There is a mysterious world of money. Not that it is supernatural, but it is hidden. The parts that hurt us the most go unnoticed because they are small (sometimes), insidious and build up over time. While the focus of the investment industry is on the gleam of rate of return, some very basic math reveals the truth: Fees, taxes, inflation and inherent market risk and instability rob you of most of what you think you are getting as a return.
A long term plan involves years of careful work. Every year, in most investments, taxes are demanded. Worse yet, we pay those taxes from other monies so we don’t see the effect on your wealth as a whole. Published “rates of return” are only averages, when seen with a historical perspective, up to today, yield far less than their advertised claims. On top of that, these folks charge fees, that when you really see the effects, have a significant reduction on your net worth.
If you can eliminate even a small portion of these vampiric elements from your financial thinking, then you can produce better results with lower risk. It is far easier to control costs than hoped-for high risk returns.
Take some time to understand the overall picture, and you will find that there is a far easier way to achieve even better goals you can count on.