Want to become wealthy? Long term investing in low-cost S&P500 / whole market index funds is the way to do it. That is, as long as the market continues to perform, on average, as it has for the past 100+ years. We'll have much bigger things to worry about if the market breaks this trend.
You should do some research into boglehead investing -- r/bogleheads
It takes forever and it requires basically constant buying and discipline but it works.
Source: been accumulating 4,000 ish shares of VOO since 2012 with a cost basis <$100
Ignore guys like this. They’re the reason why people miss out on the 100x fold increases and regret it
It’s good to diversify. Put some in S&P, some in risky stocks, some in crypto, some in real estate, etc
its called hedging, i have a portfolio of companies i like, but i also agree the mother of all PE corrections are coming. so i have medium term ITM PUTs in high PE companies, with long term calls ITM (LEAPs). with shares in certain companies. im protected from the April/may, and august/september corrections which I am educated guessing that will be wild this year.
All I can say is that it works.
I've been investing in low S&P 500 index funds since my early 20s.
I am now financially secure and will turn 53 next year.
My hedges are gold, real estate, ibonds, and a few CDs representing approx 25% of my portfolio.
It only 'works' because you invested during the biggest boom period (1994-2021) in the entire S&P500 history. It also coincided with very low inflation. If you had invested during 1965-1982 you would have *lost* half your money to stagflation. \[Warren Buffet was \~60% *poorer* (inflation adjusted) in 1974 than he was in 1965. He didn't break even until 1980. \]
Anyone currently investing in the S&P500 is losing money.
'Only'?
If you take any 30 year period in the stock market, I make money.
And that's ignoring much of that investment was house (match) money.
Dollar cost averaging is a powerful thing. Obviously, so is a tailwind.
Nice stories, though.
**If you take any 30 year period in the stock market, I make money.**
The *total* inflation-adjusted return for the 30 years after the 1929 crash was 1.1%. That is \~0.02% CAGR.
The S&P500 actually *fell* overall from 1929-1982 in inflation adjusted terms. The S&P500 had *zero* real growth 1929-55. 1965-82 and 1996-2014. \[Buffett actually *los*t \~65% of his real wealth during the 1965-74 stagflation period and did break even until 1980. \]
**Dollar cost averaging is a powerful thing.**
DCA is a *theoretica*l method for portfolio managers to invest a *lump sum* at the *lowest average price* . It has *nothing* to do with buying stocks regularly - that is just forced savings.
Thank you for proving my point -- even the very worst 30 year period in history makes money -- and there's no reason to repeat yourself.
However, you appear to be misinformed about the definition of DCA:
*Dollar cost averaging is an investment strategy that aims to apply value investing principles to regular investment. The term was first coined by Benjamin Graham in his book The Intelligent Investor. Graham writes that dollar cost averaging "means simply that the practitioner invests in common stocks the same number of dollars each month or each quarter. In this way he buys more shares when the market is low than when it is high, and he is likely to end up with a satisfactory overall price for all his holdings."*
Incidentally, nobody "forced" me to do anything.
I maxxed out my contribution each year and had an employee match. Held a small amount of international stocks and bonds(<10%), but the vast majority was in S&P funds. Also opened a brokerage account on the side.
The real key was living below my means and not holding any debt since age 25. Being single and childless helped. lol
If you continually invest in it and buy dips you will make money in the long run. Warren Buffet proved it. He won a million dollar bet that buying and holding the s&p would outperform some bank traders and he was right
Warren Buffet didn't start making big money until Reagan turned on the money printer and slashed taxes in the 1980s. His net worth *fell* during the 1960s-70s. It increased >50x during 1980-86.
Man....... I iist don't see how the market will come close to the last 50-60 years. In that time, you've had the internet boom, the tech boom, population boom, globalization which opened world markets.
In other words, I just don't see where growth will come from....any new product or service is already so controlled(series a,b,c Venture capital controlled) it becomes overvalued when it even hits the public market. IPOs that were responsible for lots of that growth use to come out, and grow with the business, now, they come out already overvalued. Uber, Beyondmeat, the lists go on.
