There are many ways to build wealth, but very few that guarantee wealth.
However, the best "get rich" formula is to be a long-term investor that takes advantage of compound interest.
Experienced investors know, probably through their own experience, that timing the market is impossible.
The performance of the market over the course of the year is usually a result of a few very big days.
It is impossible to know when these big days will occur, so the best thing to do is to be "in" the market at all times.
As an investor who wants to build wealth, you want to keep it simple.
Experienced investors also know that 80% of mutual funds do not beat the market, which means you would be better off investing in a plain old index fund then with a with the majority of professional investors who get paid millions of dollars to manage a mutual fund.
Your index fund that mimics the S&P 500 will outperform the fund managers and your costs will be substantially lower.
Continue to invest in index funds as your core strategy over the long term, and your portfolio could grow to a multi-million dollar portfolio.
Those little contributions you make month after month, year after year quickly add up.
And when compound interest kicks in, your money starts working overtime for you.
Compound interest is how the rich get richer and is the real formula to creating wealth.
Once investors realize they made too many costly mistakes and that the market can't be timed be even professional investors, the slow and steady approach that guarantees wealth starts looking appealing.
However, the best "get rich" formula is to be a long-term investor that takes advantage of compound interest.
Experienced investors know, probably through their own experience, that timing the market is impossible.
The performance of the market over the course of the year is usually a result of a few very big days.
It is impossible to know when these big days will occur, so the best thing to do is to be "in" the market at all times.
As an investor who wants to build wealth, you want to keep it simple.
Experienced investors also know that 80% of mutual funds do not beat the market, which means you would be better off investing in a plain old index fund then with a with the majority of professional investors who get paid millions of dollars to manage a mutual fund.
Your index fund that mimics the S&P 500 will outperform the fund managers and your costs will be substantially lower.
Continue to invest in index funds as your core strategy over the long term, and your portfolio could grow to a multi-million dollar portfolio.
Those little contributions you make month after month, year after year quickly add up.
And when compound interest kicks in, your money starts working overtime for you.
Compound interest is how the rich get richer and is the real formula to creating wealth.
Once investors realize they made too many costly mistakes and that the market can't be timed be even professional investors, the slow and steady approach that guarantees wealth starts looking appealing.