A Crack in the Matrix
A FINANCIAL FABLE
The Leaning Tower of
Pisa is leaning further
each year
Oh my!
Proof
Wait!
It’s Just an Illusion
Whew.
It’s an artifact of the way
our eyes are designed
You were looking at two copies of the same image
Try it Yourself
Download the image, duplicate it, open both &
place them side-by-side
Often when things “make
sense” we don’t ask deep
probing questions
We Should
Yes, even when things make sense
Lets Try This Again
Your investing success is
measured by how large
your portfolio has grown
Brokerage statements
focus on cost, total value,
and gain or loss with a
passing mention of
income
Proof
Even when you invest for
income, your statement
focuses on portfolio value
Fixed Income is 99%
of the portfolio...
Fixed Income is 99%
of the portfolio...
Why is “valuation” focused on
“account value”?
It’s Just Another Illusion
Dividend Reinvesting
Instead of taking a dividend payment in cash
today, you reinvest your dividend into the
company in or...
Dividend Reinvesting
How it looks on your brokerage statement
One Reinvestment...
Why is it 2 Transactions?
Taxes due this year
Tax basis for the future
It’s an artifact of the way
financial institutions are
designed
To ensure IRS (tax) compliance & reporting
Why judge the success
of your investments by
how much tax you owe...
... Especially when you’re
investing in a tax deferred
retirement account (IRA)?!
Duh!
Brokerage statements
don’t serve the customer
They serve the IRS
Can we do better*?
* Do better, but please also pay your taxes!
Can meaningful
measurements be used to
motivate healthy
investing habits?
Can meaningful
measurements be used to
make investing fun?
You’re one of those people too afraid to open their
monthly sta...
Fear.
Is Not.
Fun.
Measure what matters.
Let go of the fear. Be empowered. Ignore the noise.
A fun & socially conscious blueprint to
help you get started investing safely
Read the book
Not quite convinced? Learn mor...
A Crack in the Matrix: A Financial Fable
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A Crack in the Matrix: A Financial Fable

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For more info, please visit: http://ElephantsPaycheck.com/book

How do you measure investing success?

Rollover your 401K, then what? How do you invest for long term growth?

Think you can't get a brokerage's attention because you don't have enough to invest? You're probably right.

Think you can't trust your brokerage because they're the ones benefiting from the products they sell you? Also right.

A friend once asked me about this, asked "if this works, why doesn't everyone do it?". Well, the brokerages you get advice from don't make any money when investing this way. Why would they teach you something that earns them less money?

Good point.

Caution! Reading this brief Financial Fable may cause you to ask uncomfortable questions about your retirement future. You have been warned. ;-)

If you like this, please share it.

Published in: Economy & Finance
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  • The book is now available at a special pre-order price, please have a look: https://gum.co/elephantspaycheck
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  • @BiteTheBullet Thanks!
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  • This is awesome!! Well thought out and well presented.
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  • If you like this slideshare, you might also like this post where I put some of the metrics I'm developing into action in a comparison between $AAPL and $MSFT over the past 10 years. The results are thought-provoking. http://davidbressler.com/2012/11/30/stock-market-performance/
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  • Fear is definitely not fun. I've been investing this way for almost a year and feel so much more confident and knowledgeable about it. Best part is seeing the income growth even in such a short time.
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A Crack in the Matrix: A Financial Fable

  1. 1. A Crack in the Matrix A FINANCIAL FABLE
  2. 2. The Leaning Tower of Pisa is leaning further each year Oh my!
  3. 3. Proof
  4. 4. Wait!
  5. 5. It’s Just an Illusion Whew.
  6. 6. It’s an artifact of the way our eyes are designed You were looking at two copies of the same image
  7. 7. Try it Yourself Download the image, duplicate it, open both & place them side-by-side
  8. 8. Often when things “make sense” we don’t ask deep probing questions
  9. 9. We Should Yes, even when things make sense
  10. 10. Lets Try This Again
  11. 11. Your investing success is measured by how large your portfolio has grown
  12. 12. Brokerage statements focus on cost, total value, and gain or loss with a passing mention of income Proof
  13. 13. Even when you invest for income, your statement focuses on portfolio value
  14. 14. Fixed Income is 99% of the portfolio...
  15. 15. Fixed Income is 99% of the portfolio... Why is “valuation” focused on “account value”?
  16. 16. It’s Just Another Illusion
  17. 17. Dividend Reinvesting Instead of taking a dividend payment in cash today, you reinvest your dividend into the company in order to get a larger future payout A well known way of long-term investing for ‘regular people’
  18. 18. Dividend Reinvesting How it looks on your brokerage statement
  19. 19. One Reinvestment... Why is it 2 Transactions?
  20. 20. Taxes due this year Tax basis for the future
  21. 21. It’s an artifact of the way financial institutions are designed To ensure IRS (tax) compliance & reporting
  22. 22. Why judge the success of your investments by how much tax you owe...
  23. 23. ... Especially when you’re investing in a tax deferred retirement account (IRA)?! Duh!
  24. 24. Brokerage statements don’t serve the customer They serve the IRS
  25. 25. Can we do better*? * Do better, but please also pay your taxes!
  26. 26. Can meaningful measurements be used to motivate healthy investing habits?
  27. 27. Can meaningful measurements be used to make investing fun? You’re one of those people too afraid to open their monthly statements, aren’t you?
  28. 28. Fear. Is Not. Fun.
  29. 29. Measure what matters. Let go of the fear. Be empowered. Ignore the noise.
  30. 30. A fun & socially conscious blueprint to help you get started investing safely Read the book Not quite convinced? Learn more.

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