Are you a financial advisor?

No, I am not. I am simply someone who studied the basics of personal investment at a young age, and over a period of two decades confirmed that they work (for me). Speaking with so many young people who’ve never been exposed to the basic concepts of investing, and who feel desperation at today’s global economic environment, I decided to write a short and concise book covering the essentials.

I believe for this audience, the message is important and can be life changing. I can state that what I teach in this book worked for me, and is consistent with the approach taught by leading authorities such as Bernstein, Bogle & Malkiel, as well as institutions such as Vanguard.

But I am not certified as a financial advisor to offer recommendations relevant to any individual’s specific situation.

What about taxes?

I decided to exclude taxation in the interest of keeping the book limited to essentials which are globally applicable. Taxation issues are usually specific to where you’re a resident. If you live in the United States, you may have the option to invest through a tax advantaged account, in addition to a normal taxable account.

For most people, it’s worthwhile investigating whether those options are available. An aspect of taxation this usually is globally applicable is the distinction between income earned through investments. Stocks sometimes pay dividends. Bonds pay interest. If you sell an asset for more than you paid for it, the income is called capital gains. Taxation on each of these types of income can be different, but in most places the lowest taxation is on “long term” capital gains earned from the sale of assets held more than a year.

The investment approach recommended in this book will lead to most of its income earned through long term capital gains.