Letter to My Daughters: On Stocks and Bonds
We’ve looked at planning and goal setting, identifying and defining risk, and what it takes to earn a living and generate sufficient income that you can start saving. But what can you do with your money once you’ve earned it and NOT spent it? You can lend the money to someone (who will use that loan to make money of their own), or you can own a piece of something (hopefully something productive). That’s it. Everything offered as an investment product or investment vehicle is derived from either lending or owning, or some combination of the two. Loans are things [...]