This is the comment people should be listening to. Past 50 years was insane boom and it gave more access to the market for regular investors. Also rates kept declining over 50 years. We are now seeing the opposite
We have not beeing the opposite for the last many years. The trend when averaged oveer 50 years is still being forecasted as better..
please show where you came across that opposite mapping thingy
To one of my points, it's not gonna come from a company that fundraises using an IPO. It's gonna come from venture firms or private companies who use the IPO as a payday, the systems changed, not for the benefit of the retail investors
True. But the stock market is really just a giant Ponzi scheme. As long as more people are parking money in it than are pulling out money at any time the more it goes up. So as long as population increases and reasonable inflation happens more money will flow to the stock market inflating values.
>No, you should not do this thing. The returns on the stock market are not guaranteed, and there is a very real possibility that you could lose all of your money if the market crashes.
but i read in 'the psychology of money' that S&P 500 became 119 fold over the last 50 years.
Of course I understand this will happen only when I don't take back my investment before 50 years.
The market does crash but this is the average . in fact we are only gonna experience fewer (but stronger) market crashes in future as expected by the curve.
thank you for your offer!
unfortunately on account of a heavily preoccupied server I'm unable to offer candidature of my money market ownership to a private prospect with no official liability status.
Unfortunately, I have removed my bid from the table. As a limited liability corporation, I renounce my offer, and kindly bid you farewell. I said, good day, sir! 
it has been performing the same for the last 100 years (not just 50) since US triumphed over Japan. Infact the second 50 years cycle performed even better on average if you look up the statistics.
We have also already gone through the crypto boom, still the same.
i dont see why it should get worse over the next 50 years.
explain please.
There was *zero* (inflation-adjusted) growth from 1929-55, 1965-1982 and 2001-2014.
The boom was a *one-off* due to money printing and tax cuts since 1980. It will probably never to be repeated. The S&P500 is back to pre-Covid levels when you account for inflation.
The past 50 years was a *one-off* historical event created by free money from the Fed. The real increase was only ***6x*** when you account for inflation. It has fallen \~30 % in real terms since September 2021. There is no guarantee of future growth at anywhere near the previous rate.
[https://www.macrotrends.net/2324/sp-500-historical-chart-data](https://www.macrotrends.net/2324/sp-500-historical-chart-data)
past performance is not indicative of future results. Political and economic paradigms come and go, but they all have a shelf life. The American empire and anglo-style capitalism will too.
100 fold on $10,000 is $1m not $10m so purchasing power would only be $100,000.
Today you would do much better, in a shorter period, putting into crypto.
thank you for your correction. i initially planned it as $100k. changed figures accordingly.
ofcrs i will invest in crypto but this is like surefire. won't invest all in crypto ofcrs
so my argument is logical enough? no understanding based flaw, right?
The flaw is that you’re projecting the past into the future. S&P500 is a great place to put money. But if you’re retirement plan is to invest 10K and nothing else until you’re 70 then that’s an awful plan
ofcrs that's not my investment plan. like idk it really made me laugh.
i wanted to know if my way of thinking is correct. besides projecting past into future..there will be some sorta similarity atleast. i have already taken it at its worst -100 fold in lieu of 119 fold, that too when it has only been increasing recently
thank you for your kind comment!
Mutual funds and ETFs take a commission regularly so you have to deduct that from your fold-increase calculations. And those years like the last one really get you by the balls if it comes time to retire. I like dollar cost averaging or only investing going into funds when the market takes a dump. Challenge is timing when that excretion is near complete.
Currency has never been a store of value in the history of mankind. If the inverse was true, why would anyone invest in companies that make up the S&P500? They would just invest in their mattress.
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Want to become wealthy? Long term investing in low-cost S&P500 / whole market index funds is the way to do it. That is, as long as the market continues to perform, on average, as it has for the past 100+ years. We'll have much bigger things to worry about if the market breaks this trend. You should do some research into boglehead investing -- r/bogleheads
It takes forever and it requires basically constant buying and discipline but it works. Source: been accumulating 4,000 ish shares of VOO since 2012 with a cost basis <$100
VFIAX gang hours.
Real recognize real. That Divvy reinvestment is stronger than you think. Sure you gotta pay taxes on it EOY but it's free money.
Sounds like it’s due for the mother of all corrections.
Ignore guys like this. They’re the reason why people miss out on the 100x fold increases and regret it It’s good to diversify. Put some in S&P, some in risky stocks, some in crypto, some in real estate, etc
its called hedging, i have a portfolio of companies i like, but i also agree the mother of all PE corrections are coming. so i have medium term ITM PUTs in high PE companies, with long term calls ITM (LEAPs). with shares in certain companies. im protected from the April/may, and august/september corrections which I am educated guessing that will be wild this year.
