Knowledge.
Nine areas, each concise and with sources. Read them in the order your question requires.
- 01
Basics
Compound interest, time, savings rate: the three quantities from which all wealth grows.
- 02
Asset classes
Equities, bonds, gold, cash: what each class can achieve and what it cannot.
- 03
Risk and return
Why a higher expected return comes with greater fluctuation.
- 04
Costs
Ongoing costs work quietly and over decades.
- 05
Inflation
Nominal is not real: what purchasing power means over twenty years.
- 06
Taxes
The basics of taxing investment income, without individual advice.
- 07
Retirement provision
The three layers of retirement provision and where private planning comes in.
- 08
Real estate
Owner-occupied or let: wealth, concentration, obligation.
- 09
Behaviour
Loss aversion, anchoring, overreaction: the mistakes we make ourselves.