Anybody Can Invest

Stock Market Graph

The stock market. It may seem scary to some people, but it doesn’t have to be. Most people look at the stock market as a place for only rich people. But people don’t invest because they’re rich, they’re rich because they invest. Make sense? To put it another way, it’d be like saying, “only skinny people go to the gym.” Wrong! They don’t go to the gym because they’re skinny. They’re skinny because they go to the gym.

The stock market is the easiest and best way to make money for the long term. It’s averaged about 11% for over 80 years now. Here’s an example of what that means exactly. If you put just $100 in the stock market and it averages 11%, and you never add another dime to it, after 80 years that Benjamin would be worth over $422,000.

Sure, you don’t have 80 years. But you can also invest more than just $100. Say someone graduates from college at age 22 and they invest $100 every month (that’s barely three bucks a day, less than coffee and a muffin on the way to work). At age 65 when they’re ready to retire, they’d have $1,064,000. Over a million dollars from just about $51,000 out of their pocket. Not a bad deal, huh? But here’s the weird part. Let’s say that person waited until they were 23 to start investing but still invested $100 a month. At age 65 they’d have $957,000. Over $100,000 less for waiting one year and only $1200 out of their pocket.

Now maybe you didn’t just graduate from college. Maybe you’re nowhere near that young. Not to worry. Sure, you’ll have to invest more each month, but you can get there. If you’re 30 and invest just $220 a month, you can still have a million at age 65. Start at 40 and it takes an investment of $665 a month to have a million. And once you’re over 50, the government allows you to put more each month in an IRA to catch up.

If you know someone still in school, teach them this valuable lesson while they’re still young. Next month I’ll get more into exactly what to invest in. It’s much easier than you think. As always, check out my website at http://www.johnfloyd.com to find out more.

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