Investing for growth in retirement
Stocks
If you pay attention to the stuff on TV and the business section
in the newspaper, you will never know what stocks to buy and sell. In order
for Wall Street to make a lot of money, they need to keep you guessing so that
you keep making changes and generating commissions (cha-ching).
Here's what you need to know about the stock market:
- You must have patience—that means willing to look
out 10 years
- You must have a system from which you will not deviate
- You must not listen to "experts" on TV
Look at these four charts and you will see what patience
means.
Based on history, the chance of making money in the market:
Chance of making money in stocks in any given year = 70%
Chance of making money in stocks in any given 5 years= 89%
Chance of making money in stocks in any given 10 years = 97%
Chance of making money in stocks in any given 15 year = 100%
Therefore, if you want to make money in the market, to
have the odds in your favor, leave your money in for 10
or more years. If you don't know what to buy, then buy the
S&P 500 index or use a structured system. What you cannot
do is listen to people on TV or people in the newspaper
and buy what looks good. You must have a system that tells
you what to buy or sell or just buy the index.
That's all there is to the stock market. This is how guys like Warren Buffet
make money. They don't trade. They sit and wait for the
money to make them money. |
