Saving, assets, and investment

Building assets and using savings to support future production.

Issue discussion in preparation.

Principles

Saving postpones consumption; investment uses resources now in pursuit of future returns.
Assess purchasing power, risk, liquidity, fees, and time horizon rather than nominal account values alone.

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Why is an account's dollar balance alone insufficient to assess savings?

Purchasing power, risk, liquidity, fees, and time horizon also matter.

A higher nominal balance guarantees more purchasing power.

Inflation cannot affect savings.

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