Radical Guide to Investing: The Three Goals of Investing

Let’s start at the beginning. As an individual investor, you are trying to maximize your net return, that is, your gross return (1), minus taxes (2) and minus fees (3).

This sounds obvious. This Guide will have things to say about all three - maximizing your gross return, minimizing or delaying taxes, and avoiding fees. But many investors ignore taxes and fees, and focus only on trying to maximise their gross returns. This is a mistake, because small differences in annual performance in all three components - not just gross return - make large differences to your net return over the long term, due to compounding.

OK, that's the end of the shortest chapter in this Guide. The point made here is important enough to warrant a chapter to itself. Don't forget it.

Back to Table of Contents
Previous
Next Chapter

June 1, 2005 | Permalink

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341dcf7f53ef00d835472ff169e2

Listed below are links to weblogs that reference Radical Guide to Investing: The Three Goals of Investing:

Comments

The comments to this entry are closed.