Driven by passive investing, 29-year-old graphic designer Zoe Williams is She laughs, saying, “I’m not a stock-picking expert and I don’t want to spend hours tracking the market”. “That’s why I started to love ETFs and index funds.”
Her path started during the 2020 shutdown when she came into a long-term investment podcast. Zoe notes, “I kept hearing about low-cost index funds and how they outperform most active funds.” She thus began looking at top-performing ETFs on sites like Morningstar.
She says she began with a basic strategy consisting of 70% in a whole market index fund, 20% in international ETFs, and 10% in bonds. Zoe selected a supplier with low cost ratios and dividend automatic reinvestment.
She pays a little bit of her freelance money each month. She says, citing a passage from the book The Simple Path to Wealth that stayed with her, “It’s about time in the market, not about timing the market.”
Using dollar-cost averaging, Zoe invests a certain amount consistently independent of market circumstances. This approach keeps her engaged to her plan and helps her avoid emotional choices.
She annually analyses her allocation and uses a basic spreadsheet to measure her development. I try not to criticise too closely. Index funds have beauty in that they perform the job for you.
For those starting out, Zoe recommends opening an account with platforms like Fidelity or Vanguard. “They offer great educational tools, and the fees are super low,” she adds.
What counsel does Zoe offer? “Don’t let yourself obsess over it.” Start with what you are able. You just have to start; you do not have to be rich to create riches.
