Investing to Build Wealth

Investing to Build Wealth

Four big takeaways
1) You can’t afford not to invest. 
2) Diversify and consider investing passively.
3) Be appropriately wary of anyone or anything that charges a fee as a % of 
assets- think of fees like a cash expense and adjust accordingly.
4) Robo-advisors are a great option for accomplishing 1-3.

What is investing?
 Classic economics- spending money in the hopes of making more money.
 Consider a solar panel
 The entire economy is based on billions of investment decisions, big and small, explicit and implicit.
 Should you install a solar panel on your roof? 
 Figure out costs/benefits
 Quantify the opportunity cost
 Act
 Cost/benefit analysis requires thinking about how much future cash is worth, compared to present cash
 If you could invest $100 to get cash in the mail every year, for sure, how much would each payment have to be?

Investing to Build Wealth