Instagram. Plus, you can join platforms that send out these free products to be reviewed directly from your phone.

20. Stock Trader

If you consider yourself pretty finance-savvy and have an interest in investing, becoming a stock trader might be the perfect opportunity to put your knowledge to work.

Thanks to the rise of mobile trading platforms like Robinhood, E*TRADE, and Fidelity, you can buy and sell stocks, options, and other financial instruments directly from your phone. While stock trading requires a solid understanding of financial markets and risks, with research and practice, you can potentially generate income from your phone. 

That said, always remember to do your due diligence and be very aware of the risks involved, especially with something like day trading. Basically, don’t invest what you’re not willing to lose.

21. Graphic Designer

Hey there, creative minds! If you have a flair for design and a love for visual communication, you might want to consider making money drawing as a graphic designer. 

Graphic designers create visually appealing graphics, logos, and layouts for various clients and projects. While many designers use professional software on their computers, there are also plenty of mobile apps like Canva (which is free to sign up for here!) that allow you to create stunning designs right from your phone. 

You can find freelance graphic design work on platforms like Upwork, Freelancer, or 99designs, and easily share your portfolio with potential clients, simply by turning your phone into your personal design studio! 

22. Pet Sitter

This one’s for all you animal lovers out there… That is, if you’re passionate about furry (or scaly or feathery) friends and want to turn that love into a career, becoming a pet sitter might be perfect for you! 

Pet sitting involves taking care of pets while their owners are away, whether it’s for a few hours or a few weeks. Your responsibilities might include feeding, walking, grooming, and providing companionship to animals. 

Use your phone to easily find pet-sitting opportunities on apps like Rover, Wag!, and Pawshake. Plus, you can send updates and photos to pet owners, giving them peace of mind while they’re away. 

You could even lock in some ongoing clients to earn a more consistent income by starting a dog daycare at your home – just to really take your business to the next level.

23. Dog Walker

…and for all you dog enthusiasts who aren’t sure if dog sitting is for you, why not try becoming a dog walker instead? part time jobs using mobile phones

Dog walkers provide exercise and companionship to dogs while their owners are away or busy. And this one’s definitely one of the part time jobs using mobile phones with apps galore to help you out, with options like Rover, Wag!, and Barkly Pets making it very easy to connect with clients. 

Plus, these apps also make it simple to manage your schedule, communicate with pet owners, and even track your walks using GPS, making it the easiest way ever to get paid to walk.

24. Tasker with Gigwalk

Gigwalk is a great odd jobs app that connects taskers with clients who need help completing various tasks, such as running errands, assembling furniture, or even conducting retail audits. 

This means that, with your phone, you can browse available gigs, accept tasks that suit your skills and schedule, and communicate with clients. And when it comes to flexible jobs you can do from your phone, Gigwalk definitely meets that criteria, offering the flexibility to work when and where you want.

You’ll have the chance to earn extra money on your terms just by tackling some tasks, so download Gigwalk to start gigging! 

25. Online Personal Shopper

This one’s for all the fashion-savvy folks out there. 

If you’ve got a keen eye for style and a passion for helping others look their best, then a legitimate work from your phone job for you could be becoming an online personal shopper.

How it works is that online personal shoppers assist clients in finding clothing and accessories that suit their style, body type, and budget. Your phone will easily let you browse online stores, curate personalized recommendations, and communicate with clients via chat or video call. 

Apps like Pinterest, Polyvore, or ShopStyle can help you create style boards and discover new fashion trends. Plus, you can find clients through platforms like Stitch Fix, Trunk Club, or even by promoting your services on social media. 

It’s a great way to turn your love for fashion into a career, just by grabbing your phone and starting shopping! 

26. Mystery Shopper

…and another great job you can do from your phone that taps into your love of shopping is becoming a mystery shopper!

This is particularly good if you’ve got a keen eye for detail, as mystery shoppers visit stores, restaurants, or other businesses undercover to evaluate the quality of service, product selection, and overall customer experience. 

From the comfort of your phone, you can easily accept mystery shopping assignments, take notes, and submit reports using apps like Field Agent, Mobee, or Shopkick. And you’ll even have the chance to earn money while shopping and discover new places in your area. 

It’s a super fun way to make some extra cash – and perhaps finally realize that not-so-secret secret agent dream you’ve always had.

27. Online Recruiter

When it comes to online jobs you can do on your phone, people don’t normally think of becoming an online recruiter – even if it’s a really great option, especially if you’re interested in breaking into the HR field. 

Online recruiters work with companies to find and screen potential job candidates, often using social media, job boards, and other online resources. With your phone, you can easily manage job postings, review resumes, and conduct interviews via video call or chat. 

With apps like LinkedIn, Indeed, and Glassdoor being so huge these days, they’re great for helping you to find potential candidates and stay up-to-date with industry trends. 

You’ve also got the choice to work independently as a freelance recruiter or even join an agency to find clients. Either way, this is a great way to make some money and help others land their dream job from your phone!

28. Online Therapist or Counselor

Are you a licensed mental health professional with a passion for helping others? If so, becoming an online therapist or counselor might be the perfect fit for you! 

Online therapists and counselors provide mental health support to clients via chat, phone, or video call. You can easily manage appointments, conduct sessions, and maintain client records via your phone using apps like SimplePractice, TherapyNotes, or Doxy.me. 

At the same time, platforms like BetterHelp, Talkspace, or Amwell can connect you with clients in need of your expertise. 

Offering online therapy and counseling services can provide increased flexibility to both you and your clients, allowing you to work from anywhere with a stable internet connection. This makes it a great way to get paid to chat with people for both their and your benefit.

