That obvious thing?
It’s almost never what you think it is, is it?
It’s only obvious after the fact…
Here’s what I mean…
My first encounter with Indian food left me confused. What’s this amalgamation of colors and tastes?
When you bite into a hamburger, it’s decipherable. You see a hamburger. You smell a hamburger… you taste beef, bread, the bite and sweetness of the ketchup. Maybe the saltiness of the pickle brine.
When you smell Tikka Masala… what do you smell? It’s not just one thing. It’s 20 different things… all at once. No one thing dominates either.
There’s so much contrast, it’s difficult to know what, exactly, is going on. Not until you talk to the chef.
But, once you see it and someone explains it to you… you can’t go back. The mystery of how it all comes together is gone… and yet it’s still fascinating.
Reason I bring this up is because I recently did a “behind the scenes” video explaining the difference between saving money every month versus saving money using one lump sum amount at the beginning of every year.
Same interest rate assumption in both scenarios.
Very different returns.
5% ain’t 5%. 3% ain’t 3%. 10% returns might only be 4.5%.
So when an investment advisor shows you your mutual fund is earning 7% a year (or your banker says your savings account or bank CD earns 1% – 2% a year)…
…it’s an illusion. He’s like… a moneyllusionist.
Why does this happen?
See for yourself.
But I must warn you.
You won’t be able to unsee this: