The Meb Faber Show · Friday, September 18, 2026
Roger Ibbotson attributes the common lack of wealth to individuals consuming investment returns rather than reinvesting them. He also points to taxes, fees, and transaction costs as factors that diminish overall gains, even from broad market investments.
“But there are several reasons why everybody is not rich here. First of all, most people don't reinvest. They actually consume part of this.”
“If you consume part of this, you're not going to get this same exponential here. It's going to be a much lower number.”
“And then, of course, there are taxes to be paid and fees to be paid and transaction costs and so forth.”