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Wealth Management Unwrapped, Revised and Expanded by Charlotte Beyer

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CHAPTER 4If You Don’t Know Where You’re Going, Any Investment Will Get You There

Overheard during an investor education seminar for high‐net‐worth investors:

“I have no idea where to begin and I find all this financial stuff pretty much drudgery. To be honest. I want my money safe and secure. Why isn’t that enough to tell my advisor?”

The previous chapter gave you insights into the purpose of your wealth and who you are as an investor. Now that you have your sneakers on, it’s time to begin the hike. But you need to be on the right path for you. Happily, it’s not all uphill. In fact, this first exercise is pretty simple.

Inflation, returns, and fees

Returns: Wouldn’t it be nice if . . .

  1. image What would be a realistic return on your portfolio each year? 10 percent? 8 percent? If you don’t know the answer or don’t want to guess, try looking at different five‐ or ten‐year periods1 or even the ten‐year period ending 2016 for the stock market. That’s between 7 percent and 8 percent.

Minus inflation

  1. image What do you think inflation will be, on average, ...

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