Few of us know that an incredible 96% actively managed mutual funds fail to beat the market* over any sustained period of time due to their excessive fees! This is what sometimes called the $13 Trillion lie (That’s how much money is in mutual funds.)
When we say “beat the market”, we are generally referring to the S&P 500 stock index which includes the largest 500 US companies such as Apple, ExonMobile , 3M , Google ,…etc.
Today, I want to encourage you to take action and start beating 96% of fund managers by following these simple steps for Making money with money:
1- Open a broker account. As mentioned in previous article , Interactive Brokers (IB) is THE best broker I used in the last 20+ years.
2- Read Wealth Heights’ article of Stocks Fundamentals to learn the basics of stocks investment.
3- Transfer money to your IB account. Make sure that you pay the lowest fee in any money transfer by using a low cost transfer company like OFX. Banks normally charge very high fees.
4- Buy the S&P 500 ETF with the ticker SPY. This means that you own shares of the biggest 500 US companies and you will beat 96% of active fund managers. The S&P500 long-term return is about 10% per year and in 2017 returned over 21% !
These are very simple 4 steps to give you a head start to stock investment with Making money with money which is one of the most profitable investment vehicle. After that, you need to keep learning via reading books, attending seminars , joining financial blogs and getting a personal coach.
Let’s make 2018 a transformational year and act TODAY!
* Reference “Money Master the Game” by Tony Robbins Page 93