Investing your money is the key to building wealth, not saving it
-$100,000 in a bank account only earns ~$100 per year
-$100,000 invested in an S&P 500 index fund can earn over $10,000 per year
You can't "save" your way to wealth, you must invest
Let's discuss this in depth:
-$100,000 in a bank account only earns ~$100 per year
-$100,000 invested in an S&P 500 index fund can earn over $10,000 per year
You can't "save" your way to wealth, you must invest
Let's discuss this in depth:
Over the last 96 years, the S&P 500 has returned ~11% per year, on average!
If you invest $10,000 in the S&P 500 & contribute $10,000 a year for 20 years, you would have invested only $210,000 cash, but that cash would grow to $794,000 due to compound interest!
If you invest $10,000 in the S&P 500 & contribute $10,000 a year for 20 years, you would have invested only $210,000 cash, but that cash would grow to $794,000 due to compound interest!
Index funds have been a great way to build wealth for many, and even Warren Buffett recommends that the everyday person invests in an S&P 500 Index Fund instead of picking individual stocks.
Index Funds have many benefits such as:
1️⃣ Low fees (expense ratio)
2️⃣ Low risk (highly diversified)
3️⃣ Easy to invest in & simplistic
4️⃣ Often outperforms stock picking
5️⃣ Tax advantageous (generates less taxable income)
1️⃣ Low fees (expense ratio)
2️⃣ Low risk (highly diversified)
3️⃣ Easy to invest in & simplistic
4️⃣ Often outperforms stock picking
5️⃣ Tax advantageous (generates less taxable income)
The S&P 500 comprises of 500 of America’s largest companies, across 11 industries, so investing in the S&P 500 is an easy and stress free way to invest for the majority of people, because you’re not betting on a single company but instead, 500 of America’s largest companies.
S&P 500 Growth by Decade:
+259% [2010-2019]
-9% [2000-2009]
+433% [1990-1999]
+407% [1980-1989]
+77% [1970-1979]
+112% [1960-1969]
+482% [1950-1959]
+259% [2010-2019]
-9% [2000-2009]
+433% [1990-1999]
+407% [1980-1989]
+77% [1970-1979]
+112% [1960-1969]
+482% [1950-1959]
Long term investing makes the most sense for most people.
Low cost index funds are the best choice for the average person.
Low cost index funds are the best choice for the average person.
Saving money: 1 + 1 + 1 + 1 +1
Investing money: 1 × 2 × 3 × 4 × 5
Investing your money is the key to building wealth, not saving your money.
Investing money: 1 × 2 × 3 × 4 × 5
Investing your money is the key to building wealth, not saving your money.
I am not dismissing other ways of investing such as individual stocks, real estate or crypto.
An S&P 500 Index fund just happens to be a safe and popular example
An S&P 500 Index fund just happens to be a safe and popular example
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