[align=center]The amount of money you invest.
The length of time it compounds.
Your asset allocation and security selection.
Those assets’ annual compounded return.
The investment costs you absorb.
The taxes that you pay.[/align]
The Six Pillars of Wealth
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MachineGhost
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The Six Pillars of Wealth
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Re: The Six Pillars of Wealth
Earnings = work-related compensation excluding fringe benefitsMangoMan wrote: What about #0: "The amount of money you earn"?
For without #0, there is no #1.
HB got that right for sure.
Not everyone has earnings, and not everyone with earnings makes enough to invest the excess.
But some people inherit substantial assets. Others are awarded damages in injury lawsuits and those awards have to be invested to cover the costs of medical treatment or care. And a few lucky people win the lottery. None of these are earnings.