RATIONAL PEOPLE
INVEST THEIR MONEY
There is no rational argument for avoiding investing.
Wealth is the ability to fully experience life.
Why invest?
- it's the best alternative to savings in the long run
- you own companies which profit from the global economy
- all billionaires have earned their wealth by running businesses and investments
- you are participating in a successful business of others
- you own companies which make profit on the consumption of all the people
- it's the easiest way to make money
- you build assets and generate passive income
- you prevent inflation from devaluing your assets
I'm being rational
People do not behave rationally when it comes to finances, let alone effectively. They spend money they haven't yet earned by taking out expensive loans and using inefficient tools to save money. Do not lose out by letting others take advantage of your money. Your assets must work for you.
Albert Einstein has described the compound interest as the eighth wonder of the world. The growth of wealth increases due to returns on already acquired returns - getting interest on already earned interest.
| 1990 - 2019 (30 years) |
US Stocks ($) | Gold ($) | US government bonds ($) | Real estate prices in US ($) | Inflation in US |
|---|---|---|---|---|---|
| Annual yearly return | 9.87% | 4.48% | 5.91% | 3.24% | 2.46% |
Source: NYU Stern, St. Louis FED, www.macrotrends.com
Entrepreneurship is the road to riches
Most billionaires have acquired their wealth by running businesses.
But not everyone can be an entrepreneur. Running a business does not always lead to being successful. A successful business needs a combination of good ideas, skills, resources and a bit of luck.
Investing in shares = the best business
The odds of you managing to build a company which sells millions of smart-phones or develops a social media platform connecting two billions of people across the globe is unfortunately small.
However, it does not reduce your chances that once you can be rich or financially free. You do not have to re-invent a wheel once it has been invented.
By investing you participate in the business of successful companies. By purchasing shares, you become a co-owner of the company - you acquire a stake in its assets and its profits.
Your wealth can grow as fast as the fortune of the planet's richest people. By buying shares of Facebook, your wealth grows at the same pace as its founder's Mark Zuckerberg's assets, who is already the 9th richest man of the planet at the age of 39.
Start investing today
Build assets and gain financial independence.
With Finax portfolios, you simultaneously invest in:
- 500 largest US companies (such as Facebook, Apple, Coca-Cola...),
- 400 most important medium-sized US companies (US Steel, Avon, Energizer...),
- 2000 leading small US companies (GoPro, Guess?, WD-40...),
- 600 of Europe's largest companies (Mercedes, Adidas, Orange...),
- 985 small European companies (Uniqa, Philips, Juventus...),
- Nearly 2 000 leading companies from countries like China, Brazil, and India.
Investing in bonds = lending with a guarantee
If you think investing in stocks is too risky, you can lend your money to the most successful companies and countries around the world. For example, the same principle is being applied on the guaranteed II. pillar funds of the Slovak pension system. Earn interest just like banks do when they lend money to you.
With Finax portfolios alone, you invest in more than 6,000 government and large corporate bonds from around the world.
Inflation
For your assets to actually grow, their returns have to be higher than the inflation.
Simply put, inflation is the price growth. Prices in principle tend to grow continuously, which makes the value of your money go down. You can buy less goods for 100 € today, than you would be able to 10 years ago.
In order to avoid decreasing the value of your savings, your money would need to grow faster than inflation.
Only equities regularly and over the long term achieve appreciation above inflation. Unless you own shares, your wealth will never grow in real terms.
