When I talk to people about investing I say things like invested over 10 years at 10% will earn X. Here is the thing, most people don’t realize how to actually invest in the market to earn average growth.
The thing about “average” growth, is it scares most people. The reason it scares people is because the average person is broke. However if you follow this guide to become average… you can become wealthy.
Everyone always wants to pick a great stock and make millions. You always hear these stories about how people invested $500 in Apple in the 80’s and now they are rich. Here is the deal…. hindsight is 20/20.
You can’t just go back and invest the money. The easiest way to invest is to invest now… for the long haul.
Average Growth ETF’s
So you have decided to have average growth? Good, average over the long haul works better. Now what.
Open a brokerage account.
When someone asks me if I had x amount of money where should I invest it. Here is banking made simple.
$0-$2499 keep it in a savings account
$2500-$4999 One ETF
$5000+ Begin ETF diversification with the following ETF’s
S&P 500 ETF Ticker: VOO
Don’t think, just invest.
“What if I lose all my money?”
With this ETF if you lose all your money we are all screwed. Pound for pound this is probably the best/least risky investment. That is why the first $2,500 should go here.
Mid-Cap ETF Ticker: VO
This is where the next $2500, would go. The reason is for diversification. Minor changes can come in the market and make this out perform the S&P 500.
Small-Cap ETF Ticker: VB
Again the point of this is only for diversification. If you don’t like to be diverse, just invest in VOO over and over, it is a very safe bet.
Most people don’t realize that factors outside of the economy shape the economy. Small businesses begin to take off, and then so does this ETF. However in the long haul, you will probably make the most money with the VOO.
Thanks for reading