I’ve heard this about stocks growing up, and still hear it from many Europeans around me: you only invest “play money,” (in the market) not the money you need to secure retirement or other important life objectives. But this is fundamentally wrong, because long-term market returns are not at all like gambling. I think it’s mistaking short-term “bets” (which you should not take with any kind of money) and long-term investments, which is precisely what gives you the return you need to secure retirement.
If you map out what someone needs to save to reach a specific monthly income in retirement investing only in CDs (or bonds) vs. an S&P 500 index fund, it’s really a substantial difference. So people immiserate themselves either during their earning years or in retirement because they mistaken short-term volatility for long-term risk.
If you map out what someone needs to save to reach a specific monthly income in retirement investing only in CDs (or bonds) vs. an S&P 500 index fund, it’s really a substantial difference. So people immiserate themselves either during their earning years or in retirement because they mistaken short-term volatility for long-term risk.
Statistics: Posted by HKexpat — Wed Aug 14, 2024 5:35 am