THE MAGIC OF INVESTING

It's true that it is nearly impossible to achieve a million dollar net worth by saving alone. A job that pays enough to accomplish that is rare to say the least. Here's some good news: You do not need a six or seven figure salary to achieve millionaire status. How can this be done you may ask? You can achieve this through the magic of investing.

What is Investing?

Investing is the expending of a resource, usually money, with the expectation of making a profit. Three common types of investments are stocks, bonds, and funds.

Stocks

When a company offers stock, they are offering ownership in the company. You can purchase shares of the company and if the company grows and is profitable, the share price goes up creating appreciation for the shareholder.

Bonds

Bonds are basically debt agreements made with governments, municipalities, and states. When you invest in a bond, your return on investment comes from the interest payments on the debt.

Funds

Funds are a collection of investments. There are funds that contain several stocks, bonds, as well as other investments. When you invest in a fund, your investment is divided among several assets, rather than just one. This reduces risk.

So How Can Investing Make You a Millionaire?

Lets consider the S&P 500-the top 500 hundred companies in the United States. As a group, the 30 year average return on the S&P 500 is 12%. If you invested $100 dollars a month in an S&P 500 fund from age 25 to 65, you would end up with 1.1 million dollars!

There you have the magic of investing! As you can see, this has to potential to change your life and your family tree. If you are looking for a money coach to show you more about investing, don't hesitate to contact us.