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Read of the Day: The “Investment” Myth

I wrote this yesterday for the Orcam Insights page.  It discusses what I believe is a deeply misleading myth in the investment world.  This idea that your portfolio is “investment”:

“At Orcam we view your savings as a repository that results from your primary source of income. It’s important not to put the cart before the horse here. Most savers want to protect against the two aforementioned risks so they can then retire and draw on this saving when it is most needed. So you should be thinking about your saving portfolio as a repository that flows form your primary source of income. And that means the best investment you’ll ever make is in your primary flow of income or your job or specific area of expertise. Instead, many savers fall for the Wall Street myth that your saving portfolio will generate returns that make you fabulously wealth thereby offsetting or replacing your primary source of income. This is not the correct way to view your saving portfolio and will substantially increase the odds of failing to meet the goals for your savings.”

Read the full piece here.

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