Recap: Building Wealth
This first week of the Wealth chapter of Supermorning looked at tangible assets: how to get them, how to grow them, and how to protect them.
Let’s dive straight into the summary:
The checklist
- Automatic wealth building is very easy nowadays.
- Conveniently set up an automated investment regime using online banking solutions.
- Occasionally adjust these automated investments to keep yourself off the hedonic treadmill.
- Investment horizon is key when positioning your wealth.
- If you can part with your money for many years, risky investments like stocks become surprisingly safe.
- You can only lose money if you’re forced to sell your shares when the market is temporarily down.
- Long-term stock market investments yield great returns at very low risk.
- With an infinite investment horizon, your risk is close to zero.
- Make sure you select diversified funds from several reputable investment firms.
- Short-term investments need more security.
- Good options are government bonds and faster repayment of your home loan.
- Split your strategy between low-return investments for your near-term financial goals and high-return investments for your long-term freedom.
Today’s world belongs to those who own capital.
Anyone can claim their fair share of our world, benefiting from the freedom and control that goes with it. All it takes is a small automated investment regime and a couple of decades of patience 🙂
It really speaks to the terrible power of consumerism that so few people do…