I posted this a while back.... but I was having lunch with some co-workers today, and this one came up again. Each one said they had wished they had known this when they were just starting out. So I thought I would do my part and get the word out there.... Maybe you know someone that is 20+ and just getting into the working world... This bit of education is for them.... they will thank you in a decade or two for it! I know that lots of people are completely against the stock market, they call it rigged, etc. However, if you look at the stock market in terms of what it can do for YOU, and you look at the history of it... you start to understand. Over any 35 year stretch of time, there is no other invenstment that has EVER beat it. Not gold, real estate, jewlery, nothing.. So I found the following research that has been done online. The best 35 year return EVER was 12% average, the worse ever was 6% average. So assuming that during your 35 year working life you were average (from a stock market point of view), and the market performed an average 9% over that 35 year span. Then you do this calculation.... Save $200 a month EVERY month, without stopping over that 35 year span. And you get over half a million dollars!!! If you were even slightly better than average at say 10%, and it is over $700k!!! So for the price of a really nice cell phone, cable tv, and maybe a starbucks lotte or two a month.... you too can retire with dignity... if not wealthy!!! Feel free to fact check it, no smoke an mirrors here... just patience, determination, and time. I think if most people needed to save $200 a month to save their life, they could probably find a way to do it, and you know what.... it will (save their lives that is). If the govt really wanted to help.... make that knowledge mandatory to graduate HS. And in one generation, watch how the situation in the US improves....
Posted on: Tue, 17 Sep 2013 00:12:51 +0000
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