Learn How to Build Wealth Volume 2–Matching R.O.R. With Goals
Having clear S.M.A.R.T.E.R. goals allows us to understand the rate of return required to meet our needs. Most often when higher rates of return are needed the more aggressive we need to be with investments. This however does not have to be the case.
If a rate of return of 6% is needed then:
- Putting money under the mattress is a very risky move
- Depositing money in a savings account paying 2% is risky
- Investing money in the stock market could be less risky