And if I’m wrong and everyone is actually doing it, how is it sustainable in the long run? I mean, we can’t all be millionaires.
Not everyone has money to do it, and not everyone knows you can do it. Also, as the dollar devalues most everyone will become a millionaire, but being a millionaire won’t mean what it used to anymore – which is already the case.
Millionaire today is a family with a house and two 401k which are underfunded for their age 🤡
If investing in the S&P 500 is such a surefire way to make money, then why isn’t everyone doing it?
First, lots and LOTS of people (and companies do it).
Three reasons people don’t do it:
- Some people believe they can make even more money by putting it into something else (other riskier stocks, non stock investments like their own sole proprietor businesses, bitcoin, scratcher lottery tickets).
- Some people are entirely risk averse. If they can’t SEE their money they don’t trust where it is so they buy precious metals or stack cash up. Neither of these are good investments for returns, but are generally safer that index investing (which is what S&P500 is) if you need to sell on short notice.
- Investing anything requires money you don’t have to spend somewhere else. Lots of people are at negative money, so they don’t even have a dollar to invest.
- A ton of people rely on the advice of financial advisors who don’t have their interests in mind and who sell them mutual fund packages with high expense ratios that do poorly long term. These people generally lack the financial knowledge to know any different.
“You need money to make money.”
Additionally, making more money is MUCH easier when you have money too start with.
making more money is MUCH easier when you have money too start with.
Well yeah… You can avoid labour if you got capital
Going to the gym and eating healthy is a surefire way to look good and have a longer healthspan too but most people aren’t doing that either. Why? Probably because it takes time and effort.
Also I’m not sure how many people have the patience to not touch the money once you get into tens or hundreds of thousands. I could pay off my house with my savings but I wont.
If exercise makes you so healthy why doesn’t everybody do it?
