That’s 4x more.
This is a great reminder that over the long-term, equities (stocks & funds) do better than holding your money in cash-equivalents.
Are you benefiting from this year’s 4x increase over treasuries? I hope you are!
I’m not suggesting that all of your money should be invested in equities, of course. The percentage you invest will have to do with life stage, risk tolerance, and how soon you might need the money. You could consult with a fee-based financial advisor to sort out a plan for you or study up on your own.
But, suffice it to say, investing some percentage is likely a wise idea.
When you’re early in your career, it will likely be a much higher percentage than later in your career. And the percentage will likely go down even more significantly once you retire.
One way I’ve invested over the years is called “dollar cost averaging.” That’s where you put a certain percentage of your income in the market each month regardless of what the market is doing. You’re not trying to time the market. You’re just consistently investing each month which compounds over time.
The market will rise & fall as it has done throughout its history, but over the long-term, the market has proven to be a great way to build wealth.
*Note: Beware of giving up your gains in excessive fees paid to active money managers. You can read more about that here.
