My Top 20 Investment Tips

How should I invest in an AI-first economy?

As a Data Science Consultant, I get asked this question quite often. Surprisingly, my advice for investing in the era of AI is identical to my pre-AI investment advice. The only difference is that investing in our economy is now more important than ever as returns to labor continue to decrease and returns to capital continue to increase.

Please note that I am not a financial advisor and I do not offer any financial services. However, because I get asked this question so often, I decided to document my top 20 investment tips that I’ve learned over the past few decades. These tips come from various courses, books, articles, and the FIRE community.

My investment strategy is as follows:

1. Ask Yourself: How Much Is Enough?

2. Minimize Your Expenses

3. Claim Every Tax Deduction

4. Start a Small Business

5. Invest in Yourself First

6. Make Money While You Sleep

7. Invest in Index Funds

8. Invest Regularly

9. Invest Automatically

10. Buy and Hold All of Your Investments

11. Max Out Your Tax-Sheltered Investments

12. Diversify Your Risk

13. Have a Safety Net

14. Don’t Follow the Stock Market

15. Rebalance Once a Year

16. Invest Early for Compound Growth

17. Live Off of Your Interest

18. Pay It Forward

19. Seek a Fiduciary for Financial Advice

20. Be Skeptical of the Financial Industry (In General)

The reality is that the financial strategies that actually work (in practice) are so ridiculously simple that no one could make a reasonable profit off of charging you for this advice. So, they manufacture complexity, confusion, anxiety, and fear. Then they try to sell you investment schemes, self-help books, and actively managed funds to keep the industry going. Much of it is a scam; please don’t fall for it.

However, everything beyond the basics of investing for retirement often does require a licensed professional for advice. So be sure to find a good accountant, lawyer, fiduciary, and others that have good reputations and do not have any conflicts of interest. They are your allies in the world of finance.

Additional Resources

Originally published at https://matthewrenze.com on February 1, 2021.

I’m a data science consultant, author, and public speaker. I’m a Microsoft MVP, an ASPInsider, and a Pluralsight author. I’ve taught over 250k devs & IT pros.