Read on Twitter
Do you hear about the average stock market return of 8-10% and think that's not enough?
Most investors don't even make that.
~Thread~
Most investors don't even make that.
~Thread~
A Boston research firm conducted a study from 2000-2019.
During that time, the S&P returned 6.06% annually.
The "average" investor during that time earned only 4.25% annually.
Why?
During that time, the S&P returned 6.06% annually.
The "average" investor during that time earned only 4.25% annually.
Why?
Many investors try to time the market.
They dance in and out, trying to sell high and buy low.
They fail to continue holding their investments.
They fail to even match the market.
You can beat the average investor.
They dance in and out, trying to sell high and buy low.
They fail to continue holding their investments.
They fail to even match the market.
You can beat the average investor.
There are three keys to successful investing.
Be cheap.
Be patient.
Be consistent.
Be cheap.
Be patient.
Be consistent.
Being cheap means buying investments that are cheap to maintain.
This means low cost index funds.
Index funds save money on fees.
Index funds save money on taxes.
Index funds save money on management costs
This means low cost index funds.
Index funds save money on fees.
Index funds save money on taxes.
Index funds save money on management costs
Being patient means buying investments for the long term.
You can't reliably get rich overnight.
You can reliably get wealthy over your life.
You need to invest for the decades to come.
You can't reliably get rich overnight.
You can reliably get wealthy over your life.
You need to invest for the decades to come.
Being consistent means that you need to buy investments every payday.
Every time you have money come in.
It could be $10.
It could be $100.
It could be $1000.
Invest every paycheck.
Every time you have money come in.
It could be $10.
It could be $100.
It could be $1000.
Invest every paycheck.
The number one way to beat the average investor is to dollar cost average.
This means you continually buy.
Price is up? Buy more.
Price is down? Buy more.
Price is the same? Buy more.
This guarantees that your average cost will be lower than the highest cost.
This means you continually buy.
Price is up? Buy more.
Price is down? Buy more.
Price is the same? Buy more.
This guarantees that your average cost will be lower than the highest cost.
Got an idea to make us better investors? Let me know.
If I missed anything, throw up a comment!
My Dms are always open for questions!
If I missed anything, throw up a comment!
My Dms are always open for questions!
