If you choose not to decide, you still have made a choice.

Failing slow

Failing Fast

<aside> 💡 Investing is not a choice. You can fail fast or fail slow.


The Retirement Problem

You work for 40-50 years but you live for 20 to 30 years more. The problem you must solve: don’t run out of money.

The only certainty is if you save (ie spend less than you earn) this will lower bar for retirement income and lower the need to reach for investment goals. Before worrying about investing be wary of "lifestyle creep". You adapt to nice things. It's called hedonic adaptation which is a fancy way of saying your happiness mean reverts.

Sequence of Return Risk

From Movement Capital:

Returns in early retirement can mean the difference between leaving a substantial legacy or running out of money. That’s called sequence risk, and sequence risk is amplified as portfolio withdrawals increase.

Three ways to reduce sequence risk include

<aside> 🔥 The exercise you should do


Try the Moontower Retirement Model to simulate your own finances to get a feel for the money levers in your life.

You can access the Google sheet here: Moontower Model