Once you have money, you have to invest. It seems almost as evident as “if you want to live, you’ll have to breathe.” Private bankers are lining up to help you to invest your money wisely. Unfortunately, there are so many service providers, so many different approaches to investing, and so many different financial products to choose from. And then there are these annoying cocktail parties, where you have to listen to those wise Midas-type guys who seem to transform everything they touch into gold. It is confusing. What am I missing? What am I doing wrong? Climbing Mount Everest seems so easy compared with crossing the jungle of the investment world.
In this part, we follow a step-by-step approach to unmask the secrets behind investing. This approach doesn’t make investment necessarily an easy thing to do, but it will help you to be much better prepared for your meetings with investment advisers.
The first step is to begin with the right question. Rather than asking, “How should I invest my money?” we recommend you to first spend some valuable time understanding why you should invest. As long as you don’t know why you invest, don’t invest.
We assume that everyone agrees we should not invest just for the sake of it, nor just to amass as much wealth as possible or to legitimize the existence of our banks. Investing should have a purpose for you. Why would ...