The Geometry of Wealth is an easy-to-read and practical guide to investing in the stock market. The author, Brian Portnoy, explains how financial markets work using simple math concepts such as percentages and ratios. He then demonstrates how these concepts can be applied by investors who want to make money on stocks without having a degree in finance or economics.,
Are you seeking for a synopsis of Brian Portnoy’s book The Geometry of Wealth? You’ve arrived to the correct location.
I completed reading this book last week and took notes on some of Brian Portnoy’s important points.
If you don’t have time, you don’t have to read the whole book. This summary will give you a quick overview of what you can expect to learn from this book.
Let’s get started without further ado.
I’ll go through the following points in my synopsis of The Geometry of Wealth:
What is the purpose of The Geometry of Wealth?
The goal of The Geometry of Wealth is to help you manage your money properly. This book provides both practical financial guidance and money-management techniques, as well as philosophical perspectives on plenty.
Material and spiritual planning, as Brian Portnoy points out, are inextricably linked. For genuine prosperity, concentrate on both.
Who wrote The Geometry of Wealth and when did it come out?
Brian Portnoy, an investment consultant with Virtus Investment Partners, assists customers in planning their financial futures and making informed investment choices. He’s also the author of The Investor’s Paradox, a book on investing. The Geometry of Wealth is his second book.
For Whom Is The Wealth Geometry Intended?
The Wealth Geometry is not for everyone. If you are one of the following folks, you may like the book:
- Investors and savers
- Those that want to pay off their debts
- Consultants and financial advisors
Summary of the Book The Geometry of Wealth
Introduction
Things were a lot easier back then. You remained at a decent job until you retired once you found one. The rest was taken care of by your company, who paid you a monthly pension based on your previous wage. Retirees might then sit back and enjoy their retirement.
Everything has altered in the previous three or four decades. Pension programs that were formerly substantial are no longer available, and workers must now manage their own savings. This entails taking an active part in the management of your pension fund and the investment of your funds.
The financial markets’ unpredictability may be frightening; one bad move might wipe away all of your investments. So, how do you keep track of your finances?
That’s what we’ll look at in these insights when we look at seasoned investor Brian Portnoy’s comprehensive approach to money management.
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Lesson 1: We live in a time of economic uncertainty, and we have a tendency to put our money in the wrong places.
Pension plans are a relatively new development in terms of history. They grew increasingly popular as civilizations got more financially secure in the nineteenth century.
Those days, though, seem to be over. Pension plans are becoming less frequent once again as a result of financial uncertainty.
This is due to a significant shift in the financing of pension programs. Prior to the 1980s, employers paid a large portion of the money to cover employee retirements.
Employees are now in charge of funding own retirements. In the United States, retirement is often self-funded via 401(k) investment programs.
Retirement funding has changed drastically statistically. Since 1980, the number of workers eligible for a full company pension has decreased from 62 percent to only 17 percent. Employees who self-fund their retirement via 401(k) plans, on the other hand, increased from 12 to 71 percent.
As predicted, this has resulted in insecurity. Take a look at the results of a 2017 poll conducted by the Employee Benefit Research Institute. According to this report, just 18% of all Americans anticipate to retire comfortably.
Our impulses, which lead to bad financial choices, jeopardize our attempts to save for retirement.
During economic downturns, we feel less safe. As a result, we save money. What happens if the economy falters and the stock market crashes? You sell your current holdings and put off buying new ones.
This, however, is illogical. Consider the following scenario: You don’t hurry to purchase when your neighborhood grocery raises its pricing; instead, you wait for a deal.
The same rationale should apply to the financial market. Stocks are best purchased when prices are low, such as following an economic downturn. You lost out if you didn’t purchase shares at a bargain during the 2008 financial crisis. Make sure you don’t make the same mistake again.
Investments aren’t the only way to obtain financial stability. In the following insights, we’ll look at a few methods you may utilize to get your finances in order.
Lesson 2: While we may not have complete control over every element of our financial life, we do have a surprising amount of power.
Despite the fact that financial instability is on the increase, we are not bound to struggle financially. Human minds are very effective instruments for resolving financial issues.
Brains can’t cure every problem or make us all become billionaires. They do, however, provide us with some leverage.
Let’s start by looking at our brain’s limits. In his book Thinking, Rapid and Slow,