An article by CNBC stated that in 2020 alone, over 13 millions accounts were added to Robinhood's platform - a large majority of those users being between the ages of 20 and 30. Despite this massive increase in new accounts, many adults are still choosing to hold off on investing until they have more money. But that's the worst decision to make!
Why do I say this? Well, the reason the stock market is so powerful is due to this cool thing called compound interest. You might know this guy named Albert Einstein who said, "Compound interest is the 8th wonder of the world. He who understands it, earns it. He who doesn't, pays it."
Now, you might be thinking, "That's cool and all Nate, but I don't have much money to invest." My response would immediately be, "You don't need that much!" I'll prove it.
Let's say you're 20 years old and you chose to invest $10 each week into the S&P 500 ETF*, seeing a return of 10% each year. If you didn't touch that money until retirement, you would have $360,618.10. That's a third of a million dollars in your pocket for choosing to invest just $10 per week. If you waited until you were 80 years old to see that money, you would have more than $1.5 million in your pocket.
It's hard to believe, I know, but this is the exact reason Albert Einstein said what he said.
Now that this information has been given to you, will you choose to invest now, or will you choose to wait? Time is ticking!
*The S&P 500 is a index of 500 of the best companies in the United States. Over the last 50 years the S&P 500 had an average annual return of 10%.*