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Silver Conversationalist
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Re: investing in stocks

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This morning I saw on CNN where
Pinterest was selling stocks for 19$ a share. Why is it that our advisors never call you to invest in stuff like that? Also why do they not tell us to invest in companies that are doing good like AT&T or Verizon or Google or Instagram? Don.t they sell stocks as well?

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Frequent Social Butterfly
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Re: investing in stocks

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fer instance, let's say our friend the bricklayer (who made $50K per year for the 50 years) set up an account at a low-cost brokerage or mutual fund company when he started working in 1968 (maybe he started at Fidelity, they were in business then).

 

So he's going to put $3,000 per year into his stock-based mutual fund. Maybe it mimics the S&P 500 index. Every year he puts in $3,000, for 50 years (that's $150,000 that he put in total).

 

I don't know off-hand the historical average rate of return on the S&P 500 but let's say that his account grows at an averaged rate of 8% per year (discounting expenses and income taxes) then his account balance after 50 years will be $1,859,015.00. That is nothing to sneeze at for anyone!

 

Maybe a 6% or 7% return is more realistic. The end balance would be:

 

      6% - $923,268

      7% - $1,304,958

 

These amounts still aren't nothing to sneeze at (in my opinion).

 

Of course... !   We have to note:

 

  • that 3 grand a year was a lot of money back in 1968, etc On the other hand, that 50 grand salary was pretty royal too!

  • most "experts" would suggest a mutual fund for most people, and would suggest something like that S&P 500 index fund (or now there are many other indexes to follow). This is because if you are concentrated in a few stocks (or your fund is) then if something goes south and dies, you've lost a lot of money. Having many stocks in your nest egg reduces the risk 

  • speaking of this risk, sometimes people have their salary and their pension and their personal investments all tied up in their employer. Big time risk. People employed by Enron learned that lesson. That was a high-flying stock for some time.

  • Some stocks will earn you a lot more than market averages. But how does anyone know which stocks these will be ahead of time? They don't!

  • Long term Dow 30 average rate of return is somewhere around 10%. That's probably well overly optimistic to think about these days.

  • Remember back around 2008 the market cratered? People lost 50% or more of their investments. People who stayed cool and didn't sell did quite well! People who panicked and sold locked in their losses...they didn't see that money again.

 

To get "rich" in stocks it's best for average folks, like me, just to do mutual funds, regularly buy in, and be very very patient. And don't panic when the market heads down as it does and will. And don't buy what you don't understand...so if you don't understand stocks, bonds, mutual funds...then stay away.

 

 

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Re: investing in stocks

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@WilliamS541265 wrote:
could someone become rich by buying stocks and if so, how long would they have to wait to see some serious return on their stocks assuming they became millionaire rich???? 30 years or more or less? how long would someone typically have to wait in order to become millionaire rich with their stocks? would they have to wait a really long time assuming that they ever saw some serious potential here as far as stocks go or is this just an urban legend? whats the deal with buying stocks and some people claiming that they became millionaire rich or any kind of rich again assuming they maxed it out? would there be any stocks experts here on this forum regarding retirees and their stocks thinking someone made some serious money with their stocks? the only part i cant figure out is how long they would have to wait to see some serious return on their stocks? rsvp.
 

IF you have to ask this sort of question - you aren't ready and will most likely not become a millionaire.

Have you thought about the lottery?  Because if you don't know how to invest and don't care about learning - then that is all you are doing - GAMBLING.

* * * * It's Always Something . . . Roseanne Roseannadanna
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Re: investing in stocks

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Truer words were never spoken.

 

(including your entire post, nctarheel)

 


@nctarheel wrote:

I think it would be helpful to you to learn A LOT MORE about stocks before you EVEN THINK about buying any.


 

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Re: investing in stocks

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@WilliamS541265 wrote:
could someone become rich by buying stocks and if so, how long would they have to wait to see some serious return on their stocks assuming they became millionaire rich???? 30 years or more or less? how long would someone typically have to wait in order to become millionaire rich with their stocks? would they have to wait a really long time assuming that they ever saw some serious potential here as far as stocks go or is this just an urban legend? whats the deal with buying stocks and some people claiming that they became millionaire rich or any kind of rich again assuming they maxed it out? would there be any stocks experts here on this forum regarding retirees and their stocks thinking someone made some serious money with their stocks? the only part i cant figure out is how long they would have to wait to see some serious return on their stocks? rsvp.

You should never invest in individual stocks in the stock market except with money you can afford to lose because there is one axiom regarding stocks.

 

" A stock can rise to infinity but a stock can also go to ZERO."

 

Your terminology "MILLIONAIRE RICH" clearly identifies you as a novice in stocks. People can lose ALL THEIR MONEY in a stock, or a stock can make them "MILLIONAIRE RICH", as you say, overnight.

 

Your use of the terms URBAN LEGEND, MILLIONAIRE RICH, ANY KIND OF RICH, and MAXED IT OUT makes your question confusing.

 

I suggest you either talk to someone at your bank or your credit union about the subject. There are also low cost stock brokers like Schwab where you can get information.

 

I think it would be helpful to you to learn A LOT MORE about stocks before you EVEN THINK about buying any.

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investing in stocks

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could someone become rich by buying stocks and if so, how long would they have to wait to see some serious return on their stocks assuming they became millionaire rich???? 30 years or more or less? how long would someone typically have to wait in order to become millionaire rich with their stocks? would they have to wait a really long time assuming that they ever saw some serious potential here as far as stocks go or is this just an urban legend? whats the deal with buying stocks and some people claiming that they became millionaire rich or any kind of rich again assuming they maxed it out? would there be any stocks experts here on this forum regarding retirees and their stocks thinking someone made some serious money with their stocks? the only part i cant figure out is how long they would have to wait to see some serious return on their stocks? rsvp.
 
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