This episode is also available as a blog post: https://wealthbuildingpowers.com/2020/08/03/anyone-can-buy-stocks-read-this-if-you-want-to-make-money/

In today’s low interest rate environment, you are not going to become wealthy by simply saving your money in a bank account or Certificate of Deposit (CD). Wealth is created when you save your money and invest it in good assets that appreciate in value.

A large/majority portion of your savings should be directed to your company’s 401K plan or your ROTH IRA. Next comes nonretirement assets that you can place in: ETF’s, real estate investments, stocks, etc. You select your investment assets based on your risk tolerance or ability to handle loss of your money. If you CANNOT afford to lose your hard-earned cash - do not risk it. Select low risk investments.

You are responsible for self-educating yourself on whatever asset you select for investing.

During Berkshire Hathaway's virtual annual meeting back in May, 2020, Warren Buffett stated, "For most people, the best thing to do is to own the S&P 500 index fund." By investing in an S&P 500 index fund, you are investing in the 500 companies included in that index, achieving immediate diversification.

If a few of those businesses perform poorly or even go into bankruptcy it will not significantly change your returns. When you own one company and the stock prices goes to zero, you now have $0.00. When you own the S&P 500 ETF and that same company goes to zero, you now have 499/500 or 99.80% of your hard-earned money!

In a recession, the S&P 500 ETF can lose 40% or more of it’s value! NOTHING IS RISK FREE!

PEER-TO-PEER CONVERSATIONS PODCAST - TODAY’S GUEST: MARK MILLER - EPISODE #1

Peer to Peer Conversations By Styron PowersSep 12, 2022