Answers to

Practical Questions


Investing is the act of committing money today, to an investment with the expectation of obtaining income or increased value of that investment in the future.

This website is about long-term investing. In other words, money you set aside for more than 10 years, preferably 20, 30, or 40 years.

The money you target to set aside for long-term investing should be considered an obligatory payment, like rent or a mortgage. Only this payment is to yourself!

The longer you invest in equities, the more you will benefit from the high, long-term average returns of equities, compared to alternative investments such as fixed income investments, (also see Investment Piece #8 historical returns).

You will experience huge/scary volatility when investing in equities, but over a long investment horizon, i.e., greater than 10 years, the risk/return relationship works in your favour.