Be An Investor
May 25th 2022
Do you need financial advice?
...or do you even need a financial advisor?
I want to make an important and regularly overlooked point about investing. In anything…
This is going to sound obvious. SO obvious it’s missed and overlooked ALL the time.
There is a between an investment return and an investor return… and only one makes a difference to me.
Let me explain –
Imagine you open the newspaper, and there’s an ad for a mutual fund. The ad says that investment has returned 10% a year for 10 years.
That is the investment return: 10% a year for 10 years.
Now, let’s talk about investor returns.
If you put your money into that investment at the beginning of the 10 year period, and you left it there for the whole 10 years—didn’t add any, didn’t take any out, just left it there—what would your return have been?
And no, this is not a trick question. Be kind to yourself… The return is…
Ding ding ding: That’s right! Your return would have been as advertised: 10% a year for 10 years.