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RE: The first earns it, the second enjoys it and the third destroys it
totally with you on teaching kids to earn their own spending even when the family can afford more. That habit builds a conservative muscle and keeps the third act from turning into a bonfire of cash, which is kind of the opposite of generational ADvice. Boring compounding beats flashy financial chaos every single time.
0.00595817 BEE
"Boring compounding beats flashy financial chaos every single time."
I'm afraid not. In order for that to be true the central bank would have had to get the interest rate so wrong that the national debt would go exponential.
yep, boring coMPounding in real businesses still tends to beat chaos across decades, even when rates swing.
Central banks can mess up, but unless we hit true debt spiral territory, saving steadily and and reinvesting usually wins for households.
are you saying policy shocks can wipe out long term returns for anyone staying unlevered?
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