Wealth Systems

Wealth Systems

Wealth Systems: Direct Investing, Part III

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Matt McDonagh
Aug 28, 2024
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Making money is hard.

Keeping it is arguably more difficult.

Most people can’t help themselves, they increase their surface area as soon as they get money.

First they buy all the nice things they wanted.

Soon some well-meaning friend or perhaps a financial manager convinces them to “slow their spending, start to invest”.

That’s when their wealth really starts to degrade.

Investing into things comes with friction. Closing fees, commissions, bid-ask spreads, load fees and other costs related making an investment.

Then there’s insurance premiums, management fees, custodial fees, taxes of 57 varieties and so much more.

You see simply owning assets costs money.

Time to sell those assets you just paid to acquire and maintain?

You guessed it - more expenses.

Direct Investment

Matt McDonagh (me) doing some due diligence back in 2012

Doing a direct deal comes with tons of expenses too - money spent sourcing deals, conducting due diligence, monitoring your holdings, etc..

You can’t escape fees and financi…

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