Start Investing

If you’ve ever watched the financial section of the news, channel surfed and landed on a financial channel, or browsed through a financial website, you’ve probably heard that you need to start investing for retirement. Maybe you’re not too worried because you have a pension and social security, but what if neither of these are available once you retire? Or, what if the money you get from them is not enough?

Increase Wealth by Investing

Whether the markets are booming or our economy is in great distress, no one will tell you never to invest a dime of your money.If someone tells you to just hide your money under your mattress, they are either very ignorant, or they want to steal it from you.

If you look back in history, recessions and even the Great Depression don’t last forever.The economy has highs and lows, and overall, the average return on the stock market is about 13%.If you had invested $10 in the stock market 100 years ago and earned the average historical rate each year, by now you would have $1,797,902.

Now I know you might not live to 100 and even if you did, that nearly $2,000,000 probably won’t do you much good, but that’s why you need to invest more than $10 one time.This just shows you the power of compounding and what kind of money you could make.Just think how much money you could make if you invested 100 times that every year?

In 10 years, investing $1,000 a year with even just 9% interest, you would have over $16,000. Give it another 10 years and you would have over $55,000. If you are 30 now and you invest $2,000 a year for the next 35 years until you retire at 65 and make a 9% annual return you would have over $466,000. Bump that percentage up to the historical 13% average and you would have over $1.2 million.

How Much can I Make through investments?

The amount you all depends on how much you invest, how much time you have, and how active you are investing.Don’t invest more than you can afford, but be honest with yourself about how much you really can invest.Also, don’t be afraid to increase how much you invest as you begin to save more.

What Should I Invest in?

Invest in whatever you want: stocks, bonds, mutual funds, commodities, derivatives, real estate, or anything that appeals to you. Nowhere does it say you have to invest in stocks or you have to buy bonds. Diversifying in all sorts of investments is better for your portfolio anyway.

How do I get started with investing?

Before you invest a dime, you need to learn about investing. Sure, you could pay a financial advisor to make all your investments, but that can cost you a lot of money that should be earning you more money. Start by reading, reading, and reading, until you are ready to make an investment plan you are comfortable with. If you are worried about wasting time that you could be investing, save your money and put it in a high interest savings account until you are ready to begin.