Philip Michael is back, and he’s answering the questions you slid into his DMs. In this segment of Ask Philip, he discusses fractional stocks, index funds, purchasing land far from home and investing from Ireland. Here are excerpts from Phil’s answers. For the full responses, check out the video and gain some money knowledge.
Q. I buy fractional stocks, and they just sit. Am I supposed to add them to an index fund?
A. Fractional shares are basically you just being allowed to buy into whatever stock you want at any price you want. To your point about index funds … Think about Amazon. What does Amazon do? They sell all sorts of stuff. An index fund is a company. What do they do? They invest in big companies that tend to grow over time, that track the overall economy. If you have a bunch of stocks and a bunch of companies, you can roll them over into index funds. If you don’t want to worry about what these companies are doing, you’re just investing with a company (an index fund) that specializes in finding the biggest companies.
Q. How difficult is the process of purchasing land in America from, let’s say, the Caribbean?
A. You’re asking me a question that by nature has a built-in subjectivity; I can only answer from my perspective. I always like to say for me (And if someone shows the same temperament as me, this might be a good solution for them.), invest where you know where you can go. For instance, I own a development in Philadelphia; I know it, and I can go there, and it’s not that far away … Have a local partner that you trust, someone that knows the area. If you don’t, you will leave yourself in a very compromised position.
Q. Would your app translate well over to the Irish economy? I’m looking for a bit of help just to get me over the next hurdle.
A. Money is money, and it functions the same way all over the world. You might have little differences in the U.S. experience with the banks. But by and large, money exists and operates the same way all over the world. So yes, obviously, you can use my app over there. But it’s not necessarily just mine. I’m sure the local banks have a tech-enabled way for you to invest in European stocks. If not, I’m sure there’s a start-up or mature fintech that allows and facilitates those types of transactions.
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