The Capitalist Credo & Bill of Rights

The Capitalist Credo

I believe that I am a CAPITALIST, and that through my SAVINGS I am an OWNER in the global economy.

I believe that my SAVINGS represent a SACRIFICE of short term WANTS for long term GOALS.

I believe that my GOALS, like my SAVINGS, are uniquely mine and are as important as anything else in this world.

I believe that as a CAPITALIST, I have inalienable RIGHTS that protect my ability to achieve my GOALS.

The Capitalist Bill of Rights

I. The right to invest my CAPITAL anywhere in the global economy, seeking the maximum RETURN for whatever RISK I am willing to take

II. The right to be treated FAIRLY, knowing that I have more wealth than some, and less than others

III. The right to understand every FEE  that is removed from my assets, WHO received it, and WHAT they did to earn it

IV. The right to COMPARE investment options objectively, with transparent information about fees and risks

V. The right to pay as little in TAXES as the law allows

VI. The right to know the COMPENSATION and BIAS of anyone who gives financial advice or sells financial products

VII. The right to EDUCATE myself about investing, including access to decades of research on what works and what fails in the markets

VIII. The right to TUNE OUT all nonsense from those who are paid to sell, not to teach or to invest

IX. The right to REDRESS under the law, should problems arise with any financial service

X. The right to PRIVACY, and to control how my personal information is used or shared

Nine Steps To Being A Smarter Capitalist

We live in a money culture.  Protect yourself.

Nine Steps to Being a Smarter Capitalist

1. Lose your naivete. Investing is not a lifestyle or a game – it’s the way that Capitalists build wealth slowly, and that con artists sucker billions out of people quickly.
2. Know the difference between Speculating and Investing. Speculating is legal gambling – an attempt to beat the market by predicting the future. Investing is the sober and methodical way that Capitalists build wealth.
3. Learn how the stock market creates wealth. Risk is the source of all return, not stock-picking. Riskier investments have higher long term returns. Fear of short term loss is what makes higher long term gains possible. Stock-picking is gambling.
4. Think for yourself. Everything that is too good to be true will burn you like hot coals in the end.
5. Understand that the Stock Market is Efficient. Prices are set by the entire world, prices are fair, no one knows whether prices will go up or down, and only charlatans pretend to. Those who sell stock tips are charlatans, even the really convincing ones.
6. Learn the difference between Active Management and Index Investing. Active Management is the discredited notion that you can pay someone to beat the market after fees and taxes. Index Investing has as its goal to earn market returns with as few fees as possible.
7. Be skeptical. For every story you’re told about a brilliant stock pick that resulted in a killing, there is a story you didn’t hear about the mistake that evaporated their gains.
8. Understand taxation.  Learn how capital gains, dividends, and interest are taxed, and be sure your investments will generate minimal taxes. Actively managed funds incur hideous taxes – but this information isn’t easy to dig up on each fund. It’s hidden for a reason: so you won’t figure it out.
9. Get help if necessary. If you don’t have the time to invest properly, hire an advisor. You’ll probably do better than nearly everyone you know over a ten year period.  Choose a fee-only advisor. You can’t trust anyone that gets paid commission. Money is too corrupting.

Remember how hard you work to earn your money. Don’t throw it away on false promises and foolish speculation. You deserve better than that.