A recipe for happiness

“Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.”

I was reminded of this whilst covering some retirement wealth planning recently, this is Mr Micawber’s recipe for happiness from the novel “David Copperfield” by Charles Dickens. How does one achieve this end result of happiness in retirement after the remunerated professional years are over? Most are familiar with the parable of the Tortoise and the Hare (it is also the name of our monthly investment newsletter) and it is the same concept of slow and steady wins the race when it comes to building a capital sum for the future. This means the earlier one starts with an investment or savings plan the better.

The answer why is not rocket science although Einstein proclaimed compound returns and interest as “the greatest mathematical discovery of all time”. The bane of borrowers is the saviour of investors and savers so to take advantage of the compounding phenomenon and spend time in the market and do not spend time trying to time the market.

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