Historically, the stock market has averaged 10% a year. While we have to ride through volatility to achieve this average, if we do not have some money in the stock market we simply won’t beat the rate of inflation, and in the long run the value of our savings will erode.
The phrases “financial planning”, “family finance” and “estate planning” are ones we hear often in the media. There always seems to be one expert or another touting their wisdom or promoting an idea or product. Much of the information out there seems to be contradictory. However, there are some basic truisms in finance, and that is what I will focus on in this chapter.