About - The Incompetent Investor

About


Who are we?

G'day! My name is Danny aka the Incompetent Investor. I live in Darwin now due to the warmer weather as I was medically discharged from the Army. I have lived with chronic pain for longer than I remember. I am married to my beautiful wife, Mrs Incompetent Investor who is 30 years old and we have a 7 year old son. We also have 2 dogs and a cat. The perfect family unit! 

Often people ask me why I went with the name 'Incompetent Investor'. Well, if I am honest, I am no genius. I can't evaluate a company/business by looking at their financial reports. Furthermore, I would not have the patience nor aptitude to digest what the numbers even mean!

I would like to describe myself as an average Joe. I enjoy playing computer games, spending time with my family. Going to the cinemas to watch the latest blockbuster. Travelling overseas every so often to visit the extended family. We watch plenty of Netflix at home and order in pizza's on Friday night. 

I always loved the stock market, but sadly, I was not informed enough to consider ETFs and LICs back in my early twenties. I also had an ego back then, so I doubt I would have even invested in ETFs/LICs as I truly believed I could pick individual stocks and outperform the market. I've certainly had some major lessons throughout my life. I've written about some of them in some of my posts, however below are some of the front of mind lessons I have had. 

Key Lessons

1) It is not a race: I've tried to cut corners by investing in speculative shares which almost always ended in heartache. Thousands and thousands of dollars pissed down the toilet in an attempt to try and break some ultra complicated formula to do well in the stock market. In hindsight, for me, the simpler it is, the better it will be for my family in the long run. 

2) Asset Allocation: This lesson links in with the lesson above. Having invested unreasonable amounts into risky/new asset classes like cryptocurrency, the family lost a small fortune. I've learnt never to invest more than 5% into a risky asset class such as cryptocurrency. You can read more about this here. 

3) Financial Independence: I have learnt the importance of Financial Independence in my early 30's. You know, having value for your things when you buy them and really thinking carefully when making purchases. Financial Independence is really important to me, not because I don't want to work, but to avoid having to depend on other companies, people, or bodies that dedicate my financial security. If I am in a position where my health flares up, hey guess what, I've got passive income coming in so there is no additional stress on my wife to support the family unit! I've written more about the deeper meaning of Financial Independence here

4) Buying cars: I am a big believer of trying to spend approximately 5% of your total net worth on a car. To give you some context, I purchased my second hand 2008 Honda Accord Euro quite a few years ago for circa $22,000. I recently had the vehicle valued at my local mechanic, and he advised me I would be lucky to fetch $2000-$3000. That is a loss of $19,000. Granted, the car has served me well and it is still going to this day. However, we could have very easily purchased a nice Toyota Camry for $10,000 and invested the other $10,000. Point is, cars are a real destruction of wealth. 

I've written a more exhaustive list of my life lessons here.

Is your blog any different to the other Financial Independence blogs? 

I would like to think so. I consider myself a bit of an underdog. I am in my 30's, live in chronic pain, graduated from university in late 2018, and started my first professional job at the age of 31. My wife and I both earn a combined income of $110,000 (as of 2019). Also how many people blog about FI in the top end of Australia? I also like to think it's nice when people are transparent around their silly mistakes. 

I am not perfect, and for better or worse, I share these experiences. I am also essentially just starting out. As time progresses, you can watch how an average Joe and his family can reach a strong financial position with hard work, discipline and consistency. And hey, we still make undisciplined decisions. For example, I still buy food at lunch while at work. I am not going to paint you a perfect picture of the life I lead. I am far from perfect (continual improvement), and yet, I still intend to smash our goals to ensure I can enjoy good health well into the future! 

Why Start A Blog? 

Believe it or not, the blog is not an attempt to be self-centred but more so because I know there are many families around Australia, and the world, just like me. Maybe you have made some dodgy decisions in hope of financial success. Bad investments? Irresponsible loans? Perhaps you also have some health challenges? Maybe you just want to be in a strong financial position in case shit hit the fan (a recession for example). Whatever it is, I hope my articles resonate with other individuals and/or families around the world. 

My blog also acts as a personal dairy. As time evolves, I imagine my investing strategy may change. It may not. It is hard to say. However, it will be interesting to look back on these posts in 10 years time. Finally, it is nice to have some accountability. 

I also enjoy writing. Keeps me busy and off the games. My wife reckons I game too much! I certainly hit the jackpot and got luck to have a wife who supports gaming. 

Just remember, nothing noted on my blog is Financial Advise. I've learnt the hard way. Never listen to tips or financial advise from randoms on the internet. Even in person! I can't tell you the amount of times where mates, family, colleagues have given me a hot tip which results in disaster. Do your own research and take ownership and responsibility in your own investment decisions!