There are many things in life that we don’t know.  However, there are a few things that we’ve picked up about personal finance, investing and money that we think can help clients and their families.

  • The Jones family, next door, isn’t as rich or happy as you think they are…
  • Luck is what happens when preparation meets opportunity
  • Really rich people almost never attribute their success to getting lucky
  • Get rich quick and get poor quick are two sides of the same coin
  • The more complicated the investment advice, the more expensive and the less useful it is
  • Spend less than you make. Always
  • Ask about anything you don’t understand
  • There is no such thing as job security in any industry
  • Your personal residence is a place to live, not an investment. Stop watching HGTV
  • Stocks tend to payoff because they are so volatile, not despite it
  • Your mortgage broker is lying to you about how much house you can afford
  • Never reach for yield. High dividend yields aren’t a good predictor of forward returns
  • All fees erode investment performance
  • Excess is never permanent
  • You will never have enough money
  • If it depreciates then avoid paying interest on it (I’m looking at you, cars)
  • You don’t have to be rich to invest but you must invest to be rich
  • Invest in your mind and your skills
  • Splurges bring the greatest happiness and then diminishing returns
  • If it seems too good to be true, it is. Full stop
  • Einstein never said that thing about compound interest (see below). But it’s accurate nonetheless
  • If you’re excited about an investment, it’s probably a bad idea
  • A penny saved is more than a penny earned
  • Market corrections come more regularly than birthdays – expect them
  • Forecasting is for weather professionals – and even they suck at it
  • The only sure thing about stocks is that there are no sure things
  • A raise in your income shouldn’t mean a raise in your lifestyle
  • Your life is a better benchmark than the Index
  • There is an inverse correlation between performance and time spent watching financial news

Props to Khe Hy @khemaridh for the thought experiment