[Medium] 6 Ways I Plan to Make Savvy Investors Filthy Rich in 2024
Most people are not cut out to buy individual stocks.
This isn’t an insult or a bad thing. It’s simply the reality. One that you should embrace.
When I was an undergraduate student at Cornell University, I took a psychology class called “How to Make Better Decisions?”. The course was a class taught by a large number of social psychology and economic experts to teach students how to improve their decision-making processes, backed by real-world data. One of the biggest lessons we had was about compound interest.
The lesson I took was that many people can benefit from a simple index-investing approach rather than picking individual stocks. The preview does not supply evidence for an exact 90% share of people. Its 8–10% figure should be an assumed long-run average for a calculation, not a promise of that return every year; actual annual returns vary.
For illustration, contributing $500 at each month’s end for 40 years deposits $240,000. A hypothetical constant 8% effective annual return, converted to an equivalent monthly rate, produces about $1.611 million. Taxes, fees and inflation are excluded. That is compound-return arithmetic under an assumption, not a guaranteed account value.
You can do this by continuously purchasing VOO or SPY. It’s not hard, it takes minutes to set up, and is one of the best investing strategies by far.
So, if you’re not interested in learning how to detect patterns in non-stationary (forever-changing) data, performing financial research, and risking your hard-earned cash for a chance of greater returns, then you should at least take the insights from my education, and learn the secrets of compound interest.
This March 2024 page is a preview of the linked six-way article about my plans for research and trading tools. It does not itself demonstrate all six outcomes, and the title expresses an ambition rather than a guaranteed investment result.
Read the original Medium article.
Read the rest of the article here! It's well-worth it!Check current plans and terms
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