#LYN ALDEN EDUCATION PLUS#

For example, if you put $10,000 into an M1 plus checking account earning 2.5%, at the end of the year, you will have $10250. To put it simply, compound interest is the interest you earn on interest. Key reason 2: Holding an investment for longer gives you momentum from compound interest.

Historically speaking, the longer you hold, the less risk you have of losing. After 10 years, the chance of a loss dropped to just 6%. Over the course of one year, losses occurred only 26% of the time. On any given day, the index declined 46% of the time. If you look at the history of the S&P 500 dating back to 1929, the likelihood that an investor would have lost money decreased the longer their money was in the market. There are two key reasons long-term investments can end up being a smart way to build wealth: Key reason 1: Long-term investing statistically decreases the risk of losing principal. This means they are holding investments or planning to hold investments for upwards of 30 years, instead of trying to time the market. Our clients with the highest net worth are the more likely to say that they have a long-term mindset when it comes to their investments. Wealthy investors tend to prioritize time, not timing Here’s what we found and how you can attempt to replicate it in your own portfolio: 1. After hundreds of conversations with our clients, we examined some of our wealthiest and selected ten actions we frequently see many of them doing with their money. And when it comes to money, it may be best to look towards those who have already built significant wealth. From beginners to experts, there is always something to improve upon. It’s also a journey of values, habits, and strategies that are constantly learned and evolved. Personal finance is just that – personal – but the goals remain the same: To protect and grow your wealth.

Lyn alden education