1. Wealth Accumulation is Doable.
Even in today’s messed up world, you can still retire comfortably. Spending less than you earn, exposing your savings to the various risks in the stock market, and doing it for a long time is a recipe for success. These three factors will interact mathematically to determine what you can accumulate during a 40 year career. You’ll be surprised at what you can achieve all on your own.
2. Taxes Matter.
Our economy needs both Labor and Capital. It rewards the suppliers of both. The government taxes earnings on both. Inefficient tax planning will greatly diminish your after-tax savings. Be smart with tax-deferred and tax-free investment opportunities. Take them to the max!
3. Your ability to stick to your investment plan is more important than the investment plan itself.
Robo-advisors on the internet can give you a decent plan for pennies, but will you have the ability to stick with it? This is the critical question/behaviour.
4. Investments are Easy.
The internet is full of great advice for the retail investor. Compare this to how you would have acquired the same info 30 years ago. This is the great age of the retail investor!
5. Financial Coaching is a positive NPV expense.
Yes, getting advice and coaching around concepts 1 through 4 above is imperative. It may hurt to pay that bill, but a coached investor will beat an uncoached investor. Which do you want to be? $$ rich, or $$$ rich. I’ll take the extra unit of $ please!