A $20,000 investment might return $350,000
Want to turn a little money into a lot more later? You most likely are. You're looking in the right place. Few ways to accumulate significant wealth in a lifetime, is through the stock market.
Let's use the S&P 500 as a stand-in for the entire stock market. Individual stocks may result in wealth, but investing in the S&P 500 is easier and frequently just as profitable.
The treatment of your investment is one. Profits must be immediately reinvested. dividends as well.
Compounding because you earn future rewards based on your original principle, this technique ensures that you have as much money working for you as long and frequently as possible.
Look at the $20,000 investment's progress chart. Half of the $330,000 net gain came in the last seven years. If you invested $20,000 for 23 years, you'd have little over $160,000
That's a big difference if your nest egg funds most of your retirement.This indicates you should invest early in life.