Why should I put my money in the stock market?

Investing in the stock market is a way to create wealth — for college, a house, retirement, that private island you’ve had your eye on. Historically, the stock market has returned an average of 9.8% a year. That’s significantly higher than most other investments. Of course, stocks rise and fall, so you’ll lose money and make money depending on the day. But it’s a smart investment if you’re in it for the long haul, ready to weather the ups and downs.

Investing in The Stock Market

The sooner you start investing, the more likely you are to build some serious wealth. For example, let’s say at age 12, you start investing your babysitting money of $1,000 a year in the stock market. You do this for 10 years until you graduate from college at age 22. You never put additional funds in the stock market after that. Assuming your stocks go up an average of 9.8% per year, that investment will be worth more than a million dollars by the time you turn 65. $1,107,393, to be exact.

(If you had put that same money in a mattress, guess how much you’d have at age 65? Yep, $10,000. Assuming no one else found it first.)

Investing in the stock market

And if earning nada on your hard-earned money isn’t enough of a turn-off, here’s one more reason to stash your money in a bank or investment of some kind. If you ever want to buy that house you’ve been saving for, your “mattress money” is as suspicious to banks and lenders as drug money. (We’re talking Walter White-level suspicion.)

You worked hard to get that cash, now let it work hard for you! Start investing in the stock market today.

Wishing you many happy returns!

Remember: All investments involve risk, including possible loss of principal, and do not guarantee future results.

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/meghan Gardler