Jun 21, 2020
Often younger or newer investors just starting the process of saving and investing ask what the best strategy to build wealth quickly? The power of compounding and starting early are key, but periodically investing each month and making it automatic can build wealth surprisingly well. In this episode we talk about key areas in what younger investors should be doing including 401k, systematic investing, and how dollar cost averaging lets you buy more lower over time. Plus, surprising statistics reviewing 120 years’ worth of decades and each of their compounded annual growth rates in the S&P 500 Index.
What was the compounded total return for the S&P 500 Index by decade back to 1900?
What is dollar cost averaging?
How does compounding accelerate your wealth building?
What is dividend reinvestment?
Between Schwab, Vanguard, TD Ameritrade, and Fidelity investors have plenty of tools and resources to start investing
Accumulation and Distribution phases of investing plus the extra base maximization phase 10 years prior to retirement
Why you should not try and get rich quick using options or futures and thus leverage
What is an automatic investment plan moving money each month from bank accounts to brokerage accounts?
Explaining Charles Schwab’s new stock slices to buy fractional shares of S&P 500 stocks
Mentioned in this Episode:
Free Chapter from my book Broken Pie Chart https://www.book2look.com/book/YcqUhbCrtN
Charles Schwab fractional shares https://www.schwab.com/fractional-shares-stock-slices
Charles Schwab investing basics 101 FAQs https://www.schwab.com/how-to-invest/investing-basics#panel--text-29676
Book Jeremy Seigel Stocks for the Long Run https://amzn.to/3el67tO
Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr
Stock compounded total returns by decade https://zegafinancial.com/blog/where-did-the-2010s-rank-for-total-return-on-sandp-500-index
Contact Derek www.razorwealth.com