Investing is the most important thing you can do to reliably build wealth during your life. The only problem is… you inevitably suck at it…
The S&P 500 has a historical average return of 10.4% over the past 100 years, even when including all the major stock market downturns during that time. $10,000 invested in 1972 would be worth $1.7 Million today. But look around, and you will be hard pressed to find anybody who has made themselves wealthy EXCLUSIVELY through diligent investing practices.
Research done by Dalbar Inc an investment research firm found that the average equity fund investor only made average annualized returns of 4.25% over the past 20 years. To understand how big a difference this truly is, the same investor getting those returns would only turn their initial $10,000 investment into $83,000 today over the same 50 year period.People are terrible at investing, YOU are terrible at investing, and even finance industry professionals are buy and large… terrible at investing.
The only real solution is to stop trying.
#Investing #PersonalFinance #HowMoneyWorks
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Edited By: Andrew Gonzales
Music Courtesy of: Epidemic Sound
Select Footage Courtesy of: Getty Images
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