Creating financial freedom is something that can be overwhelming for the young investor, and for many experienced investors – it is a daunting process. Viewing the stock market at a glance, many people are consumed with an overabundance of information, and underinformed with the knowledge to create wealth that will last them a lifetime. With the information that you will gain from this blog you will be ready to begin investing in your future, and begin creating wealth immediately.
Investors are far too often looking for the big return in one investment. While it is possible to gain that exponential gain in one day – there is one major problem – this is a huge investment risk, and the greatest mistake made by young investors. They are far too often looking for where they can make the huge return, and ignore the slow gain.
A major standard in the market is the S&P 500 and Dow Jones Industrial. These are the biggest companies in the stock market, and it is believed that the movement of these companies can foreshadow the future movement of the market. Some of these companies include – Apple, AT&T, Pepsi, Mastercard, Visa, and Wal-Mart. These comapnies have such a large economic value that believe they can influence the market.
Now, what most hedge fund managers promise their clients is that they will be able to beat the market, and what they don’t tell their client is that most hedge fund manager fail to beat the market. In fact, 88% of hedge funds and 65% of mutual funds underperform the market, so what does that mean for you?
For the young investor, why choose one individual stock, when you can own a small piece of many companies in the market, and invest where other billionaires are placing their hard earned cash.
Some simple ways to invest your money would be to go through SPYDER ETFs, and Vanguard ETFs. The symbol – SPY, which is an ETF that encompasses the holdings in the S&P 500, it includes Apple, Johnson and Johnson, Exxon, Microsoft, Wells Fargo, Berkshire Hathaway, and others. This has returned 13% to 15% over the past 3 to 5 years, and is poised to do so in the next 3 to 5 years. It guarantees you that you will be able to manage your portfolio instride with the biggest companies in the market, and your portfolio will gain a compounded growth until your retirement. What makes the SPYDER ETFs special is that they pay a dividend payment that can be accepted in cash or in shares. The SPY ETF pays a dividend of 1.93% which is higher than most individual companies on the market, and they have ETFs for each sector of the market. For further information you can view all of the SPYDER ETFs, check out – SPYDER Funds .
The biggest advantage of this style of investment is that you can base your portfolio off of this holding profile, and build an even bigger percentage of holdings based of what is performing the best in the market. From this you will be able to see what everyone else views to be as exponential gainers, and learn what to expect from high end companies.
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