Albert Einstein’s Philosophies For Growing Wealth

Salespeople can cleverly disguise themselves as advisers, and skepticism helps protect people from making poor financial decisions. He didn’t like the militaristic nature of his schools, where pupils were not encouraged to ask questions, and learning was affected through rote memorization. The young Einstein had no interest in this type of training to blindly worship authority. He believed that humans were given brains so they could do much more than trust received knowledge unquestioningly. Manage your portfolio carefully to ensure the taxman isn’t taking a cut of your annual dividend income. This is less of a problem if you hold your money offshore, but you may need to seek tax advice.

What Albert Einstein knew about investing

It is like a snowball rolling down a hill, getting bigger and bigger, year after year after year. You have to leave it in your account to allow the compounding effect to gather momentum. Albert Einstein, the theoretical physicist, is best known for discovering the law of relativity, but he clearly knew a thing or two about investing as well.

Did Albert Einstein declare compound interest to be ‘the most powerful force in the universe’?

All are good, solid dividend payers that more active investors might prefer to buy directly. “For the seriously long-term investor, dividends are where the action is,” he says. If you invested US$10,000 (Dh36,731) at 3 per cent a year, but withdrew all the interest every year, you would have $16,000 after 20 years.

Disdain for cult of personality

In Tony Robbins value reporting form recent tome (600 pages to write what would fit in a short magazine article) he offered this Einstein line. I’d like to know if it was made up or if Einstein ever said anything close to this.

1. You can cash in on the compounding effect of dividends by investing in mutual funds in the equity-income sector, Mr Harvey says.
2. He might have; the sentiment matches what seems to be this particular genius’s sense of humor.
3. It doesn’t change the fact that compound interest should be on the mind of anyone looking to build wealth over time.
4. A. Michael Lipper, president of Lipper Analytical Securities Corp., quotes Albert Einstein’s remark that “The eighth wonder of the world is compound interest.” If you can invest at a sure 7 percent return, your money will double in 10 years.

He was not a fan of communism in Russia, nor was he a supporter of German fascism or nationalism. The United States was politically the best environment for him, particularly with his belief that art and science relied on the availability and encouragement of individualism. Moving to the United States and becoming a citizen of the country was important to Einstein. He loved the idea that he and others could question authority without fear of reprisal. Einstein also enjoyed the lack of a class system as was prevalent throughout Europe. America provided the opportunity for any individual to succeed.

One question I was asked at practically every stop was, “What’s the greatest invention of all time? ”  I finally worked up an acceptable answer to this one, one I hoped would preserve my goal of presenting positive, optimistic views of science. In conclusion, this article presents a snapshot of current research. The label “eight wonder” was applied to compound interest in an advertisement for a bank in 1925. No attribution was provided, and anonymous advertising copy writers have applied the “eight wonder” label to a wide variety of objects and ideas for more than two hundred years. QI has found no substantive evidence that Albert Einstein, Baron Rothschild, or John D. Rockefeller employed the saying.

But if you had reinvested them, it would be worth a massive £1.63 million. This economic philosophy doesn’t have a direct relationship with money management, but I thought it was interesting to note. Because of individual freedom, cherished by Einstein, we are able to build wealth for ourselves. In some countries, if our parents were poor servants, we’d be poor servants, too, without any economic mobility. There is no question that Einstein enjoyed the personal freedom to succeed in the United States afforded by the country’s capitalist underpinnings.