Truths you need to know about money

 

·         The biggest financial institutions in the world are set up to make a profit for themselves, not their clients.

·         Some people are willing to give up things that are far more valuable to get it: their health, their time, their self–worth, their family, their love, and in some cases, even their integrity.

·         Getting rich isn’t being the chess piece in the money game, but becoming the chess player in the game of money.

·         If you want to make real money you should come out of the matrix first.

·          Proper asset allocation divides your assets into buckets that are secure and give you peace of mind.

·         It’s time for you to decide to become an investor, not just a consumer. To become rich you have to get money from others’ pockets.

·         The real truth of mutual funds is this if someone comes to you with an investment opportunity you have to put 100% of your capital and take 100% of the risk, and if it makes money, he wants 60% or more of the upside to come to him in fees. And by the way, if it loses money, you lose, and still, he gets paid! 90% of American investors, invested in a typical mutual fund,  and believe it or not these are the terms to which you’ve already agreed.

·        96% of all actively managed mutual funds fail to beat the market over any sustained period.

·         In the financial market,  people tend to buy high and sell low. They do this based on their emotions (or based on the broker’s recommendations).  But when the market falls, when we can’t take the emotional pain any longer, we sell. And when the market goes up, retail investors buy more. It’s simply bull market is like sex. It feels best just before it ends.

·         If you pack 1000 gorillas into a gymnasium, and teach them each how to flip a coin, one of them flip heads ten times in a row. Most would call that luck. But when that happens in the fund business we call him a genius!