Wealth Building is when your economic purchasing power (otherwise known as your net worth) increases at a rate faster than others who desire to purchase the same assets or services as you. There are two primary economic inputs of Wealth Building: Labor and Capital.
With regards to Labor, Wealth Building is not achieved by having a higher gross income than others, but by having greater net savings after lifestyle expenses and taxes. With regards to Capital, Wealth Building is achieved by having greater investment profits, after expenses, fees and taxes than others.
Labor is measured by Savings. Capital is measured by Return On Investment (ROI).
Most people only focus on maximizing the return on their Labor input, forgetting or finding it too difficult to generate returns on their Capital. However, that's a huge mistake. After all, as Albert Einstein is believed to have said "The most powerful force in the universe is compound interest."
That’s where we, at Alpha Investment, come in. We specialize in making compound interest work for you. We advise and/or manage your Capital, allowing you to focus on your Labor efforts. Together, we devise and execute a plan customized to you, the individual or institution, depending on whether your goal. The measurement of this goal is Return On Investment, net of expenses, fees and taxes relative to others.
So, has your existing Financial Advisor provided you with fantastic long-term investment results?
To continue to our discussion of Investment Returns, click here:
Discussion of Investment Returns
Or if you're ready to begin: Please have an Alpha Investment Advisor contact me.
