I don't think it would be right to start this newsletter without talking about crypto, in case you hadn't noticed it had a nice little jump this week.
We ran a small survey in the Nisba WhatsApp community (you can join by clicking here), and it seems quite a few people aren't invested in crypto at all but are quite interested. Mind you, this community is full of people who are already active when it comes to investing, otherwise they wouldn't have joined, so our results are probably a bit skewed.
You can see my pick too. I do invest in crypto (majors only, Bitcoin and Ethereum). For most investors, I wouldn't outright recommend it. There's a lot of risk and an unknown future.
Having said that, I do like that cryptocurrency has been around for a while now and is fairly well established. The crypto market seems to have a habit of going quiet for a stretch, then bursting into life. It's a real rollercoaster. I keep around 5% of my portfolio in crypto at any one time, and my goals there are long term. It suits me, it might not suit you. I see the major cryptos the same way I see gold: I have no idea what the price will be in two years, but in ten years I'm fairly confident it'll be higher than it is today. I've been wrong before, though.
How can you do it? You can now invest in Bitcoin quite easily through Bitcoin funds on brokerage platforms. You can't hold these in an ISA, but at least you don't have to use an app that can feel quite complex for some people, like Binance or Kraken. Unfortunately, for the other cryptocurrencies, you'll still need to use a crypto platform.
Pensions
This might sound a bit odd, but I'm really getting into pensions lately. I think I've just spent too much time talking about them. Speaking to clients who are a bit older, near retirement or already retired, and seeing how comfortable they are now with their pension pots, makes it all feel very real to me.
On the flip side, I'm seeing people in their late 40s and 50s with nothing saved in a pension, and it's a real sprint to get them to a place where they'll have enough for retirement.
I think everyone should give their pension real thought. At the very least, everyone should know how tax works on their pension and understand the benefits of having one.
We ran an online pension event before, covering halal pensions, and we're doing it again next Wednesday, 2nd September. It's free to attend, and I'd obviously recommend joining.
I'm not sure if anyone else is like me and gets brainwaves at the worst times. Nearly every time I stand to pray, I'll get an idea. Not when I'm sat at the desk with time to actually think it through.
But anyway, this week it hit me. A lot of people, like I once did, really think investing is about saving up lots of money then putting it into an investment. Which is why we always get the question, "do I need lots of money to start investing?"
Maybe in their mind they think they need to save up to buy an investment property, or one back home, or some physical gold, or maybe even invest into a friend or family member's business.
I used to be obsessed with franchises, so I used to think, when I have enough money I'll invest into a franchise so I can just get free food.
But the reality is far simpler. Investing is not a one time thing, rather I do it every single payday. It's almost like a bill, but it's for the future.
So if you know anyone who asks "do I need a lot to start," try and remind them: it should be monthly where possible, and no, you don't need a lot to start.
P.s - If you enjoy being part of the nisba community, why not share this newsletter with someone you think could benefit. Maybe someone who hates the idea of investing :)
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