Albert Einstein once said compound interest is the eighth wonder of the world. He who understands it, earns it...he who doesn't...pays it. Compound interest is the most powerful forces in the universe. It is hard to argue with Einstein, as the power of compounding interest really is one of the most useful tools investors have.
I’ve found there is a common theme when speaking to young aspiring traders and investors, which is quite concerning. They have the belief that investing overseas is more profitable but this couldn’t be further from the truth. But just because an overseas market is bigger or performing better, doesn’t guarantee that you will make more money.
Most of us wake up everyday to go to work and earn a wage that pays for our expenses. Then we repeat this process until we are at an age, and hopefully have saved enough of our wage, where we can afford to retire. Now while this is a little over simplified, as a little more happens along the way, it is pretty much the circle of life for most.
Year round we pay tax to the government to pay for public goods and services that we use everyday, such as health and community services, national defence, education and infrastructure, like roads and railways. These contributions help to improve the well being of our society and it's around this time of year that hard working individuals get a little back of what they have been ...
I’m sure many of you would have heard the term you get what you pay for. Another way of saying this is that you get what you put in.
All too often, those starting out in the market are looking for the cheapest product they can find to achieve their financial goals. In fact, many times I get asked where they can find something for free.