29. Online Coach or Consultant

If you have expertise in a particular field and are looking for smartphone jobs from home that involve helping others succeed, becoming an online coach or consultant might be the perfect opportunity for you.

Online coaches and consultants provide personalized advice and guidance to clients in areas like business, health, finance, or personal development. Just grab your phone to easily manage appointments, conduct coaching sessions via video call or chat, and share resources with clients using apps like Zoom, Calendly, or Dropbox. 

You can also promote your services on social media or use platforms like Clarity.fm, Coach.me, or LinkedIn ProFinder to connect with potential clients. 

30. Reseller

Do you have a talent for spotting valuable items at bargain prices? Love the thrill of flipping them for a profit? Then becoming a reseller might be the ideal gig for you! 

Resellers buy items at low prices, usually from thrift stores, garage sales, or clearance racks, and then sell them at higher prices on online platforms like eBay, Poshmark, or Depop. You can then easily manage your inventory with your phone, as well as list items for sale, and communicate with buyers using dedicated apps for each platform. 

If you really want to take this to another level, you can even use social media to promote your reselling business and attract even more customers. 

So if you’re ready to turn your bargain-hunting skills into a profitable venture, grab your phone and start reselling! 

Related: What Sells Best on Poshmark to Make the Most Money?

31. Babysitter

If you love spending time with children, then working as a babysitter can be a great job you can do with your phone!

To be clear, this isn’t entirely a work from your mobile phone job, as you do actually have to look after the kids in person, not just, say, over a video call or something. But your phone can be invaluable for finding work in this field, as you can easily find babysitting opportunities on apps like Care.com, Sittercity, or Bambino. These platforms make it simple to create a profile, showcase your experience, and connect with families in need of childcare. 

From there, you can use your phone to manage your schedule, communicate with parents, and even entertain the little ones with games or educational apps.

What makes babysitting such a great job is that it can be for all ages (well, almost), making it a perfect way for teens to make money as well as adults!

32. Search Engine Evaluator

If you’re in my generation and have grown up with the web, then you probably know exactly what’s good and what’s not on the internet. So why not use that keen eye to make money by evaluating search results?

Search engine evaluators assess the relevance and quality of search engine results, helping to improve the overall user experience. You don’t even need a computer for this necessarily, as you can easily complete evaluation tasks and provide feedback using apps or mobile-friendly websites provided by companies like Appen, Lionbridge, or Teemwork.ai. 

This flexible gig typically offers a decent hourly rate and the opportunity to work from the comfort of your phone – plus you get to help shape the future of internet search!

Can I Freelance With a Smartphone?

Absolutely! In today’s connected world, your smartphone can be a powerful tool for launching and managing a freelance career. In particular, many freelancers use their phones to communicate with clients, manage projects, and even complete tasks on-the-go. 

With a plethora of apps and mobile-friendly websites at your disposal, you can turn your smartphone into a pocket-sized office, allowing you to work from anywhere with a stable internet connection.

Some easy jobs you can do from your phone as a freelancer include graphic designer, writer, photographer, social media manager, and virtual assistant, among the many others I’ve outlined above. Platforms like Upwork, Fiverr, and Freelancer make it easy to create a profile, showcase your skills, and find clients, all from your mobile device.

In addition, you can use apps like Trello, Asana, or Google Drive to organize your projects, collaborate with clients, and store important files. And with communication tools like Zoom, Slack, or WhatsApp, staying in touch with clients is a breeze.

So, if you’re ready to embrace the freedom and flexibility that comes with freelancing, grab your phone and start building your dream career!

The post 32 Best Jobs You Can Do From Your Phone appeared first on LogicalDollar.

It’s still October, and I’ve well and truly smashed the reading goal for this year! And not a cent been spent; I have read only from books already in my possession. A full list of my reading for this year below for anybody seeking inspiration. Books 1- 19 consisted of all the cosmere/Stormlight novels fromContinue reading “Books 2024!”

Patience and time. That is all humans have ever needed.

The problem is that both of those are the most elusive things to most of us mortals.

We tinker when we shouldn’t tinker.

We get bored and we sell off one investment and trade it for another.

We have a few pounds that we all want to lose but lack the requisite patience it takes to do the work to drop them.

The fact is that most of us simply lack the necessary tools it takes to commit to something for the long haul.

While all of us dream of being as good of an investor as Warren Buffett, the reality is that our real heroes should be the dead!

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Remember that Fidelity study that found that, the best investors are the dead ones?

It’s not because they chose better stocks than you. They didn’t.

It’s not because they had more patience than you. They didn’t.

They died…and that act of dying committed their account to ONE path.

And as it turns out, committing to that path, outperforms other investors!

The more you tinker, the more you change your strategy, the more impatience you have, and the worse you will perform.

And again, this goes beyond investing…

You can’t lose weight if you don’t commit to eating healthier and working out.

You can’t get a promotion at work if you aren’t committed to doing the little things that set you above and beyond your peers – including playing office politics.

You won’t build wealth if you can’t save your earnings and invest them in the first place.

THE best thing you can do for yourself is to commit to ONE path and stick to it.

Conclusion

You don’t need a fad diet to lose weight.

You don’t need a ten-bagger to build wealth.

All you ever needed was to commit!

So learn from the dead: don’t touch your investments. Just don’t.

Stop playing around in your life: commit.

More from Accidentally Retired

• The Simple Formula For Getting Sh*t Done
• How to Work On Two Things at Once
• Here’s What I Won’t Be Doing…

The post Stop Playing Around: Commit first appeared on Accidentally Retired.