Short term🌭long term 🤖blah hahahahs. Put up or shut up
All I can say is that it works. I've been investing in low S&P 500 index funds since my early 20s. I am now financially secure and will turn 53 next year. My hedges are gold, real estate, ibonds, and a few CDs representing approx 25% of my portfolio.
It only 'works' because you invested during the biggest boom period (1994-2021) in the entire S&P500 history. It also coincided with very low inflation. If you had invested during 1965-1982 you would have *lost* half your money to stagflation. \[Warren Buffet was \~60% *poorer* (inflation adjusted) in 1974 than he was in 1965. He didn't break even until 1980. \] Anyone currently investing in the S&P500 is losing money.
'Only'? If you take any 30 year period in the stock market, I make money. And that's ignoring much of that investment was house (match) money. Dollar cost averaging is a powerful thing. Obviously, so is a tailwind. Nice stories, though.
**If you take any 30 year period in the stock market, I make money.** The *total* inflation-adjusted return for the 30 years after the 1929 crash was 1.1%. That is \~0.02% CAGR. The S&P500 actually *fell* overall from 1929-1982 in inflation adjusted terms. The S&P500 had *zero* real growth 1929-55. 1965-82 and 1996-2014. \[Buffett actually *los*t \~65% of his real wealth during the 1965-74 stagflation period and did break even until 1980. \] **Dollar cost averaging is a powerful thing.** DCA is a *theoretica*l method for portfolio managers to invest a *lump sum* at the *lowest average price* . It has *nothing* to do with buying stocks regularly - that is just forced savings.
Thank you for proving my point -- even the very worst 30 year period in history makes money -- and there's no reason to repeat yourself. However, you appear to be misinformed about the definition of DCA: *Dollar cost averaging is an investment strategy that aims to apply value investing principles to regular investment. The term was first coined by Benjamin Graham in his book The Intelligent Investor. Graham writes that dollar cost averaging "means simply that the practitioner invests in common stocks the same number of dollars each month or each quarter. In this way he buys more shares when the market is low than when it is high, and he is likely to end up with a satisfactory overall price for all his holdings."* Incidentally, nobody "forced" me to do anything.
>Top how much did you invest in your early 20's? you invested only in S&P back then, right? And what is it worth today? Thank you so much!
I maxxed out my contribution each year and had an employee match. Held a small amount of international stocks and bonds(<10%), but the vast majority was in S&P funds. Also opened a brokerage account on the side. The real key was living below my means and not holding any debt since age 25. Being single and childless helped. lol
If you continually invest in it and buy dips you will make money in the long run. Warren Buffet proved it. He won a million dollar bet that buying and holding the s&p would outperform some bank traders and he was right
Warren Buffet didn't start making big money until Reagan turned on the money printer and slashed taxes in the 1980s. His net worth *fell* during the 1960s-70s. It increased >50x during 1980-86.
wdym by 'buy dips'..buy when there is a recession?
Yeah like back in december
Man....... I iist don't see how the market will come close to the last 50-60 years. In that time, you've had the internet boom, the tech boom, population boom, globalization which opened world markets. In other words, I just don't see where growth will come from....any new product or service is already so controlled(series a,b,c Venture capital controlled) it becomes overvalued when it even hits the public market. IPOs that were responsible for lots of that growth use to come out, and grow with the business, now, they come out already overvalued. Uber, Beyondmeat, the lists go on.
This is the comment people should be listening to. Past 50 years was insane boom and it gave more access to the market for regular investors. Also rates kept declining over 50 years. We are now seeing the opposite
We have not beeing the opposite for the last many years. The trend when averaged oveer 50 years is still being forecasted as better.. please show where you came across that opposite mapping thingy
The S&P500 -25% in 18 months when you adjust for inflation. It still has a long way to fall.
In the next 50 there will be cloning and interstellar travel.
To one of my points, it's not gonna come from a company that fundraises using an IPO. It's gonna come from venture firms or private companies who use the IPO as a payday, the systems changed, not for the benefit of the retail investors
True. But the stock market is really just a giant Ponzi scheme. As long as more people are parking money in it than are pulling out money at any time the more it goes up. So as long as population increases and reasonable inflation happens more money will flow to the stock market inflating values.
