Good morning, good afternoon, good evening. Depending on the part of the world you’re in. This is Jonathan Satovsky of Satovsky Asset Management and on today’s episode of “Seeking Wisdom, Wealth, and Wellness,” I want to talk about the “Wealth” part.
How do we accumulate an extra amount of wealth without effort? Well, I surmise that most people should automate and delegate their financial plans—their investment strategy—to take the emotional weight off of their plates. Whether you have a little money or a lot of money, if you want to have fun, have fun. Go do things that are fun. But don’t view your investing habits, at least the core of your investing habits, as something you should do for excitement, fun, and cocktail conversation.
Automate and delegate that part of your finances. Because there is a perpetual spread between dollar and time-weighted returns, dollar and money-weighted returns, for investors, that amounts to between 2 and 6% a year, on average, over a decade.
So if you automate and delegate the core function of that responsibility and do your entertainment elsewhere, you will save yourself 2 – 6% a year. And that 2 – 6% a year will inure to your family, to your children, to your grandchildren, to your great-grandchildren, to your great-grandchildren’s children.
Think about that on your path to Wisdom, Wealth, and Wellness. Have a great day.
