Why do we invest?
Investing is the creation and preservation of wealth. But what is wealth? My definition would equate to finding a state of prolonged financial freedom and security. That’s our goal. The exact path to building wealth will be unique to every family and individual.
One of the common misconceptions about investing and wealth creation is that you need to be rich to invest. This is junk. While it is true that you shouldn’t invest in riskier assets until you have built up some safety buffers, there are strategies that allow you to build wealth for say $10 a week without getting crushed by fees or transaction costs. Consistent saving of even small dollar amounts is one of the most powerful habits you can adopt (more on that later). That’s why wealth can be achieved by anyone regardless of current salary, debt, or any other struggle, with only three ingredients: patience + discipline + knowledge (aka confidence).
The third component there, I’ll admit, is hard for anyone to achieve and it has nothing to do with smarts. We live in a time of information overload, so filtering the signal from the noise is a difficult task, particularly in the expansive world (or abyss) of finance.
In a nutshell, that’s why Super Moment exists – to simplify all facets of investing into clear, actionable ideas. Now, as stated above, investing isn’t just about making money. It’s about protecting it too. In simple terms, if you aren’t investing in some form, you are also losing money. Inflation is slowly stealing pennies from your savings account or from under the mattress without leaving a trace.
So what do we do? Invest! There are almost an infinite number of vehicles available to not only creatively defeat inflation, but also help pay your future self more than what you are realizing now.
The ultimate goal of investing, again, is to create and preserve wealth. The ‘creating’ part can’t be done without taking SOME level of risk with your assets. If your only goal is preservation, then congrats, you’ve made it, you’re done. You can ignore pretty much everything on the site and pour yourself a G&T. At the end of the day, there is always a tradeoff. We want to strike a steady balance to achieve low-risk, constant wealth creation.
We aren’t talking about timing the market. That’s for charlatans. There has never been a time where innovation and technology have made investing, portfolio management, saving, and everything in between more accessible. In many cases, even free. These were once barriers of entry for your everyday citizen, but now access has been democratized. This is true not just for stocks and ‘the market’, but extend to real estate, insurance, retirement, and other alternative vehicles (yes, even crypto).
All of this creates the perfect opportunity for everyone to become a self-sufficient, high-performing investor across every type of asset class, for any stage in life.
However, even with these leaps in financial tech, there are still two fundamental truths that need consideration before proceeding on our journey:
- The amount of information, startups, and resources out there can be paralyzing, or even worse, damaging.
- Personalized financial planning and advice is still not accessible (or is prohibitive) to those without say, at least $100k to invest.
On point 1: There is a lot of junk out there. How are you supposed to make a decision or get started on the right track with so much content and information flying at your head? To illustrate just a bit, let’s look at today’s landing page for Seeking Alpha. Any search in Google for something in the finance ecosystem will most likely lead you here in some way.
A lot of very smart, talented people write for Seeking Alpha. The converse is also true. As we can see from just a few headlines, there are ‘once in a lifetime opportunities’ and about three different forms of ‘the end is coming’. All in all, not very useful for someone trying to be a prudent investor. Probably really useful if you love charts and gambling.
Wealth = finding a state of prolonged financial freedom and security.
Another recurring issue with content out there is it’s rarely organized, and is highly fragmented. The only way to put together a sound, unbiased, step-by-step plan, is to Frankenstein something together from a variety of resources and wikipedia. Just like Biology 101, there is a sequence to learning – each concept building on the previous. Before you start sequencing DNA, you should probably understand a molecule. Learning to invest is no different. The shotgun approach to learning will only leave you disoriented.1
On point 2: Finance needs to be personal. As Lewis Black once said, ‘we are all snowflakes’. Without consideration of your unique goals, lifestyle, and current situation, any investing plan will be suboptimal by definition. That doesn’t mean basic tried and true strategies won’t produce good results for you. They definitely will. They will also be suboptimal.
Ok, let’s land the plane. All of this is to say we need to bridge the gap. How do we a) leverage available technology, b) educate and empower, and c) become our own advisors or make personal advisory services accessible to all?
Well…that’s why we’re here, and this is what Super Moment is set out to solve.
Let’s get started. -> #1 Personal Balance Sheets