How To Create An Investment Policy Statement

How To Create An Investment Policy Statement

As members of the FI community, our goals are all similar enough in theory. In order to retire early, we need to have 25x our annual expenses in diversified investments and savings to achieve this. But how, and when, each one of us achieves it may be completely different based on our individual scenarios, which is where having an Investment Policy Statement comes in handy. What Is An Investment Policy … Read more

The Wealth Building Triangle: Income–Savings Rate–Rate Of Return

The Wealth Building Triangle: Income--Savings Rate--Rate Of Return

You’ve probably heard the saying, “Earn More, Spend Less, and Invest the Rest.” The Wealth Building Triangle is a way of visualizing each piece of that equation and how they combine to move you towards financial independence. As the visual below shows, the three sides of the wealth building triangle are: Savings rate, Income, and Rate of return. Each of the three sides is an integral component in creating wealth … Read more