Syren Thriving
Syren Thriving
FINANCIAL FITNESS - Episode 4: The Average Rate of Return of the Stock Market and How Your Portfolio can Beat most *Professional* Investors (Really!)
Welcome to our new series: Financial Fitness with Syren and Sasha where we help absolute beginner investors get started on their journey to financial freedom by making investing accessible through digestible, organized and action-oriented content.
Today's episode is about the average return rate of the stock market. Over the last 100 years, the stock market has returned an average of 10%. Find out how powerful this 10% can be by listening to our podcast on compound interest. And if you think you can you better than 10%, you should know that the returns on index funds beat *eighty-percent* of professional investors. So you can do a LOT of work and pick individual stocks, or simply invest in an index fund to achieve that 10%.* By the way, in the last year alone (2020-2021), the stock market has returned 25%.
*always do your research in choosing index funds and be clear on their fee structure. Look for index funds with ultra-low or no fees of .05% to .2% a year.
IN THIS EPISODE WE DISCUSS:
- How this average is calculated and how you can use it to strategize and grow your portfolio
- How index funds beat *most* professional investors
- What NOT to do if you don't want to lose over 90% of your gains
YOUR ACTION ITEM:
- Now that you know the average rate of return for the stock market, use the compound calculator (that we discussed in Episode 3) and enter 10%. Use this number with confidence and begin to think about some new goals and strategies to reach your investment goals.
Please subscribe to the channel and share the episode. Enjoy the show!
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FOR MORE CONTENT OR COACHING WITH SYREN:
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CONNECT WITH SASHA:
Blog: ninjanomics.wordpress.com
Seeking Alpha: cryptonomics
Twitter @ninjanomics1
INTRO:
Raghav Bhandari
MUSIC:
Summer of 1984 by RKVC