Why don’t more people invest in the stock market? It’s basically free money for doing nothing, and benefits from the time value of money?
Once you surpass 1 million dollars invested, at a pretend return of 10%, you are making 100k a year by having money sit in an account. Literally 0 effort. Once you surpass 10 million, you are making $1 million a year with no effort, once you surpass 100 million you are making $10 million a year doing nothing. You can see the exponential growth of the money because of the time value of money theory. Yet only like half the population invests in the money market
For example, if someone has 500k invested at age 30 and a hypothetical return of 10%, by age 70, that 500k will be worth somewhere north of $100 million for literally doing nothing
Sorry not age 70, age 84
At age 70, it would be around 25 million
- BillLv 73 weeks ago
More people LOSE $$ in the Stock Market than MAKE $$.
- Girlie ElectricsLv 74 weeks ago
you have to have surplus money to start with.
When every penny is taken by legitimate essentials, there's no extra to be invested
- ANDRE LLv 74 weeks ago
You first have to have Spare Money available for that, and most working people have none, thanks to the Gross Old Perverts.
- SlumlordLv 71 month ago
Most people have no money. Most of the ones that do, stil manage to pretty much spend whatever they have. Most people,if you give them $1000 they just go spend it on something.
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- Pearl LLv 71 month ago
maybe cause a lot of people dont know much about it, i dont
- Anonymous1 month ago
You are absolutely right about the time-value of investing.
500k by age 30? Not happening for vast majority of people.
But needing 3-5 million to retire comfortably? Yes, something most people don't believe is necessary or possible. And yet it is necessary and possible.
Start young, settle for "average" returns, take advantage of Roth accounts...any idiot can do it. Put a wee bit of more effort in and you can make a mint.
"Why don’t more people invest in the stock market?" Because they aren't taught to. They don't have parents who teach them sound financial management and the schools don't teach it either.
People are taught to spend more than they have. I don't like it, but it is what it is.
- KiethLv 71 month ago
You need money to invest, if you invest $100 and the stock increases 3%, you made $3. The big investors own millions in stocks. When the polo club decides to restructure, they sell off 5-10% of their stocks. Little investors freak out at the dip in stock value, and sell their stocks. The big investors take the money from their sell off and buys more stock at the lower price, and the value comes back higher. They get richer, and you lost money on your investment.
- StephenWeinsteinLv 71 month ago
They don't have that much to invest, and you can lose money because the return is sometimes less than 0%, sometimes much less, like -40%.