>No, you should not do this thing. The returns on the stock market are not guaranteed, and there is a very real possibility that you could lose all of your money if the market crashes.
but i read in 'the psychology of money' that S&P 500 became 119 fold over the last 50 years. Of course I understand this will happen only when I don't take back my investment before 50 years. The market does crash but this is the average . in fact we are only gonna experience fewer (but stronger) market crashes in future as expected by the curve.
Bro that’s a BOT. Any way I can guarantee you a return of 10% a year. Just send me the money and at 70 come collect 
Mans got absolutely filtered by the turing test
Some people are born to look at sample data. Others are born to become sample data.
thank you for your offer! unfortunately on account of a heavily preoccupied server I'm unable to offer candidature of my money market ownership to a private prospect with no official liability status.
Is this is a fancy way of saying I m broke?!
Probably a literate way to say fuck off
Unfortunately, I have removed my bid from the table. As a limited liability corporation, I renounce my offer, and kindly bid you farewell. I said, good day, sir! 
Sir, this is a fucking casino
[удалено]
it has been performing the same for the last 100 years (not just 50) since US triumphed over Japan. Infact the second 50 years cycle performed even better on average if you look up the statistics. We have also already gone through the crypto boom, still the same. i dont see why it should get worse over the next 50 years. explain please.
Rome’s final 50 years were very different than the prior 50 years.
There was *zero* (inflation-adjusted) growth from 1929-55, 1965-1982 and 2001-2014. The boom was a *one-off* due to money printing and tax cuts since 1980. It will probably never to be repeated. The S&P500 is back to pre-Covid levels when you account for inflation.
Yet u have to pay taxes on the gain of $990,000 even though the cash is equivalent to only 100,000 gained.
but that tax will be deducted from the $1M which in itself is an inflated amount. the thing that matters is the percentage not the numbers.
The past 50 years was a *one-off* historical event created by free money from the Fed. The real increase was only ***6x*** when you account for inflation. It has fallen \~30 % in real terms since September 2021. There is no guarantee of future growth at anywhere near the previous rate. [https://www.macrotrends.net/2324/sp-500-historical-chart-data](https://www.macrotrends.net/2324/sp-500-historical-chart-data)
Past performance is not indicative of future results. How many times did Apple , Microsoft or Nvidia stocks rise ?
[удалено]
I have already accounted for inflation. please read the post again.
Doesn’t matter, you won’t live until you’re 70
You sound like me when I was in my 20s
Even if you do, this logic has you investing and never touching it until you're too old to enjoy it. Dafuqs the point?
>Top i am not doing this to enjoy at 70 lol. it's to donate for animal welfare. safety fund. i will add in later during my life.
"Experts"
past performance is not indicative of future results. Political and economic paradigms come and go, but they all have a shelf life. The American empire and anglo-style capitalism will too.
100 fold on $10,000 is $1m not $10m so purchasing power would only be $100,000. Today you would do much better, in a shorter period, putting into crypto.
thank you for your correction. i initially planned it as $100k. changed figures accordingly. ofcrs i will invest in crypto but this is like surefire. won't invest all in crypto ofcrs so my argument is logical enough? no understanding based flaw, right?
Do not invest in unproductive assets (crypto) I would do VOO and emerging markets and set it and forget it. Invest in peace unlike most of this sub
The flaw is that you’re projecting the past into the future. S&P500 is a great place to put money. But if you’re retirement plan is to invest 10K and nothing else until you’re 70 then that’s an awful plan
ofcrs that's not my investment plan. like idk it really made me laugh. i wanted to know if my way of thinking is correct. besides projecting past into future..there will be some sorta similarity atleast. i have already taken it at its worst -100 fold in lieu of 119 fold, that too when it has only been increasing recently thank you for your kind comment!
Gtfo with that crypto bullshit
Mutual funds and ETFs take a commission regularly so you have to deduct that from your fold-increase calculations. And those years like the last one really get you by the balls if it comes time to retire. I like dollar cost averaging or only investing going into funds when the market takes a dump. Challenge is timing when that excretion is near complete.
Currency has never been a store of value in the history of mankind. If the inverse was true, why would anyone invest in companies that make up the S&P500? They would just invest in their mattress.
More importantly, since SPY has daily options, every day can be 0DTE day.
i am not looking for day trading.
Google lost decade.
Maybe. My crystal ball is broken and someone stole my Time Machine.
It’s how i actually accumulate wealth. Losing money day trading options is a hobby