5 Investing Lessons That All Newbies Should Know Before Buying That First Stock
Having a busy life filled with family and career shouldn't deter you from building long-term wealth. In fact, they're two of the best reasons for doing so -- and can serve as powerful motivators for creating a nest egg for you and your loved ones and financial independence when retirement calls.
And buying stocks remains the best way for most folks to achieve those goals. Over the past 50 years, the stock market has returned an average of 10% a year. By comparison, for many years interest rates on savings accounts have stood at 1% or even lower.
While they've risen sharply more recently -- as the Fed pumped up benchmark rates to fight inflation -- even the best savings accounts now offer less than 5%. That's similar to the current inflation rate. It's hard to build wealth when your gains leave you more or less treading water in real terms.
Source Fool.com
