5 Reasons Why You Should Be Investing in Stocks Right Now
I used to think investing was intimidating and scary. It actually turned out to be a lot easier than I thought. You don’t need huge sums of cash or inside information about what stocks to pick.
You don’t need to time the market, pick the right stocks, and get a hot IPO.
All you need to do is set up an automated system and stick to your plan for the long term. You’ll have an incredible retirement and set up a passive income stream along the way.
The best way to get started investing is to set up automatic monthly contributions to your investment accounts. Do this for 2-3 decades and you’ll wake up with a ton of money in your account.
If you do it right, you’ll make a ton of money
On average, stocks have given an annualized return of around 10%. At that rate, your money doubles every 7.2 years.
Let’s say you start with $10,000. After a 40 year career, that turns into at least $320K from doubling 5 times. That’s from a single $10,000 investment.
I’m going to level with you. You can’t get rich off just your salary. Savings and bonds won’t do it either, the return isn’t high enough to make an impact during your lifetime.
Stocks are the key.
No matter your income, you will get rich off stocks as long as you start investing early, keep investing, and never sell.
Trying to time the market can be DEVASTATING. Ignore the news and invest every month like clockwork. That’s how you make the most money.
You can do it all online
We’re in the golden age of online investing. Gone are the days when you had to call and set up accounts over the phone, or even worse, actually go there in person. Online investing makes it easy to start investing, and you have quite a few options. What’s even better is that the best services often have the lowest fees, making it easy AND cheap.
It’s the best way to save for retirement
The average American needs to save 1.5 million in order to retire. If you were trying to save that using a regular savings account (with an interest rate of about 1.25%), you’d need to save almost $50,000 a year over the course of a 30 year career. For most people, that’s impossible. But with the power of investing, you can invest as little as 10% of your salary and be ready to retire in 30 years.
Depending on what type of account you’re investing in, the contributions you make may not even be taxed.
You should invest as much as possible into tax-deferred accounts like a 401k or Roth IRA.
Your 401k won’t be taxed until you withdraw it many years down the line, and your IRA earnings won’t be taxed at all.
Start Building Wealth Today
Overall, you have every reason to start investing in the stock market today. You can get your accounts set up in just a few hours, and be well on your way to building wealth for a lifetime. If you can get the hang of the basics of investing, you’ve just removed a huge barrier to earning more money. Remember, there’s no limit to how much you can earn.
Was this article helpful? 23 Posted by: 👨 Jonathon E. Perry